Randgold Resources’ (LSE: RRS; NASDAQ: GOLD) chief executive Mark Bristow gave a talk on how to create and protect shareholder value in gold mining during the March 6 keynote session at the Prospectors and Developers Association of Canada’s (PDAC) annual convention in Toronto.
Bristow reveals how a company’s share price, particularly reserve per share, is the best measure of value. He stresses the importance of investing in exploration and geologists, especially during a downturn, in order to find world-class deposits that can withstand the cyclicality of the business.
Over the past 20 years, Randgold has discovered the 7.5 million oz. Morila deposit, the 7.2 million oz. Yalea deposit, the 5.9 million oz. Gounkoto deposit, in Mali, as well as the 4.9 million oz. Tongo deposit in Côte d’Ivoire, and the 3.7 million oz. Massawa deposit in Senegal.
Randgold – which operates its flagship Loulo-Gounkoto mining complex and the Morila, Tongo and Kibali mines – notes its mines have been profitable after the first quarter of production.
The company has increased production for the sixth consecutive year in 2016, while trimming total cash cost per ounce. It recorded a 2016 profit of US$294 million, up 38% over 2015, and intends to raise its cash dividend by 52% to US$1 per share. Below are.
Read edited excerpts of Bristow’s remarks at The Northern Miner.