Searle,
With all due respect to you as a VERY VALUABLE member of this chat group, its is becoming obvious to me through your posts that you have failed to grasp what is really going on at RANDGOLD.
Your following comments comparing Anglo to RANGY suggest that RANGY's assets are primarily high cost mines. Are you possibly confusing RANGY with Durban or Harmony? These are totally different types of investments. RANGY has transformed itself into a low-cost surface deposit company, while I'm sure you are aware of the high cost nature of Durban and Harmony.
You state:
"This realization, in fact, was the basis for the reorganization that both Anglo and Goldfields did on their SAf gold mines recently. All marginal shafts were virtually given away. And, I needn't tell you that it is in these shafts that the biggest gearing of reserves to gold price occurs. Moreover, these were largely the shafts that Randgold bought for a song. So, who is right? Anglo or Randgold? The answer to that question goes far further than this forum. It goes to the root of contemporary gold investment.
Accordingly, the investor has a simple choice. High quality or high gearing. Low speculation or high speculation"
In actuality is appears RANGY and your gem Anglo are following similar paths, and that your comparsion is aimed apparently to the RANGY of old. Rangy, having successfully launched Randgold Resources, has transformed itself from a high cost producer to a developer of low cost surface deposits and in doing so have made a conscious decision to limit their exposure to your "high risk/geared" companies such as Harmony. Have you been following the development with the Morila Permit? (yes a rhetorical question as I'm certain you have not). Indeed estimates are only that, but with thousands of meters of drilling already completed, and phase 4 starting next month, they've already found over 2.2 Million ounces of incredibly cheap ore, and they have identified 4 similar geological settings within this permit. Their pre-feasibility study ESTIMATES cash costs of $118. This does not fit my definition of high risk gearing as you put it. In fact, they are so bullish on the success of this find that they are fast-tracking it with a bankable study due out early next year. This mine will pay for itself in under a year in a half! Please contact RANGY if you doubt my numbers, or I'd be glad to post the correspondence I've received from RANDGOLD.
You state:
"From Hoover's report, I'm now not even sure if it does actually own them" Searle, you can't tell me really that you live in the motherland of gold mining, S.A,. and yet you rely on some lame, false, uninformed source such as HOOVER for your investment decisions?
This is from WOZA, as SOUTH AFRICAN news source if I'm not mistaken. Surprised you missed it, or are you pessimistic on WOZA too for some reason?
Randgold Resources owns and operates the Syama Gold Mine in Mali, has two projects in Mali, Morila and Loulo, which are both in an advanced stage of development, and holds an extensive portfolio of mineral rights in other parts of Africa.
The company said the first phase of the Syama gold mine's expansion programme has been successfully commissioned and the second phase was on track for completion in November this year.
The company added that results from its Morila project, also in Mali, were continuing to exceed expectations. Latest drilling results had confirmed a total resource of some 16.3 million tons at a grade of 4.17 g/t, which translates into over two million ounces of gold.
"The pre-feasibility study supports the fast-tracking of this project, even at current gold price levels, and a full bankable feasibility study has been commissioned for completion by March next year. Morila could be developed into a high-quality, low-cost producer by 2000," chief executive Dr Mark Bristow said.
In the meantime a development decision on one of Randgold Resources' other advanced projects, Loulo in western Mali, has been delayed. However, exploration will continue at the current rate. A gold price of $350 per ounce or an additional discovery of a deposit similar to Yalea is required for a go-ahead.
Golden Ridge in Tanzania has come up to original expectations, but in terms of size now ranks behind Morila and Loulo. Randgold Resources is currently reviewing the future of this venture with its partner, Pangea Goldfields.
Bristow said the fast-tracking of the Syama upgrade programme was working. A new crusher, open circuit milling, flotation circuit and a new elution plant have been commissioned and an additional SAG mill is scheduled for commissioning by November. The programme is designed to increase production to 270 000 ounces per year while reducing costs to $210/oz.
"The commissioning of additional power generators impacted negatively on plant availability and affected the results of an otherwise improved quarter for Syama. Nevertheless, tons mined reached a new record level of 4.9 million for the quarter while cash costs were down to $277/oz by June. Gold production for the quarter was 30 956 ounces against the previous quarter's 24 961," Bristow said.
Elsewhere in Africa, there were particularly encouraging results from the Tongon prospect in Cote d'Ivoire, where continuity of surface mineralisation has been confirmed over 1 600m.
"The regional exploration programmes in our target countries are continuing, with the focus on the more advanced prospects defined during the past year. We now have 26 targets at or above the advanced stage," Bristow said
Searle, Any negative comments on Mr. Kinver or his record at Ashanti?
Randgold Resources strengthens management team
Peter Kinver has been appointed managing director of Somisy SA and general manager of Syama gold mine in Mali.
Kinver has 22 years experience in the management of large-scale mining operations, most recently as managing director of Ashanti Goldfields' flagship mine Obuasi, where he was responsible for a major turnaround in production and costs.
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Searle, I sincerely apologize for the hostile tone of this post.I guess your continued utter pessimism, coupled with your apparent disregard for the facts is affecting my disposition. Maybe I've just been doing too much research and simply need a vacation .
Please don't take offense to this and I look forward to you keeping up your "poo-poo" routine. With every effort you make to discredit RANDGOLD, I become more bullish, as I've yet to see anything we RANGY shareholders are overlooking. But as long as my portfolio contains RANGY, I'll continue to read your posts.
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