Randgold Resources Ltd.'s (GOLD) chief executive Monday said his company is "very busy" looking at acquisition opportunities in the gold sector, but the Africa-focused miner would only pursue deals that add value for shareholders.

"This is a unique time where there is value in the market, and there is a desire by shareholders to see some consolidation. So we are pursuing opportunities as we speak - but not at any cost," Mark Bristow told Dow Jones Newswires.

Bristow's comments came as the FTSE100 gold miner reported a 1.1% decline in net profit for 2008 after a non-cash provision against investments and higher costs for the year ate into the company's bottom line. Randgold's net profit attributable to equity shareholders, after exceptional items, was $41.57 million for the 12 months to Dec. 31, compared with $42.04 million a year earlier.

Revenue was up 19.7% to $338 572 million from $282.81 million a year earlier.

Randgold's attributable gold production was 428,426 troy ounces in 2008, compared with 444,573 ounces a year earlier.

Bristow said the 2009 target was between 470,000 ounces and 490,000 ounces as the company continues to focus on developing new projects and increasing production.

Randgold, incorporated in Jersey, operates two gold mines in Mali. But mining is scheduled to end at its 40%-owned Morila mine in April, leaving future growth dependent on an underground mining project at Loulo in Mali, construction of its Tongon project in Ivory Coast and development of exploration projects, like the Massawa discovery in Senegal.

The company said its Loulo project is expected to ramp up by year-end, increasing the mine's annual production by about 100,000 ounces to 360,000 ounces.

"The biggest challenge is keeping the Loulo underground on track. We've had our fair share of challenges," Bristow said.

"The key milestone is to get Loulo to over 400,000 (ounces) by 2010," he added.

The chief executive said the company remained focused on its projects but was pursuing potential acquisitions in Africa.

"Early stage is good," Bristow said, referring to projects not yet in full production. "We can also look at some of the bigger companies that are trying to restructure their portfolios ... or are not up to managing political risk in Africa."

But Bristow said the company did not have to do any deals and would not pay too great a premium or buy into assets past their prime. "I don't want to by any tired old dogs," he added.

The company's Tongon project remains on track for commissioning in the last quarter of 2010, and exploration work at Massawa "has confirmed that it is a significant discovery," Randgold said.

Costs meanwhile eased in the fourth quarter to $459/oz, down 11% on the previous quarter, partly as a result of a drop in diesel prices, a major component of the company's cost structure.

Cash costs for the year hit $467/oz, compared with $356/oz in 2007.

Randgold was a stand-out performer among London-listed miners last year as investors looked to gold as a safe haven from financial turmoil - shares gained almost 60%.

At 0850 GMT, Randgold's shares were up 4 pence, or 0.1%, at 3044 pence in a mixed mining sector. The FTSE350 mining index was down 1%.

Company Web site: http://www.randgoldresources.com

-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; jeffrey.sparshott@dowjones.com