(Adds CEO comments, updates shares)
By Zandi Shabalala and Sanjeeban Sarkar
Feb 6 Gold miner Randgold Resources Ltd
reported a 76 percent jump in fourth-quarter profit, boosted by
higher grades and a rise in gold prices, and the company said it
would raise its annual dividend by 52 percent.
Randgold shares rose as much as 5.25 percent in early
trading to their highest in nearly 3 months. They were trading
at 7,180 pence at 1244 GMT, leading the FTSE 100 gainers' list
Gold sales for the three months ended Dec. 31 rose about 28
percent to 453,051 ounces as uncertainties around U.S. President
Donald Trump's policies, the progress of Britain's departure
from the European Union, and multiple elections in Europe
benefited the safe-haven asset.
Spot gold prices rose about 8.5 percent in 2016.
Randgold said it had achieved its net cash target of $500
million ahead of estimates and without any debt.
"At the end of the day it's driven by quality grade and that
drives the cash to our shareholders," Chief Executive Mark
"We have not only grown our business but the capital is
coming down and that is what is driving the cash."
"Shareholders will be eyeing the company's strong future
cash flows, as evidenced by the growth in the balance sheet,"
Investec said in a note.
Fellow miner Centamin Plc last week raised its
dividend six fold as production rose and costs fell.
Randgold will start a prefeasibility study at the
Massawa-Sofia mine in Senegal which Bristow said could be the
first of three major projects that the miner will develop.
Total cash cost per ounce fell 13 percent to $549 per ounce
from last year, boosted by higher grades and better recovery at
its flagship Loulo-Gounkoto mine in Mali, the company said.
Randgold, which has gold mines in Mali, Ivory Coast and the
Democratic Republic of Congo, said profit rose to $94.3 million
for the quarter from $77.3 million a year earlier. Gold
production rose about 16 percent to 378,388 ounces in the same
(Reporting by Zandi Shabalala in Cape Town and Sanjeeban Sarkar
in Bengaluru; Editing by Amrutha Gayathri, Gopakumar Warrier and