Randgold boss eyes new deals as output soars
RANDGOLD Resources’ chief executive yesterday said that the gold miner will be looking for new acquisition targets in the coming year, as the company unveiled a 15 per cent rise in full-year production.
The FTSE 100-quoted firm posted record output of 910,373 ounces and forecast a continued rise in production over the next five years. It expects production in 2014 to increase by between 25 per cent and 30 per cent on the back of increasing grades at the Loulo-Gounkoto complex in Mali and output from its new Kibali mine in the Democratic Republic of Congo.
“We’ll be investing capital of some $330m (£202.4m) in our growth projects and a further $60m in exploration [this year],” said Mark Bristow.
“In addition, we’ll be looking for profitable acquisition or joint venture opportunities generated by the current stress in the industry.”
Randgold Resources’ strategy differs from its competitors who are selling assets and cutting costs in order to turn around their fortunes at a lull in the commodities cycle.
“Exploration success, more than any other factor, has differentiated Randgold from the rest of the gold mining industry,” said Bristow.
Profit for 2013 fell to $325.7m, from $510.8m in 2012, due to a 17 per cent drop in the gold price last year.
The dividend will remain flat at $0.50 per share, in line with forecasts.
Shares climbed 6.25 per cent.