A “strong” third quarter for gold miner Randgold Resources Limited (LON:RRS) has put it on track to increase its dividend offering to investors.
Not only that, but the company expects forecast cash flows generated from operations to support the funding of three new projects over the next five years.
The bullish statements came after the recovery in the gold price helped to push up third quarter production and profits at Randgold.
After three years of losses, spot gold is up more than 20% so far this year as global political and economic uncertainties have seen investors plough their savings into the ‘safe haven’ metal.
For the three months to end September, the Mali-focused miner posted a profit of US$77.3mln, an increase of 58% compared to the same period in 2015.
This healthy rise came after it recorded a 7% quarter-on-quarter rise in gold production of 301,163oz after strong production at the Tongon and Kibali mines.
At the end of the quarter, Randgold had net cash of US$361.1mln and is on course to make that nearly US$500mln in net cash at the end of the year.
"If the gold price stays above $1 250 per ounce, and we deliver on our forecasts, we should get close to a $500 million net cash position at the year end, said chief executive Mark Bristow.
Randgold added that it expects to meet its 2016 guidance, although it reckons full year output will be at the lower half of its 1.25mln to 1.3mln target range after it suffered production setbacks in the DRC and Ivory in the second quarter.