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Actionable news in GOLD: Randgold Resources Limited,

Randgold: Tough Quarter, Good Results


Randgold reported Q1 profits up 19% quarter on quarter and 25% year on year.

Increase in profits was despite some technical difficulties at its Tongon and Kibali mines.

Annual dividend increased 10% to $0.66 per share.

I suppose a sign of a really good gold mining company is that it can have a self-confessed difficult quarter, but still emerge with decent cash flow and profits. Randgold Resources (NASDAQ:GOLD) is such a company. Its stock price may not have performed as well over the period as some of its peers like Kinross Gold (NYSE:KGC), Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG), Yamana (YAU) etc. but that is because it never got sold down anywhere as much as they were over the four year bloodbath in gold stocks - See: Massive Rises In Tier 1 Gold Stocks - Even Better Than The Juniors!. Indeed GOLD was almost certainly the best performer by far over that period of all the US quoted Tier 1 gold stocks for the longer term holder.

Indeed at his presentation of the company's Q1 2016 results in London yesterday, Randgold CEO, Mark Bristow, made a few barbed comments about the relative performances of his company's peer group. Unlike them Randgold carries no debt, has a progressive, rather than a declining, dividend policy (its shareholders have just approved a 10% dividend increase for the past year when almost all its peer group have been slashing dividends drastically) has always been profitable, and can remain so, at a lower gold price than most of its competitors. It has had no need to take balance sheet impairments which have turned book profits into massive book losses for many of its peers. Nor has it been necessary to dilute its shares to assist in raising money for hugely expensive capital projects. Nor has it found it necessary to cut any capital projects, nor cut back on exploration expenditure, in the recent massive drive to cut costs at virtually all major mining companies. In short, it stands out...