UPDATE 2-Randgold says "more ounces, lower costs" to offset weaker gold

Wed Aug 7, 2013 6:26am EDT
 
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* Second quarter profits drop 62 percent to $54.1 million

* Gold price has fallen more than 20 percent in 2013

* CEO says output to rise, costs to come down

* Full-year production and cash costs targets maintained

* Shares fall more than 6 percent

By Sarah Young

LONDON, Aug 7 (Reuters) - African gold mining group Randgold Resources pledged on Wednesday to cut costs and raise production over the rest of the year to counter plunging bullion prices which triggered a 62-percent slump in second quarter profit.

Precious metals mining companies are under intense pressure to cut costs with a 20-percent slump in gold this year sending prices to a near 3-year low of about $1,180 an ounce in June.

"The back end of the year is going to be more ounces and lower costs," Randgold's chief executive Mark Bristow said.   Continued...