Randgold Resources Limited: Report For The Third Quarter Ended 30 September 2003


JERSEY, Channel Islands, Nov. 12, 2003 (PRIMEZONE) -- Randgold Resources Limited Incorporated in Jersey, Channel Islands Reg. No. 62686 (LSE:RRS) (Nasdaq:GOLD)


 --  Net profit of US$13.7 million for the quarter
 --  Year-to-date net profit up by US$8.0 million to US$47.3 million
 --  Cash and cash equivalents of US$108 million
 --  Morila is forecast to repay the project loan by end June 2004, 18
     months ahead of schedule
 --  Company liquidity enhanced by addition to FTSE 250 Index
 --  Significant intersections from infill drilling of the high grade
     payshoot at Morila
 --  End-of-year development decision at Loulo
 --  Attributable production of 79 834 ounces at total cash cost* of
     US$111 per ounce

Randgold Resources Limited has 28.8 million shares in issue as at 30 September 2003


 CONSOLIDATED INCOME STATEMENT

                               Unaudited     Unaudited
                                 quarter       quarter
                                   ended         ended
                                 30 Sept       30 June
 US$000                             2003          2003

 Gold sales revenue               29 254        30 679
 Cost of sales
 Production costs                  9 265         5 243
 Transport and refinery costs        104           113
 Transfer to deferred stripping
   costs                          (1 978)          929
 Cash operating costs+             7 391         6 285
 Royalties                         2 042         2 138
 Total cash costs+                 9 433         8 423
 Profit from mining activity+     19 821        22 256
 Depreciation and amortisation     2 162         2 224
 Merger transaction costs+           711             -
 Exploration and corporate
   expenditure                     3 454         4 554
 Profit from operations+          13 494        15 478
 Interest received                   254           445
 Interest expense                   (432)         (476)
 Gain/(loss) on financial
   instruments                       591           (52)
 Other income and (expenses)        (332)          960
 Profit on ordinary activities
   before taxes and minority
   interests                      13 575        16 355
 Income tax                            -             -
 Minority shareholders'
   interest                           77           195
 Net profit                       13 652        16 550
 Basic earnings per share (US$)     0.48          0.59
 Fully diluted earnings per
   share (US$)                      0.47          0.58
 Average shares in issue (000)    28 754        28 074

 CONSOLIDATED INCOME STATEMENT (cont'd)

                         Unaudited  Unaudited  Unaudited
                           quarter   9 months   9 months
                             ended      ended      ended
                           30 Sept    30 Sept    30 Sept
 US$000                       2002       2003       2002

 Gold sales revenue         50 487     91 519     87 254
 Cost of sales
 Production costs            5 353     21 029     18 338
 Transport and refinery
  costs                       201        332        403
 Transfer to deferred
  stripping costs            (914)    (1 422)    (3 401)
 Cash operating costs+       4 640     19 939     15 340
 Royalties                   3 571      6 387      6 052
 Total cash costs+           8 211     26 326     21 392
 Profit from mining
   activity*                42 276     65 193     65 862
 Depreciation and
   amortisation              2 630      6 699      6 432
 Merger transaction costs++      -          -          -
 Exploration and
   corporate expenditure     5 503     10 818     11 330
 Profit from operations+    34 143     47 676     48 100
 Interest received              49        770        124
 Interest expense             (869)    (1 450)    (2 942)
 Gain/(loss) on financial
   instruments                 493        263       (693)
 Other income and
   (expenses)               (3 357)      (302)    (5 381)
 Profit on ordinary
  activities before taxes
   and minority interests   30 459     46 957     39 208
 Income tax                      -          -          -
 Minority shareholders'
   interest                     23        351         98
 Net profit                 30 482     47 308     39 306
 Basic earnings per
   share (US$)                1.10       1.66       1.62
 Fully diluted earnings
   per share (US$)            1.08       1.63       1.59
 Average shares in
   issue (000)              28 181     28 544     24 236

+ Refer to pro forma information provided on page three. ++ Expenses incurred to end of September on the Ashanti Goldfields proposal.



