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Last Update: 06-Feb-12 11:48 ET
Randgold Resources Up 3% Following Earnings Results/Dividend Increase
Overnight, Randgold Resources (GOLD $119.57 +3.40) reported fourth quarter earnings of $1.26 per share, which may not be comparable to the Capital IQ Consensus Estimate of $1.38.
Profit for the fourth quarter of $136.2 mln was up 323% on the corresponding quarter in 2010 and was also higher than the co's annual profit in any preceding year. Co's board has proposed a $0.40 annual dividend, up from $0.18 annual dividend in 2011.
The company is forecasting production growth in each of the next five years, with group production for 2012 estimated to be 825,000-865,000 ounces, a 19% increase over 2011 at the lower end of the range. This growth is projected to be driven by better throughput and grade at the Loulo/Gounkoto complex. Total capital expenditure for 2012 will remain high at ~$660 mln, which will be invested in the anticipated start-up of construction at Kibali, the programmes to unlock more capacity at Loulo and Tongon and in exploration across the group.
Profit for the fourth quarter of $136.2 mln was up 323% on the corresponding quarter in 2010 and was also higher than the co's annual profit in any preceding year. Co's board has proposed a $0.40 annual dividend, up from $0.18 annual dividend in 2011.
The company is forecasting production growth in each of the next five years, with group production for 2012 estimated to be 825,000-865,000 ounces, a 19% increase over 2011 at the lower end of the range. This growth is projected to be driven by better throughput and grade at the Loulo/Gounkoto complex. Total capital expenditure for 2012 will remain high at ~$660 mln, which will be invested in the anticipated start-up of construction at Kibali, the programmes to unlock more capacity at Loulo and Tongon and in exploration across the group.
