Randgold Resources production and profit down in Q3

Randgold Resources posted a drop in profit and production for the third quarter, but said it was on track to meet its 2017 guidance.

Profit fell 41% in the three months to the end of September compared to the second quarter to $602m, with production down 9% to 310,618 ounces, as total cash cost per ounce rose 17% to $667. In the nine months to 30 September, however, profit was up 22% on the corresponding period a year ago, while production was 11% higher.

Randgold attributed the lower quarter-on-quarter production to the Gounkoto super pit pushback and a planned decrease in grade at the flagship Loulo-Gounkoto complex. In addition, it pointed to a mill upgrade project in the first part of the quarter which impacted on throughput at Tongon.

Chief executive Mark Bristow said: "Brownfields exploration continues to generate good results. We can now confidently project annual production in excess of 600 000 ounces for at least 10 years for both Loulo-Gounkoto and Kibali, and we hope to extend Tongon's life, as we have done at Morila.

"One of our stated objectives is to define three new projects over the next four years. In Senegal, our focus is on delivering a Massawa feasibility study with a +3 million ounce reserve that passes our investment filters. Massawa is close to that mark and currently sits comfortably in the upper quartile of global gold development projects."