Companies: RRS   

Miner Randgold Resources has doubled interim profits to £26.1 million and is bullish on new projects.

The fully listed company increased attributable gold production from Loulo and Morila in Mali by a modest 5,000 oz to 219,248 oz in the six months to June and increased revenues from gold sales 41 per cent to £91 million. Rising gold prices more than offset the impact of cash production costs rising 32 per cent to $449 an ounce and a weakening of the US dollar, in which gold is traded (the second three-month average cost was $496 an ounce).

Further afield, chief executive Mark Bristow says drilling results from Jersey-incorporated Randgold’s Massawa project in Senegal ‘support our view that this is a potentially multi-million ounce project’. The company says reserves at Tongon in Côte d’Ivoire, in the early stages of development as its third mine, have increased 26 per cent to more than three million oz.

Recommended by Growth Company Investor at £12.06 in 2006 and again at £21.91 last month, Randgold shares now stand at £25.75, up 220p this morning, at which level they value the company at nearly £2 billion. Partial profit-taking might be prudent, but they are likely to outperform many sector peers.

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Randgold Resources	LSE	£1744.21m	2280.00p	13.00p
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Other company articles:
Interim surge at Randgold			31/07/2008
Reserve hike cheers Randgold Resources			02/06/2008
Reserve hike cheers Randgold			07/05/2008
African Eagle signs new partner			03/05/2007
Randgold doubles interims			07/08/2006