Good afternoon and welcome to the Randgold Resources First-Quarter Earnings Conference Call. Please not that all participants will be listen-only mode. There will be an opportunity for you to ask question at the end of today’s presentation (Operator Instructions). Please note that this conference is being recorded. At this time, I would like to hand the conference over to Philippe Lietard. Please go ahead, sir.

Good morning and good afternoon everyone in North America, in South Africa and in Europe. I'm Philippe Lietard. And first of all, I want to thank you all for joining us today again for our quarterly review. As usual, Mark Bristow is standing by in London to talk you through the results. And as usual, he has a great deal of information and good news to share with you. You will have seen also our Annual Report 2006 issued last month, which puts together in a few pages a lot of information about our company and confirms the main message of many of our past quarterly meetings, namely that the creation of value is implanted solidly in the genes of our company, our DNA so to speak. A lot has happened during the past quarter, which Mark will cover in some detail. I want to mention only one series of events of the quarter. After the presidential elections in Burkina Faso in Tanzania at the end of 2005, presidential elections were held in Senegal in February and in Mali in April. Also in April, the Ivorian crisis was to a good extent solved with the appointment of a government coalition of all the forces that were tearing that country apart and with the prospect of elections before the end of this year. So, after all those important political events, Randgold can count on the confirmed stability of the countries where it operates, which adds a healthy dose of comfort to our business prospect. One last one before I hand you over to Mark. You will have seen our recent announcement that Roger Williams will leave the company in a few weeks to pursue an opportunity, which will allow him to spend more time with his young family. For the last five years, Roger has tirelessly kept track of our finances. He has helped ease his Board colleagues take well-prepared decisions. And he has kept you all and all our stakeholders meticulously informed of the economics of our business. As it is today, the last time he joins our meeting, I want to on behalf of all of us to wish him well in the future. Fortunately, Mark was able to welcome back a veteran operant of the Randgold Group. Graham Shuttleworth will join the company after many years of practice as a merchant and investment banker in London and New York, more recently as the Head of Metals and Mining at HSBC. I look very much forward to welcoming him at the Board and to inputting his experience in our strategic thinking. Thank you very much again for your interest in our Company. And now, over to you, Mark.

Thank you Philippe and good afternoon, ladies and gentlemen, in this part of the world and good morning to those in the U.S. And moving on from what Philippe said, another good quarter for Randgold Resources. Before I'll go on, I will just point out that we have a webcast on our website, which is a detailed presentation I gave at lunchtime today, U.K. time. So for a detailed review of the results, I will refer you to that webcast. And I'm going to bridge that presentation here today following the slides that are on the website. I think quickly just looking through the highlights of this quarter, in my mind, it was probably the best quarter we've had as a company since we started. Solid performance at Loulo and looking back through the quarters, Loulo's really performed consistently. We were able to grow reserves and that came with the traditional March announcement and our Annual Report, substantially 16% year on year. And we ended the quarter with a nice robust balance sheet, having paid out the dividend that we declared on the back of last year's results and also having spent some $10 million on capital. With the operations really delivering, we were also able to present significant new opportunities in our exploration portfolio, on particular the positive drill results out of Gara, good drill results from the Tongon North deposit and further significant results coming out of Burkina Faso and Senegal. And then to count it all, we were able to make another investment in our relationship with the local government, in particular Mali, where we announced the Kankou Moussa initiative, which is us sponsoring the access to gold for the jewelers in Mali. And really, that worked out very well. It's early days yet, but all of…

(Operator Instructions) Our first question is from Victor Flores of HSBC. Please go ahead, sir.

Thanks. Good afternoon, Mark. I was hoping you could give us a sense of what changes to the mine plan, if any, you'll have to make to incorporate the possibility that Gara extends at least 400 meters from where you thought it ended previously.

Victor, it does a couple of things. The first thing is, it upgrades the grade. The 400 meters is probably the limit on the decline and so, that's one thing. But really, it's just pushing the declines down a little further, maybe looking at being a little bit more selective. Because we've now got much more tonnage and we've got these high-grade deposits. I think the thing that is going to drive us to do is looks above that now back to surface and that whole structure starts opening up again.

Okay, great. Just to follow up on your comments on the African Eagle project, where exactly is it located?

