- Randgold Resources (NYSE:GOLD) +1% premarket after reporting its FY 2014 net earnings fell 17% Y/Y to $271M, as record mining production failed to offset the sliding gold price.
- However, GOLD proposes a final dividend of $0.60/share, up from $0.50 in the previous year.
- Full-year revenue fell 4.5% to $1.09B due to an 8% drop in the average achieved gold price, which more than offset a 26% rise in gold output to 1.14M oz., in-line with company guidance of 1.12M-1.2M oz.; the total surpassed 1M oz. for the first time due in part to the first full-year contribution from its Kibali gold mine in the Democratic Republic of Congo.
- Full-year unit cash cost fell 2.4% Y/Y to $698/oz., at the high end of guidance of $650-$700/oz.
- GOLD's main mine at Loulo-Gounkoto in Mali, in which it holds an 80% stake, increased production by 10% to 639K oz.
- Says development of an underground mine below the Gounkoto open pit in Mali could generate a 20% internal rate of return on investment, and identifies 900K oz. of gold reserves for the proposed underground mine.