Mali carries Randgold to first quarter profit

The FTSE 100 group also reported a “significant improvement” in safety, with three out of its five operations having zero lost time injuries during the three months. Its fight against malaria also delivered another decrease in incidence rate.

Production was down 11% from the previous record quarter, but profit wa 19% higher at $63.9m and 25% up on the same quarter a year earlier.

The company said this reflected its tightened focus on profitability, and a 9% increase in the average gold price received for the period.

Total cash costs of $189m were down 8% on the previous quarter, with the change to owner mining from contract mining at Loulo playing a large part in the decrease.

"Despite last year's record production, we replaced 76% of our reserves and all our resources depleted, and our exploration teams continue to hunt for additional ounces around our existing operations as well our next big discovery,” said Randgold chief executive Mark Bristow.

“Confirming the down plunge extensions of our orebodies in the Loulo district is testament to this, as are the encouraging results from ongoing work in Côte d'Ivoire, where drilling at Gbongogo has confirmed a large intrusion hosted stockwork. Around Kibali work is identifying multiple mineralised shoots around KCD.”

Bristow said the group was also expanding its footprint in its target areas, most recently through the Moku joint venture adjacent to Kibali.

“Over at the Ngayu belt 200km to the SW of Kibali we are preparing to fly a helicopter VTEM survey over recently signed joint ventures and we continue our regional research programmes across West and Central Africa.

“We keep strengthening our social licence through constructive engagement with and commitment to our host countries and communities," Bristow said.

He said Randgold will be able to continue delivering value at current and lower gold price levels as a result of its strategy, plans and projections.

"We're quite bullish about gold's medium to long term prospects, and when the cycle turns, the work we do now will have equipped us to capitalise fully on the upside."