In the southern part of the Victoria Gold region; is in the diagram. So, if you look at -- it's about -- it's southwest of Bole and Houlu. Just outside of sort of nearly west of Golden Pride. It's in the southwestern edge of the Lake Victoria Gold Field.

Okay, great. And then, just to follow up on some of the work or results that you are gaining out of Senegal, are these new areas that you hadn't touched before? I'm just trying to find the comment in the press release here.

They are new. Massawa is brand-new, and Delya was a target that we generated at the end of last year. And the structure has only plans current share zone. It's on the greenstone belt real logical contact on the contact between two significant rock tops. And that structure will not follow further south from the Delya one and we're hitting more in mineralization. So, those two projects are new.

Okay, great. Thanks very much, Mark.

Okay.

Our next question is from Patrick Chidley of BJM. Please go ahead.

Hi, Mark. I was wondering if you could tell us a little bit more actually on the Senegal exploration, just in terms of what kind of timetable you would have to follow up on those drill results -- those great drill results you've got.

Patrick, it is a systematic program. In fact, I'm going to be there in few weeks' time, not even two weeks' time. Next weekend, Phil and I are now going to have a look at them. We've got 5000 meters. We will do a first phase of drilling on the two new targets. We will drill a couple of hundred meters apart. And then, we've got some infill drilling in Bambaraya because we've extended that target. Then, we want to go and do some infill drilling in Sofia. By the time we get those results back, we will have the results from Massawa and Delya. And then we will plan on the back of that. So, it's just an ongoing process.

So Massawa and Delya, you would need to basically take those results and then step out 100 meters out of the side and see if you get continuity?

Yes because we've only got RAB -- these are only RAB holes. So they are not diamond holes. They just are really like deep soil samples. They do cover the structure.

And what about -- you mentioned at Sofia, you're doing infill holes. But there's no resource on that right now. Is there a potential for a resource this year?

Well, we don't promise resources until we get our mines around this structure. I think for us, Senegal is one that we want to -- hopefully, we can cobble together a couple of these projects to get enough of a resource to say that really starts looking like an economic unit or collection of units. And that's what we're looking at right now. We would like to have certainly the potential to go to 3 million ounces before we would start talking about moving things. If you look at Tongon, we were very long in keeping the resources at inferred because we were just not comfortable about when we could bring it into production. We are now rapidly converting those. So, those resources will be there in inferred, are going to move very quickly to measured and indicated and if everything works the way we would like it to, to reserves. I think the Senegal for us has always been one that gets loaded up every now and then with some interesting numbers. We've just never had been able to cobble anything together. Because Massawa looks interesting because it's got some length and we confirmed gold in the rock which is a significant first step.

And then just final on Gara, you mentioned the resource. You've been drilling 400 meters outside of the resource wire frame. Just wanted to check that wire frame is the actual resource rather than the real reserve, is it?

That is a resource, yes.

Okay. So, it's brand-new potentially resource addition.

Absolutely. Absolutely.

All right. Thanks a lot Mark.

Okay.

Our next question is from Paul Durham of HSBC. Please go ahead.

Thank you. Mark, just going back to Ivory Coast a bit, obviously, Soro has now been named as Prime Minister and they have signed this power-sharing deal and I think I've read somewhere that they've agreed to pull out troops from the Buffer zone. What is your understanding of a sort of a timetable for an election? Is there likely to be one this year in the sense that if they've got a power-sharing agreement that they have sort of gone into, do you think that there's a commitment to have a free and fair election this year? Or when is your best guess that that will happen?

Paul, there's a lot of things to get done though. The first step is to demilitarize the military zone.

Yes.

