Good afternoon and welcome to the Randgold Resources Conference. All participants will be in listen-only mode. There will be an opportunity for you to ask your questions at the end of today’s presentation. [Operator Instructions] Please note that this conference is being recorded. At this time, I would like to turn the conference over to Philippe Lietard. Please go ahead, sir.

Hi, everyone in North America, in Europe and in South Africa. I am Philippe Lietard, Randgold Resources Chairman. And first of all, I want to thank you for joining us again today for our quarterly review. As you will have seen from the results, the half-year to June has been another very good period for Randgold Resources, with the Company reporting substantial advances and improvements on every front of the business. What makes this performance particularly impressive is that it was achieved in the face of some very difficult circumstances. Chief among these was settling down the new mine at Loulo, while at the same time completing the plan that should have been finished by the contractor some seven months ago. And the way in which the Company took over this unexpected task and completed it successfully is typical of the way Mark and his team addresses new challenges. Meeting and beating challenges such as these, and there have been many over the years at Randgold Resources, requires people with a high level of skills as well as the will to win. And it is because we understand the importance of people that we continually invest in our future growth. We invest not just only in expansion of our physical assets, but also in the enhancement of our intellectual base. And this is why we have recently appointed as independent Non-Executive Directors to our Board two very eminent international businessmen. Both have a long experience of Board membership and of company governance. In addition, each brings their own specific expertise in management, in finance, in strategic planning, in mining and in Africa. Norb Cole spent more than 30 years on several continents with the Coca Cola Company and he is now on the Board of a number of US companies. Karl Voltaire spent more than 20 years at the World Bank and at the International Finance Corporation where he oversaw, among other things, the development of a number of major mining projects in Africa. Randgold Resources is indeed fortunate. And as its Chairman I surely feel very fortunate to have these two new independent directors to broaden our Board’s international perspective and to enhance our capacity to deal strategically with technical complex, legal and commercial issues in the countries and markets where we operate. Having said that, I now would like to hand you over to Mark Bristow, who is standing by to take you through the results. Thank you. Mark?

Thanks, Philippe, and good afternoon and morning, ladies and gentlemen. As I’m sure you have all seen, and if you haven’t it is available on our website, our presentation we made to the analysts in London at midday. And I’m not intending to repeat the full presentation now, but try and take you through some highlights and then give you a chance to ask questions. As I say, the web cast is available on our website. So, moving then -- and I assume you’ve all got a copy of the presentation. Our highlights, a very good first half-year considering the challenges that we’ve had to get through in Loulo. The team there did an excellent job in keeping production on track and settling the operation. Loulo, for all intents and purposes, is now substantially complete. And I’ll touch on some of the outstanding issues, but none that will affect the throughput in the short term, a good performance from Morila as well. Exploration had its -- probably its busiest quarter. And looking generally at our operations, we were able to get Ivory Coast. All in all, I think that one would expect in a higher gold price scenario in the first half comparing it to the second half of last year, which is a good reference, our revenue up, profits up, gold production up, and by those sort of numbers that one would expect in a stronger gold market. And that really is the fundamental base on which we set out to build this Company and that is profitability. If we move to the next slide, highlights for Loulo. As I’ve said, satisfactory quarter. As we commissioned the crusher we had a couple of difficulties in the June month and those rolled on to the July month, as we settled…

[Operator Instructions] Our first question comes from Victor Flores of HSBC. Please go ahead, sir.

Yes, good morning, Mark. Could you give us a bit more sense of what the variables are with respect to achieving the 250,000 ounces at Loulo for this year? You talked about it being tough but achievable. You also talked about getting the plant up to 220,000 tons a month. So it sounds like the variable missing there is to what extent you can show a bit of improvement in grade during the second half to get to that target. Is that roughly correct?

I think we're pretty comfortable that we can get the 3.2 grams, up at that level. It will be nice if we get a little bit more. And it's possible, Victor. It's really how quickly we settle and get our minds around the dilution in Loulo 0. I think all those parameters balance out. One thing is that we are seeing better throughputs in the operation. We certainly get more value than most at about 8,000 tons a day and of course you have your days when you don't get them. So the 220,000 tons, it's going to probably take a bit of a time before that's steadily achievable but it's certainly an achievable target. The grades, with that you put pressure on the mining, so we don't have much in the way of stockpiles apart from this last month. We built a bit of a stockpile but we're still going to be -- and we will continue to build the large stockpile in the operation. So we don't have a lot of flexibility to pick and choose and I think we've never been a company that tries to influence or selectively mine out of an ore body. It eventually comes back to bite you. I think really, when I say it's achievable, the mine is forecasting to get there. As I said, we saw a run over into July on production interruptions. It certainly came a lot better than June by the end of July and our July month as well. And so if they get back up to the 60-plus thousand ounces a quarter, we'll be in good shape.

