Chief executive's report
There have been many memorable milestones on Randgold Resources’ 20-year journey, but 2015 will stand out among them as perhaps the most significant. With much of the industry still struggling in the grip of a bear market, we achieved what was probably our best year yet, for the company as well as the team.
We met our demanding production and cost guidance, passing the 1.2 million ounce target set five years ago on schedule, and demonstrating again that Randgold delivers what it promises. We reviewed all our business plans with a strong focus on real returns and breakeven cash flows. By smoothing out their production profiles, Loulo-Gounkoto and Kibali can now both forecast an annual output of more than 600 000 ounces at a total cash cost of around $600 per ounce, Loulo-Gounkoto for 10 years and Kibali for 12, while Tongon is budgeting for an annual production averaging 300 000 ounces over five years. In the face of tough market conditions, we continued to invest substantially in greenfields as well as brownfields exploration, and we did the same for our sustainability programmes, which we regard as equally core to our future success.
It is easy to achieve when all the stars are aligned, but it is much more difficult in an environment as challenged as this one, which makes our 2015 performance particularly pleasing. These results are the product of an across-the-board effort in which improved throughput, plant feed and grade management; reduced underground mining costs at Loulo following its transition from contract mining to owner mining; lower input costs; and improved efficiencies across all operations played a big part.
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