Randgold Resources Ltd. (RRS), a producer of the precious metal in West Africa, dropped to the lowest level in two months in London trading after the president of Ivory Coast dissolved the country’s government.
The company declined by as much as 5.1 percent to 6,580 pence, the lowest since Sept. 6. President Alassane Ouattara dissolved the government, Amadou Gon Coulibaly, general- secretary of the presidency, said today in a statement.
“We don’t see this as sinister at all,” Chief Executive Officer Mark Bristow said in a telephone interview. It’s part of the “routine political process,” he said. Bristow said he doesn’t expect the situation to affect Randgold operations.
Randgold operates the Tongon mine in Ivory Coast, producing 159,955 ounces in the first nine months, or about 28 percent of its total production. The company also operates mines in Mali and is developing a site in the Democratic Republic of Congo.
It fell 4.9 percent to 6,590 pence by 4:10 p.m. in London.
Ivory Coast, producing about a third of the world’s cocoa, is recovering from violence that left at least 3,000 dead after Laurent Gbagbo refused to cede power to Ouattara following a November 2010 election. Ouattara was inaugurated in May 2011.
Randgold earlier said Bristow yesterday sold 45,000 shares in the company at 6,799 pence each.
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