November 6, 2008

Randgold Resources Announces 3rd Quarter Results

 RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel Islands Reg. No. 62686 LSE Trading Symbol: RRS Nasdaq Trading Symbol: GOLD Internal resources sufficient to fund development of projects RANDGOLD RESOURCES REINFORCES GROWTH PROSPECTS DESPITE TOUGH MARKETS London, 6 November 2008  - A lower gold price and grades reduced Randgold Resources' third-quarter revenue but costs were well contained despite the peak in input costs and the company said it was well positioned to benefit from a stronger fourth quarter. Attributable gold production was 101 856 ounces against the previous quarter's 115 598 ounces, due to a drop in the average grade mined at both the Loulo and Morila operations in Mali. Combined with a 7% decrease in the average gold price, this resulted in gold sales reducing from Q2's USUSD95.2 million to USUSD78.3 million. Total cash costs of USUSD52.3 million were in line with the previous quarter's USUSD52.8 million. The company posted a net loss of USUSD684 000 for the quarter (Q2: profit of USUSD20.2 million), but would have made a net profit of USUSD8.2 million had it not been for a non cash provision of USUSD8.8 million against investments in auction rate securities which had shown a deterioration in credit ratings. Reviewing the operations, chief executive Mark Bristow said Loulo had done well to maintain throughput and achieve an output of 64 250 ounces (Q2: 70 100 ounces) during the wet season. By comparison, Loulo produced 58 020 ounces and processed 10% fewer tonnes in the same quarter in 2007. Unit costs were impacted by the decrease in grade and ounces produced, a further rise in the diesel price and the planned processing of stockpile material during the rainy season. The Morila joint venture also saw a drop in grade from 3.5g/t to 3.0g/t and consequently in production from 113 746 ounces to 94 016 ounces. Bristow noted that the last of the orebody was now being mined at Morila - the mine is scheduled for conversion into a stockpile processing operation next year - and that at this stage it had little operational flexibility. Production was also impacted by a fire in the elution plant towards the end of the quarter. Randgold Resources has recently started development of its third mine at Tongon in the Cote d'Ivoire and Bristow said the latest update of the feasibility study had confirmed that it was a very robust project which would produce an estimated 2.7 million ounces of gold over a 10-year life of mine. The company has increased its stake in the project by 3% to 84%. Work has also started on a scoping study on its most recent major discovery, Massawa in Senegal. This will be completed during the first quarter of next year and if positive, together with a 35 000 metre feasibility drilling programme, will form the basis of a prefeasibility study."We expected this to be a tough quarter and it was," Bristow said. "But the challenges are being dealt with and we're moving ahead. The Yalea conveyor belt system is now up and running, and with ore production from underground expected to reach the planned 90 000 tonnes per month level from year end, Loulo is still on track to meet its production target for the year. Morila - which produced its 5 millionth ounce during the quarter - continues to generate strong cash flows and we're looking at every aspect of its operations and its cost structure to ensure that margins are maintained." While rising costs was the most critical issue facing the gold mining industry in the past quarter, Bristow said that the industry would also face tremendous volatility going forward. Focusing on profitable business plans to ensure the company could fund its future growth would remain key to Randgold Resources' strategy. He noted that a new mine plan for Loulo, which will increase production from Yalea and expand the plant, had enabled the company to delay the development of the second underground mine, Gara, by a year without affecting the overall production profile. "This means that we can reschedule our capital plans by redesigning our production profile," he said. Bristow said the company was in the fortunate position that its cash resources - USUSD264 million at the end of the quarter - and its strong revenue streams were sufficient to ensure the development of the Tongon mine and other projects. The fact that it would not require external funding for this growth was a very significant advantage given the current state of the capital markets, he said. RANDGOLD RESOURCES ENQUIRIES: Chief Executive  Financial Director  Investor & Media Relations Dr Mark Bristow  Graham Shuttleworth Kathy du Plessis +44 788 071 1386 +44 779 614 4438    +44 20 7557 7738 +44 779 775 2288 +44 1534 735 333 Email: [email protected] Website: Click on, or paste the following link into your web browser, to view the associated PDF document.                     This information is provided by RNS           The company news service from the London Stock Exchange END 

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SOURCE: Randgold Resources Ld