JERSEY, CHANNEL ISLANDS--(Marketwired - Jul 10, 2013) - Randgold Resources Ld (
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
("Randgold Resources" or "Randgold")
GOLD PRICE DOWNTURN INTENSIFIES NEED FOR STAKEHOLDER PARTNERSHIP
Johannesburg, 10 July 2013 - The recent drop in the gold price has
highlighted the need for governments of mineral-rich countries to
cooperate with mining companies in the optimal development of their
resources, says Randgold Resources chief executive Mark Bristow.
Speaking at a media briefing here, Bristow said the two parties should
be united in a common purpose but sometimes seemed like ships passing
each other in the night. "Governments are tempted to harvest the green
shoots before the enterprise comes to fruition; the gold mining
industry tends to exaggerate the risk without fully addressing its own
internal problems," he said.
This disconnect arose from the mistaken perception that gold mining
companies must have made extraordinary profits during the long bull run
in the gold price, Bristow said. In fact, with escalating costs
cramping margins, most gold companies had not managed to create real
value and at the height of the boom the industry had actually been ex
growth. The declining gold price meant that many gold mining companies
were now again having to fight for survival, as evidenced by a spate of
write-downs and abandoned projects."The pursuit of quality assets has led
gold companies away from their
traditional hunting grounds and towards regions which are more
prospective but present a greater risk. All these regions are now
competing with each other for mining investment, and while Africa has
the advantage of great mineral wealth, its competitors generally have
better infrastructures, greater skills pools and more sophisticated
economies," he said.
In order for African countries to attract mining investment and benefit
fully from their mining industries, they should participate fully in
the value creation process."Real value is created by the discovery of
multi-million ounce deposits
and their development into profitable mines. Governments' role in this
should be firstly to provide a stable, business-friendly regime that
will attract investors, and then to partner the mining company in the
development process, driving the project up the value curve and sharing
fairly in its returns," he said.
Randgold owns and operates the Loulo complex in Mali and the Tongon
mine in Cote d'Ivoire, and also operates the Morila joint venture in
Mali. In addition, it is currently developing the giant Kibali project
in the Democratic Republic of Congo."When the gold price started turning
down, we reviewed all our business
plans and adjusted them where necessary. Our key objectives remain
intact, notably the aim of exceeding 1.2 million ounces of production
by 2015," he said."With our robust operations, low costs and no debt, and
Kibali on
schedule to pour its first gold before the end of this year, Randgold
can face any realistically foreseeable gold price scenario with
equanimity."
Bristow said the current squeeze on the industry had in fact created
new opportunities for Randgold, as gold mining juniors with quality
assets had to seek elsewhere the support no longer available from
bankers and investors. "While our core strategy remains organic
growth, we have entered into a number of earn-in joint ventures on
promising projects, most recently the agreement announced last week
with Taurus in Mali," he said.
RANDGOLD RESOURCES ENQUIRIES
Chief Executive Financial Director Investor & Media Relations
Mark Bristow Graham Shuttleworth Kathy du Plessis
+44(0) 779 775 2288 +44(0) 1534735333 +44 (0) 2075577738
+44(0) 7797711338 Email: randgold@dpapr.com
Website: www.randgoldresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the
historical information contained herein, the matters discussed in this
news release are forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934, and applicable Canadian securities
legislation. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, the estimation
of mineral reserves and resources, the realisation of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as 'will', 'plans', 'expects'
or 'does not expect', 'is expected', 'budget', 'scheduled','estimates',
'forecasts', 'intends', 'anticipates' or 'does not
anticipate', or 'believes', or variations of such words and phrases or
state that certain actions, events or results 'may', 'could',
'would','might' or 'will be taken', 'occur' or 'be achieved'. Assumptions
upon
which such forward-looking statements are based are in turn based on
factors and events that are not within the control of Randgold
Resources Limited ('Randgold') and there is no assurance they will
prove to be correct. Forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Randgold to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to: risks
related to mining operations, including political risks and instability
and risks related to international operations, actual results of
current exploration activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, as well
as those factors discussed in Randgold's filings with the US Securities
and Exchange Commission (the 'SEC'). Although Randgold has attempted
to identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Randgold does not undertake to update any forward-looking
statements herein, except in accordance with applicable securities
laws.
CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in their
filings with the SEC, to disclose only proven and probable ore
reserves. We use certain terms in this release, such as 'resources',
that the SEC does not recognise and strictly prohibits us from
including in our filings with the SEC. Investors are cautioned not to
assume that all or any parts of our resources will ever be converted
into reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's Industry Guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange
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