Thursday, 9th February 2006 (2576 views)

Gold exploration outfit Randgold Resources is looking to open new mines, according to company chairman Philippe Lietard.

Speaking at a Mining Indaba dinner in Cape Town, Mr Lietard said that the future of the company was to do more than just replace those reserves that were depleted, but to expand more comprehensively.

He sent a clear message that his company would capitalise on the current gold boom to build on recent success, which includes posting a net profit of US$47.5 million in 2003.

Randgold's chief executive, Dr Mark Bristow, said the company was engaged in drilling operations at its Morila mine. Morila has paid out almost $100 million per annum in dividends, but its lifespan is coming to an end.

Around 40,000 metres of boreholes will be drilled to try to find at least another 200,000 oz of gold, the amount needed to keep the mine going for an extra year.

Randgold was incorporated in 1995 and listed on the London Stock Exchange in 1997. The firm has a 0.1 per cent hit rate for exploration, compared to the norm of 0.05 per cent.

 

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