Great, thanks. The second question goes to exploration expenditure for this year. What is the new revised total exploration budget for 2006?

Our total exploration budget, with corporate included, it was originally around 22 and it will probably be about 24.

Great, thanks. And then just one final quick question on Loulo 0 and the underground drilling that you've done and showed in the slide in the presentation. Is any of this in the resource base or is it…

No, Victor, no. It's -- you see what we're doing now is running the risk of repeating what we did at Yalea. If you look at the slide, there's a color, a shaded color pink, which is the resource base. So any drill holes outside of that pink shade will be outside the wire frame.

Okay, excellent. Thank you very much, Mark.

Thanks. Operator: Thank you. Our next question comes from Patrick Chidley of BJM. Please go ahead, sir.

Hello, Mark. Congratulations on a great quarter again. Nice steady numbers there. I'd like to ask a question about costs at -- in Mali in terms of how is the increased price of fuel affecting the overall costs? And has there been some new route that you're using to alleviate those costs or has it gone the other way or -- and is there a temporary situation there?

Patrick, good day. The -- we have had an ongoing crisis in Senegal where we -- where Loulo gets its fuel from, with a stand-off between the major fuel companies or oil companies that run the refinery and the government. And we've, from time to time, been forced to truck fuel from Pogo and Benin, which is where we're getting it for Marila. And that's added some costs on, and particularly trucking costs, and that's the big challenge in West Africa. It's not only are we dealing with high fuel costs but we have this extra trucking cost. So that has impacted on this quarter's results and it will come off a little bit. But we -- I think the key thing is that we not only -- we burn fuel to get the fuel to site. We are managing it. We are looking at a lot of things, as we settle the operation down we move from capital phase to our operating phase, the whole control of fuel, the -- we now have some operating history on the generate -- power generating set-up there, so we're starting to work on that. Dispensing and managing, the fuel dispensing is critical. It's a hot commodity. It's the easiest commodity to steal in -- throughout the supply chain. So it's something that we believe we can improve on. We also are looking at heavy fuel alternatives, both at Marila and at Loulo. That comes as this other added environmental challenges and equipment challenges to be able to transport it but we are looking at it. On face value it always looks attractive; it’s making sure that we have security of supply. AngloGold is using heavy fuel in Guinea, so there are some examples, and they're also using heavy fuel in Gator. And so -- and we're now going to be expanding the power plant at Loulo with some medium speed engines to support the expansions in underground requirements. So we're managing it. I think our fuel cost share is 20% of costs. Rog, do you want to comment?

Yes, it's about 20% of costs. And, as Mark said, I think just to add to that you -- your underlying oil prices actually are a relatively small portion of your landed costs, if you like. So, for example, if it's $50 an ounce but it costs you -- only $20 of that really relates to fuel price and the rest is taxes, logistics and refining margins. Whilst we can't do a lot about refining margins, we can work on the other things and, in particular, how you manage the logistics and how you actually structure your power plant in the first place. And that the -- for example, the generators at Marila are already capable of taking heavy fuel oil, so it's an opportunity for us which we're looking at.

And at Loulo, being as last quarter was affected by this extra transport cost for fuel, would you see, if that position was resolved -- situation was resolved, would there be a dollar per ounce figure that you could give that you're saving or….

Patrick, it's a little bit of a moving target because, as we get the crushers up full tilt, they are consuming power as well. So I think we'll certainly take some power away with the mobile crushing or some fuel consumption in the mobile crushing circuit once we decommission that, but I'm not sure that it's that visible. It might be $1 an ounce, $2 an ounce.

Okay. And then a second question, just on geology at Loulo 0. I think you mentioned briefly that the nature of the ore body is changing at depth. This latest big drilling seems to be less of the brittle fracture tourmalinization ore body and more of the sulfuritic sort of stuff, which would look -- would it not look a bit more like Yalea or --?

Yes, that’s true. It's just -- we've just -- we’ve gone back to some of the -- on the one side of the ore body, on the southern side, there are a couple of the deeper, so 300 meter, holes that had this one meter massive sulfide zone in it. And now we've extended that as we've gone deeper and it's extended further to the north. So there’s definitely a facia change. We believe that the structure's also moved away from where it was higher up, shallow areas. It's a little early at this stage but we've certainly got a handful of bore holes with this very high grade -- if you see the one intersection that’s 9 meters, that's 4.5, but there's a 1.8 meter, 18 grams, that's a different unit which is very specific, a sulfide-rich unit that you can extract. And a couple of the other high grade holes, the LOCP 83 has also got that very high sulfide zone. So it's a bit early to tell but there's definitely something changing at depth and we -- and it does look a lot more like Yalea when you get that high grade.

