Randgold on the best way to the big player
20.04.2012/XNUMX/XNUMX Jersey - The British gold producer, which is mainly active in Africa, has big plans for the future. In just a few years, the company wants to at least catch up with the big players in the gold business. And the chances of this are anything but bad.
The British are currently focusing their attention on the development of the Kibali Mine in the Democratic Republic of the Congo. The project is managed by Randgold in partnership with AngloGold Ashanti, with each company holding an 45 percentage. Even though the African country is one of the most politically unstable regions in the world, according to the company, the construction of the mine is progressing very well.
Giant Mine already 2013 ready to start
The two companies are currently assuming that the mine, which will be one of the largest on the black continent after completion, will be ready to start production next year. Investments currently require about 1,5 billion dollars, which Randgold and AngloGold Ashanti can easily manage with ease. And the deposit is quite impressive: At present, it is estimated that ore deposits in the order of 78,62 million tons with an average gold content of 4,21 grams per tonne. Thus, the gold reserves are remarkably lavish 10,21 million ounces. And best of all, the reserves still have a potential for improvement that should not be underestimated.
The current mine plan is based on an annual production of 600.000 ounces in the first twelve years. Considering that Randolold's current total gold output is 700.000 ounces per year, the importance of the project to the British is revealed. Because even if the flow rate has to be shared, there will be an additional margin for the gold around the 300.000 ounces. As such, the company's target of breaking the one-million-ounce mark by the middle of the decade can best be described as conservative.
And finally ...
Randgold is undoubtedly one of the best companies in the gold sector. This is also evidenced by the strong disproportionate price gains in recent years. However, since the beginning of March, the paper has fallen significantly due to the coup in Mali and is now trading at a level where gold bulls can seriously think about getting started.
(Www.emfis.com)
