Randgold Resources posts 33% rise in Q1 profit

Randgold Resources said on Thursday that it has made a strong start to 2017 and is on course to achieve its guidance for the year.

Gold production was up 10% compared to the same quarter last year to 322,470 ounces, while profit rose 33% to $84.9m and total cash costs fell 4% to $619 an ounce. Compared to the previous quarter, however - which saw record results - gold production was down 15%, profit was off 10% and cash costs were up 13%.

Chief executive Mark Bristow said: "The past quarter's work stoppages, which disrupted our usually stable industrial relations climate, prompted us to take a fresh look at this aspect of our business and we are rolling out a potent internal campaign designed to ensure that the company's distinctive DNA is fully shared by all who work here through fostering an inclusive culture of two-way communication and engagement that takes in all levels in the organisation."

The company said it experienced another solid operating quarter at Loulo-Gounkoto, supported by high recoveries, while Tongon is delivering a steady performance with good cost control.

Gold sales for the quarter fell 10% from the previous quarter to $409.6m, but were up 18% from the corresponding quarter of last year, reflecting the higher ounces sold in the quarter, while the average gold price was up 1% on the quarter to $1,220 an ounce.