Randgold Resources Ltd. doubled its dividend after posting a profit attributable to shareholders of US$278.0 million, or US$2.92 per share, up from US$247.5 million, or US$2.61 per share, recorded in 2016.
The gold miner proposed a final cash dividend of US$2 per share for 2017. The proposal will be put to a vote at the May 8 annual general meeting to shareholders on record as of March 23.
Annual gold sales increased 7% year over year to US$1.65 billion, thanks to a 6% increase in gold sold across the group and higher average gold prices.
Gold production increased 5% to 1.32 million ounces, exceeding the stated guidance on the back of higher throughput and recoveries.
Total cash costs for the year rose 3% to US$815.3 million driven by higher throughput and slightly higher unit costs at the Kibali mine in the Democratic Republic of the Congo. Total cash costs per ounce dropped 3% to US$620, reflecting higher gold sales and lower total cash costs.
For 2018, Randgold is forecasting production of between 1.30 million and 1.35 million ounces at a total cash cost between US$590/oz and US$640/oz, taking into account the effect of the current increases in the oil price and the euro-to-U.S. dollar exchange rate.
The company ended the year without any debt and with on-hand cash and equivalents of US$719.8 million, a 39% improvement on a yearly basis.
For the fourth quarter of 2017, Randgold booked a net profit of US$75.5 million, or 79 cents per share, compared to US$78.5 million, or 83 cents per share, in the year-ago period.
Gold sales for the quarter dropped 4% on a yearly basis to US$434.8 million, but the company realized a higher average gold price of US$1,278/oz, compared US$1,206/oz in the year-ago period.
The miner attributed the lower gold sales to lower production across the operations.
Total cash costs of US$213.4 million were up 3% year over year, largely reflecting higher strip ratios at the Loulo-Gounkoto complex in Mali and at Tongon in Ivory Coast, which was in line with the plan as the Gounkoto super pit stripping increased.
Total cash costs per ounce saw a 14% increase to US$627, driven by increased costs and decreased production on the back of lower head grades across operations. This was partially offset by higher recoveries at the Loulo-Gounkoto complex.
Randgold's fourth-quarter 2017 gold output was down 10% to 340,958 ounces.
