Randgold says industrial action having 'some' impact on Tongon operations

Randgold Resources said on Tuesday that intermittent industrial action by the workforce of its mining subcontractor was having "some" impact on operations at its Tongon gold mine.

"The subcontractor has been negotiating with its workforce to achieve a resolution and Tongon management as well as Randgold executives are also engaging with the country's minister of mines, senior government and elected officials and local authorities, who are assisting with the negotiation," it said.

Tongon is currently processing ore from the run-of-mine and scats stockpiles but management said the operation was lagging its production forecast. While the operations were expected to get back to full capacity, the challenge will be recovering the lost production, Randgold said.

Chief executive Mark Bristow confirmed the company's outlook for 2018 remained within guidance. He also said that the mine has taken the opportunity to upgrade the second mill motor and mill discharge grate system, which is expected to ensure higher and more consistent throughput. This will help to recover some of the lost production.

At 1030 BST, the shares were up 0.8% to 5,926.80p.