LONDON – African miner Randgold Resources maintained its 2018 targets on Thursday after it reported a rise in second-quarter profit and production, citing a good performance at its Kibali mine in the Democratic Republic of Congo.
In the three months to June 30, production rose 9% compared to the previous quarter to 313 302 oz of gold while profit from mining increased by 6%, the London-listed miner said in a statement.
Randgold maintained its annual targets of gold production reaching between 1.3-million to 1.35-million ounces at a cost of between $590/oz to $640/oz.
A strike at Randgold's Tongon mine in Ivory Coast, which started on July 13, has crippled production and followed similar stoppages at the operation earlier this year.
"The Tongon work stoppage is obviously a challenge, but we take comfort from the government's leadership in ensuring measures are taken to protect the assets and that they are dealing with the situation," CEO Mark Bristow said.
He said Randgold was still assessing the strike's impact but that annual targets for the group were maintained due to a strong performance at the Kibali mine.
Tongon, which accounted for 22% of Randgold's 2017 total production, recorded a 12% increase in output in the second quarter but its 2018 target was lowered to 250 000 oz from 290 000 oz previously.