“We’re in a very Confused State; Good For Gold” – Randgold’s Bristow on Global Economy

February 8, 2016

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(Kitco News) – Randgold Resources (Nasdaq: GOLD) shares soared to the top of the FTSE 100 on Monday after beating market expectations in its full-year results. The company is planning to raise its dividend after record output in the fourth quarter and full-year 2015.

In an interview with CNBC, Mark Bristow, chief executive and founder of Randgold said that concerns over the global economy have added an ‘extra shine’ to safe-haven assets such as gold. “We’re in a very confused state as far as understanding the global economy with very mixed messages coming from different sectors around the world,” he said in the interview. 

Mark Bristow

Bristow told CNBC that “solid” demand and future economic stress could lead to higher gold prices. “It’s an interesting time and that’s always good for gold when people are unsure about the future,” Bristow added.

On Monday, the company said its profit for the October-December period was $44.5 million, down from $49.6 million in the same period a year ago. Earnings per share came in at 48 cents, compared to 54 cents in the year-ago period.

The company’s average realized gold price declined to $1,091 from $1,195 in the same month of 2014. However, revenue rose as gold output climbed to 326,430 ounces from 287,048 in the same period a year earlier.

Total cash costs fell by 10% to $632 an ounce. During the interview, Bristow noted that his company is well-positioned to deal with lower gold prices, even at a $800 an ounce level.

By Daniela Cambone of Kitco News; dcambone@kitco.com
Follow me on Twitter @DanielaCambone

Category: Gold