TIDMRRS
RNS Number : 5402N
Randgold Resources Ld
26 October 2016
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
RANDGOLD LOOKING TO THE FUTURE IN MALI
Bamako, Mali, 26 October 2016 - In the current climate of global
economic and political stress, it is more important than ever for
African governments to engage with their investors in a spirit of
genuine partnership, Randgold Resources chief executive Mark
Bristow said here today.
Speaking at a briefing for local media, Bristow said Randgold's
contribution to the treasury and people of Mali, where it operates
the Loulo, Gounkoto and Morila mines, was a striking example of the
tangible benefits the country was enjoying from Randgold's
continuing investment there.
"In the 20 years we have been in Mali, we have invested FCFA 1.5
trillion ($2.8 billion) here and contributed FCFA 2.5 trillion
($4.7 billion) to the country's economy in the form of taxes,
royalties, salaries, payments to local suppliers and community
initiatives. The scale of our involvement in Mali, and the fact
that we are still actively looking for new opportunities here,
testifies to our faith in the country, our belief in partnering
with the government and our philosophy of sharing the value we
create with the state and the people," Bristow said.
"Even the most successful partnerships are tested from time to
time, and over the years we have had a number of disputes with the
Malian tax authorities. Until now, we have always found solutions
acceptable to both parties through constructive negotiation,
although within our establishment conventions we have the right to
settle any disputes that may arise through an international
arbitration tribunal. We are still disputing the tax assessments
for 2011, 2012 and 2013, however, and we were disappointed when in
the midst of our efforts to settle this issue amicably, the
government closed down our Bamako office and our Malian bank
accounts, and demanded a further payment as a condition of their
reopening. To demonstrate our good faith, and our sympathy with the
financial difficulties the country is currently experiencing, we
have agreed to an advance of FCFA 15 billion ($25 million) on the
understanding that both parties will soon sit down to arrive at a
final and global solution to all the Randgold group tax issues. Any
overcharges in the disputed assessments will be returned to us at
the end of this process."
Turning to Randgold's operations, Bristow said the
Loulo-Gounkoto complex was continuing its strong performance and
was on track to beat its production guidance of 670 000 ounces of
gold for the year. The feasibility study on the development of a
superpit at Gounkoto is due for completion by the end of the year
and current indications are that it will extend Loulo-Gounkoto's
life and enhance its profitability. On the back of our past
investment and ongoing efforts, the aim of maintaining annual
production at more than 600 000 ounces for the next 10 years now
looks achievable.
The Morila operation has now progressed to full tailings
retreatment as it moves towards closure. Closure is scheduled for
2019 but opportunities for extending its life are still being
investigated. The Domba satellite pit project is still awaiting
approval and has been removed from the 2016 mining plan.
"At Loulo our brownfields exploration team is looking at new
targets at both Gara and Yalea. It has already delivered 500 000
ounces of additional resources at Gara and is currently generating
drill targets for more near-mine high grade resources at Yalea.
There has also been a renewed focus on greenfields exploration for
fresh targets on the lease," he said.
"Randgold remains committed to the long term expansion in Mali
of our own presence as well as the country's mining industry in
general. This we will only be able to achieve in a constructive and
mutually beneficial partnership with government. In this regard,
it's worth noting that an independent survey recently concluded
that while Mali had a high gold mining potential, it was lagging
behind its African competitors in terms of its ability to attract
investment. Negative factors cited in this regard were its mining
code and administration, its tax regime and its
infrastructure."
RANDGOLD ENQUIRIES:
Chief Executive Financial Group Regional Investor & Media
Mark Bristow Director Manager Relations
+44 788 Graham Shuttleworth West Africa Kathy du Plessis
071 1386 +44 1534 Mahamadou Samaké +44 20 7557
+44 779 735 333 +223 66 75 61 7738
775 2288 +44 779 771 36 Email: randgold@dpapr.com
1338
Website: www.randgoldresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for
the historical information contained herein, the matters discussed
in this news release are forward-looking statements within the
meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934, and applicable
Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, the realisation of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
reserve determination and reserve conversion rates. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as 'will', 'plans', 'expects' or
'does not expect', 'is expected', 'budget', 'scheduled',
'estimates', 'forecasts', 'intends', 'anticipates' or 'does not
anticipate', or 'believes', or variations of such words and phrases
or state that certain actions, events or results 'may', 'could',
'would', 'might' or 'will be taken', 'occur' or 'be achieved'.
Assumptions upon which such forward-looking statements are based
are in turn based on factors and events that are not within the
control of Randgold Resources Limited ('Randgold') and there is no
assurance they will prove to be correct. Forward-looking statements
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to mining operations,
including political risks and instability and risks related to
international operations, actual results of current exploration
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, as well as those
factors discussed in Randgold's filings with the US Securities and
Exchange Commission (the 'SEC'). Although Randgold has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Randgold does not undertake
to update any forward-looking statements herein, except in
accordance with applicable securities laws. CAUTIONARY NOTE TO US
INVESTORS: The SEC permits companies, in their filings with the
SEC, to disclose only proven and probable ore reserves. We use
certain terms in this report, such as 'resources', that the SEC
does not recognise and strictly prohibits us from including in our
filings with the SEC. Investors are cautioned not to assume that
all or any parts of our resources will ever be converted into
reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's Industry Guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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