Randgold close to developing its own mines, rather than acquiring them
The company’s second-quarter profit surged 71% to $84m; gold production for the three months to June 30 rose 21%
London — Randgold Resources, one of Africa’s top gold producers, said it’s closing in on picking new projects to develop as the company continues to focus on finding its own mines rather than buying up rivals.
"The way people make money in the gold industry is to find your own mines and build them. It’s better than mergers and acquisition," CEO Mark Bristow said in an interview on Bloomberg TV. "We’ve got some very exciting projects in Ivory Coast."
Randgold is looking to find three new projects over the next five years as part of the company’s next growth phase after building its Kibali mine in the Democratic Republic of Congo. Bristow said the producer is getting closer to being able to develop its Massawa project in Senegal into a mine.
The company’s second-quarter profit surged 71% to $84m, it said earlier on Thursday. Gold production for the three months to June 30 rose 21% from a year earlier to 341,316 ounces, while cash costs fell 21%. Full-year output will be towards the top end of its guidance of 1.25-million ounces to 1.3-million ounces, it said.
Randgold shares climbed as much as 4.7%, the most in three months, and were up 4.2% by 8.16am in London. The stock has gained 14% this year. The company said its cash pile has increased to $572.8m. Bristow said Randgold will keep $500m on the balance sheet to develop new mines and return the rest to shareholders.