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JOHANNESBURG (miningweekly.com) – Output from the new Kibali gold mine in the Democratic Republic of Congo (DRC) helped lift the gold production of Randgold Resources to a record level in the first three months of this year.
The London-listed company produced an unprecedented 283 763 oz in the March quarter, with Kibali producing at just over $500/oz. A 3% increase in the average gold price received saw higher quarter-on-quarter gold sales of $363-million.
Total cash cost an ounce of $685 was down 19% on the corresponding prior year quarter owing to Kibali’s ramp-up and Loulo-Gounkoto’s significantly higher grades. Profit from mining was up 14% on the corresponding quarter in 2013.
While cone crusher mechanical failure again resulted in Tongon, in Côte d’Ivoire, delivering a below-par performance, overall the company’s total cash cost and production guidance for the year remained intact.
“We have looked closely at our mines to ensure that they will still be profitable at $1 000/oz,” said Randgold CEO Mark Bristow.
The company, which is continuing to review all operations against a range of gold price scenarios, is said to have a solid 2014 budget in place.
“We’ve effectively banked our five-year plan,” South African-born Bristow added.
Kibali and the Loulo-Gounkoto complex together have the potential to produce at a collective rate of 1.2-million ounces of gold a year for the next ten years.
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