Randgold FY gold output up 5%, profits rise to $335m

Randgold Resources said it had increased annual gold production by 5% to 1.315m ounces, ahead of its guidance, while cutting total cash cost by 3% to $620 an ounce.

The miner said full year profits rose 14% to $335m, with net cash up 39% to $720m, with no debt. The board has proposed doubling the dividend to $2 a share.

Chief executive Mark Bristow said the strong performance was led by Randgold's flagship, the Loulo-Gounkoto complex in Mali, and supported by an across-the-board delivery from its other operations, Morila in Mali, Tongon in Côte d'Ivoire and Kibali in the Democratic Republic of Congo.

Randgold forecast 2018 production of between 1.30m - 1.35m ounces at a total cash cost per ounce in the range of $590 to $640, taking into account the effect of the current increases in the oil price and the euro/dollar exchange rate.

In a separate statement, Randgold Resources says hit out at the Democratic Republic of Congo's (DRC) plants to increase taxes on the industry under a new mining code.

The company said the new changes would "severely limit the growth" of the country's mining industry and economy.

The code was passed by both houses of parliament last week but still has to be signed by the president before it becomes law.

Chief executive Mark Bristow said: "It is our express wish that the government grasps the serious consequences this ill-considered code will have on its ability as a country to attract international investment and re-investment to the DRC, and to refer the code back to the ministry of mines for further consultation with the industry. If this fails, however, we shall seek to enforce our rights including those which provide for international arbitration."