Tongon gold mine

The Tongon gold mine is located within the Nielle mining permit, 628 kilometres north of the Côte d’lvoire port city of Abidjan and 55 kilometres south of the border with Mali. The Tongon gold mine and associated mining permit is owned by Société des Mines de Tongon SA (Tongon), in which Randgold has an 89.7% interest, the State of Côte d’lvoire 10% and 0.3% is held by a local company.

Overview

Production, resources and reserves
ACHIEVED IN 2016
  • 7% increase in gold production to 260 556oz
  • 8% reduction in total cash costs to $771/oz
  • 1% increase in gold recovery to 83.7% year on year and 84.7% in Q4
  • 9% increase in feed grade to 2.5g/t
  • Completed and commissioned 4th stage crushing circuit and relocated dewatering circuit
  • OHSAS 18001 and ISO 14001 certifications maintained
  • Malaria incident rate decreased by 21% year on year
  • LTIFR down 74% year on year
  • Paid first dividend to shareholders
  • Continued localisation of workforce to over 97% Ivorian
  • Continued investment in the development of educational programmes, community health and agricultural projects, designed to provide post mining employment
  • Focused on the installation and start-up of revenue generation community projects
TARGETED FOR 2017
  • Produce 285 000koz of gold
  • Continued reduction of the total cash cost/oz of production
  • Optimise the full crushing circuit
  • Optimise the rougher flotation operation to improve recovery
  • Install a 4th flotation rougher cell to increase recovery
  • Upgrade the oxygen plant capacity by 20 tonnes
  • Rebuild the tertiary crushers by installing new top and bottom shell components
  • Complete the power supply Busbar reconfiguration and capacitator installation to improve power supply stability
  • Maintain OHSAS 18001 and ISO 14001 certification
  • Maintain and improve community relations, communication and social development
  • Continue with the localisation of workforce and upgrading of skills base
TONGON KEY RESULTS

12 months ended 31 December

2016

2015

Mining

 

 

Tonnes mined (000)

27 547

28 826

Ore tonnes mined (000)

4 195

3 563

Milling

 

 

Tonnes processed (000)

3 853

4 018

Head grade milled (g/t)

2.5

2.3

Recovery (%)

83.7

82.6

Ounces produced

260 556

242 948

Ounces sold

255 942

241 478

Average price received ($/oz)

1 247

1 148

Cash operating costs1 ($/oz)

734

801

Total cash costs1 ($/oz)

771

836

Gold on hand at period end2 ($000)

7 070

1 576

Profit from mining activity1 ($000)

121 847

75 444

Gold sales1 ($000)

319 249

277 253

Randgold owns 89.7% of Tongon, having acquired an additional 0.7% interest during the year, with the State of Côte d’lvoire and outside shareholders owning 10% and 0.3% respectively.  Randgold consolidates 100% of Tongon and shows the non-controlling interest separately.
Refer to explanation of non-GAAP measures provided on page F-40 of this annual report.
Gold on hand represents gold in doré at the mine multiplied by the prevailing spot gold price at the end of the period.