Share Dealing
Randgold production hit by 'one in a hundred year event'
Rob Langston, 30 August 2011
Rangold Resources (RRS.L) has warned its third quarter gold production will be negatively impacted by heavy rainfall in Mali, in 'one in a hundred year event'.
More than 400mm of rain has fallen in the past 12 days at its Loulo/Gounkoto mining complex , which is equivalent to 40 per cent of the annual precipitation.
The rainfall has swamped the pumping capacity in pits and affected the mining schedule.
Mark Bristow, chief executive at Randgold Resources, said it would take a 'couple of weeks' to drain the bottom of the pits and re-establish ore production.
He said, 'Provided the Loulo mining schedule and supply routes get back to normal during September, fourth quarter production is expected to get back to planned levels.
'Randgold's annual production guidance for the year has been slightly revised from between 750,000 and 790,000 ounces to between 740,000 and 760,000 ounces, on a consolidated basis.'
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