OWN CORRESPONDENT, Johannesburg | Tuesday 8.00pm
RANDGOLD RESOURCES, citing the lower gold price, on Tuesday posted an after-tax loss of $6,03-million dollars for the quarter ended June 30.
The figure marks the second successive quarter in which the company has been in the red, having posted a $8,06-million-loss in the March quarter.
The group, which is operating under a cautionary restrictions, because of a proposed merger with Consolidated African Mines Limited, saw revenue from gold sales dip from $14,5-million to $13,85-million over the quarter. Under the restrictions the group is unable to release certain information pending a decision on the merger.
But chairman Roger Kebble believes the group is entering the “long home straight, with a lot of opportunities ahead, particularly in West Africa.” He disclosed that the Morila gold mine in Mali, which is expected to become the group’s flagship, is now scheduled to be in full production in the last quarter of next year — ahead of the original estimate of early 2001.
The operation is geared for a minimum production of 200000 tons of ore a month through opencast methods. Randgold’s other Mali operation, Syama, however, saw a reversal of fortunes over the June quarter, posting an after-tax loss of almost $1,2-million, compared with a profit of $627000 for the previous quarter.
Commenting on the effects of the low gold price on gold sales, Randgold managing director Mark Bristow said if the price remains at the present low levels, the industry will see many changes and the lifespan of many mines being shortened. — AFP