Kibali Gold Mine

The Kibali gold mine is located in the northeast of the Democratic Republic of Congo (DRC), approximately 220 kilometres east of the capital of the Haut Uele province, Isiro, 150 kilometres west of the Ugandan border town of Arua and 1 800 kilometres from the Kenyan port of Mombasa. The mine is owned by Kibali Goldmines SA (Kibali) which is a joint venture company effectively owned 45% by each of Randgold and AngloGold Ashanti, and 10% by Société Miniére de Kilo-Moto (SOKIMO). The mine was developed and is operated by Randgold.

kibali map
Kibali Highlights

¹ Refer to explanation of non-GAAP measures provided on page F-41 of this annual report.

Kibali Key Results

12 months ended 31 December 2017 2016
Mining    
Tonnes mined (000)    36 522                31 879
Ore tonnes mined (000)      6 761                  6 218
Milling        
Tonnes processed (000)      7 619                  7 296
Head grade milled (g/t)          2.9                      3.1
Recovery (%)        83.4                    80.0
Ounces produced   596 225              585 946
Ounces sold   604 667              568 375
Average price received ($/oz)       1 248                  1 248
Cash operating costs1 ($/oz)          720                     678
Total cash costs1 ($/oz)          773                     736
Profit from mining activity1 ($000)   287 676              291 101
Attributable (45%)    
Gold sales1 ($000)   339 683              319 217
Ounces produced    268 301              263 676
Ounces sold    272 100              255 769
Gold on hand at period end ($000)      10 216                13 840
Profit from mining activity($000)      129 454               130 995   

Randgold owns 45% of Kibali with the DRC State and joint venture partner owning 10% and 45% respectively. The group equity accounts for its 45% joint venture holding in Kibali

1  Refer to explanation of non-GAAP measures provided on page F-41 of this report.

2  Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

 

Achieved In 2017

  • Produced 596 225oz of gold at a total cash cost of $773/oz
  • Completed vertical shaft development
  • Commissioned ore handling (haulage, crushing, hoisting) through shaft
  • Started automation of underground materials handling system
  • Continued ramping-up underground ore production
  • Completed UFG and associated circuit expansion
  • Integrated Ambarau hydropower station into power grid
  • Advanced construction of Azambi hydropower station
  • Environmental management system certification updated to latest revision ISO 14001:2015
  • Completed commercial maize trial
  • Supported continued economic development of surrounding community

Targeted for 2018

  • Produce 730 000oz
  • Reduce total cash cost per ounce of production
  • Optimise underground materials handling system
  • Ramp-up underground to full production
  • Complete Azambi, final new hydropower installation and integrate into power grid
  • Reduce LTIFR and malaria incidence rate
  • Maintain ISO 14001 certification
  • Replace reserve depletion

Kibali Production And Five Year Forecast

Kibali Production And Five Year Forecast

Kibali Total Mineral Resources And Ore Reserves^2

Kibali Total Mineral Resources And Ore Reserves

Kibali Mineral Resources And Ore Reserves

Mine/Project Category Tonnes (Mt) Grade (g/t) Gold (Moz) Attributable Gold3 (Moz)
at 31 December Category   2017 2016 2017 2016 2017 2016 2017 2016
Mineral Resources¹                  
Stockpiles Measured 1.7 2.9 1.4 1.4 0.080 0.13 0.036 0.060
Open pits Measured 8.7 6.9 2.6 2.4 0.73 0.52 0.33 0.24
  Indicated 39 49 2.1 2.1 2.6 3.3 1.2 1.5
  Inferred 22 21 1.8 1.9 1.3 1.3 0.59 0.57
Underground Measured 12 7.6 5.6 3.4 2.1 0.83 1.0 0.37
  Indicated 65 68 3.6 4.1 7.6 9.0 3.4 4.0
  Inferred 22 25 2.8 2.7 2.0 2.2 0.91 1.0
Total Mineral
Resources
Measured and indicated 126 135 3.3 3.2 13 14 5.9 6.2
  Inferred 44 46 2.3 2.3 3.3 3.4 1.5 1.5
Ore Reserves²                  
Stockpiles Proved 1.7 2.9 1.4 1.4 0.080 0.13 0.036 0.060
Open pits Proved 4.9 1.4 2.7 2.9 0.43 0.13 0.19 0.058
  Probable 16 25 2.3 2.1 1.2 1.7 0.54 0.77
Underground Proved 12 - 5.0 - 2.0 - 0.89 -
  Probable 31 42 5.1 5.4 5.0 7.2 2.3 3.2
Total Ore
Reserves
Proved and
probable
66 71 4.1 4.0 8.7 9.2 3.9 4.1

1   Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at an average cut-off of 0.6g/t. Underground mineral resources in the KCD deposit are        insitu mineral resources, that meet a cut-off of 1.6g/t within a minimum mineable stope shape, reported at and a gold price of $1 500/oz. KCD mineral resources were generated by Simon West      an officer of the company, under the supervision of Simon Bottoms, an officer of the company and competent person. Mineral resources for Pakaka and Gorumbwa were generated                            by Rolly Wassonga, an officer of the company, under the supervision of Simon Bottoms, an officer of the company and competent person. Mineral resources for Kombokolo & Pamou were                  generated by Abdoulaye Ngom, an officer of the company and competent person.

2   Open pit ore reserves were reported at a gold price of $1 000/oz except KCD open pit which is reported inside a $1 100 pit design at an average cut-off of 1.0g/t, including both dilution and ore       loss factors. Open pit ore reserves were calculated by Nicholas Coomson, an officer of the company and a competent person. Underground ore reserves are reported at a gold price of                        $1 000/oz&and a cut-off of 2.5g/t and include dilution and ore loss factors. Underground ore reserves were calculated by Andrew Fox, an external consultant and a competent person.

3   Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 45% interest in the Kibali gold mine.

Mineral resource and ore reserves are quoted as per JORC 2012 guidelines and thus reported to the second significant digit. All mineral resource tabulations are reported inclusive of that material which is then modified to form ore reserves. Refer to the notes to the annual resources and reserves declaration on page 107 of this annual report.