Randgold Resources Ltd. (GOLD,RRS.L), a gold miner operating mainly in Mali, reported Tuesday a surge in pre-tax profit for the third quarter, boosted by strong growth in gold production as well as higher average gold price. On an after-tax basis, the company turned to profit from prior year's loss.
The company's third-quarter pre-tax profit grew to US$17.57 million from last year's US$3.99 million.
Third-quarter net profit, after tax, was US$13.57 million, compared with a loss of US$684 thousand a year ago. Net profit attributable to equity shareholders was US$11.32 million or US$0.14 per share, while prior year's net loss was US$1.43 million or US$0.02 per share.
Randgold noted that the latest quarter results included a non-cash provision for ARS investments of US$0.9 million, whereas the corresponding quarter in 2008 included a similar provision of US$8.8 million, resulting in a loss for that quarter.
Profit from mining for the current quarter increased by 36% from the previous year.
Total revenues for the quarter rose to US$103.32 million from US$78.28 million a year ago. Gold sales on spot was US$113.28 million, up from US$88.53 million in 2008. Adjusting for profit or loss on hedging contracts, gold sales in the quarter climbed 32% to US$103.47 million from US$78.28 million in the prior-year quarter.
The company attributed the growth in gold sales to a 15% increase in the average gold price received in the latest quarter to US$883/oz from last year's US$771/oz, as well as a 17% rise in ounces produced to 118,925 ounces from 101,856 ounces in the previous year.
Total cash costs grew 30% to US$68.17 million from US$52.29 million in 2008, mainly due to higher open pit mining costs incurred at Loulo.
Group total cash costs per ounce was US$573, higher than last year's US$513, and Group cash operating costs per ounce was US$522, up from US$468 a year earlier.
In the quarter, the company recorded net finance income of US$1.84 million, compared to prior year's finance costs of US$10.72 million.
Randgold owns 80% of Loulo with the Government of Mali owning 20%, while the company consolidates 100% of Loulo. In the quarter, Loulo's gold sales surged to US$72.70 million from prior year's US$45.56 million. Profit from mining activity was US$21.31 million, up from US$9.82 million. The mine produced 86,940 ounces of gold at a total cash cost of US$591/oz, compared to last year's production of 64,250 ounces at US$556/oz. Average price received grew to US$853/oz from US$713/oz a year earlier.
In its first full quarter as a pure stockpile processor, Morila mine, of which Randgold consolidates 40%, generated gold sales of US$30.78 million, down from US$32.73 million in 2008, and profit from mining activity fell to US$35 million from prior year's US$40.42 million. The mine produced 79,963 ounces of gold at a total cash cost of US$525/oz, compared to 94,016 ounces at US$440/oz.
For the nine months of fiscal 2009, Randgold's profit rose to US$45.58 million from US$37.71 million a year ago. Profit attributable to owners of the parent was US$37.32 million or US$0.47 per share, up from US$32.45 million or US$0.42 per share last year. Profit before income tax went up to US$60.26 million from US$56.24 million in 2008.
The company generated total revenues of US$294.15 million in the period, higher than prior year's US$260.52 million, and gold sales on spot grew to US$325.50 million from US$287.78 million in 2008.
Chief executive Mark Bristow said that "--while 2009 was, as expected, proving to be a tough operating year for the company - which is substantially expanding its flagship Loulo complex and has converted the Morila joint venture into a stockpile treatment operation - it was also producing some very significant rewards thanks to outstanding delivery from its exploration and project teams and success on the new business front."
On Nasdaq, GOLD closed Monday's trading session at US$78.85, up US$1.51 or 1.95%, on a volume of 2.06 million shares.
On the London Stock Exchange, RRS.L is currently trading at 4,710.00 pence, down 69.00 pence or 1.44%, on a volume of 75 thousand shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.