Shareholders have enjoyed substantial capital returns
in the year with the share price rising 41% from US$11.42
to US$16.13. The board again considered the payment
of a maiden dividend. Given the growth opportunities
the company has however, it was decided not to
recommend a dividend at this time. The dividend policy
will be reviewed again by the board in the second quarter
of 2006.
Work is underway on the Loulo underground project.
The capital programme will take some five years
and cost approximately US$100 million. In the Loulo
underground development, the company now has a
long life project in its portfolio as well as two significant
cash generators in Morila and Loulo. With a full year of
Loulo’s production in 2006, Randgold Resources is
targeting a further 25% increase in attributable production
for the year with estimated total cash costs of US$270
per ounce.
LOULO MINE
The Loulo mine project is situated in western Mali adjacent
to the Falémé River which forms the frontier with Senegal.
It is located 350 kilometres west of Bamako and 220
kilometres south of Kayes. Loulo falls within the Birrimian
sequence of the Kenieba inlier. This succession of
volcano-sedimentary and clastic rocks contains several
major regional shear structures hosting gold deposits
such as Sadiola, Segala, Tabakoto, Loulo 0 and Yalea
as well as numerous other satellite targets. Loulo is
situated 96 kilometres from Sadiola and approximately
25 kilometres from Segala and Tabakoto.
Randgold
Resources Annual Report 2005 13