Again, they made a lot of progress. As I was saying the Buffer Zone, we don't see the French troops there anymore. There are no more of these ad hoc roadblocks. We drive up there all the time now. And the roadblocks there, they are manned by unarmed people. So, that's the first sign; it is a good sign. The next big challenge is to get the identification process going to be able to have a legitimate election. You've got to have some sort of identification. It's the most important step in any new election process. Everyone bought into that, and I think everyone is appreciative that to keep this process on track. And I would've remind you that we've shared you this process. It shouldn't come as a surprise to you going back now from January last year. I think the real realization that you've got to bring the population through this process. Because one of the big issues that created this conflict was the discrimination, perceived or otherwise, between the northern population and the rest of Ivory Coast. So, it's a sensitive issue. It needs to be managed very carefully. The positive is that the President didn't create the situation. He inherited it. So he's not implicated as a creator. So, he can still manage it. And certainly Mr. Soro is the one that has brought it to everyone's notice. So, we're pretty comfortable. We are certainly starting to talk to the structures within government. We had Soro up at our project I want to say July last year representing the government of Cote d'Ivoire, not as the leader of any rebel faction. So, they've had an interim government. It's just been strengthened by putting him in as an executive officer. So, we're talking to government now about conventions, tidying up the mining code, getting to iron out all the wrinkles so that we're comfortable with being able to commit capital to a project like this. At the same time, we're working with the various agencies on the baseline study. And so, I -- in a long-winded way, I think everyone still talks about elections this year. I'm not sure whether it matters, provided that the process continues as positively as it has. Everyone has got a very positive disposition to the process. If you go up to the North, you don't see -- I mean, you were up there. You don't see -- you see and then you can imagine how much it has changed since you've been there with the acceptance of our -- and the key driver in this process is it's been internal. It hasn't been a United Nations or World Bank or some other brokered deal. It's been one that has really -- the solution has come from within.

So I guess the bottom-line question here is, when do you think that you are going to be able to tick the box and just sort of say, we're going with this project and ready to commit capital to the critical path on this thing? When have you got that at this stage? Is it six months hence do you think looking at where you are now or is it nine months or is it a year still?

Our current plan is by December next year. We've got a lot of work to do. If everything aligns as far as the technical side of this project, we might be able to bring it forward a couple of months. But yes, we're going to the reins now. We want to do this thing properly. The Tongon North deposit looks really attractive, which means we will rescope the whole project. It's going to be much bigger. We want to do it properly and we just -- these sort of things are better. I'd rather have a project that is a lot bigger and well planned than one that is not well thought through and starts early. So, at this stage, I don't think the politics is the critical part. It's getting this project to its optimum point before making the final development decision that is a driver for us.

Okay, great. Thanks a lot.

Our next question is from Steve Butler of Canaccord Adams. Please go ahead.

Good morning, Mark. A question for you on Morila, how will the grades -- you talked about sort of lower grades in the first quarter than you would experience in the second half of the year. So how will the grade profile change, Mark, on Morila as you go through the year?

The forecast -- effectively forecast same projections, 350,000 tons a month. And it's going to produce 100,000 ounces more or just under 100,000 ounces more in the second half. That's the grade. I'm just trying to grab.

So on 100% basis, I guess, Mark, you're saying 100,000 ounces more in the second half than the first half?

Yes. We're looking at substantial -- the grades are just under 4 grams for the year. And we are currently at 3.4.

All right, okay.

So, we've got a little bit more next quarter, and then we've got upcoming. And it's all in the schedule. But since we go back into the high-grade zone that we mined early on in the lot as we mined the Shitapit.

Mark, can you clarify again that your comment -- I think I wrote down on the hedges that you will roll out part of '07 that remains 40,000 ounces. Is that correct?

Yes, we've got 99,000 ounces left for 2007. We've I think today rolled out 40,000 ounces to 2010.

Right, -- what, about a 5% contango roughly?

It's around $500, Rog?

Yes, it's about a 5% contango at the moment. Yes so, $500 is about the number.

Okay, thanks guys. Last question, Mark, you can remind us again on Tongon South and North what the resources were attributable to each of those respective zones. I know we can probably look it up?

Yes, the title resource was -- I will just give you the number, is 3.1 million ounces. In our scoping study, we had what we would refer to as a mineable resource of 1.4 million ounces in the southern zone. That is what we used in our model. And it was on that basis that we -- even when we updated that model, it was a higher cost at the end of 2005 that we were comfortable we would -- this could deliver a 20% return at 475 gold, which is our hurdle rate.

Thanks Mark.

Thanks.

(Operator Instructions) Next question is from Martin Creamer from Engineering News. Please go ahead.

