Randgold ‘faces down’ tough year
Randgold Resources “faced down” challenges in the mining industry and improved performance on all fronts in 2015.
|||Cape Town - Randgold Resources chief executive Mark Bristow on Monday described the year to the end of December 2015 as one of the best years in the company's history as it had “faced down” challenges in the mining industry and improved performance on all fronts.
The London and Nasdaq-listed company, which operates gold mines in Mali, Cote d'Ivoire and the DRC, said it had set a new production record of more than 1.2 million ounces, up 6 percent on the previous year, and group total cash cost per ounce was down by 3 percent at $679/oz.
A statement from the company said strong cash flows boosted cash on hand by 158 percent to $213.4 million, with profit for the year coming in at $212.8 million against the previous year's $271.2 million, reflecting the decline in the gold price.
Randgold's board has recommended an annual dividend of $0.66 per share, up 10% on the previous year's $0.60, reflecting the strong cash flows.
An optional scrip dividend is also being proposed whereby shareholders can elect to receive new ordinary shares in the company.
“It's easy to achieve when the stars are all aligned, but it's a lot more difficult in a market as challenged as this one, which makes these results even more pleasing,” Bristow said.
He added: “We saw the downturn coming and were able to take the necessary steps in time to gear our businesses to prices that could go even lower than our long-standing $1 000 per ounce planning filter.
Read also: Randgold knocked by falling gold prices
“We ensured that we make the most of lower input costs, notably from the collapsing oil price, and that we maximised our cash flows and limited our capital spend without compromising the long-term value of our assets.
“Perhaps most important, we impressed anew on our managers the need to make commercially sound decisions, even if that means foregoing extra ounces in order to ensure a better bottom line and cash flow performance,” he said.
Bristow added: “We're in a unique position to continue delivering value, with a big upside to any rise in the gold price.”
AFRICAN NEWS AGENCY