Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Randgold Resources’s (LON:RRS) (NASDAQ:GOLD) CEO Mark Bristow said Thursday the company is in a solid position to deal with the downturn in the gold price which has plunged much of its peers into crisis, mainly thanks to its Mali mines.
Speaking at a media briefing the executive said the country and Randgold have a long history of a mutually beneficial partnership and together they had overcome several challenges.
“Through some difficult times, Randgold had retained its belief in Mali and in the Malian people’s ability to solve the country’s problems and this confidence had once again been vindicated by the previous week’s peaceful presidential election,” Bristow said.
The CEO cited the Malian government’s recent decision to waive its royalties for the 22-month duration of the Morila project, as an example of fruitful cooperation between state and capital.
“The discovery and development of Morila was the foundation on which Randgold built its company, as well as Mali’s growth into a major African gold producer. Since it went into production in 2001, Morila has produced more than 6 million ounces of gold at an average cost of less than US$300 per ounce and contributed more than US$1 billion directly to the Malian treasury,” Bristow said.
Randgold is reportedly shopping around for juniors with attractive projects, which are now putting operations on hold.
The firm has, in fact, bought a majority stake in Canadian junior Kilo Goldmines (TSXV: KGL) in order to join forces in the Democratic Republic of Congo.
Randgold runs mines in Mali, the Ivory Coast and the DRC.
Comments
taxpayer
Mark Bristow for u! Mr. tough skinned