Randgold shares were up 3% this morning after the company reported strong quarterly results and issued upbeat guidance.
Second-quarter profits jumped 21% from the prior quarter with the miner claiming it was on course to hit the top end of its production forecasts for 2017.
The London-listed African gold miner beat earnings expectations for the second quarter, backed by stronger-than-expected production.
Profits rose to $102.8m, a 21% increase from the first quarter, while earnings for the first half of 2017, at $187.7m, were up 53% compared with the same period in 2016.
Along with higher production, the bottom line was also boosted by lower costs. Quarterly production of 341,316 ounces and half yearly output of 663,786 ounces were 6% and 16% higher respectively. Total cash cost per ounce of $572 for the quarter and $595 for the first six months of the year were down 8% and 13%.
Randgold chief executive Mark Bristow described the quarter as a good one for Randgold both in operational terms and on the exploration front.
Bristow also gave an upbeat assessment of the company´s prospects for the second half of 2017.
"At this stage the outlook is positive, and Randgold is trending towards the top end of its 2017 production guidance range at a total cash cost below $600 per ounce," said Bristow.
The miner claimed to be making significant advances in both brownfield and greenfield exploration projects, enabling it to continue extending known reserves.
"Our greenfields work continued to focus on identifying major structures capable of hosting multi-million ounce orebodies. I believe we are well on our way to achieving our goal of defining three new projects that pass our investment filters within five years," said Bristow.