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Gold/Mining/Energy : RANDGOLD and EXPLORATION (RANGY)

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To: POLARBEAR who wrote (376)	6/3/1999 7:21:00 PM
From: baystock	Read Replies (2) of 448

RESTRUCTURING MAY BOOST RATING OF RANDGOLD RESOURCES; BUT THEN AGAIN, IT MAY NOT The latest results from Randgold Resources confirm that the Morila project is galloping ahead and can now be realistically called a "company maker". The bankable feasibility has now been signed off; a term sheet for project funding of between US$75 and US$111 million has been agreed with NM Rothschild; and the tender for mine construction has been awarded to a South African company MDM- Batepro JV. Morila is scheduled to come into production by January 2001, "and earlier if everything falls into place" says chief executive Dr Mark Bristow,"which is fast track by anyone's measure.The independently audited study shows gold resources of 4.45 million ounces and reserves of 3.3 m ozs and the orebody is still open so there is potential to increase these figures further. Moreover the average cash operating costs will be US$133/oz which puts it in the lowest quartile of the gold mining industry." In the meantime the performance of the Syama mine has improved steadily with a cash profit achieved for the second successive quarter. February was affected by a shutdown to improve mill throughput and recovery, but in March alone 19,184 ounces of gold were produced at a working cost of $US228/oz. The share price of Randgold Resources has doubled this year and many, including the lately converted chairman Roger Kebble , believe that that it could have done better but for the unbelievably complicated cross holdings among the Kebble group of companies which includes Randgold & Exploration Company Limited, a 61.6% shareholder in Randgold Resources. These companies are now going to be restructured, but there is an old American saying, "if you can't see what is going on in a deal, follow the money." The shares of Randgold Resources have dipped marginally since the results so it does not look as if the London market is convinced that too many of the benefits will flow in its direction. Actual details are expected by the end of July, but in the meantime the only safe bet is that the Kebble interests will not suffer. May 6 1999 minesite.com

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