Fin24

Randgold profit jumps

2010-05-06 09:24

London - West African-focused gold miner Randgold Resources posted a an 83% jump in first-quarter net profit and said it has started mining at its Tongon project in the Ivory Coast.

Net profit surged to $23.9m from $13.1m in the year-earlier period as attributable production climbed 2% to 112663 ounces.

However, profit dropped 38% from the previous quarter on lower production from its flagship Loulo mine in Mali and plant breakdowns at the Morilla mine.

"The most critical challenge we face over the next three quarters is delivering on our production and profit forecasts under very demanding conditions," said chief executive Mark Bristow.

"Looking further ahead, we remain confident about achieving our goal of producing 1.2 million ounces in 2014."

Total cash costs also jumped to $617 an ounce from $461 in the year-earlier quarter.

The company said that since May 3 Loulo has experienced power supply interruptions which have impacted operations throughout the mine and that the consequences are being assessed.

In March, Randgold announced a 75% increase in reserve estimates boosted by the acquisition of Kibali and discoveries at its Gounkoto and Massawa projects.