Randgold share price: Group reports Tongon action plan ‘on track’
iNVEZZ.com, Monday, October 27: Randgold Resources Ltd (LON:RRS) has announced that the remedial measures implemented to improve the performance of its Tongon mine in north Côte d’lvoire are starting to produce the desired results.
As of 12:03 GMT, Randgold’s share price had lost 0.45 percent to 3,993.00p.
**Tongon mine action plan on track**
Randgold’s chief executive Mark Bristow said that the remedial measures implemented to overcome the technical problems that had affected its Tongon mine in Cote d’Ivoire were already producing the desired results and the mine’s performance was improving, the company reported in a statement on Saturday.
Bristow commented that mill throughput and the recovery rate, which were the main challenges the mine had confronted, were both being improved by the Tongon management team. Their action plan also involves the replacement of faulty crushers and the expansion of the flotation circuit, which will start when the necessary equipment arrives on site next month.
In July, the FTSE 100-listed gold miner reported that its Tongon gold mine was achieving progress in managing technical issues that had impacted its performance but this year’s planned ramp-up in production had not been achieved.
Bristow said at the time that expansion of the flotation circuit should be completed in the fourth quarter and the developments should increase mill throughput and improve the quality of crushed production. He added that the group was expecting a steady improvement in the mine’s performance in the second half of the year. ()
“By early next year Tongon should have achieved its targeted performance levels, but the improvement is already evident, and despite the setbacks and challenges the management team has had to contend with, the mine should come within 10 percent of its production guidance of 260 000 ounces for 2014, with costs well contained,” Bristow commented on Saturday.
Elsewhere in Cote d’Ivoire, Randgold has been awarded two new permits while more are pending.
Randgold’s chief executive also noted that the company was working together with the Ivorian ministry of health and local authorities to avoid the potential threat posed by the Ebola outbreak elsewhere in West Africa. He said that the group was taking extensive measures to protect its staff and the surrounding communities.
In a separate development, CEO Bristow commented on the first confirmed case of Ebola in Mali, where the group owns and operates the Morila, Loulo and Gounkoto gold mines, Mining Weekly reported today.
Bristow said that Randgold had mobilised a “major” campaign to safeguard its employees and host communities against the disease, with a crisis management team leading the initiative. The team includes the senior medical officers of all of the group’s operations.
Meanwhile, the mining company is keeping in close touch with the Malian national director of health and the regional health director, as well as with the relevant non-government organisations and the other members of the Ebola Private Sector Mobilisation Group.
**Analysts on Randgold**
According to the Financial Times, as of October 25, 2014, the consensus forecast amongst 35 polled investment analysts covering Randgold has it that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts improved on September 30, 2014.
Analyst Ratings Network reports that the FTSE 100 mining company’s stock currently has a consensus ‘buy’ rating and an average target price of 4,823.62p.
The group is due to release its third quarter results on November 6.
**As of 10:29 BST, buy Randgold shares at 3,992.00p.**
**As of 10:29 BST, sell Randgold shares at 3,988.00p.**