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Randgold fourth quarter profit jumps

Published 06/02/2017, 09:20
Updated 06/02/2017, 09:20
© Reuters. The KCD open pit gold mine, operated by Randgold, at the Kibali mining site in the Democratic Republic of Congo

© Reuters. The KCD open pit gold mine, operated by Randgold, at the Kibali mining site in the Democratic Republic of Congo

(Reuters) - Gold miner Randgold Resources Ltd (L:RRS) reported a 76 percent jump in fourth-quarter profit boosted by higher grades and a rise in gold prices, and said it would raise its annual dividend by 52 percent.

Randgold shares rose as much as 4.9 percent in early trading to their highest in nearly 3 months. They were trading at 7,150 pence at 0917 GMT, leading the FTSE 100 gainers' list (FTSE).

Gold sales for the three months ended December 31 rose about 28 percent to 453,051 ounces as uncertainties around U.S. President Donald Trump's policies, the progress of Britain's departure from the European Union, and multiple elections in Europe benefited the safe-haven asset.

Spot gold prices rose about 8.5 percent in 2016.

The company said total cash cost per ounce fell 13 percent to $549 per ounce from last year, boosted by higher grades and better recovery at its flagship Loulo-Gounkoto in Mali.

Randgold, which has gold mines in Mali, Ivory Coast and the Democratic Republic of Congo, said profit rose to $94.3 million for the quarter from $77.3 million a year earlier. Gold production rose about 16 percent to 378,388 ounces in the same period from a year ago.

© Reuters. The KCD open pit gold mine, operated by Randgold, at the Kibali mining site in the Democratic Republic of Congo

The company said it had achieved its net cash target of $500 million without any debt.

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