Africa-focused gold producer Randgold Resources set a new yearly production record of more than 1.2-million ounces in the year ended December 31, 2015 – up 6% on the previous year – while reducing group total cash cost per ounce by 3% to $679.
The London-listed company on Thursday reported in its annual resource and reserve declaration that its total attributable reserves of 14.6-million ounces reflected a 3.5% reduction after mining depletion, with no change in the grade.
The company’s attributable measured and indicated resources were steady at 21.1 million ounces, while inferred resources were marginally up to 6.7-million ounces.
Randgold CEO Mark Bristow said that the company had not been forced into high-grading by the challenging market conditions.
"By ensuring that our operations are focused on real returns and breakeven cash flows, we have secured a profitable consolidated business plan for at least ten years at an annual production in excess of 1-million ounces, based on our existing reserves," he said.
Strong cash flows from the operations boosted cash-on-hand by 158% to $213.4-million. However, profit for the year was $212.8-million against the previous year's $271.1-million, reflecting the decline in the gold price.
At the company’s Mali-based operations, Loulo gold mine’s total mineral resources increased by 5%, net of depletion, which was driven by a significant increase of 600 000 oz in the Gara underground inferred resources, following positive drilling at Gara South.
A drilling programme to define high-grade resources was also under way at Yalea mine, where total ore reserves decreased by 4% to 4.7-million ounces at 4.6g/t.
At the neighbouring Gounkoto mine, total ore reserves remained above 3-million ounces, with an 8% increase in grade on the back of an updated underground feasibility study, which increased the underground reserve to 1.1-million ounces at 7.2 g/t.
A lower-cost profile and higher-grade resource model highlighted the potential for a superpit mining option, which, together with an underground mine, was the subject of a trade-off study planned for completion in 2016.
At Kibali mine, in the Democratic Republic of Congo, total reserves decreased to 10.6-million ounces at 4.1 g/t from 11-million ounces at 4.1 g/t, with mining depletion being partly offset by gains from the Pakaka and Gorumbwa satellite deposit.
In Côte d'Ivoire, Tongon mine's resources and reserves decreased marginally with partial replacement from ongoing advanced grade control drilling within the pit.