 CONSOLIDATED BALANCE SHEET

                           Unaudited  Unaudited  Audited
                                  at         at       at
                              30 Sept    30 Sept   31 Dec
 US$000                         2003       2002     2002

 Assets
 Cash and equivalents        107 842     56 331   59 631
 Restricted cash++             4 555      4 507    4 526
 Receivables                  11 316     10 027   14 262
 Inventories                  12 927     11 188   11 601
 Total current assets        136 640     82 053   90 020
 Property, plant and
   equipment
     Cost                    172 043    167 314  168 540
     Accumulated
      depreciation           (98 803)  (89 773)  (92 104)
 Net property, plant
   and equipment              73 240     77 541   76 436
 Other long-term assets        8 824      5 760    7 402
 Total assets                218 704    165 354  173 858
 Bank overdraft                1 245      1 407    1 170
 Accounts payable and
   accrued liabilities        15 568     34 136   20 564
 Total current liabilities    16 813     35 543   21 734
 Provision for environmental
   rehabilitation              5 308      4 556    4 972
 Liabilities on financial
   instruments                 6 475      6 193    7 530
 Long-term loans              14 786     23 393   19 307
 Loans from outside
   shareholders in
   subsidiaries                  958      1 445    1 330
 Total long-term
   liabilities                27 527     35 587   33 139
 Total liabilities            44 340     71 130   54 873
 Shareholders' equity        174 364     94 224  118 985
 Total liabilities and
   shareholders' equity      218 704    165 354  173 858

++ Note: This is the amount relating to the N.M. Rothschild & Sons Limited debt service reserve account. The amount is held in escrow for the partial repayment of the Morila project loan.


 CONSOLIDATED CASH FLOW STATEMENT

                                  Unaudited    Unaudited
                                   9 months     9 months
                                      ended        ended
                                    30 Sept      30 Sept
 US$000                                2003         2002

 Net cash generated from
   operations                        49 636       44 768
 Net cash utilised in
   investing activities              (4 023)      (5 858)
 Net cash generated by
   financing activities
     Ordinary shares issued           7 179       29 266
     (Decrease) in long-term
       borrowings                    (4 656)    (18 227)
     Increase in bank overdraft          75        (301)
 Net increase in cash and
   cash equivalents                  48 211       49 648
 Cash and cash equivalents at
   beginning of period               59 631        6 683
 Cash and cash equivalents at
   end of period                    107 842       56 331

 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


    Number                                  Accum-
         of    Share     Share     Other   ulated    Total
   ordinary  capital   premium  reserves   losses   equity
     shares   US$000    US$000    US$000   US$000   US$000

 Balance - 31 Dec 2001
 22 461 630    2 246   161 830    (1 745) (131 834)  30 497
 Jan - Jun 2002 Net profit
                                            8 824    8 824
 Movement on cash flow hedges
                                  (4 728)            (4 728)
 Share options exercised
    136 194       12       353                          365
 July - Sept 2002 Net profit
                                            30 482   30 482
 Movement on cash flow hedges
                                    (117)              (117)
 Share options exercised
     50 916        5       171                          176
 Nasdaq listing 11 July 2002 and related expenses
  5 000 000      500    28 225                       28 725
 Balance - 30 Sept 2002
 27 648 740    2 763   190 579    (6 590)  (92 528)  94 224
 Balance - 31 Dec 2002
 27 663 740    2 766   190 618    (8 293)  (66 106) 118 985
 Jan - Jun 2003 Net profit
                                            33 656   33 656
 Movement on cash flow hedges
                                   2 301              2 301
 Share options exercised
  1 046 288      104     6 659                        6 763
 July - Sept 2003 Net profit
                                            13 652   13 652
 Movement on cash flow hedges
                                  (1 409)            (1 409)
 Share options exercised
     66 611        7       409                          416
 Balance - 30 Sept 2003
 28 776 639    2 877   197 686    (7 401)  (18 798) 174 364

PRO FORMA INFORMATION

The Company uses the following pro forma disclosures as it believes that this information is relevant to the mining industry.

Total cash costs per ounce are calculated by dividing total cash costs, as determined using the Gold Institute Industry Standard, by gold ounces produced for all periods presented.

