Randgold Q3 profits shine on lower production costs

Randgold Resources on Tuesday said third quarter net profit rose 25% to $73.2m, on the back of lower production costs.

The company's shareholders are due on Wednesday to vote on a $6bn merger with Canada's Barrick Gold.

Revenue fell 18% to $245.6m, while pretax profit slipped 5% to $92m after strikes at Randgold's Ivory Coast Tongon mine hit sales.

Increased output at Randgold's other operations offset the impact of the strike at Tongon and kept the group's gold production of 308 628 ounces, in line with the previous quarter.

Gold sales during the quarter were 3% lower year-on-year at $374.2m. Quarter on quarter sales fell 9%.

Third quarter gold production fell to 308,628 from 310,618 ounces in the year-earlier period.

Group total cash cost per ounce fell by 12% to $586 an ounce, Randgold said.