Randgold Revenues Light, Dividend Hike Compensates

February 4, 2013 by Paul Ausick

gold bars nuggets
Source: Thinkstock
Randgold Resources Ltd. (NASDAQ: GOLD) reported fourth-quarter and full-year 2012 results before markets opened this morning.

For the quarter, the junior gold mining company posted diluted earnings per share (EPS) of $1.32 on revenues of $381.6 million. In the same period a year ago, the company reported EPS of $1.33 on revenues of $311.47 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.32 and $428.6 million in revenues.

For the full year, the company posted adjusted EPS of $4.70 on revenues of $1.32 billion, compared with EPS of $4.20 on revenues of $1.13 billion in 2011. The consensus estimate called for EPS of $4.81 on revenues of $1.36 billion.

Randgold’s board raised the company’s annual dividend by 25%, from $0.40 to $0.50. Combined with higher production — and better earnings — than originally expected, the stock should see a boost today.

Randgold’s CEO said:

It’s been a particularly eventful year but the team once again rose to the challenges. Not only did we achieve very creditable results for 2012 but we start 2013 in good shape and with a renewed focus on growing our production and managing our costs. Our chief objectives for this year are to pour first gold on schedule at Kibali, get Tongon back on target, maintain the strong performance at Loulo-Gounkoto and Morila, and continue to deliver profitable growth. Beyond that, our sights are still set on reaching our annual production target of plus 1.2 million ounces of gold by 2015.

Randgold, which operates exclusively in Africa, took a hit from the political disruption in the west African country of Mali. But the company’s big projects are in the southern part of the country, while most of the fighting has been in the north. How long that luck can last probably has as much to do with Randgold’s success as do its mining operations.

The consensus estimates for 2013 call for EPS of $5.87 on revenues of $1.6 billion. For the first quarter, the estimate calls for EPS of $1.31 on revenues of $435.8 million.

Randgold’s shares are up about 5.5% in premarket trading at $100.95 in a 52-week range of $72.91 to $127.27. Thomson Reuters had a consensus analyst price target of around $125.90 before today’s report.

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