Randgold & Exploration - Continued Strong Performa
Randgold & Exploration Company Limited
Reg No 1992/005642/06
Sharecode : RNG
ISIN: ZAE000008819
NASDAQ trading symbol: RANGY
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PRESS RELEASE
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RANDGOLD RESOURCES LIMITED
For further information call:
(CEO) Mark Bristow on 082 800 4293 or 0944 779 775 2288
(CFO) Roger Williams on 083 308 9989 or 0944 779 771 9660
CONTINUED STRONG PERFORMANCE BOLSTERS ROBUST BALANCE SHEET
London, 14 May 2003 - The London and Nasdaq listed gold company Randgold
Resources today reported a net profit of US$17.1 million for the March quarter -
a fivefold increase on the corresponding quarter in 2002 - and said its
continued strong operational performance was bolstering its growth prospects.
Attributable production of 95 398 ounces at a cash operating cost of US$65/oz
(total cash cost of US$88/oz) from its Morila joint venture was lower than in
the high grade bonanza December quarter but in line with forecast. A higher
received gold price of US$338/oz impacted positively on revenues and operating
profit margins remained above 70%. Plant throughput at Morila comfortably
exceeded design parameters, reflecting the benefits of the ongoing mine-to-mill
optimisation exercise. Work has started on a capital expansion programme
designed to increase production above the 330 000 tons per month level.
Randgold Resources" balance sheet was strengthened further by the latest
results, with cash now standing at US$80 million and virtually no debt other
than the company"s attributable share of the non-recourse Morila project
finance. Shareholders" equity rose to US$140 million from US$119 million at the
end of 2002.
Chief executive Dr Mark Bristow said the company was continuing to accelerate
its pursuit of new high-return growth opportunities. It had entered into ten
confidentiality agreements during the past quarter and was
conducting due diligences on exploration and feasibility-level prospects in
East, Central and West Africa as well as Europe.
Within its existing project and exploration portfolio, drilling of the high-
grade axis and orebody extensions at Morila was making good progress, and drill
testing of four prioritised Morila-style targets located on Randgold Resources"
properties was scheduled to start in the next quarter.
An updated opencast feasibility study on the 4.3 million ounce Loulo project, in
the Mali West region, was presented to the Malian government and a potential new
resource has been delineated on the Loulo 0 West target. The next drilling
campaign to add further opencast and underground resources has started. It was
announced earlier this week that Randgold Resources was leading an investigation
into cooperative options in Mali West with Nevsun, to bring their respective
projects to account.
In Senegal, exploration work on the Tomboronkoto permit is returning good
results and drilling programmes are scheduled for late in the year. The company
has applied for a further 16 licences in Tanzania, where it is also pursuing
joint venture opportunities.
During the quarter Randgold Resources granted a 12-month option over its
interest in the discontinued Syama mining operation in Mali to Resolute Mining.
Resolute will pay Randgold Resources a monthly option fee of US$75 000 while it
carries out a due diligence on the project.
Issued on behalf of Randgold Resources Limited by du Plessis Associates.
dPA contact Kathy du Plessis on Tel: 27(11) 728 4701,
mobile: (0)83 266 5847 or e-mail randgoldresources@dpapr.com
website: www.randgoldresources.com
Date: 14/05/2003 02:37:34 PM Supplied by www.sharenet.co.za
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