Randgold Resources shares plunge after disappointing first quarter
The gold mining company Randgold Resources' shares plunged by eight per cent following the reveal of their disappointing figures for the first quarter.
In the first quarter, the London-listed company's profits were down by 24 per cent from the previous quarter coming to a total of $66.5m (£49m).
One of the reasons for why the company suffered loss in production was due to a one-day strike last month at the Loulo-Gounkoto mining complex in Mali, as well as another strike at the Tongon gold mine in the Ivory Coast.
Read more: Gold miner Randgold's shares have dropped after a weak quarter
In addition, the cash cost per extracted ounce rose from $627 (£464) to $720 (£532) because of more waste compared to ore at the Loulo-Gounkoto complex.
Chief executive of the company Mark Bristow told Reuters: “Industrial relations at Tongon impacted us a little bit more than expected.”
The company expects to still be able to reach its annual yearly output goal of 290,000 despite the labour disputes in Mali and the Ivory Coast. Randgold Resources also has a mining operation in the Democratic Republic of Congo called Kibali.
Analyst Yuen Low at Shore Capital said: “Production should improve over the remainder of 2018. Indeed, Randgold had previously flagged that 2018 production would be H2 weighted. The company today reiterated its full-year production target.”
Meanwhile, Canadian gold mining company Avesoro Resources reported a record quarterly gold production of 68,088 ounces, a 174 per cent increase from last quarter, which sent their share prices up four per cent.
Avesoro Resources chief executive Serhan Umurhan said: “I am delighted to report that following record quarterly gold production of 68,088 ounces, the company delivered record quarterly revenues of $91.4m (£67.6m).”
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