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Cape Town - Randgold has capped a record-breaking year with a proposed 52% dividend hike, the company announced on Monday.
In its report for the fourth quarter and year ended December 31 2016, Randgold said gold production has risen for the sixth consecutive year, up 26% quarter-on-quarter (q/q) and 3% year-on-year (y/y).
It reached its net cash target of +$500m, with no debt. Profit was up 22% q/q and 38% y/y, and total cash cost per ounce fell 17% q/q and 6% y/y. The lost time injury frequency rate was at a record low of 0.46, down 22% y/y.
Gold sales for the quarter of $453.1m lifted 15% from $392.8m in the previous quarter. Group gold production for the quarter of 378 388 ounces was up 26% from the previous quarter due to increases in gold production across all of the operations, while the average gold price received of $1 206/oz dropped by 10% q/q (2016 Q3: $1 333/oz).
Gold sales increased by 28% from the corresponding quarter of 2015, reflecting the higher ounces sold in the quarter, as well as the higher average gold price received.
Profit from mining was significantly up (25%) to $246.8m from the previous quarter, and 65% up on the corresponding quarter of 2015, largely as a result of increased sales and production, partially offset by the drop in the average gold price received.
Depreciation and amortisation of $61.4m went up by 53% from the previous quarter and by 89% from the corresponding quarter of 2015.
Profit for the year ended December 31 2016 of $294.2m represents an increase of 38% compared to a profit of $212.8m in the previous year, reflecting increased revenue and lower cash costs, partially offset by a 16% rise in depreciation and the 126% increase in corporate tax expenses for the year.
Depreciation and amortisation for the year ended December 31 2016 of $175.3m increased from the prior year cost of
$150.9m.
The board has proposed a final cash dividend of 100 US cents per share, a 52% increase on the prior year’s 66 US c/share. The proposed final cash dividend will be put to shareholders for approval at the annual general meeting to be held on May 2 2017.
