RANDGOLD Resources said full-year production at its Tongon mine in Côte d’Ivoire would come in at 230,000 ounces for the 2018 financial year, well off the 290,000 oz forecast at the onset of the year.
However, group production guidance of between 1.3 million to 1.35 million oz was maintained by the company, it said in an announcement today in which it detailed the return to work of employees at Tongon following a lock-out.
The lock-out was imposed after industrial action at Tongon in July disrupted wage negotiations. As a result, Randgold locked out employees with a view to rehiring staff and recommencing the wage talks. During the lock-out, Randgold staff prepared the mine for a resumption of production. This activity included relining of mills as well as maintaining the tailings storage facility and providing access to two open cast mines.
The mine is now fully operational and the phased return of the full employee complement is expected to be complete by the weekend, the company said in an announcement.
Randgold Resources CEO, Mark Bristow, said his confidence the firm would meet its production commitment for the year was based on “… Loulo-Gounkoto remaining on target and the continued outperformance at Kibali”.
The Kibali mine in the Democratic Republic of Congo was the stand-out performer in the June quarter for Randgold pushing gold production up 17% to a record 201,742 oz from the March quarter. That level of output was also 43% higher than the June quarter of 2017.
Kibali’s total cash cost dropped 11% to $651/oz (March: $735/oz) which Bristow said reflected the benefits of higher grade ore and lower power costs from the increased usage of hydropower. Commissioning has also started on Kibali’s third hydropower station at Azambi which is expected to be fully operational before the end of the September quarter.
