Randgold Resources has reported profits up 19% over the December 2105 quarter and 25% compared with Q1 2015. Earnings per share rose from US$0.52 in Q1 2015 to US$0.58.
Revenue from gold sales, at US$345.8 million, was slightly up on the corresponding quarter of 2015, as gold production increased by 4% to 292.9 koz and despite a fall in the gold price received from US$1,215/oz to US$1,187/oz.
Cash costs for the quarter were US$648/oz, a reduction of 8% from Q1 2015.
On the production side, Loulo-Gounkoto produced 173 koz of gold, an increase of 34% from last year as both grade and tonnes milled increased. Countering this was a dramatic fall at Morila, as primary operations start to wind down. Tongon’s gold out was slightly lower than Q1 2015 but production at Kabali, at 131 koz, was significantly down from last year, principally because of lower recovery as the mill switched from treating oxide ore to sulphide ore.
The company generated cash of US$104 million from its operations in Q1, leaving it with cash of US$254 million at the end of March 2016.
The company has increased its annual dividend by 10% to US$0.66/share.
Randgold Q1 profits up; dividend increased by 10%: RRS