Randgold digs deep to shine with 63% profit leap

Shares in Randgold Resources glistered today after the African giant dug up more gold than expected in the second quarter despite a fall in demand for the precious metal.

The FTSE 100 company reported a 16% jump in gold production in the first half of the year to 664,000 ounces and said production for the year would be at the top end of guidance.

It led to a 20% surge in revenues to $654 million (£495 million) and a 63% leap in pre-tax profits to $270 million, which helped Randgold’s shares shine 4% higher at 7281.75p.

It came as the World Gold Council reported a 14% fall in demand for gold in the first six months of 2017 as exchange-traded funds stopped buying and central banks also bought less. The price of gold has risen 10% this year.

Elsewhere in the sector, Egyptian gold miner Centamin stuck to its full-year guidance.

However, shares in AIM-listed Shanta Gold slumped 10% to 3.6p as its chief executive Toby Bradbury left amid drastic changes to mining laws by the Tanzanian government, which is cracking down on foreign miners.