(RTTNews) - Randgold Resources Ltd. (GOLD, RRS.L), a gold miner operating mainly in Mali, reported Tuesday a surge in pre-tax profit for the third quarter, boosted by strong growth in gold production as well as higher average gold price. On an after-tax basis, the company turned to profit from prior year's loss.

The company's third-quarter pre-tax profit grew to US$17.57 million from last year's US$3.99 million.

Third-quarter net profit, after tax, was US$13.57 million, compared with a loss of US$684 thousand a year ago. Net profit attributable to equity shareholders was US$11.32 million or US$0.14 per share, while prior year's net loss was US$1.43 million or US$0.02 per share.

Randgold noted that the latest quarter results included a non-cash provision for ARS investments of US$0.9 million, whereas the corresponding quarter in 2008 included a similar provision of US$8.8 million, resulting in a loss for that quarter.

Profit from mining for the current quarter increased by 36% from the previous year.

Total revenues for the quarter rose to US$103.32 million from US$78.28 million a year ago. Gold sales on spot was US$113.28 million, up from US$88.53 million in 2008. Adjusting for profit or loss on hedging contracts, gold sales in the quarter climbed 32% to US$103.47 million from US$78.28 million in the prior-year quarter.

The company attributed the growth in gold sales to a 15% increase in the average gold price received in the latest quarter to US$883/oz from last year's US$771/oz, as well as a 17% rise in ounces produced to 118,925 ounces from 101,856 ounces in the previous year.

Total cash costs grew 30% to US$68.17 million from US$52.29 million in 2008, mainly due to higher open pit mining costs incurred at Loulo.

Group total cash costs per ounce was US$573, higher than last year's US$513, and Group cash operating costs per ounce was US$522, up from US$468 a year earlier.

In the quarter, the company recorded net finance income of US$1.84 million, compared to prior year's finance costs of US$10.72 million.

Randgold owns 80% of Loulo with the Government of Mali owning 20%, while the company consolidates 100% of Loulo. In the quarter, Loulo's gold sales surged to US$72.70 million from prior year's US$45.56 million. Profit from mining activity was US$21.31 million, up from US$9.82 million. The mine produced 86,940 ounces of gold at a total cash cost of US$591/oz, compared to last year's production of 64,250 ounces at US$556/oz. Average price received grew to US$853/oz from US$713/oz a year earlier.

In its first full quarter as a pure stockpile processor, Morila mine, of which Randgold consolidates 40%, generated gold sales of US$30.78 million, down from US$32.73 million in 2008, and profit from mining activity fell to US$35 million from prior year's US$40.42 million. The mine produced 79,963 ounces of gold at a total cash cost of US$525/oz, compared to 94,016 ounces at US$440/oz.

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