By Oliver Griffin 
 

Randgold Resources Ltd. (RRS.LN) said Monday that its Kibali mine in the Congo is on track to significantly outperform its full-year production guidance of 730,000 ounces of gold.

The mining company said Kibali, which is also part-owned by AngloGold Ashanti Ltd. (ANG.JO), is expected to post record results for the quarter to the end of September.

Chief Executive Mark Bristow said the mine is operating at full capacity and at a steady state. The focus is now on finding fresh sources to feed the high production rate.

Exploration teams are working on converting resources to reserves, as well as finding new mineral resources.

Randgold also said the mine has reached an agreement with the Congo's Ministry of Finance for a reimbursement of value-added tax worth $218 million.

The agreement allows for $40 million to be paid upfront, while the balance will be settled on an offset basis.

The ministry has also agreed to exempt local goods and services purchased by the Kibali mine from the value-added tax.

 

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

 

(END) Dow Jones Newswires

October 22, 2018 11:35 ET (15:35 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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