Randgold falls on weak results
RANDGOLD Resources saw its share price slumped 1.7 per cent yesterday after it unveiled lacklustre second-quarter results.
The FTSE 100-quoted gold miner produced 277,000 ounces at cash costs of $701 (£416) per ounce, missing analysts’ forecasts.
Its fledgling Kibali mine in the Democratic Republic of Congo fared particularly badly compared to industry expectations. Output dropped by around 20,000 ounces to 91,137 ounces, as technical issues led to lower recoveries and throughput.
Randgold said profit from mining fell five per cent quarter-on-quarter, although it jumped 54 per cent year-on-year to $162.3m. The company maintained its full-year guidance.
Low gold prices remain the key risk for the company, which has not had a new discovery in five years.
It is on the acquisition hunt but boss Mark Bristow said that there is not much out there in line with Randgold’s specific criteria.