Commodities Buzz: Randgold Resources Profit Drops 27% In Q1, Annual Gold Output Guidance Maintained

Gold mining major Randgold Resources said that its first-quarter pretax profit fell 27% due to lower gold sales and higher production costs. The company said profit for the three months ended March 31 fell to $ 87.3 million from $ 119.6 million in the year-earlier period while the revenue fell 14% to $ 273.3 million. However, the company has maintained its 2018 production guidance of between 1.3 million and 1.4 million ounces. Following the full commissioning of its underground mine, Kibali in the Democratic Republic of Congo increased quarterly production by 22% compared to the corresponding quarter of the prior year and is on track to achieve its 2018 target of 730 000 ounces. Results for the quarter show group production lower at 286 890 ounces (Q4 2017: 340 958 ounces) and total cash cost per ounce higher at $ 720/oz (Q4 2017: $ 627/oz).