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Results for the quarter ended 30 September 2008
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Opportunity in a volatile market…
Gold price S&P/TSX gold index US$ RRL total Cash costs US$ 000’s Brent crude US$ $/€ $/€ 3800 3300 2800 2300 1800 1300 800 160 150 140 120 130 S&P/TSX gold index Gold price Brent crude Total cash costs
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On track to meet targets despite tough quarter…
Costs contained and in line with Q2 despite rising inflation Revenue down on lower grades and gold price Strong balance sheet ensures delivery of development pipeline Loulo expected to deliver robust production growth Participation in Tongon project increased to 84% Updated Tongon feasibility confirms robust project Massawa - scoping study drilling underway
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Mali…Loulo Mine Gold production for the quarter of 64 250 ounces
Quarterly throughput up 9% from Q3 2007 Gold production down on last quarter due to lower grade of open pit mix caused by wet season feed restraints Costs contained and in line with Q2 despite higher input prices Yalea underground conveyor belt commissioned as planned Optimised underground development plan increases ore tonnes from Yalea and reschedules Gara development resulting in - more evenly distributed production over the next 5 years - increased focus to ensure successful production buildup - higher grades from the Yalea orebody than from the Gara orebody - a more prudent capital schedule Underground conveyor
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Loulo Mine…operational results
Quarter ended 30 Sept 2008 Quarter ended 30 Jun 2008 Quarter ended 30 Sept 2007 9 months ended 30 Sept 2008 9 months ended 30 Sept 2007 Ore milled (t 000s) Ore grade milled (g/t) Recovery % Ounces produced Cash operating costs (US$/oz) Total cash costs (US$/oz) Gold sales (US$000) Profit from mining activity (US$000) 658 3.2 93.7 64 250 515 556 45 558 9 823 686 3.5 91.0 70 100 451 496 54 726 19 970 599 3.2 94.9 58 020 363 398 35 191 12 079 2 045 3.3 91.9 465 507 49 669 1 969 3.2 94.4 316 350 46 127 Randgold Resources owns 80% of Loulo and the Government of Mali 20%. The Government’s share is not a free carried interest. Randgold Resources has funded the Government portion of the investment in Loulo by way of shareholder loans and therefore controls 100% of the cashflows from Loulo until the shareholder loans are repaid.
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Loulo…Yalea underground update
Tabaski decline P125 pit 12 L stoping slot Yalea pit Underground stoping levels 12 L access 28 L silling Year to date production from underground section Declines are here Develop-ment metres Ore tonnes Grade g/t Ounces mined Total tonnes Q1 735 - 45 974 Q2 1 048 5 605 2.31 416 71 157 Q3 852 43 774 4.28 6 020 85 352 Total 2 635 49 379 4.06 6 436
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Loulo…new Yalea mining plan maximises use of skills and capital
P125 pit Yalea pit Purple patch: scheduled start Q4 2009 Current mining area New Mining 6g/t scheduled Decline
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Loulo Mine… improved production forecast
Ounces 000’s Previous estimate
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Mali…Morila Mine Total costs well contained and 9% lower than Q2 2008
Q3 tonnes processed increased but lower grades result in decreased production of ounces Planning for the transition to a stockpile retreatment operation well underway to ensure that Morila remains a strong cash flow generator Sustainable agri-business being investigated for mine closure currently scheduled in 2013 Final GC drilling at northern base of the pit shows continuation of good grade
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Mali - Morila Mine…operational results
Quarter ended 30 Sept 2008 Quarter ended 30 Jun 2008 Quarter ended 30 Sept 2007 9 months ended 30 Sept 2008 9 months ended 30 Sept 2007 Ore milled (t 000s) Ore grade milled (g/t) Recovery % Ounces produced Cash operating costs (US$/oz) Total cash costs (US$/oz) Attributable (40%): Gold sales (US$000) Profit from mining activity (US$000) 1 097 3.0 90.1 94 016 388 440 37 606 32 725 16 167 1088 3.5 92.9 344 398 45 498 40 504 22 414 1 030 4.3 91.2 241 289 52 227 35 511 20 433 3 193 3.3 91 5 354 409 60 129 3 137 3.5 91.6 284 330 85 007 42 634