Total cash costs as defined in the Gold Institute Industry Standard, includes mine production, transport and refinery costs, general and administrative costs, movement in production inventories and ore stockpile, transfers to and from deferred stripping and royalties.

Cash operating costs are defined as total cash costs excluding royalties.

Total cash operating costs per ounce are calculated by dividing cash operating costs by gold ounces produced for all periods presented.

Profit from mining activity is calculated by subtracting total cash costs from gold sales revenue for all periods presented.

Profit from operations is calculated by subtracting depreciation and amortisation charges and exploration and corporate expenditure from profit from mining activity.

RECONCILIATION TO US GAAP

The quarterly interim condensed financial statements presented above have been prepared in accordance with International Financial Reporting Standards (IFRS), which differ in certain significant respects from Generally Accepted Accounting Principles in the United States (US GAAP). The effect of applying US GAAP to net income and shareholders' equity is set out below.


                                    9 months   9 months
 Reconciliation of net income        30 Sept    30 Sept
   (US$000)                             2003       2002

 Net income under IFRS                47 308     39 208
 Share option compensation
   adjustment                         (3 663)    (1 309)
 Provision for rehabilitation              -        (62)
 Net income under US GAAP before
   cumulative effect of change in
   accounting principle               43 645     37 837
 Cumulative effect of change in
   accounting principle                  214          -
 Net income under US GAAP             43 859     37 837
 Movement in cash flow hedges
   during the period                     892     (4 845)
 Comprehensive income under
   US GAAP                            44 751     32 992
 Basic earnings per share under
   US GAAP (US$)                        1.54       1.56
 Fully diluted earnings per
   share under US GAAP (US$)            1.52       1.53

 Reconciliation of shareholders'
   equity (US$000)
 Shareholders' equity under IFRS     174 364     94 224
 Provision for rehabilitation              -       (298)
 Shareholders' equity under
   US GAAP                           174 364     93 926

 Roll forward of shareholders'
 equity under US GAAP


 Balance as at 1 January 2003        118 771     30 359
 Net income under US GAAP             43 859     37 837
 Movement on cash flow hedges            892     (4 845)
 Nasdaq Listing 11 July 2002               -     28 725
 Share options exercised               7 179        541
 Share option compensation
   adjustment                          3 663      1 309
 Shareholders' equity under
   US GAAP at 30 September 2003      174 364     93 926

ACCOUNTING POLICIES

The quarterly condensed financial statements in this report have been prepared in accordance with the Group's accounting policies, which are in terms of International Financial Reporting Standards and are consistent with the prior period.

The consolidated financial information includes the quarterly financial statements of the Company, its subsidiaries and the Morila joint venture, which comply with IAS 34.

Joint ventures are those investments in which the Group has joint control and are accounted for under the proportional consolidation method. Under this method, the proportion of assets, liabilities, income and expenses and cash flows of each joint venture attributable to the Group are incorporated in the consolidated financial statements under appropriate headings. Inter-company accounts and transactions are eliminated on consolidation.

No segmental information has been provided, as the source and nature of the enterprise's risks and returns are not governed by more than one segment, due to the closing down of Syama.

FINANCIAL INSTRUMENTS

The remaining financial instruments at 30 September 2003 are held by the Morila Company and relate to derivatives taken out as part of the project finance arrangements. Randgold Resources' attributable share is as follows:


 -  67 086 ounces sold forward at a fixed price of US$275/oz over the
  period October 2003 to December 2004;

 - 23 746 ounces of purchased call options for the same period at
 prices between US$350/oz and US$360/oz.

At present prices, the percentage of production which is hedged, is approximately 23% for the next 15 months. If the gold price is above US$360/oz the percentage of hedged production falls to 15%. After 2004, all sales will be fully exposed to the spot gold price. The facility is margin free.

COMMENTS

Net profit for the quarter was US$13.7 million resulting in earnings per share of US$0.48. This was lower than the net profit achieved for the corresponding period in 2002, which included the exceptionally high grades from the Morila pit and down on the net profit of US$16.6 million for the previous quarter. Revenues were affected by lower ounces produced resulting from reduced grades, offset by higher metallurgical recoveries during the quarter, plus a higher received gold price. The operating profit margin for the quarter was adversely affected by accelerated waste stripping and rebuild costs but remains at above 70% for the nine months ended September 2003.

