TUESDAY, 11.00AM
GOLD mines managed by Randgold & Exploration on Monday posted disastrous results for the June quarter, reporting their worst-ever aggregate performance with a taxed cash loss of R41-million, from a R55-million taxed profit in the March quarter.
Apart from the declining bullion price, Randgold mines suffered setbacks from undergorund fires, seeismic activity, flooding and mill breakdowns, as well as poor operational flexibility at the ageing mines.
Overall production in the quarter fell to 10 599kg from 11 224kg, with average costs per kilogram up to R64 437/kg (R53 100/kg).
Randgold has already announced that the future of East Rand Proprietary Mine hangs in the balance, with sources saying it will definitely be closed. On Monday, Randgold chairman Peter Flack said Grootvlei also faces closure within weeks without government aid, with the prospect of thousands of job losses. He said the mine is already negotiating with unions cutting 800 of the mine’s 3 500 workers.