TIDMRRS
RNS Number : 5140W
Randgold Resources Ld
01 August 2018
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
MALI AND RANDGOLD AGREE ON A REVISED INVESTMENT CONVENTION TO
SUPPORT SUPER PIT DEVELOPMENT
Bamako, Mali, 1 August 2018 - The Malian government has agreed
to grant Randgold's Gounkoto mine a 50% corporate tax reduction for
the next four years to support its development of a super pit which
will be one of the largest opencast gold mines in Africa.
The agreement, which is a concession under Gounkoto's original
mining convention that gave Gounkoto the right to apply for
additional tax exonerations should it make additional investments,
will see the mine's life extended by more than five years. Likewise
the super pit will make a significant contribution to the
Loulo-Gounkoto complex's 10-year plan, which envisages profitable
production in excess of 600 000 ounces annually at a gold price of
$1 000 per ounce. Depending on the gold price and input costs the
potential revenue to the State would increase by more than 100%
when compared with the original Gounkoto feasibility study
completed in 2009.
Randgold chief executive Mark Bristow said the deal was another
milestone in the mutually rewarding partnership between the company
and the Malian government.
"Over more than 20 years, that partnership has enabled us to
bring Syama to account, develop Morila and build Loulo-Gounkoto
into one of the world's largest gold mines. During that time, our
operations have contributed $5.9 billion to the Malian economy in
the form of taxes, royalties, dividends, salaries and payments to
local suppliers. The Malian government received $2.5 billion of
that amount, which represents more than 60% of the net cash
generated by the mines. Every year since 2010, Randgold's
operations in this country have accounted for some 6% of Mali's
GDP," he said.
Bristow noted that, in line with Randgold's policy of local
employment and empowerment, Loulo-Gounkoto and Morila were managed
entirely by Malians. In addition to their profitable results, he
said, the mines also ranked as world-class in terms of their
health, safety and environmental management.
During the past quarter, another robust performance from Loulo's
underground mines offset a reduced contribution from Gounkoto,
where the pushback for the super pit is in progress as planned.
Since moving to owner mining at Loulo in 2016, the underground
operations have delivered steady production increases and
efficiency improvements.
At Morila, the mine has completed the mining of its Domba
satellite pit and is now processing the lower grade tailings
material. The Ntiola and Viper satellite deposits are scheduled for
mining until early 2019 and closure of the Morila mine is planned
for 2020. Its agripole project, designed to mitigate the
socio-economic impact of closure, is awaiting final approval by the
government.
On the exploration front, brownfields work at Loulo is
confirming the potential for reserve replenishment while further
afield the search for another world-class gold deposit continues
along a highly prospective 75 kilometre strike on the Mali-Senegal
shear zone.
ENQUIRIES:
Chief Executive Financial Director Group Regional Manager Investor & Media
Mark Bristow Graham Shuttleworth West Africa Relations
+44 788 071 1386 +44 779 771 1338 Mahamadou Samaké Kathy du Plessis
+223 66 75 01 22 +223 66 75 61 36 +44 20 7557 7738
randgold@dpapr.com
Website: www.randgoldresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for
the historical information contained herein, the matters discussed
in this news release are forward-looking statements within the
meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934, and applicable
Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, the realisation of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
reserve determination and reserve conversion rates. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as 'will', 'plans', 'expects' or
'does not expect', 'is expected', 'budget', 'scheduled',
'estimates', 'forecasts', 'intends', 'anticipates' or 'does not
anticipate', or 'believes', or variations of such words and phrases
or state that certain actions, events or results 'may', 'could',
'would', 'might' or 'will be taken', 'occur' or 'be achieved'.
Assumptions upon which such forward-looking statements are based
are in turn based on factors and events that are not within the
control of Randgold Resources Limited ('Randgold') and there is no
assurance they will prove to be correct. Forward-looking statements
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to mining operations,
including political risks and instability and risks related to
international operations, actual results of current exploration
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, as well as those
factors discussed in Randgold's filings with the US Securities and
Exchange Commission (the 'SEC'). Although Randgold has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Randgold does not undertake
to update any forward-looking statements herein, except in
accordance with applicable securities laws. CAUTIONARY NOTE TO US
INVESTORS: The SEC permits companies, in their filings with the
SEC, to disclose only proven and probable ore reserves. We use
certain terms in this release, such as 'resources', that the SEC
does not recognise and strictly prohibits us from including in our
filings with the SEC. Investors are cautioned not to assume that
all or any parts of our resources will ever be converted into
reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's Industry Guide number 7.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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