For the nine months to September, profit from mining activity was US$65.2 million. This compares favourably to the US$65.9 million for the corresponding period in 2002, particularly since the latter period contained exceptionally high grades. Net profit was US$47.3 million up from US$39.3 million for the same period last year. This was the result of higher interest received on the Group's increased cash holdings, lower interest expenses resulting from the reduced debt levels in 2003 as well as less care and maintenance costs associated with Syama compared to 2002.

The merger transaction costs are expenses incurred to the end of September on the Ashanti Goldfields proposal. A further US$2 million was incurred subsequent to the end of the quarter.

As a result of the slowdown in field work during the rainy season, quarterly exploration and corporate expenses decreased.

Other income and expenses include an unrealised gain of US$0.7 million resulting from the Group's treasury activities, for the nine months ended September 2003.

The sustained profits for the quarter further strengthened the balance sheet. The main balance sheet movements for the nine months ended 30 September 2003 are an increase in cash and shareholders' equity reflecting the attributable earnings from Morila. The decrease in liabilities on financial instruments is the result of the movement on the mark-to-market value of the financial instruments.

The decrease in long-term loans reflects the repayment of our attributable portion of the Morila project loan. The attributable balance of the Morila loan as at the end of September 2003 was US$10.8 million, and will be fully paid by June 2004 which is a full 18 months ahead of schedule. The Company received its seventh distribution from Morila of US$14.0 million at the beginning of August 2003. A further dividend of US$12.8 million was received at the beginning of November 2003.

OPERATIONS -- MORILA

As expected, production dropped to total just under 200 000 ounces for the quarter (last quarter 236 449 ounces) mainly as a result of lower grades processed. Higher grade areas were not accessible in the pit, partly as a result of a heavier than normal rainy season. Costs were subsequently higher this quarter and averaged $85/oz total cash operating cost+ and $111/oz total cash cost+. Major contributors to cost increases were the increased transport costs of diesel and other reagents as a result of the continuing situation in Cote d'Ivoire.

This cost trend is expected to continue as lower grade ore is accessed over the next few months.

Results from infill drilling on a 20 metre x 20 metre grid within the high grade axis have retained some very encouraging results.


 Borehole             Value (uncut)
 San 334              33m @ 23.08 g/t
 San 336              75m @ 9.7 g/t
 San 338              71m @ 18.07 g/t
                      (including 17.5m @ 58.1 g/t)
 San 342              55m @ 11.13 g/t
                      (including 25m @ 19.56 g/t)
 San 360              18m @ 17.12 g/t

 RCX 177              15m @ 11.84 g/t and
                      17m @ 29.28 g/t

Delay in final completion of the drilling programme has led to a delay in the planning process for next year.

The orebody model is currently being revised, and when complete pit planning and scheduling will be optimised based on the new grade model.

The capital expansion programme designed to increase production to 350 000 tons per month and partially ameliorate the forecast grade drop-off is making progress and is expected to be commissioned by year-end.


 MORILA RESULTS


                           Quarter   Quarter   Quarter
                             ended     ended     ended
                           30 Sept    30 Jun   30 Sept
 US$000                       2003      2003      2002

 Mining
 Tons mined (000)            6 170     5 389     5 548
 Ore tons mined (000)          602     1 273       849

 Milling
 Tons processed (000)          822       771       546
 Head grade milled (g/t)      8.24     10.50      27.7
 Recovery (%)                 91.8      90.9      88.1
 Ounces produced           199 585   236 449   428 421
 Average price received
   (US$/ounce)               348         337       310
 Cash operating costs+
   (US$/ounce)                85          70        28
 Total cash costs+
   (US$/ounce)               111          93        49
 Cash profit (US$000)     49 553      55 640   105 690
 Attributable (40%)
 Ounces produced          79 834      94 580   171 368
 Cash profit (US$000)     19 821      22 256    42 276

 MORILA RESULTS (cont'd)

                                  9 months    9 months
                                     ended       ended
                                   30 Sept     30 Sept

 US$000                               2003        2002

 Mining
 Tons mined (000)                   17 515      20 200
 Ore tons mined (000)                3 098       2 689

