Stock on Watch: Randgold Resources Limited (GOLD)

Company Profile:

Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA. The company was founded in 1995 and is based in St. Helier, the Channel Islands.

Recent News:

Compared to the corresponding quarter in 2016, the company reported gold production was up 10% at 322 470 ounces, profit increased by 33% to $84.9 million and total cash costs decreased by 4% to $619/oz in the first quarter of 2017.

Following the annual general meeting held on 2 May 2017, and as announced on 3 February 2017, Kadri Dagdelen, a non-executive director and a member of the Company’s governance & nomination committee retired from the board on 2 May 2017.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

GOLD’s strengths can be seen in its strong profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 51.82 with positive bias. We rate Randgold Resources Limited (GOLD) a STRONG BUY.

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