Tongon gold mine
Tongon gold mine is located within the Nielle exploration permit 628 kilometres north of the Côte d’lvoire port city of Abidjan and 55 kilometres south of the border with Mali. Tongon gold mine is owned by the Ivorian incorporated company, Société des Mines de Tongon SA (Tongon), in which Randgold has an 89% interest, the State of Côte d’lvoire 10% and 1% is held by a local company.

OVERVIEW

Production, resources and reserves
TONGON KEY RESULTS

12 months ended 31 December

2015

2014

Mining

 

 

Tonnes mined (000)

28 826

26 126

Ore tonnes mined (000)

3 563

3 566

Milling

 

 

Tonnes processed (000)

4 018

3 984

Head grade milled (g/t)

2.3

2.3

Recovery (%)

82.6

78.0

Ounces produced

242 948

227 103

Ounces sold

241 478

227 103

Average price received ($/oz)

1 148

1 264

Cash operating costs1 ($/oz)

801

834

Total cash costs1 ($/oz)

836

872

Gold on hand at period end2 ($000)

1 576

-

Profit from mining activity1 ($000)

75 444

88 963

Gold sales1 ($000)

277 253

287 026

Randgold owns 89% of Tongon with the State of Côte d’lvoire and outside shareholders owning 10% and 1% respectively.  Randgold funded all the investments in Tongon by way of shareholder loans and therefore controlled 100% of the cash flows from Tongon until the shareholder loans were repaid at the end of Q3 2015.

Randgold consolidates 100% of Tongon and shows the non-controlling interest separately.

1        Refer to explanation of non-GAAP measures provided on page F-34 of this annual report.

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

ACHIEVED IN 2015
  • 7% increase in gold production to 242 948oz
  • 4% reduction in total cash cost to $836/oz due to improved efficiency and cost control
  • Recovery and throughput increased
  • New rougher flotation circuit completed and commissioned
  • Underperforming Vibrocone crushers replaced with Hydrocone crushers
  • New 4th stage crushing circuit Phase 1 installed by year end
  • Repayment of capital and shareholders loans completed
  • 35% of 2015 ounce depletion replaced through in-fill grade control drilling
  • OHSAS 18001 and ISO 14001 certifications maintained
  • Malaria incidence rate decreased by 16% year on year
  • Continued localisation of workforce to over 97% Ivorian
  • Received ‘Award for Excellence’ and recognised as the best mine in the country for the second year running b y the President of Côte d’lvoire
TARGETED FOR 2016
  • Produce 290 000oz of gold
  • Reduce total cash cost/oz of production
  • Optimise the flotation concentrate ultra-fine grinding operation to improve recovery
  • Complete and commission Phase 2 installation of the 4th stage crushing circuit
  • Maintain OHSAS 18001 and ISO 14001 certification
  • Maintain and improve community relations and social development
  • Conclude the agribusiness feasibility study in partnership with government
  • Continue the localisation of Tongon’s managementand skills base
  • Reduce LTIFR
  • Pay dividends