 Milling
 Tons processed (000)                2 423       2 067
 Head grade milled (g/t)              9.47        11.9
 Recovery (%)                         91.7        90.7
 Ounces produced                   674 455     727 543
 Average price received
   (US$/ounce)                         341         308
 Cash operating costs+
   (US$/ounce)                          73          51
 Total cash costs+ (US$/ounce)          96          72
 Cash profit (US$000)              162 983     164 655
 Attributable (40%)
 Ounces produced                   269 782     291 017
 Cash profit (US$000)               65 193      65 862

+ Refer pro forma information provided above

Production to year-end is expected to be in line with prospects discussed in the first quarter of this year. The Company is confident that in excess of 800 000 ounces will be produced for the year albeit at marginally higher than the targeted US$100/oz costs mainly as a result of the increased transport costs.

DISCONTINUED OPERATION -- SYAMA

Resolute Mining Limited continued with their 12 month evaluation process, which includes a drilling programme of approximately 6 000 metres along the strike of the main mineralised zone within and below the Life of Mine Syama Pit. The best intersections to date reported by Resolute include 34m @ 3.88 g/t and 29m @ 8.44 g/t. Initial metallurgical testwork has also been undertaken as well as a preliminary study of the capital and operating costs for both concentrate roasting and Pressure Oxidisation by Minproc.

Care and maintenance activities continued as normal during the quarter, with the focus on retaining the value of the assets.


 SYAMA INCOME STATEMENT


                           Quarter   Quarter   Quarter
                             ended     ended     ended
                           30 Sept    30 Jun   30 Sept

 US$000                       2003      2003      2002


 (Loss) from operations          -         -         -
 Interest expense                -         -         -
 (Loss) on financial
   instruments                   -         -       363
 Other income/(expenses)      (648)       42    (2 012)
 Profit/(loss) on ordinary
   activities before taxes    (648)       42    (1 649)
 Income tax                      -         -         -
 Net profit/(loss)            (648)       42    (1 649)

 SYAMA INCOME STATEMENT (cont'd)

                                     9 months  9 months
                                        ended     ended
                                      30 Sept   30 Sept


 US$000                                  2003      2002

 (Loss) from operations                     -         -
 Interest expense                           -         -
 (Loss) on financial instruments            -      (722)
 Other income/(expenses)                 (941)   (3 341)
 Profit/(loss) on ordinary
   activities before taxes               (941)   (4 063)
 Income tax                                 -         -
 Net profit/(loss)                       (941)   (4 063)

PROJECTS AND EVALUATION

Loulo Project

External consultants SRK (South Africa), have completed an audit and re-estimation exercise on the Loulo 0 and Yalea orebodies. This exercise accompanies a geological re-modelling exercise completed by Randgold Resources and confirms the resource base of the two deposits, albeit at slightly higher grades and lower tonnages. Work is currently underway to reoptimise pit designs and scheduling and to "test" the optimum open pit to underground interface. Indications are that the amount of waste to be moved could reduce which would enhance the economics of the operations. A further programme of deep drilling at both Loulo 0 and Yalea will be completed this quarter to add to the underground resource as well as improve on the confidence in the resources already delineated.

Work continues to optimise the final process and infrastructure design and discussions with the Government of Mali on regional infrastructure and fiscal issues are at an advanced stage. The project is scheduled to be presented to the Board of Randgold Resources at the year-end board meeting with a view to finalising the development decision.

The Company continues to evaluate synergies in the region with the view of optimising "start-up" and mine operating costs in the future.

Tongon Project

The situation in Cote d'Ivoire is still being monitored and no further work on the Tongon Project was carried out during the period under review.

EXPLORATION ACTIVITIES

Randgold Resources footprint in the major gold belts of Africa continues to grow with the acquisition of new ground in Mali, Senegal and Tanzania along with a new opportunity in Burkina Faso. The Company continues to consolidate and develop its portfolio of targets and projects which now cover over 8 000 km2. Focused programmes on this portfolio have been designed to achieve the principal strategic objectives of finding new ounces and converting existing resources to reserves. During the quarter exploration focused on integration and interpretation of all previous work and the design of future programmes as the rainy season prevented field activities.

