4 Annual
Report 2005 Randgold Resources
“Its long-range
perspective on the
industry and the courage
of its convictions have
given it the confidence to
make those investments
ahead of the curve. Loulo
is a prime example of the
potential benefits of this
approach.”
Last year Randgold Resources
celebrated the tenth anniversary of its
establishment and with it a remarkable
record of achievements.
When this company was incorporated in
1995, it was little more than a collection
of exploration permits. Ten years on, it
is a major mid-tier gold business which
has discovered and developed two new
mines, carved out a dominant position
in some of Africa’s most prospective
regions, built a broad global investor
base and earned a reputation for creating value for its stakeholders.
It did so, initially at least, in a stressed market and with slender
resources. But as Napoleon once observed, success is not so much
a matter of materials as one of personal character and relations, and
this has certainly been the case at Randgold Resources. In Mark
Bristow and his team, the company has what I believe to be one of
the most energetic and accomplished managements in the industry.
It is their dynamism that has driven Randgold Resources from a zero
base to a market capitalisation which now exceeds US$1 billion, and
it is their understanding of the gold business and the African continent
that has enabled the company to forge productive partnerships
wherever it has gone.
While Randgold Resources’ growth has been rapid, it has not been
precipitate. The company has executed its plans boldly, but the plans
themselves have been carefully formulated and thoroughly tested
against clear objectives and consistent strategies. And the strategy
on which the business has been based has remained essentially
unchanged since the start: it is to build real value for its shareholders
on the back of sustainable organic growth.
This systematic, long term approach - and its worth - are illustrated
by the company’s history. Randgold Resources started by elevating
its activities to the operational level by acquiring BHP Mali’s assets,
an acquisition funded by a placement of the company’s then still
unlisted stock. This was followed by an IPO and a London listing,
which gave it both some seed capital as well as a functioning presence
in the global capital market, enabling it to discover, finance and
develop the world class Morila mine. Its subsequent secondary listing
on Nasdaq significantly expanded the company’s share register
and confirmed its status as a fully independent business.
The Morila deposit was found by the Randgold Resources exploration
team and the fact that this mine has to date produced more than
3 million ounces of gold and paid out some US$430 million to its
shareholders shows the soundness of the company’s creed that value
is created by discovery and development. It is in pursuit of this belief
that it has maintained an intensive exploration programme throughout
Chairman’s statement
