Loulo nearly ready to ship

With its first phase plant commissioned, Randgold Resources (GOLD-Q, RRS-L) expects to ship its first commercial consignment of bullion from the Loulo mine in Mali later this month.

Throughput at the plant has been exceeding 5,000 tonne per day and is being ramped up to design levels as the mine is advanced into commercial production. Selective mining and ore stockpiling began in May, ahead of the mill start-up, and the first gold was poured in late September. The second mill is expected to come on stream in early November.

Randgold also says that the carbon-in-leach circuit is operating, and the elution and electro-winning circuits are being commissioned.

Meanwhile, work continues on the second phase of development, with the hard rock crushing circuit slated for completion in the first quarter of 2006. The primary, secondary and tertiary crushers are scheduled for delivery in November and December.

The company has also approved the development of an underground mine at Loulo to complement the original open-pit operation. An optimized plan for the combined operation is expected within the next three months.

Randgold recently posted a net third quarter profit of US$9.2 million, up from US$7.1 million in the previous quarter. The increase is attributed to higher mill throughput and improved grades and recoveries at the Morila mine also in Mali. Revenue climbed by just more than US$3 million to US$31 million.

Morila processed more than a million of ore to produce 172 901 oz. of gold, up from 165 359 oz. the previous quarter. Total cash costs increased by 12% to US$197 per oz.; the company realized US$443 for each ounce sold. Randgold and AngloGold Ashanti (AU-N) each own a 40% interest in Morila.

At quarter’s end, Randgold’s cash and equivalent position had fallen by US$33.2 million to US$45 million mostly owing to expenditures at Loulo. The company also had long-term borrowings totalling US$58.8 million.