An aggressive exploration programme is planned for the Loulo Project during the next quarter and into 2004 to expand the reserve base and generate new targets. Focused drilling programmes have been designed to test four satellite deposits referred to as Baboto, P125, Loulo 2 and Loulo 3. Drilling will continue to evaluate the continuation of the high grade zone with depth at Loulo 0 where encouraging intercepts were drilled during the previous quarter. At the Yalea deposit, the 1 100 metre long high grade zone will be tested at depths below 200 metres where no drilling has been completed so far. Geological models have been developed to test new targets along the five major, gold bearing, structural corridors within the Loulo lease.

In accordance with the Company's policy to grow its ground position in the Loulo region, a Heads of Agreement has been signed with the artisanal co-operative of Sitakili. The Sitakili site locates twenty kilometres due east of the Loulo camp and covers a thirty square kilometre area previously untested by modern exploration methodologies. Gold mineralisation is associated with felsic intrusives emplaced in a folded arch.

In the Morila region, exploration work continues to define new mineralised systems in the mine area and within the Company's plus 2 500 km2 footprint around the exploitation lease. On the Morila mine lease diamond drilling on the western margin has highlighted two significant zones of gold mineralisation which are associated with disseminated arsenopyrite and Morila-style alteration. Follow-up drilling is currently in progress on both targets as well as the north-east and south-west extensions of the high grade payshoot to the Morila orebody. On the Company's own holdings around the lease area, target delineation is in progress at the Ntiola prospect over the large soil anomaly covering a 1 500 metre by 600 metre area and on twelve other targets which all locate within a 25 km radius of the mine site.

In Senegal the Company holds title to over 1 200 km2 of ground within three permits on the Sabodala Belt and recently submitted a tender to increase its holding in this area. On the Tomboronkoto Permit encouraging results have been received from the "BA" target where north-south trending silicified zones outlined encouraging values over a 300 metre strike length and a drill hole intercepting one of these zones, returning 11 metres at 2.6 g/t. The target is open to the north. On the Kounemba permit regional soil sampling has outlined a plus four kilometre anomalous zone which forms the southern extension to the Sabodala deposit. Exploration activities during the forthcoming season will focus on defining and drill testing targets.

In the Lake Victoria Goldfields region of Tanzania the Company has now secured eight prospecting licences four of which locate within a specific area covered by a collaborative venture with the government. A further seven licence applications are pending within the area of interest. The Company is now well established in the country. A target portfolio is being developed and generative studies continue in order to expand its footprint within the region.

CORPORATE AND NEW BUSINESS

During the past quarter, the Company made a merger proposal to Ashanti Goldfields Limited with a view to creating a major independent pan-African gold business in line with its growth strategy. This proposal was eventually declined by the Ashanti board. The Company continues to focus on the development of growth opportunities which meets its return criteria. In this regard, a number of due diligence reviews of attractive exploration and mining prospects are currently being progressed.

The Company was included in the FTSE 250 index on 22 October 2003 and this has significantly raised its profile in the London market and enhanced the liquidity of its shares.

Mr Bernard Asher has been elected as senior independent non-executive director of the Company and Messrs Brett Kebble and David Ashworth have resigned from the board.


 R A R Kebble     D M Bristow          R A Williams
 Chairman         Chief Executive      Financial Director

12 November 2003

Registered office: La Motte Chambers, La Motte Street, St Helier, Jersey JE1 1BJ, Channel Islands

Web-site: www.randgoldresources.com

Registrars: Computershare Investor Services (Channel Islands) Limited, P.O. Box 83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands

Transfer agents: Computershare Services Plc, P.O. Box 663, 7th Floor, Jupiter House, Triton Court, 14 Finsbury Square, London EC2A 1BR

DISCLAIMER: Statements made in this document with respect to Randgold Resources' current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. The potential risks and uncertainties include, among others, risks associated with: fluctuations in the market price of gold, gold production at Morila, estimates of reserves and mine life and liabilities arising from the closure of Syama. Randgold Resources assumes no obligation to update information in this release.


                      This information is provided by RNS
            The company news service from the London Stock Exchange


            

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