Randgold posts record profit, doubles dividend

West Africa-focussed Randgold Resources plc posted a record annual profit, beating analyst expectations, and said it anticipated increasing its gold production by at least 19% this year.

Net profit jumped almost 260% to US$433 million on higher gold prices and a 58% rise in production to 696,023oz as the Gounkoto mine in Mali was commissioned and output increased from all other operations.

Randgold expects production to rise in each of the next five years, giving 2012 guidance of 825,000-865,000oz driven by higher throughput and grade at the Loulo/Gounkoto complex. It is targeting total cash costs per ounce, after royalties, of less than US$650/oz for this year, then falling to US$500-550/oz over the next five years.

"Randgold’s long-term strategy of building sustainably-profitable gold mining businesses through discovery and development continues to pay off," said chief executive Mark Bristow. "In 2011 we benefited from our investment in growth in previous years, just as the development work we are doing now will reward our stakeholders in years to come."

It proposes to spend US$660 million on capital expenditure this year, partly on the anticipated start-up of construction at the Kibali joint venture project in the Democratic Republic of the Congo. Production from Kibali is scheduled to start at the end of 2013.

The gold producer plans to double the annual dividend to 40 cents a share.