Randgold shares bounce back on Mali deal

SHARES in gold miner Randgold Resources yesterday closed up five per cent thanks to a political settlement in Mali, following a coup which threatened the company’s operations there.

The company’s stock surged by as much as nine per cent following the settlement over the bank holiday weekend.

Its price had plunged by more than 20 per cent in the last month as the military coup raised the alarm for investors.

Mali is home to two-thirds of Randgold’s production.

The company has maintained that its output has not been hit by the crisis.

Over the weekend the country’s military rulers re-introduced the constitution with a civilian prime minister in a bid to restore confidence.

Chief executive Mark Bristow, who has been staying in Mali to assess the situation said in a statement: “During this period... operations continued to operate without any material disruption and the fact that they still have sufficient supplies of fuel and other consumables on hand is a tribute to our partnership and in-country management.”

Randgold owns and runs operations at Loulo and Gounkoto and also operates Morila, a joint venture with AngloGold Ashanti.

Bristow added: “The announced resolution of the political crisis had strengthened the company’s confidence in the political maturity of the West African region and its ability to settle conflict situations without external involvement.”

An update of the political situation in the company’s first quarter results on 3 May.