Why Randgold Resources (GOLD) Is Up Today

NEW YORK (TheStreet) -- Randgold Resources (GOLD) was rising 4.85% to $72.24 on Monday afternoon after the West African gold producer announced that it expects to increase gold production by 25% to 30% this year.

The company expects to increase production thanks to increasing grades at the Loulo-Gounkoto mining complex in Mali. Improving gold recovery and ore throughput at its Tongan mine in the Ivory Coast and an initial full-year contribution from its recently commissioned Kibali mine in the Congo should also help increase production. Randgold's board kept its recommendation for the final dividend of the year at 50 cents.

Furthermore, Randgold posted a profit of $278.4 million for the fiscal year that ended on Dec. 31, down from $431.8 million one year earlier. Basic earnings were $3.02 a share, down from $4.70 one year earlier. But the figure surpassed analysts' expectations of $2.83. The company actually increased gold production but a 17% decline in gold prices offset that increase.

Randgold produced 910,374 troy ounces for the year, up from 794,844 one year earlier. Gold sales increased to 920,248 from 793,852 ounces, but cash costs decreased 2.7% to $715 per troy ounce in 2013.

TheStreet Ratings team rates RANDGOLD RESOURCES LTD as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate RANDGOLD RESOURCES LTD (GOLD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

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