Rangold back in black for Q3 but shares fall
GOLD miner Randgold Resources swung into third quarter profit yesterday, propelled by soaring bullion prices.
The company reported a $13.6m (£8.2m) profit compared with a loss of $684,000 a year ago as rising sales outweighed higher production costs.
Chief executive Mark Bristow used the figures as a springboard to announce he would fast-track the company’s Gounkoto project, which is 25km south of its flagship Loulo mining complex in Mali. Three other sites are also in the pipeline.
Randgold’s shares fell 4.2 per cent to close at £45.77 as market makers digested increased processing costs per ounce, up from $517m to $573m.
Arbuthnot Securities maintained its target price of £50 a share.
Analyst John McGloin said: “The really positive thing is all Randgold’s upcoming exploration projects are at higher grade than its current reserves.”