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Randgold profit hit by drop in gold prices

  • Randgold Resources' (GOLD) 2013 EPS of $3.02 beats by $0.19.
  • Net profit dropped to $278.4M from $431.8M a year earlier, with a 17% fall in gold prices offsetting record production.
  • Pretax profit $402.5M vs $547.8M.
  • Gold sales flat at $1.27B.
  • Randgold produced 910,374 troy ounces of gold vs 794,844 ounces a year earlier.
  • Gold sales 920,248 ounces vs 793,852 ounces.
  • Cash costs fell 2.7% to $715 an ounce.
  • Expects to increase gold production by 25-30% in 2014. (PR)
  • To keep final dividend for the year at $0.50 a share. (PR)
  • Shares +2.4% in London.
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Comments (1)
  • Paul Mosgovoy
    , contributor
    Comments (113) | Send Message
     
    The profit drop does not seem to be affecting Randgold in the pre-market.

     

    The daily technical action shows that Randgold may move higher from here having formed a triangle wedge over the past eight sessions.

     

    However, it could still be forming a longer term sideways trading range for a move higher and if that is the case, then there may be one more opportunity to establish a low risk entry. That will most likely depend on a downward test of the gold price itself which could happen as GLD appears poised to test the 117 - 118 level.

     

    Randgold has posted an out-side-up reversal ("Key Reversal”) on the monthly chart and this can be regarded as a significant.
    3 Feb, 07:52 AM Reply Like
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