Bloomberg News

Randgold Cuts Output Guidance as Rainfall Curbs Mali Volumes

August 29, 2011

(Updates with CEO comments in third, fourth paragraphs.)

Aug. 29 (Bloomberg) -- Randgold Resources Ltd., a miner of the precious metal in Africa, reduced its full-year production guidance by as much as 3.8 percent as rain cut output in Mali.

Randgold lowered its forecast to 740,000 to 760,000 ounces from 750,000 to 790,000 ounces, the St. Helier, Jersey-based company said today in an e-mailed statement.

The reduction in guidance comes less than a month after Randgold said it was on schedule to meet its full-year target. “Abnormal” rainfall has since swamped the pumping capacity at the company’s Gara and Gounkoto pits and affected the mining schedule, Chief Executive Officer Mark Bristow said today.

Revising its third-quarter forecast, Randgold said it aims to exceed the 80,000 ounces it produced at the Loulo-Gounkoto complex in the last quarter, scrapping an earlier 100,000-ounce target. “Provided the Loulo mining schedule and supply routes get back to normal during September, fourth-quarter production is expected to get back to planned levels,” Bristow said.

--Editors: Alastair Reed, Randall Hackley.

To contact the reporter on this story: Amanda Jordan in London at ajordan11@bloomberg.net

To contact the editor responsible for this story: Alastair Reed at areed12@bloomberg.net


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