JOHANNESBURG (miningweekly.com) – Randgold Resources’ full-year production guidance remains intact despite a softer first quarter, ended March 31, in which it contended with multiple challenges.
Following the full commissioning of its underground mine, Kibali, in the Democratic Republic of Congo (DRC), Randgold increased quarterly production by 22% compared with the first quarter of 2017 and is on track to achieve its 2018 target of 730 000 oz.
However, in Côte d'Ivoire, Tongon's production was impacted by a series of work stoppages.
With operations now back at full capacity, the gold miner said on Thursday that it is committed to clawing back most of the lost production.
Randgold's flagship operation, the Loulo-Gounkoto complex, made a strong start to the year although changes in the mining schedule affected the underground grade, impacting on production.
Results for the quarter show group production lower at 286 890 oz and total cash cost per ounce higher at $720/oz. Profit decreased to $66.5-million, but cash and cash equivalents grew by 3% to $739.5-million, while the company remains debt-free.
At the recently held annual general meeting, shareholders approved the 2017 dividend of $2 a share, a 100% increase on the previous year.
“Coming off a strong prior quarter and record performance in 2017, the company had anticipated a slower start to this year with a gradual build-up throughout the year. Despite the issues that arose, Randgold is still confident of meeting its annual production guidance of between 1.3-million and 1.35-million ounces,” Randgold CE Mark Bristow said.
He adds the first quarter was a very active quarter, in which Randgold ramped up the underground production at Kibali, advanced the Gounkoto superpit project and the development of the Baboto satellite pit at Loulo, and prepared the Ntiola satellite deposit at Morila for mining.
“At the same time, we also successfully handled the difficult labour situation at Tongon, sorted out the sequencing at Loulo and continued negotiations relating to the new mining code with the DRC government. This demonstrates the depth and competence of our management team, and its ability to deal with complex operational and sociopolitical issues on multiple fronts.”
During the quarter, exploration highlighted the potential to add ounces at Kibali, Loulo and Tongon, as well as new reserve opportunities at the Massawa project in Senegal.
Bristow said Randgold was also aggressively hunting for its next big project in the African gold belts as well as further afield.