Randgold Resources third quarter profit slips despite record production

Randgold Resources posted reported a decline in third-quarter profit despite a rise to record production levels.

Profit for the period came in at $48.8m (£31.7m), down from $66.0m in the same period last year as a sharp increase in gold production was offset by weaker gold prices and increased costs.

Cash costs rose to $699 an ounce from $684 in the previous quarter.

Gold production for the quarter was up more than 5,000 ounces from the second quarter to 305,288 ounces, with the Kibali and Morila mines doing exceptionally well.

Chief executive Mark Bristow said that considering the gold price had fallen 6% over this period to its lowest point since the first quarter of 2010, Randgold's profit performance continued to be creditable.

He said the company remained debt-free, with net cash increasing significantly from $109m to $168m, further strengthening the balance sheet.

The West African gold producer said it remains on track to exceed its full-year production guidance of 600,000 ounces and the group as a whole is expected to be within its guidance range.