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Côte d’Ivoire… Tongon feasibility update
Tongon LOM production Probable Reserves: g/t for 3.16 Moz Ounces 000’s Capex: US$ 280 m (Sept 2008) Mining: Contractor mining with a peak rate of 25 Mtpa LOM strip ratio: 4.3 : 1 Plant: 2010 2021 11 12 13 14 15 16 17 18 19 20 Throughput of tpm Annual gold production of per year in first 2 years and averaging oz over 10 years 2.82 Moz of gold produced over LOM
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Côte d’Ivoire - Tongon development project …updated financial estimates
Feasibility Q3 2008 Cost Estimate Q3 2007 Life of Mine mining cost (incl. fleet capital) US$ 3.03 / tonne* US$ 2.64 / tonne+ Life of Mine plant operating cost US$ / tonne US$ 9.95 / tonne Cash operating costs US$ 420 / oz US$ 357 / oz Total cash costs US$800/oz gold price) US$ 444 / oz US$ 381 / oz G&A US$ 2.50 / tonne Cost comparison * Based on a diesel cost of US$1.15 / litre or approximately US$111 / barrel of oil + Based on a diesel cost of US$0.80 / litre or approximately US$75 / barrel of oil
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Exploration…more focus on 3 target areas
West Africa Senegal Mali Burkina Faso Côte d’Ivoire Ghana Faraba deposit Massawa discovery Loulo gold Mine Morila mine Tongon development project Kiaka Tanzania Randgold Resources permits Exploration focus
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Senegal…Massawa discovery
Northern Zone 1: Ave intersection: 3.30g/t Strike length: 1.1km (Based on 12 holes) N Northern Zone 2: Ave intersection: 4.06g/t Strike length: 775m (Based on 5 holes) DDH 002 DDH 023 g/t Incl g/t and 4.40 g/t g/t Incl g/t Central Zone: Ave intersection: 3.24g/t Strike length: 1.5km (Based on 14 holes) g/t Incl g/t New geological model 1000m
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Mali - Loulo complex…Loulo 3 deposit
Baboto North, Centre, South Sectional estimate ( oz) Loulo3 North Inferred Resource g/t ( oz) Loulo 2 Near surface potetial for high- Grade ounces ? Loulo3 South (N) Section Estimate g/t Baboto Loulo2 L3DH31 g/t g/t P1 Loulo1 Loulo3 North Inferred Resource g/t ( oz) ? Loulo2 Loulo3 South (S) Ore mined g/t ( oz) ? ? Loulo3 Loulo3 South (S) Mined Reserve g/t ( oz) L3DH29 g/t Incl g/t ? ? ? 10Km ? P125-Loulo3 Gap P125 ? L3DH30 2m alteration with trace sulphides, mineralisation is closed at depth L3DH28 g/t incl g/t N Loulo3 South (N) Section Estimate g/t Yaléa Untested narrow high grade zone Yalea structure Untested potetial at depth Loulo 3 3D model Yalea Resource g/t Yalea structure 3D model
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Mali - Loulo complex… Gounkoto, P64 and Toronto targets
Trench FRT03 g/t Trench FRT04 1.48g/t Trench FRT05 g/t incl 16.30g/t 1000m Baboto N Loulo 1 Gara Loulo 2 Yalea Loulo 3 Loulo Kolya Bambadji P64 Gounkoto Toronto Dalema Faraba Bena Loulo district Gold deposits and targets
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Mali - Loulo complex… Faraba deposit
FADH025 g/t incl g/t g/t incl g/t and g/t g/t incl g/t Baboto Faraba Gap / North mineralised zones N Loulo 1 Gara Loulo 2 FADH026 g/t incl g/t and g/t g/t Incl g/t Yalea Loulo 3 Loulo Kolya ➢ N 255 m Eastern Mineralised Zone Bambadji 1.3 km P64 Western Mineralised Zone 266 m Gounkoto Toronto FADH023 g/t g/t g/t incl g/t g/t g/t Dalema Faraba Bena 840m FADH031 g/t incl g/t g/t incl g/t and g/t g/t g/t g/t FADH015 g/t incl g/t g/t incl g/t and g/t Loulo district FADH032 g/t g/t g/t incl g/t Gold deposits and targets
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Mali - Senegal… Loulo - Bambadji district
5 Km MALI Faraba P64 Loulo 3 Loulo 1 Baboto Loulo Kolya Bena Bambadji Dalema Toronto Loulo 2 SENEGAL Gara Yalea N Loulo district – data integration Soil Geochem Landsat Aeromag Airborne EM Geology LOULO N 5 Kilometres BAMBADJI - DALEMA
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Côte d’Ivoire…Nielle and Boundiali
Boundiali Permit: geology with gold targets 4.4 Moz Tongon Project Côte d’Ivoire N Tongon Northern and Southern Zone Kofre Tioro Yele Baya Kassere Tiasso Sani Yama Fonondara N Fonondara S Fodjo Katiali Nielle Permit: geology with gold targets Soloni A & B Koro North Poungbe Nafoun East Koro Tongon East Yvette-Nafoun Boundiali Dabakala Mankono Apouasso Dignago Nielle 300km Tongon South Trenches: 8.37g/t 2.06g/t and g/t and 2.00g/t Koulivogo Tiebila East Oleo North Oleo Oleo South 5km
