Randgold Resources posted record production last year, boasting it was “one of the best in its history”, despite slumping gold prices taking a chunk out of its profits.
Randgold, the South African gold miner, posted record-breaking production for the quarter ending 31 December, up six per cent year-on-year.
The firm’s profits were down 21.5 per cent on the year to $212.8m, although quarterly profits were up 10 per cent against the third quarter.
The dividend has been boosted by 10 per cent to $0.66 per share.
Randgold's share price quickly rose 3.4 per cent in morning trading on the results, and the firm's stock, which struggled over 2015, is up over 25 per cent since the start of the year.
Why it’s interesting
Miners are having a rough time as the commodities rout continues, and gold has not been left unaffected.
The price of gold has been hovering around a six-year low, around $1,045 an ounce.
But recent market volatility may offer gold miners a glimmer of hope, as investors seem to be returning to the golden safe haven.
With its stock soaring 25 per cent since the start of 2016, Randgold has been outperforming the FTSE index by far.
What they said
Mark Bristow, Randgold’s chief executive, said:
It's easy to achieve when the stars are all aligned but it's a lot more difficult in a market as challenged as this one, which makes these results even more pleasing.
Randgold is now in a unique position to continue delivering value to all its stakeholders. Our mines can continue to generate cash flows at gold prices well below the $1 000/oz level. Our positive production and cost profile extends beyond 10 years. Our exploration teams are not only replenishing the ounces we mine but are making significant progress in the hunt for our next big discovery.