Randgold Resources’ H1 2015 earnings were US$1.10/share, down 20% from the corresponding period of 2014 as the company received a gold price US$91/oz lower than 2014, and despite increasing gold production (and sales). Gold production rose to 580 koz for the half year, with Q2 2015 production reaching a record 300 koz. Total cash costs were US$695/oz, in line with the 2014 figure.
The company recorded significant production increases at its 40%-owned Morila and 45%-owned Kibali mines, which more than offset a decline at Loulo-Gounkoto, due to lower tonnes milled and lower grade at the latter.
Operations generated cashflow of US$102 million in H1 2015, 17% lower than H1 2014. As at 30 June 2015, the company held cash and equivalents of US$109 million and remained debt-free.
The company is anticipating increased production in the second half of the year, on the back of expected higher grades at the Loulo-Gounkoto complex and improved delivery from Tongon. Gold production guidance remains at 1.20-1.26 Moz for the year at cash costs in the range US$650/oz – US$700/oz.
Randgold’s H1 earnings cut despite higher gold production: RRS