Randgold proves it's still on track with a huge rise in first-half profit

 
Courtney Goldsmith
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Randgold had a strong second quarter operationally and on the exploration and new business front (Source: Getty)

Randgold Resources revealed its half-year profits jumped more than 50 per cent, which sent shares climbing and proved to investors the company was not derailed by poor first-quarter production.

The figures

The African gold miner said profit from mining activity rose 53 per cent to $229.7m (£174.9m) as production continued to grow in the six months to the end of June.

Randgold said its cash pile rose 11 per cent over the first half to $572.8m despite the payment of a $94m dividend in 2016.

Total cash costs per ounce fell 13 per cent on the previous half-year to $527 per ounce.

The company's London-listed shares closed 3.43 per cent higher at 7,235p.

Why it's interesting

Production had slipped in the first quarter of 2017 due to labour strikes, but Randgold showed investors today that the company was still on track to meet expectations.

The bulk of the company's operations are in Mali, but it also works in the Cote d'Ivoire, Democratic Republic of Congo, and Senegal, and it said its flagship Loulo-Gounkoto mine delivered "robust" performance in the second quarter.

Due to strong production in the first half, Randgold said it will likely hit the top end of its full-year guidance.

What Randgold said

Chief executive Mark Bristow said Randgold had a strong second quarter operationally and on the exploration and new business front.

At this stage the outlook is positive, and Randgold is trending towards the top end of its 2017 production guidance range at a total cash cost below $600 per ounce.

I believe we are well on our way to achieving our goal of defining three new projects that pass our investment filters within five years.

Read more: Randgold shares soar after miner digs out boosted dividend

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