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Burkina Faso…Kiaka deposit
KDH19 g/t g/t g/t KDH21 g/t g/t g/t KDH13 g/t KDH24 g/t N KDH12 g/t KDH17 g/t KDH11 0.8 g/t KDH04 g/t Nakomgo Yibogo Kiaka Safoula Gogo Kaibo Tanema BURKINA FASO GHANA Bourou Tiakane Basgana Bole KDH10 g/t g/t KDH06 g/t g/t KDH15 g/t KDH03 g/t KDH22 g/t g/t g/t KDH05 g/t KDH14 g/t KDH01 g/t g/t KDH18 g/t KDH23 g/t KDH07 g/t g/t g/t KDH09 g/t g/t Kiaka target: Interpreted geology with latest drill results 500m
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Ghana…early stage generative focus
Fumbisi prospect Navrongo Bole NE RL Burkina Faso 80km Akyem Mine Damang Mine Tarkwa Mine Obuasi Mine Chirano Mine Bibiani Mine Ahafo Mine Bole NE Ghana Fanoma Enyinase Côte d’Ivoire Prestea Mine N
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Tanzania…generating value opportunities in the region
! Mwanza – RRL regional office Tanzania
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Randgold Resources…summary financials
Quarter ended 30 Sept 2008 Quarter ended 30 Jun 2008 Quarter ended 30 Sept 2007 9 months ended 30 Sept 2008 9 months ended 30 Sept 2007 US $ 000s Gold sales # Total cash costs* Profit from mining activity* Exploration and corporate expenditure Profit before income tax and financing activities Net (loss)/profit Net (loss)/profit attributable to equity shareholders Net cash generated from operations Cash and cash equivalents Attributable production**(ounces) Group total cash costs per ounce** *(US$) Group cash operating costs per ounce** *(US$) 78 283 52 293 25 990 8 308 14 706 (684) (1 430) 8 781 513 468 95 230 52 846 42 384 12 553 25 166 20 236 17 911 11 237 457 409 70 701 38 189 32 512 7 872 17 507 11 540 11 474 2 262 346 305 34 813 63 147 37 707 32 447 37 114 469 422 88 761 22 987 42 595 31 136 28 656 30 492 342 303 # Gold sales does not include the non cash profit/(loss) on the roll forward of hedges * Refer to explanation of non-GAAP measures provided ** Randgold Resources consolidates 40% of Morila and 100% of Loulo
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Randgold Resources…balance sheet
US$000 At 30-Sep 31-Dec 2008 2007 Assets Non-current assets Property, plant and equipment Long term ore stockpiles 53 755 43 190 48 119 Receivables and other 21 117 24 986 16 941 Available-for-sale financial assets 40 110 - Total non-current assets Current assets Inventories and stockpiles 70 948 57 410 38 007 Receivable 39 283 42 104 50 258 48 950 Cash and cash equivalents Total current assets Total assets Equity and Liabilities Total equity Non-current liabilities Other long term liabilities 6 014 7 320 47 889 Financial liabilities - forward sales 25 383 51 953 49 527 Provision for rehabilitation 11 364 11 074 9 120 Total non-current liabilities 42 761 70 347 Current liabilities 40 016 33 672 25 120 Accounts payable and other current liabilities 53 863 69 607 46 213 Total current liabilities 93 879 71 333 Total equity and liabilities
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Randgold Resources…capacity to finance our growth plans sets us apart
Attributable ounces 000’s Tongon Morila Previous estimate Loulo
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Randgold Resources… relative share price ‘outperformance’
1 YEAR 6 MONTHS 3 MONTHS Percentage Randgold Harmony Eldorado Kinross AngloGold Barrick Agnico Eagle Gold Fields Newmont IAMgold Lihir Yamana Peter Hambro Centerra Source: LAZARD
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Disclaimer… The presentation is not for distribution in, nor does it constitute any offer of securities for sale . Statements made in this presentation with respect to Randgold Resources’ current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management’s assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward- looking statements, and therefore you should not place undue reliance on them. The potential risks and uncertainties include, among others, risks associated with: fluctuations in the market price of gold, gold production at Morila and Loulo, the development of Loulo and estimates of resources, reserves and mine life. For a discussion on such risk factors refer to the annual report on Form 20-F for the year ended 31 December 2007 which was filed with the U.S. Securities and Exchange Commission on 25 June Randgold Resources undertakes no obligation to update information in this presentation.
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