Johannesburg - Dual-listed Randgold Resources - which operates mostly in Mali - argues in its annual report released on Thursday that its operations are strongly placed to generate robust cash flows even at gold prices below current levels.
Gold is currently trading at around $1 229.90 an ounce.
CEO Mark Bristow adds the miner will continue delivering value to all stakeholders.
What the gold mining industry needs, says Bristow, is to make new discoveries, as even a significant rise in the gold price and an injection of fresh capital will, at best, enable it to clear debt, but will provide little scope for adding any value or reversing the production decline.
Bristow adds the company is projecting sustained growth through its consistent investment in exploration and development.
“Our mines have been modelled to generate cash flows at gold prices well below the $1 000/oz level. Our positive production and cost profiles extend to a 10-year horizon, we have had no impairments or write-downs, and have substantial cash resources.
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“Our exploration teams are not only replacing the ounces we deplete but are making significant progress in the hunt for our next big discovery. In fact, we are in a unique position to continue delivering value to all our stakeholders,” he says.
Randgold set a new annual production record of more than 1.2 million ounces in 2015, up 6 percent on the previous year, while reducing group total cash cost per ounce by 3 percent to $679. Strong cash flows from the operations boosted cash on hand by 158 percent to $213.4 million but profit for the year was $212.8 million against the previous year’s $271.1 million, reflecting the decline in the gold price.
Currently, the company has attributable measured and indicated resources of 21.1 million ounces while inferred resources are marginally up to 6.7 million ounces. Total attributable reserves of 14.6 million ounces reflect a 3.5 percent reduction after mining depletion, with no change in the grade, in a year that delivered record production of 1.2 million ounces.
its 2016 Annual General Meeting will be held at 9:00 a.m. on May 3 at The Celestial Hall, The Royal Yacht Hotel, Weighbridge, St Helier, Jersey JE2 3NF.
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