JOHANNESBURG (miningweekly.com) – Gold miner Randgold Resources is continuing to hunt for its next world-class gold deposit, through the expansion of exploration programmes in West- and Central Africa, as well as through the evaluation of its next potential mine project at Massawa, in Senegal.
However, irrespective of any new projects, the Nasdaq- and LSE-listed miner’s CEO Mark Bristow said on Thursday that the group would remain profitable at a long-term gold price of $1 000/oz, while generating cash to support investments and continuing to reward shareholders with dividends.
The company, which operates mines in Africa, has increased its dividends by 1 900% between 2006 and 2017.
Randgold CFO Graham Shuttleworth commented that the sustained dividend growth validated the business model and reflected the profitability and financial strength of the company, which at 2017 year-end had net cash of more than $700-million and no debt.
The company stated that it intended to maintain a net cash position at about $500-million, to fund new growth opportunities and that any surplus capital would be returned to shareholders.
The board has recommended the doubling of 2016's $1 a share dividend to $2 a share for 2017.