10 February 2012

Randgold continues expansion

08/02/2010 Robert Tyerman

African miner Randgold Resources plans hefty production and resource increases after lifting annual gold sales 27 per cent to £288 million.

In a bullish trading statement, the west and central Africa-focused company, which raised profits before tax and financing costs 53 per cent to £73 million last year, says it increased group production by 14 per cent to 488,255 oz and chalked up a 60 per cent increase in attributable gold reserves, while hoisting the dividend 30 per cent. Steered by redoubtable South African mining figure Mark Bristow, fully-listed Randgold, which upped net cash from operations 12 per cent to £40 million, lifted output from Loulo in Mali 36 per cent to 351,600 oz and stands poised to start production shortly from Tongon in the Cote d’Ivoire, holding an estimated 3.16 million oz of gold.

The company, which derives useful cash from its Malian stockpile treatment operation, Morila, has particularly high hopes for its 45 per cent-owned Kibali project in the Congo, which holds a possible 9.2 million oz at more than 6 grammes of gold per tonne of ore but will need the tactful ‘relocation’ of some 5,500 local residents. Bristow waxes enthusiastic about Gounkoto, near Loulo, with suggested potential of 2.7 million oz of gold, and is optimistic about prospects at Massawa in Senegal.

Recommended by Growth Company Investor at £12 in 2006, Randgold shares have traded between £53.45p and £28.33p over the past year. Now £44.80p, valuing the company at £4 billion, they should remain an interesting market, with eventual bid interest not impossible, though the cautious might consider partial short-term profit taking.

Tags: Commodities, Emerging markets, Full list, Growth Stocks

Sector: Mining

Companies: Randgold Resources

Subscribe today


Subscribe today and save 50%. Receive company watch recommendations and extensive company profile tips, released two months ahead of the market.

Sign up here

Spread Trading. New from Halifax Share Dealing

£100 credit when you open five trades within 60 days – terms apply. Spread Trading is not for everyone please ensure you understand the risks as you may lose more than your initial deposit. Click here for more information.

Institutional Investors in AIM 2011 - New Report

This unique study analyses the shareholdings of companies listed on AIM, extracting trends including rankings of the value and number of their investments.
Please click here to order your copy of the report or call 0207 250 7056.

Coverage of AIM, techMARK and PLUS Markets

Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.

If you're interested in business tax updates visit our specialist tax guide website.

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Nighthawk remains jolly 09/02/2012

US-focused Nighthawk Energy is launching a $7.5 million program to invest in its Colorado-based Jolly Ranch project.

Tags: AIM-quoted business, Doing business in the US, Drilling new wells, Investing in Colorado

Sector: Oil & Gas Producers

Companies: Nighthawk Energy

Tower raises £5.4m 09/02/2012

Africa-focused Tower Resources (TRP) has raised £5.4 million via a placing with a mixture of institutional investors and directors.

Tags: Doing business in Africa, Doing business with New Jersey, Placing, Unusual financing arrangements

Sector: Oil & Gas Producers

Companies: Tower Resources

Thomas nurses £91m loss 08/02/2012

Beleaguered travel operator Thomas Cook (TCG) has reported a loss of £91 million its first quarter also announcing the sale of its Indian division.

Tags: Doing business in India, Sale of subsidary, Travel and leisure, Travel operator

Sector: Travel & Leisure

Chariot finishes 3D survey 08/02/2012

AIM-quoted Chariot Oil and Gas (CHAR) has completed a 3D seismic survey across its central blocks.

Tags: AIM 100, Business in Namibia, Commodities in Africa

Sector: Oil & Gas Producers

Companies: Chariot Oil & Gas

Aminex and Solo disappoint 07/02/2012

Aminex (AEX) and Solo Oil (SOLO) both reported the Ntorya-1 well had 'not encountered' sandstone intervals after drilling 2500 metres.

Tags: Commodities in Africa, Oil and gas projects, Product sharing agreement

Sector: Oil & Gas Producers

Companies: Aminex , Solo Oil , Tullow Oil

Brady to raise £18m 07/02/2012

Brady (BRY), the supplier of software to the commodities sector, is to raise £18 million to fund two acquisitions.

Tags: Acquisitions, Commodities sector, GCI sector picks, Software sector

Sector: Software & Computer Services

Companies: Brady

More News

Sectors