All data is delayed
See More

Randgold tumbles on Mali unrest

Mar 22 2012 11:21
Johannesburg - Shares in gold miner Randgold Resources fell 13% on worries over the impact of unrest in Mali, home to some two-thirds of the group’s production and where renegade soldiers say they have seized power in a coup.

Randgold, which owns the Loulo, Morila and Gounkoto mines in Mali, is down 13% at 5 735 pence, underperforming a 2.7% drop in the broader UK mining sector.

“Out of any company in the sector, we would consider Randgold Resources as the best placed to deal with such a situation given the incidents and history of its activities in Ivory Coast...

"However the uncertainty will be negative for the share price as Randgold’s Malian operations represent 43% of the group net present value and 65-70% of group production in 2012,” Collins Stewart said in a morning note.

“Randgold’s gold operations in Mali are also of significant importance to the country with the group having paid over $1bn in royalties, taxes and dividends to the government to date, with Randgold being a source of substantial foreign investment in the west and south of the country.”

randgold resources  |  mali  |  coups  |  gold mining


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote