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Randgold disappoints market as cuts guidance for key Mali mine
SHARES in gold miner Randgold Resources tumbled yesterday as its quarterly profit of $36.4m (£16.6m) fell short of expectations.
Much of the 52 per cent growth from the last quarter, a 92 per cent rise on last year, was due to exceptional items such as selling off shares in Volta Resources. Underlying pre-tax profit was $26.3m, down nearly 10 per cent on the previous quarter.
Gold production for the quarter decreased by 17 per cent, and the firm cut output estimates for its flagship Loulo mine in Mali by five to 10 per cent.
Shares in the FTSE 100 component closed 5.6 per cent down at £53.95.
“It’s part of growing up,” said chief executive Mark Bristow. “I have never run the company on a short-term basis.”