Yahoo Finance Randgold on the hunt for new gold as prices stagnate
The boss of Randgold Resources has said the miner is on the hunt for acquisitions as smaller rivals struggle.
Mark Bristow said the “flat” gold price had put pressure on companies to find financing to develop their assets. “We’ve signalled we’re looking [for deals],” he said. “We’ve got the balance sheet and we’ve got the skills. We might be able to pick out some opportunities.”
The chief executive of London’s biggest gold miner added that it was eyeing companies with only one asset that could be sitting on top-class, “tier-one” mines and ripe for consolidation. “I’ve been very outspoken about the industry requiring rearrangement, reinvention,” he said.
Gold has fallen nearly 7pc in the year to date to $1,214 (£942) an ounce, partly because the US dollar - in which it is priced - has been strong.
Mr Bristow said: “Beware of a soft gold price in a screwed-up world. Everything points to a stronger gold price - you just have to watch the news: there’s a shit fight over trade. Europe is a mess. Brexit is confused. Mr Trump walks around picking on everyone.”
Randgold’s shares slipped nearly 1pc in lunchtime trade to £54.48 as it reported an 8pc fall in revenues to $603m in the first six months of the year, mostly because of a fall in production in the first quarter. Pre-tax profits slumped 40pc to $161.6m.
A strong performance by its Kibali mine in the Democratic Republic of Congo was offset by a three-week shutdown at Tongon in Ivory Coast due to striking workers. Mr Bristow said a handful of “rabble rousers” had been charged and that the company had the support of the government and unions in resisting “ransom” demands over pay. “We’re already one of the biggest payers in the country,” he said.
Kieron Hodgson of Panmure Gordon said the results were “materially below expectations”.
