Randgold flags dividend increase as third-quarter output rises

LONDON (Reuters) - Randgold Resources Ltd said on Thursday it was on track to raise dividends by the end of the year and to support three new projects should gold prices stay near current levels.

Randgold flags dividend increase as third-quarter output rises

(Reuters)





After three years of losses spot gold is up 23 percent so far in 2016 as global economic and political concerns benefited the safe-haven asset.

"If the gold price stays above $1,250 per ounce, and we deliver on our forecasts, we should get close to a $500 million (405 million pound) net cash position at the year end," Chief Executive Mark Bristow said in a statement.

Third-quarter net cash rose 18 percent to $361.1 million quarter on quarter while profit jumped 32 percent $77.3 million.

"Forecast cash flows generated from operations are expected to support funding for the three new projects the company has set as a goal to establish over the next five years as well as increasing dividends," Randgold said.

Gold production in the third quarter rose 7 percent to 301,163 ounces due to strong performances at the Tongon and Kibali mines while total cash costs fell 9 percent from the previous quarter to $663 per ounce, Randgold said.









(Reporting by Zandi Shabalala; editing by David Clarke and Jason Neely)


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