Hi Mark. Could you please elaborate on the reason and motivation for this extending out of your hedge book and whether it means that you believe there's going to be a dip in the gold price in 2010?

Martin; two things, we are managing the current high gold price. We took this hedge out to cover the capital risk in Loulo. We believe that the outlook for this year is particularly positive. We also are going to be busy with this capital program way into the -- past 2012. Having 40,000 ounces at 500 gold is -- gives us a bit of downside protection in 2010. And it doesn't really impact significantly on the upside as far as the spot goes, because we are going to be producing quite substantial number of ounces then. So it's just the management of the hedge book. A lot of people want me to go and buy their hedge back. It begs the question why you put it in, in the first place. Also, for $470 million on our exploration success, if we continue to spend that sort of money on exploration, it makes -- you just look at Tongon North. We're going to add lots and lots of ounces. In Gara, we're already looking at adding significant ounces. I'd rather keep my pilot dry. Buying back hedges is real money. So it's really us trying to be prudent in the way we manage and we're looking at the gold price. We wanted to clean up the hedge. We're busy refinancing that project loan that the hedge is for. And again, that project loan is -- we're moving it from the project level to the corporate level. We've got substantially lower terms on it because we're much more creditworthy company now than when we put it in. And, also, we don't have PRR against that debt. We will refinance it, and we will have access to additional money as well. So all-in-all, it was just cleaning up our balance sheet. And we -- at the same time, Roger and his team looked at the hedge profile and said, well, that makes sense.

Great. And then quickly, Mark, just operational questions. When will the mining contract for the mining of Yalea be awarded and are people keen on this? Is a lot of lack of capacity around or contract is coming forward for this contract?

Martin, we've had a good think about all this. I don't think we've got the perfect solution yet, but the underground development contract is basically a labor contract. It's a skilled provision contract. We own all the equipment. We already have a subcontractor doing the blasting. And we have a quota in the contract with Sharp Thinkers as far as training Malian skills. And I'll tell you it's been significant what they have done in the short time they've been there. We can see the Malians by the color of their hardhat. Our view at this stage is that we certainly would see us extending that concept for the mining because the way we're going to mine it is really drilling, blasting, and mucking back to the conveyor belt.

Right.

And so we would like to believe that we would have highly skilled operators to manage the mucking and trucking back to the conveyor and that the drilling we will maybe contract out and the blasting we had contract out.

Okay.

So, I think that's where we're going. I think what we recognize as a risk in contract mining certainly in these faraway places is when you effectively bring in a contractor on the back of your balance sheet and he owns the equipment.

Right.

So, we own the equipment.

Okay. Thanks very much, Mark.

(Operator Instructions) Our next question is from Alan Cook of J.P. Morgan. Please go ahead.

Hi, Mark. How is it going?

Hi, Alan. How are you?

Yeah, good, thanks. Just a quick question, if you don't mind, breaking down I think CapEx was about $10 million or $10.2 million for the quarter. Could you give us a breakdown between Loulo and Morila where that was spent? And if you don't mind, if we could request that you include the CapEx numbers in your breakdown when you give the Loulo, Morila, et cetera, the segmental breakdown on a mine-by-mine basis?

I certainly undertake to do it in the future. Roger, can you answer that question?

Yes, sure. Just about all of it relates to Loulo and $7 million of that was spent -- $7 million of the $10 million was on the underground project, of which $3 million was underground drilling. And the bulk of the $3 million spent on the rest of the projects at Loulo was earthworks. And a large part of that is on the ongoing work on the Tailings dam. But we did. We have made an attempt to show it segmentally as well. But there wasn't really a significant number to show for Morila and there shouldn't be going forward either.

I think it was about $10 million on a 100% basis for the year, but that’s Morila, is that right?

$10 million is heavy. It's half that.

And under half that in Morila.

Yes, it’s under half.

Thanks.

Dr. Bristow, there are no further questions. Would you like to make any concluding remarks?

Yes. Thank you very much everyone for taking the time to share our results with us. Again, if there is any other questions you have, you have our contact details. We're available to take your questions anytime. Otherwise, just drop me an email. I will either reply by email or get back to you by phone. But again, thanks very much. And for those people in New York, I'm going to be at the New York Gold Conference next week. So you can always swing by our booth.

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