[miningmx.com] – RANDGOLD Resources lifted third quarter share earnings 11% quarter-on-quarter and generated enough cash to pay down its revolving credit facility leaving the £3.5bn firm completely debt-free.
Randgold paid back $50m it had used in terms of its RCF and boosted cash and cash equivalents to $75m, partially helped by the recovery of VAT returns.
“It’s … a good feeling to be back in the black after repaying our revolving credit facility,” said Mark Bristow, CEO of Randgold Resources in comments to the firm’s third quarter operating and financial results.
Profit from mining of $172.6m was up 6% quarter on quarter following strong operating performances from Randgold’s Kibali mine in the Democratic Republic of Congo (DRC), and Tongon in the Ivory Coast.
Production for the quarter came in at just under 300,000 ounces of gold taking output for Randgold’s financial year to 860 366 oz. “We’re well on our way to passing the million-ounce landmark before the end of this year,” said Bristow.
Kibali, which Randgold shares with AngloGold Ashanti, was nearing operational stability and would achieve an average of 650,000 oz/year over the next 10 years.
The only disappointment was a decline in output at the Loulo-Gounkoto complex in Mali which was 8% down at 160,286 oz. Bristow said, however, the mine was still on track to exceed its 2014 guidance of 640,000 oz.
Investec Securities said in a morning note that Randgold remained the premier gold stock in London, but with the $100/oz weakening in the gold price this month, it would be a difficult time to progress.
“Randgold remains the go-to gold stock in London but cannot swim against a falling gold price, down +$100/oz in past fortnight to $1,150/oz,” Investec said. It added that Randgold “.. may well be in a position to be among the last men standing, but it’s not pleasant to watch”.
Said Numis Securities: “A good result with more to come. Remains our top pick”.
