RandGold's output declines 11% after setbacks

London - Randgold Resources maintained its full-year output target as first-quarter production of the metal fell 11% after operational problems at two of its African mines.

Randgold mined 291 912 ounces in the first three months of the year down from 326 430 ounces in the last quarter of 2015, the Jersey, Channel Islands-based company said in a statement on Wednesday. It maintained a full-year target of 1.25 million ounces to 1.3 million ounces, chief executive officer Mark Bristow said.

"We’ve had a few operational challenges," he said. "It’s a little bit lower than we planned, but not materially. We haven’t changed our full-year guidance."

Randgold, which mines for the metal in Mali, Ivory Coast and the Democratic Republic of Congo, reported first-quarter profit of $54.4m, 13% higher than a year earlier. Sales rose 0.3% to $345.8m.

Producers have been buoyed by a recovery in the gold price; with the metal climbing to $1 300 an ounce this week for the first time since January 2015 on speculation central banks from the US to Europe will maintain low interest rates.

Randgold has surged 59% this year, while Barrick Gold and AngloGold Ashanti have more than doubled this year.