Company News

UPDATE 1-Randgold Resources says Q3 profit jumps helped by lower costs

(Updates with production, Barrick vote)

LONDON, Nov 6 (Reuters) - Randgold Resources said on Tuesday third-quarter profit rose 25 percent on the previous quarter helped by lower costs a day before its shareholders vote on a $6.1 billion tie-up with Barrick Gold.

The London-listed miner said profit for the period reached $73.2 million while cash costs fell 18 percent versus the previous quarter to $181.6 million.

Gold production slipped 1.5 percent to 308,628 ounces compared to the previous quarter as an eight-week labour strike at the Tongon mine was offset by higher output at its other mines.

The strike and improved cost controls at the Loulo-Gounkoto complex in Mali and Kibali mine in the Democratic Republic of Congo helped lower costs.

Long-time CEO Mark Bristow, who will take the helm at the new Barrick Gold, said the merger “would be focused on leveraging the combined strengths of Barrick and Randgold to become the leading gold investment vehicle and deliver long-term value to all stakeholders.”

Barrick shareholders voted in favour of the tie-up on Monday with Randgold shareholders expected to cast votes on Wednesday.

Reporting by Zandi Shabalala; editing by Jason Neely