London - West Africa-focused miner
Randgold Resources said second-quarter profit rose 10% as it produced
more gold than expected regardless of the ongoing unrest in Mali,
where its flagship Loulo-Gounkoto mine is located.
The FTSE-100 gold producer posted
profit of $142m in the three months to the end of June, beating the
$128m it made last year. Output grew 14% to 210 534 ounces in the
period, above some analyst forecasts.
Gold output from Loulo-Gounkoto reached
a record high, confirming Randgold's assertion in May that the
unstable political climate would not impact its operations.
"Despite the political crisis in
Mali during the quarter, the complex's production reached a new high
of 132 481 ounces," Chief Executive Mark Bristow said in a
statement on Thursday.
"Set to deliver 500 000 ounces in
2012, the complex is now poised to take its place as one of the
largest gold producers in Africa."
Islamist militant groups control about
two-thirds of Mali after hijacking a secular rebellion by Tuareg
nationalists earlier this year.
Randgold, which started mining at its
Kibali gold project in the Democratic Republic of the Congo in June,
said that its cash costs per ounce fell by 6% on a quarter-by-quarter
basis, a standout achievement as miners across the world grapple with
The lower cost base was a result of
higher production thanks to more efficient mining as the ore was of a
higher grade at Loulo-Gounkoto.
Shares in Randgold, which have risen
19%in the last three months, closed at 6190 pence on Wednesday,
valuing the company at £5.6bn.
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