powerful bearish price bar/ movement yestday., page-6

This is old news from Reuters Africa but Randgold reckon they live with the unrest, so not sure sovereign risk is as critical as some make out.

Randgold shrugs off Mali unrest to deliver record

Thu Aug 9, 2012 10:34am GMT
By Sarah Young

LONDON (Reuters) - Miner Randgold Resources eased market worries over the impact of a coup in Mali, posting record production from its key mine in the country, and higher group profit, distinguishing itself in a sector hit by weaker prices and rising costs.

The West-Africa focused gold producer grew output 14 percent to 210,534 ounces in the three months to the end of June, above some analyst estimates and regardless of the ongoing unrest in Mali, where its flagship Loulo-Gounkoto mine is located and where production soared to record highs.

Profits rose 10 percent to $142 million in the period, beating the $128 million it made last year, driven by the higher output and in spite of a 6 percent decrease in the average gold price the company received.

Islamist militant groups control about two-thirds of Mali after hijacking a secular rebellion by Tuareg nationalists earlier this year.

Randgold, which asserted in May that the unstable political climate in Mali would not impact its operations, reiterated that it was sticking to the 2012 gold production target of 825,000-865,000 ounces it gave at the beginning of the year.

"I'm reasonably confident," said Chief Executive Mark Bristow in an interview, when asked how sure he was that the situation in Mali would not impact Randgold.

"We manage it all the time. We spend a lot of time with the various stakeholders."