JOHANNESBURG (miningweekly.com) – London- and Nasdaq-listed Randgold Resources on Monday posted a profit increase of 259% for the year ended December 2011, as output climbed at its African mines.

The company, which attributed the significant growth to increased production, recorded a profit of $433.4-million for the period, compared with 2010’s earnings of $120.6-million.

Production jumped 58% to 696 023 oz owing to increased contributions from its Loulo complex, in Mali and Tongon gold mine, in Côte d’Ivoire. The Randgold/AngloGold Ashanti Morila mine joint venture in Mali, which was now a dump treatment operation, passed the six-million-ounce total production mark during the fourth quarter.

Fourth-quarter profit rose by 11% from $136.2-million during the third quarter to $136.2-million. This was a 323% year-on-year increase.

“The record results represented a significant achievement, particularly when seen against the background of the major developmental projects and issues the company had to handle during the year,” said Randgold CEO Mark Bristow in a statement.

He referred to expansion programmes at Loulo and Tongon, the commissioning of Gounkoto and the rapid advance of the large Kibali project in the Democratic Republic of Congo.

Meanwhile, group production was expected to reach between 825 000 oz and 865 000 oz during 2012, up 19% from 2011 levels. Bristow said better throughput and grade at the Loulo/Gounkoto complex would drive a yearly production increase over the next five years.

The company further reported that the anticipated start-up of construction at Kibali, the development of programmes to unlock more capacity at Loulo and Tongon and exploration across the group would result in total capital expenditure for 2012 remaining high at about $660-million.

Basic earnings a share were up 262% to $4.13 for the year ended December 2011, compared with $1.14 in 2010.

The Randgold board approved a divided of $0.40, which is double that of 2010, on the back of the substantially higher earnings.
 

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