[miningmx.com] — WEST African-focused gold miner Randgold Resources posted lower-than-expected production in the third quarter, although it said it expects output to rise significantly in the fourth quarter.
Still, third-quarter profit more than doubled to $28.2m helped by higher gold sales and prices.
Attributable production fell to 101,468oz, from 118,925oz in the year-earlier quarter, as total cash costs jumped 26% to $726/oz.
Numis Securites had expected production of 105,000oz at costs of $662/oz and Canaccord Genuity had forecast output of about 120,000oz.
The company said it expects an improving operational performance from its Loulo project in Mali and the start of production on Monday at its new mine at Tongon in the Ivory Coast to lift output in the fourth quarter.
“We are confident that this momentum will be maintained and, with a big improvement in gold production in the fourth quarter, our sights are still firmly set on a 50% increase in our gold output next year,” said CEO Mark Bristow.
In August, the FTSE 100-listed company cut its production guidance to within 5% of the 477,000oz it gave at the beginning of the year.
Randgold is not alone in cutting output forecasts for the year. Lower guidance from Petropavlovsk, African Barrick Gold and Centamin Egypt means that the top four biggest pure gold producers listed in London reduced their 2010 targets.
However, gold prices that have risen 29% this year and on Tuesday reached a new record high of $1,414.60 an ounce will give the producers some comfort.
