Randgold Resources' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Randgold Resources Limited (GOLD)

Q2 2012 Earnings Call

August 9, 2012 11:00 AM ET


Philippe Liétard – Managing Director

Mark Bristow – CEO


Josh Wolfson

Patrick Chidley

Martin Welsh

James Bender



Ladies and gentlemen, we’re at the Randgold Quarter Two Results International Investment Call. My name is Jane and I’ll be your coordinator today. (Operator Instructions) You may begin.

Philippe Liétard

Thank you, and hi, everyone, and welcome to you all to the quarterly review of our results. I speak to you today having just returned from a visit to MALI. Our Board meeting was held at Loulo, which it is from time to time and this was a great opportunity for the board to review in greater details the progress made at Randgold’s mentobaton center of the vast new Loulo Gounkoto complex.

On Monday we had the official opening of the Gounkoto mine in the presence of the government allegation led by the minister economy and finance. We used this occasion to have in depth discussions over several days with the senior government of ministers about the state of affairs in MALI and about the difficult situation in Northern MALI.

While we still expect the transition government to be reorganized shortly to provide a stronger unified approach to the return of democracy and to tackle the complicated northern problem, one message is very clear. The priority is not to reverse the economic progress of the past decade and to preserve the investment climate for the investors. In this context, it is a true pleasure to introduce a sparkling set of reserves to you today. Martin will shortly take you through the details of our performance in the quarter and the half-year when the sovereign state of and the group did well across the board.

This has been a time in which Randgold has had to contend with many challenges, operational, developmental, and at least, political. We are in reference with which the team has dealt firstly with the fallout from the CÔTE D’IVOIRE disputed elections and then with the MALI coup and its aftermath is a tribute to the expertise in managing risk in Africa.

And also to Randgold’s partnership philosophy, which again proved its worth. If there was one thing that the conflicting parties in both situations could agree on, it was that Randgold’s operation where key national assets we truly protected and that Randgold was a valuable partner who could be trusted to act in the best interests of the country and in an open and even handed manner.

This colial relationship was demonstrated publicly again on Monday during the Gounkoto opening. Martin remains in close touch with MALI’s interim government as well as the West African Union Ecovas. And while the country is still by no means out of the woods yet, it is definitely on the right track. We believe if people have the will and the ability to restore full stability and reinstate their democratic institutions. Continuing to foster good relations, Martin is in recent weeks also address a Democratic Republic of Congo government forum on the country’s mining code and it has also productive discussions with the newly elected and impressive-looking government in Senegal.

The latter was on the itinerary of his latest motorbike marathon for charity, which took him and his two sons through 17 countries, from Beschoff, in England, to Abidjian in CÔTE D’IVOIRE, and raised almost $600,000 for charity. Randgold’s exploration executive team joined the ride in Senegal and together, they visited all our West African operations, projects and metal targets. You can’t manage mines in Africa from the comfort of a distant head office and the result before you again attest to the effectiveness of Randgold’s policy of engagement and commitment.

I will now pass it on Mark for small but good developments. Thank you.

Mark Bristow

Thanks very much Philippe and good morning and afternoon ladies and gentlemen. We’re in London, we’ve got Graham our CFO and Paul, at Exploration relative of Communications with us and Citi partner Nicole from Europe.

Again, as usual I gave a presentation mid-day at the London Stock Exchange. It was I must say extremely well attended. We had standing reminding, to start CNGB performance in the Olympic. And we – as you can see, we had a stereotypical results a little bit, I mean, I guess reflect on these results is what’s reflecting first on the market. And one thing we have been saying for some time is, the industry is certainly struggling with trying to keep up with the latest demands from the market in our inverted commerce.

We’re seeing new flavor of the market rather the courses, the last four or five courses where we can move from the demands from the market of being large and liquid and then growth and then everything is all about producing answers. And then for a while we’ve been looking at cash cost and we’re seeing to change how we calculated and recently this being the year with all the dividend and then we’re suddenly all affect from capital discipline.

I think that – the thing that differentiates us from many of these sort of single focused events or fans is that we’ve always – and we feel that we haven’t allowed ourselves to be seduced by these demands. But rather kept our focus on performing against what we believe is a clear destination and under the guidance of a simple sustainable strategy. And that’s really kept our business.

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