Randgold Resources Limited (GOLD: Quote, RRS.L) welcomed the announcement of a political settlement brokered in Mali by its West African neighbours and said the disruptions which followed last month's military coup had not materially affected its gold production in that country. Over the weekend the military junta said it had agreed to reinstate the constitution, in terms of which the president of the national assembly would act as head of state and oversee the appointment of an interim prime minister to manage the country's return to democratic rule.
Pursuant to the settlement deal, President Amadou Toumani Toure has formally resigned as head of state. The appointment of the interim prime minister would be by consensus and involve civil society and political parties. In return, Mali's ECOWAS neighbours have lifted the sanctions they had imposed and committed to actively support the restoration of stability in Mali.
Chief Executive of Randgold, Mark Bristow, said the announced resolution of the political crisis had strengthened the company's confidence in the political maturity of the West African region and its ability to settle conflict situations without external involvement. Randgold owns and operates the Loulo/Gounkoto mine complex in Mali and also operates Morila, a joint venture with AngloGold Ashanti.
Bristow also added, "Our production guidance for 2012 remains unchanged, although we have not completed our assessment of the impact this situation has had on costs. We will monitor the implementation of the political settlement by the relevant parties, and give the market a full update when we report our first quarter results on 3 May."
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by RTT Staff Writer
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