And what about the true thicknesses? Some of these thicknesses look pretty good but we know the ore body does tend to wander a little bit in terms of changes in depth and strike attitude.

Yes, these are true thicknesses that you see there, or just as close as we can get to true thicknesses because of the way we drill the holes. But the interesting thing is that there are -- these shallower -- these thinner intersections, Loulo's never been a thick ore body, we've always said it lends itself to underground mining. But with the slightly thinner, four, five meters, that high double-digit growth is very attractive for underground mining, so we're no longer looking for super-wide ore bodies at these depths.

Okay, great. Thanks very much.

[Operator Instructions] Our next question comes from Heather Douglas of BMO Capital Markets. Please go ahead.

Hi, good afternoon. I think you touched on this a bit at the beginning of the call, but can you give us more of an idea of what you're thinking about expanding the plant at Loulo to over 300,000 tons per month? So what’s the timing for any decision and what is the possible capital?

Heather, hi. I think just let me try and put it in perspective, because these things can run away with one. Currently, as we've got it, with 100,000 tons feed out of Yalea and 50,000 tons a month feed out of Loulo and the rest coming from open cast ore, we peak at 500,000 ounces a year at 2012, which is very significant for us. That on its own is important. What we want to do now is, first of all, we want to bed the plant down. We really believe that there is a more than even chance that we can get the plant up and running at the 250,000 ton a month rate just on efficiencies, just on bedding it down and getting everyone aligned operationally. The move to 300,000 tons a month is a simple exercise. Its capital cost is between $8 million and $15 million, depending on exactly what you do, whether you add a bank to the primary, second and tertiary crushers that we've got or whether you add a core tertiary crushing circuit. So those -- and we've already done the basic scoping studies on that. The big challenge is being able to feed that extra 50,000 tons a month. Now, that can come -- we have installed capacity, extraction capacity at Yalea of 200,000 tons a month, gulf capacity to get it out. The challenge is whether you can build and maintain the face length and the underground mine to support more than 100,000 tons a month. And we just feel that, at this stage, 100,000 tons is very good, and as we get down and we get the mining team together, we'll become more comfortable in pushing that. On Loulo, with these extra grades it's probably -- and we're busy with that…

Can I ask a follow-up?

Sure.

You mentioned about the Loulo exploration permits. Which of the products that you're now drilling are likely to make it into any resource by year-end?

Well, definitely the Loulo underground -- 0 underground. By the way, it's worth noting, if everyone's still on the line, that we're really looking at changing the Loulo 0 ore body name to stop the confusion between Loulo the mine and Loulo 0 and Yalea. We're running a bit of a competition and hopefully when we speak to you next we'll have a new name for this deposit. But that definitely will come into reserves because we'll update the feasibility study and be able to convert that. The next one, Yalea -- I mean Baboto, if it stacks up, can come into resources quite quickly because we have a very consistent surface continuity, albeit at lower grade but it has got width and it is not far from the plant. Faraba, if we can connect the two, again, as you see, we've got good intersections. We've just got to confirm the continuity across the river floor. P64 is a difficult one. The next three holes might unravel the structure and we'll be ready to roll. And we've got the others, the Loulo ones and twos and threes and we've got to string all those little stars there that we've still got to get round to, so -- but I think I'm pretty sure that we can see that as we deliver on the underground plan we will see more reserves coming out of that.

Okay, thank you. Operator: Our final question comes from Howard Flinker of Flinker & Company. Please go ahead, sir.

Hello, Mark. I have two questions for you. One relates to the inventories, which seem to have risen immensely from last year. Are you stockpiling extra fuel or something like that?

Howard, let me pass you on to Rog Williams.

The inventory value, the growth mainly relates to Marila, where we are stockpiling ore. We finished the mining -- to get the maximum efficiencies out of the mining equipment, we finish mining at the end of 2008, early 2009, and then after that we will process the stockpiles which are lower grade. So we’re busy building up inventories there. And of course you've got the addition of Loulo, if you're looking at year on year.

Great. And the second question is, is the functional currency in West Africa the French franc or some French West African franc tied to the French franc?

Yes, the French West African franc tied to the euro, or tied to the French franc, which is tied to the euro.

It's 656 to the euro.

Oh, I see. Okay, thank you. Operator: Gentlemen, we have no further questions. Would you like to make some closing comments?

Dylan, thank you very much, everyone. And, again, if there's anyone who would like to ask any questions, we'll be switching our phones on straight after this call. It's -- you've got my phones and our London office number is country code 44, 207 557 7730. I'll repeat that - country code 44, 207 557 7730. Otherwise we'll see you through the quarter. Cheers.

On behalf of Randgold Resources, that concludes this afternoon's conference. Thank you for joining us. You may now disconnect your lines.