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Randgold Resources Ld: Gold downturn needs stakeholder partnerships

Jul 10 2013 12:00AM

Marketwire

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JERSEY, CHANNEL ISLANDS -- (Marketwired) -- 07/10/13 -- Randgold Resources Ld (NASDAQ: GOLD) (LSE: RRS)

RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNASDAQ Trading Symbol: GOLD("Randgold Resources" or "Randgold")GOLD PRICE DOWNTURN INTENSIFIES NEED FOR STAKEHOLDER PARTNERSHIPJohannesburg, 10 July 2013 - The recent drop in the gold price hashighlighted the need for governments of mineral-rich countries tocooperate with mining companies in the optimal development of theirresources, says Randgold Resources chief executive Mark Bristow.Speaking at a media briefing here, Bristow said the two parties shouldbe united in a common purpose but sometimes seemed like ships passingeach other in the night. "Governments are tempted to harvest the greenshoots before the enterprise comes to fruition; the gold miningindustry tends to exaggerate the risk without fully addressing its owninternal problems," he said.This disconnect arose from the mistaken perception that gold miningcompanies must have made extraordinary profits during the long bull runin the gold price, Bristow said. In fact, with escalating costscramping margins, most gold companies had not managed to create realvalue and at the height of the boom the industry had actually been exgrowth. The declining gold price meant that many gold mining companieswere now again having to fight for survival, as evidenced by a spate ofwrite-downs and abandoned projects."The pursuit of quality assets has ledgold companies away from theirtraditional hunting grounds and towards regions which are moreprospective but present a greater risk. All these regions are nowcompeting with each other for mining investment, and while Africa hasthe advantage of great mineral wealth, its competitors generally havebetter infrastructures, greater skills pools and more sophisticatedeconomies," he said.In order for African countries to attract mining investment and benefitfully from their mining industries, they should participate fully inthe value creation process."Real value is created by the discovery ofmulti-million ounce depositsand their development into profitable mines. Governments' role in thisshould be firstly to provide a stable, business-friendly regime thatwill attract investors, and then to partner the mining company in thedevelopment process, driving the project up the value curve and sharingfairly in its returns," he said.Randgold owns and operates the Loulo complex in Mali and the Tongonmine in Cote d'Ivoire, and also operates the Morila joint venture inMali. In addition, it is currently developing the giant Kibali projectin the Democratic Republic of Congo."When the gold price started turningdown, we reviewed all our businessplans and adjusted them where necessary. Our key objectives remainintact, notably the aim of exceeding 1.2 million ounces of productionby 2015," he said."With our robust operations, low costs and no debt, andKibali onschedule to pour its first gold before the end of this year, Randgoldcan face any realistically foreseeable gold price scenario withequanimity."Bristow said the current squeeze on the industry had in fact creatednew opportunities for Randgold, as gold mining juniors with qualityassets had to seek elsewhere the support no longer available frombankers and investors. "While our core strategy remains organicgrowth, we have entered into a number of earn-in joint ventures onpromising projects, most recently the agreement announced last weekwith Taurus in Mali," he said.RANDGOLD RESOURCES ENQUIRIESChief Executive Financial Director Investor & Media RelationsMark Bristow Graham Shuttleworth Kathy du Plessis+44(0) 779 775 2288 +44(0) 1534735333 +44 (0) 2075577738 +44(0) 7797711338 Email: randgold@dpapr.comWebsite: www.randgoldresources.comCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for thehistorical information contained herein, the matters discussed in thisnews release are forward-looking statements within the meaning ofSection 27A of the US Securities Act of 1933 and Section 21E of the USSecurities Exchange Act of 1934, and applicable Canadian securitieslegislation. Forward-looking statements include, but are not limitedto, statements with respect to the future price of gold, the estimationof mineral reserves and resources, the realisation of mineral reserveestimates, the timing and amount of estimated future production, costsof production, reserve determination and reserve conversion rates.Generally, these forward-looking statements can be identified by theuse of forward-looking terminology such as 'will', 'plans', 'expects'or 'does not expect', 'is expected', 'budget', 'scheduled','estimates','forecasts', 'intends', 'anticipates' or 'does notanticipate', or 'believes', or variations of such words and phrases orstate that certain actions, events or results 'may', 'could','would','might' or 'will be taken', 'occur' or 'be achieved'. Assumptionsuponwhich such forward-looking statements are based are in turn based onfactors and events that are not within the control of RandgoldResources Limited ('Randgold') and there is no assurance they willprove to be correct. Forward-looking statements are subject to knownand unknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements ofRandgold to be materially different from those expressed or implied bysuch forward-looking statements, including but not limited to: risksrelated to mining operations, including political risks and instabilityand risks related to international operations, actual results ofcurrent exploration activities, conclusions of economic evaluations,changes in project parameters as plans continue to be refined, as wellas those factors discussed in Randgold's filings with the US Securitiesand Exchange Commission (the 'SEC'). Although Randgold has attemptedto identify important factors that could cause actual results to differmaterially from those contained in forward-looking statements, theremay be other factors that cause results not to be as anticipated,estimated or intended. There can be no assurance that such statementswill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forward-lookingstatements. Randgold does not undertake to update any forward-lookingstatements herein, except in accordance with applicable securitieslaws.CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in theirfilings with the SEC, to disclose only proven and probable orereserves. We use certain terms in this release, such as 'resources',that the SEC does not recognise and strictly prohibits us fromincluding in our filings with the SEC. Investors are cautioned not toassume that all or any parts of our resources will ever be convertedinto reserves which qualify as 'proven and probable reserves' for thepurposes of the SEC's Industry Guide number 7. This information is provided by RNS The company news service from the London Stock ExchangeEND





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Source: Marketwire


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