REUTERS, Johannesburg | Wednesday 10.05am.
MINERALS explorer Randgold Resources is weighing the future of its troubled Syama gold mine in West Africa, including finding a joint venture partner or selling it.
The move is part of a broader overhaul of the Randgold group’s strategy and structure aimed at boosting a flagging share price, group officials said.
“We are in discussions with Syama’s stakeholders. Our intention is to have a final decision by the end of September,” Randgold Resources Chief Executive Mark Bristow told analysts.
London-listed Randgold, nearly 62 percent owned by South Africa’s Randgold & Exploration, said its shareholders had authorised the buyback of up to 14.9 percent of its shares.
Randgold Resources’ stock last traded at around $4.25 on the London Stock Exchange on July 19 and the company hopes a reorganisation will solve its liquidity problems. Between 15-18 percent of the company’s shares are free floating.B Randgold Resources reported a profit of $70.3 million for the quarter to June 30, compared to a loss of $10.4 million in the previous March period. This included a gain from the $132 million sale of a 50 percent share of Randgold’s Morila gold mine in Mali to world number one producer AngloGold Ltd .
Bristow said Morila was on track to pour its first gold in October, three months ahead of schedule. But the quarter was marred by ongoing power disruptions and mining problems at Syama, the company’s other gold mine in Mali.
Syama’s gold output sank to 39,694 ounces of gold from 49,710 ounces in the March quarter. Cash costs jumped to $336 an ounce from $299 an ounce. Syama’s cash loss for the quarter widened to $2.4 million from $1.1 million in the March period.
Bristow said Randgold was pondering various options for Syama, included finding a joint venture partner, or recapitalising the mine pit with the government’s help.