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Randgold sees profit rise 25% despite strike at Tongon site

The gold mining business posted a 25% increase in profit, with its other operations offsetting the impact of a strike at its Tongon mine.

Randgold Resources CEO
Source: Bloomberg

Randgold Resources (LON:RRS) recorded a 16% increase in group total cash cost per ounce at $586, with a 25% increase in profit to $73.2 million, according to its third quarter results.

The gold mining company saw increased output across other operations offset the impact of a strike at its Tongon mine in the Ivory Coast, which kept gold production of 308,628 ounces in line with levels achieved in the previous quarter, the company said.

Tongon mine strike

Randgold workers at the Tongon mine opted to strike after government-led negotiations broke down in July, with the gold producer only able to reach an agreement and get the site running as normal in September.

Despite the strike, the company’s CEO Mark Bristow commended the ‘exceptional performance’ seen at its other operations, with Kibali in the Democratic Republic of Congo continuing to post strong output volumes, while Loulo-Gounkoto in Mali saw increases across the board.

‘With the pushback for the new Gounkoto super pit now well underway, this quarter’s results set up well for a strong finish to the year,’ Bristow said.

Randgold invests for the future

Elsewhere, the gold mining company has made significant investments to ensure future growth, with its Massawa project in Sengal beginning its public participation process as part of its feasibility study, Bristow said.

The company has started brownfields exploration at Loulo-Gounkoto and Kibali should be able to sustain Randgold’s 10-year business plan by replacing depleted reserves with ounces of the same quality, he said.

While underground extension drilling at Yalea and Kibali have returned strong results and ongoing work along the Badenou structure is showing opportunities for adding ounces at Tongon, he added.

During Q3 the Dow Jones Sustainability Index announced that Randgold had been included in its index of top sustainability performers.

Randgold’s shareholders will vote on Wednesday on its all-share merger with Barrick Gold Corporation in a deal valued at around $18 billion.

If approved, the deal will create the world’s largest gold miner, with the newly formed entity having a geographical footprint that will span across Africa, South America and the US.

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