TORONTO (miningweekly.com) – LSE- and Nasdaq-listed Randgold Resources will outline the way forward at its Kibali gold project, in the Democratic Republic of Congo (DRC), early next year, CEO Mark Bristow said on Thursday.

Speaking in Toronto, Bristow said Randgold will likely surpass its production forecast of 600 000 oz of gold by 2011 by around 100 000 oz.

He also reiterated previous guidance that the firm fully expects to have doubled the 600 000 oz figure in 2014, even before accounting for its new DRC project, acquired with AngloGold Ashanti last month.

Randgold produces gold from the Loulo mine, in Mali, as well as the now-halted Morila mine, where it is processing stockpiled ore. The company is nearing the end of construction of its new Tongon mine, in the Côte de Ivoire, and is working on prefeasibility studies for two more potential mines - the Massawa prospect, in Senegal, and the Gounkoto deposit, 25 km south of Loulo.

In October, Randgold and AngloGold acquired Moto Goldmines, for its large Moto project (since renamed 'Kibali'), in the DRC, and Bristow said he expects to present a 'development road map' for the project when the company publishes its full-year and fourth quarter results early next year.

Since clinching the deal, Randgold's team has been poring over exploration data already compiled on the project, and Bristow is confident that there is a lot of potential to grow reserves, both underground and openpittable.

"Geologically, we looked at it three years ago, and I'm happy to confirm that, now we've been back for a few months, the geology is as exciting as it was three years ago," Bristow said.

"We think this is a world-class asset and certainly we believe we acquired it not only at the right time but for a very good value."

The firm is also doing its own drilling, investigating power options and talking to the government about options to upgrade the road to the project.

The route to construction and production at Kibali will be longer than at Randgold's other mines, because of the infrastructure needs, as well as the requirement to relocate some 15 000 people, including illegal miners and traditional villages, in the area over a period of about seven years.

Randgold and AngloGold bought 70% of the Kibali asset when they acquired Moto Goldmines in October, and have since announced an agreement to buy another 20% from a State-owned company in the DRC for $113,6-million.

Bristow indicated on Thursday that the commitment to acquire the 20% was in place when it first made the offer for Moto, beating an earlier friendly offer from Canada's Red Back Mines.

Randgold said at the time that it had the government's blessing for its plan to buy Moto.

DIVIDEND POLICY

Overall, besides the increase in production levels, Randgold also expects to benefit from lower production costs, as the company mines higher grade ore at its new mines, Bristow said.

"Our corporate costs are certainly facing downwards...because we've got better quality reserves coming ahead of us."

He also said that the company will continue a policy of paying money that it does not need to shareholders.

"We've done it in the past and we will definitely do it again," he said.

"One of the objectives for me is that I would like to get Randgold to a proper dividend policy, where the shareholders know that, say, 40% of their profits are going to be dividend.

"And if it all works out to plan, then we are pretty close to being there when we deliver the next phase of production, at whatever gold price comes out."

The company paid an annual dividend of 13c a share for 2008.