A robust contribution from the new
Gounkoto mine enhanced the capacity and flexibility of Randgold
Resources' GOLD Loulo complex to increase gold production in 2011 despite
the substantial challenges presented by the development of two
underground mines and the plant expansion.
Gounkoto accounted for a significant part of the complex's annual
production, giving Loulo the capacity to grow overall output while
getting its Yalea underground mine on track and pressing ahead with the
Gara underground development. Because it accesses the Loulo
infrastructure on a toll basis, Gounkoto is expected to recoup its
relatively low capital cost by the end of the first quarter of 2012.
This means among other things that the State of Mali, a 20%
shareholder, will get the benefit of an early dividend as well as full
ownership of its stake.
The Mali government has agreed to split the Loulo mining permit, making
Gounkoto a standalone operation. Chief executive Mark Bristow said
this was a further instance of the importance of Randgold's philosophy
of fostering mutually beneficial partnerships with its host countries.
Bristow also said the Loulo complex represented a textbook illustration
of the effectiveness of Randgold's strategy of creating value through
discovery and development, as well as of its commitment to building
sustainably profitable businesses."The complex has grown from an 800000
ounce resource to a fully integrated, long-life opencast and underground operation, targeting
production of 500000 ounces this year. With 9 million ounces of
reserves, significant grades and a huge upside, it will be profitable
at any realistically conceivable gold price," he said.
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