Randgold’s shares have dropped after a weak quarter, but the miner is still set to hit forecasts
Gold miner Randgold Resources’ share price dropped after it revealed weaker production and profits in the third quarter but said it was well positioned to hit the top end of its full-year guidance.
The figures
Production fell nine per cent from the previous quarter to 310,618 ounces while profits dropped 41 per cent to $60.2m (£46.1m) and total cash cost per ounce rose by 17 per cent to $667.
However, comparing the first nine months of this year to the previous year, production rose 11 per cent, profit was up 22 per cent and cash costs were down nine per cent.
Shares in the company were down 6.49 per cent at 6,985p in late afternoon trading.
Read more: Randgold proves it’s still on track with a huge rise in first-half profit
Why it’s interesting
Randgold is London’s largest listed gold company, and most of its operations are in Mali, but it also works in the Cote d’Ivoire, Democratic Republic of Congo, and Senegal.
The company’s flagship Loulo-Gounkoto mine produced less gold this quarter due to a planned decrease in grade, but it remains on track to beat 2017 guidance.
Chief executive Mark Bristow said the company’s operations were on target to meet “or exceed” annual production plans. The company is also looking at ways to expand its existing asset base and to discover new world-class gold deposits.
The company expects gold production for the full year to be between 1.25m and 1.3m ounces. In 2016, the firm produced 1.23m ounces.
What Randgold said
Chief executive Mark Bristow said:
Randgold stands out as one of only a few gold mining companies that consistently outperforms the gold price and delivers real value to its shareholders, host countries and other stakeholders. Our continuing investment in the future is in line with our long term strategy of creating value through exploration and development, and allocating capital against a strict set of criteria.
With a long term plan that is profitable at a gold price of $1,000 per ounce, a growing dividend stream flowing from past investments and a commitment to ongoing investment, I believe Randgold will continue to be a leader in the gold mining industry in terms of value creation for all stakeholders.
Read more: Solid start: Randgold’s profit jumped in the first quarter