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Press release from Marketwire

Randgold Resources: Gold downturn needs stakeholder partnerships

Wednesday, July 10, 2013

Randgold Resources: Gold downturn needs stakeholder partnerships

06:25 EDT Wednesday, July 10, 2013

JERSEY, CHANNEL ISLANDS--(Marketwired - July 10, 2013) - Randgold Resources (LSE: RRS)


TSX- GOLDRANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNASDAQ Trading Symbol: GOLD("Randgold Resources" or "Randgold")GOLD PRICE DOWNTURN INTENSIFIES NEED FOR STAKEHOLDER PARTNERSHIPJohannesburg, 10 July 2013 - The recent drop in the gold price hashighlighted the need for governments of mineral-rich countries tocooperate with mining companies in the optimal development of theirresources, says Randgold Resources chief executive Mark Bristow.Speaking at a media briefing here, Bristow said the two parties shouldbe united in a common purpose but sometimes seemed like ships passingeach other in the night. "Governments are tempted to harvest the greenshoots before the enterprise comes to fruition; the gold miningindustry tends to exaggerate the risk without fully addressing its owninternal problems," he said.This disconnect arose from the mistaken perception that gold miningcompanies must have made extraordinary profits during the long bull runin the gold price, Bristow said. In fact, with escalating costscramping margins, most gold companies had not managed to create realvalue and at the height of the boom the industry had actually been exgrowth. The declining gold price meant that many gold mining companieswere now again having to fight for survival, as evidenced by a spate ofwrite-downs and abandoned projects."The pursuit of quality assets has ledgold companies away from theirtraditional hunting grounds and towards regions which are moreprospective but present a greater risk. All these regions are nowcompeting with each other for mining investment, and while Africa hasthe advantage of great mineral wealth, its competitors generally havebetter infrastructures, greater skills pools and more sophisticatedeconomies," he said.In order for African countries to attract mining investment and benefitfully from their mining industries, they should participate fully inthe value creation process.Please click on the following link to view the full announcement. This information is provided by RNS The company news service from the London Stock ExchangeEND


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