OWN CORRESPONDENT, Johannesburg | Thursday
LONDON-listed minerals explorer Randgold Resources returned to the red in the quarter ended September 30 and said it had narrowed its options for the troubled Syama gold mine.
Randgold reported a loss of $6.9m in the September period compared to a $70.5m profit in the previous quarter to June.
The June quarter included a gain from the $132m sale of a 50% share in Randgold’s Morila gold mine in Mali to world number one producer AngloGold Ltd.
Gold revenues during the September period dropped to $8.5m from a previous $11.5m.
Syama, Rangold’s other mine in Mali, had another disappointing quarter with lower gold output and higher cash operating costs. The cash loss for the quarter widened to $2.8m from a previous $2.4m loss.
In August, Randgold said it was considering selling or finding a joint venture partner for Syama.
But the company said this week that it had narrowed its options to either putting the mine on care and maintenance, or investing in a push-back of the existing pit, thereby extending the life of the mine to 2006.
During the quarter Syama suffered further delays to the commissioning of its Rolls Royce power plant, which left the mill inoperative for extended periods in July and August.
Syama’s output fell to 30,029 ounces from 39,694 ounces, while cash operating costs rose to $362 an ounce from $336 an ounce.
Randgold was looking forward to strong cash flows from the Morila mine, which poured its first gold on October 18 and produced 600 kg by the end of October.
Morila’s throughput was steady at 8 000 tonnes of ore per day, with the first six months of production expected to come from softer surface ore.
Randgold also said it was seeking exploration opportunities in Mali and elsewhere in Africa. – Reuters