Randgold Resources says Tongon project remains on track to meet annual targets

LONDON (ShareCast) - Gold explorer Randgold Resources said its Tongon project in Ivory Coast remained on track to achieve its annual targets for 2015. The FTSE 100 group said management had made significant progress in dealing with the challenges that had hampered the early stages of its operations at the gold mine.

Randgold chief executive Mark Bristow said the commissioning of the mine's new flotation circuit and the expansion of the crushing circuit were delivering the desired results on production and costs.

Bristow added that the positive impact on production and costs was bringing the mine in line with its designed performance level.

The mine is forecasting production of some 260,000 ounces of gold at a total cash cost of $820 (£540.6) per ounce in 2015. At the current gold price, the mine should be able to repay its capital this year as scheduled.

Randgold shares were down 0.06% to 4,947.00p at 08:18 on Monday.