xfdfw BLOOMBERG-TV-80
<Show: BLOOMBERG TV>
<Date: February 8, 2010>
<Time: 02:00:00>
ADVERTISEMENT
<Tran: 020880cb.550>
<Type: SHOW>
<Head: Rangold CEO Mark Bristow Talks Gold Prices on Bloomberg
TV>
<Sect: News; International>
<Byline: Rishaad Salamat>
<Guest: Mark Bristow>
<High: Randgold Resources Ltd. CEO Mark Bristow talks to Bloomberg
TV about the recent run-up in gold prices and his company's work in Congo>
<Spec: Gold; Economy; Africa>
RANGOLD CEO MARK BRISTOW TALKS GOLD PRICES ON BLOOMBERG TVFEBRUARY 8, 2010
SPEAKERS: MARK BRISTOW, CEO, RANDGOLD RESOURCES LTD.
RISHAAD SALAMAT, BLOOMBERG NEWS
(This is not a legal transcript. Bloomberg LP cannot guarantee its accuracy.)
02:04
UNIDENTIFIED: Okay well, for some more analysis on these numbers, we're joined by Randgold's Chief Executive, Mark Bristow. So first of all, can you just talk us through some of these figures? We've heard profit of $84 million and rising dividends as well.
MARK BRISTOW; RANDGOLD RESOURCES LTD., CHIEF EXECUTIVE OFFICER: Yes, I think we ended up at a very good year last year, largely driven by the gold price and a stellar performance from our flagship Loulo in Western Mali.
UNIDENTIFIED: And are you expecting further consolidation in the gold industry?
BRISTOW: I think we've seen quite a bit of consolidation last year. We were one of those players. I think we're going to see more consolidation at the junior end of the market during the year.
RISHAAD SALAMAT, BLOOMBERG NEWS: Mark, let's look at what - that you couldn't really help but make all that money that you did last year. And you've really said it yourself, it's out of the gold price. But you were predicting gold to pick up to what, $1,200 the ounce or thereabouts. We're not there yet. In fact, we've fallen back.
Are you changing those - that view?
BRISTOW: No, I said we'd see $1,200 before Christmas, which we did see. And I think this year --.
SALAMAT: I heard it was for this year.
BRISTOW: No, I said $1,200 -
SALAMAT: Right -
BRISTOW: - before Christmas last year, 2009, if you recall. This year, I think we're going to see a range between the $1,000 and $1,200. And I think we'll probably see a much higher gold price in 2011 or 2012.
SALAMAT: What sort of level are we talking about there?
BRISTOW: I think we could go as high as $1,500 after this year.
SALAMAT: So that means - the corollary of that is that you're expecting the dollar to drop back by about 15 to 20 percent as well.
BRISTOW: I think we're going to see a lot of effort by the major economies governments to try and prove to the world that their rescue plans are working. And I think that those haven't worked as well as they should have.
SALAMAT: So next year, this year, should be stellar years again for you.
BRISTOW: Yes. We're forecasting a 16 percent increase in gold production again this year. And we'll see another growth in gold production next - the following year. So we're in the growth phase. We saw 2009 as a sort of consolidating year building a foundation for future growth.
UNIDENTIFIED: The Company's Tongon mine is scheduled to start production soon. How much gold do you expect it will produce this year? And what -
BRISTOW: Yes.
UNIDENTIFIED: - will the Company's fallout be for 2010?
BRISTOW: We're forecasting first production in October this year. We expect to produce 75,000 ounces for the last three months of the year. And then it'll have two years of about 300,000 ounces a year and then it will steady out at about 270,000 ounces over the ten-year life.
UNIDENTIFIED: And you're expected to expand your operations in the Congo?
BRISTOW: Yes. We've got three new mines to build in addition to Tongon, which is coming on at the end of the year. Two - one in Western Mali, just south of our Loulo mine called Gounkoto; one in eastern Senegal; and more recently, the project we acquired in Congo.
SALAMAT: It must be absolutely one year and an old African hand obviously, but it must be very difficult working in somewhere like the Republic of Congo, Democratic Republic of Congo. How do you deal with the situation there is on the ground there?
BRISTOW: We've been pleasantly surprised at how easy it is to work in that part of the world. Particularly - I think there's a - the whole region is changing. Politically, there's a big demand from the population.
There's a commitment from the politicians. I've always said once the politicians start taking notice of the population's requirements, you see things go through significant change, politically and economically.
SALAMAT: Mark, great to see you as ever. Thank you very much indeed. Mark Bristow, the Chief Executive of Randgold.
02:08
END OF TRANSCRIPT
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