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Last Updated: Thursday, 5 May, 2005, 15:14 GMT 16:14 UK
Randgold shares up as profit down
molten liquid gold
Randgold is set to open a second gold mine in Mali
Gold mining group Randgold has posted a fall in profits as gold concentrations at its Morila mine in Mali, its only producing pit, fell.

Quarter-on-quarter net profit fell to $12.12m (6.37m) in the period to the end of March, from $15.4m previously.

However, the UK-based mining group's shares rose by 6.24% to 690 pence in London trade as revenue beat forecasts.

The sale of 5,000 ounces of gold mined in the previous quarter pushed revenue to $31.98m, up $3.3m on expectations.

"A good set of results, with a positive market environment and a higher gold price, I think you could say that's why the shares are trading higher," said Charles Kernot, mining analyst at brokers Seymour Pierce.

'Renewed effort'

Revealing its results, Randgold said operational hitches once again affected output at Morila.

"The continued underperformance of the upgraded plant at Morila is frustrating but we're making a renewed effort with our partners to understand the issues there so that they can be addressed properly," chief executive Mark Bristow said in a statement.

He said Randgold was talking to the mine operators, and its joint venture partner, AngloGold Ashanti to improve the situation. Each firm owns a 40% stake in the venture.

Mr Bristow also said construction of its Loulo mine in Mali was progressing as planned and that there were now thought to be total resources of more than 8 million ounces of gold at the site.

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