Loulo-Gounkoto gold mine complex

The Loulo-Gounkoto mining complex straddles two distinct mining permits, the Loulo mining permit and the Gounkoto mining permit. It is situated in western Mali, approximately 500 kilometres from the capital city, Bamako, bordering Senegal and 800 kilometres from the port of Dakar. Société des Mines de Loulo SA (Loulo) owns the Loulo permit and associated gold mining operations, and Société des Mines de Gounkoto SA (Gounkoto) owns the Gounkoto permit and gold mine. Both Loulo and Gounkoto are owned by Randgold (80%) and the State of Mali (20%).

Overview

 

Production, resources and reserves
ACHIEVED IN 2016
  • 12% increase in gold production to 707 116oz +37 000oz more than guidance
  • 17% reduction in total cash cost per ounce to $563/oz
  • 7% increase in plant throughput to +4.8Mtpa
  • 1% increase in gold recovery to 91.0%
  • Upgraded elution circuit
  • Commissioned two additional medium speed generators
  • Completed underground refrigeration project
  • Completed Gounkoto underground versus super pit trade-off and definitive feasibility study
  • ISO 14001 environmental and OHSAS 18001 health and safety management systems recertified
  • Lost time injury frequency rate down 23% at Loulo
  • Malaria incidence rate down 37% at Loulo and 18% at Gounkoto
  • Ore reserves increased
TARGETED FOR 2017
  • Produce 690 000oz of gold
  • Maintain total cash costs below $600/oz
  • Sustain plant throughput above 4.8Mt
  • Sustain plant recovery above 91%
  • Replace ore reserves through ongoing exploration
  • Maintain ISO 14001 and OHSAS 18001 certification
  • Reduce LTIFR
  • Reduce malaria incidence rate
  • Continue community and agricollege development
LOULO-GOUNKOTO COMPLEX KEY RESULTS

12 months ended 31 December

2016

2015

Mining

 

 

Tonnes mined (000)

37 776

31 360

Ore tonnes mined (000)

4 804

4 513

Milling

 

 

Tonnes processed (000)

4 875

4 543

Head grade milled (g/t)

5.0

4.8

Recovery (%)

91.0

90.1

Ounces produced

707 116

630 167

Ounces sold

709 737

630 627

Average price received ($/oz)

1 242

1 148

Cash operating costs1 ($/oz)

489

606

Total cash costs1 ($/oz)

563

675

Gold on hand at period end2 ($000)

6 061

8 133

Profit from mining activity1 ($000)

481 651

298 396

Gold sales1 ($000)

881 529

724 167

Refer to explanation of non-GAAP measures provided on page F-40 of this report.
Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.