Welcome to the Randgold Quarter One Results Conference Call. My name is Sara and I’ll be your coordinator for today’s conference. For the duration of the call, you will be on listen-only. However, at the end of the call you will have the opportunity to ask questions. (Operator Instructions) I’ll now hand the call over to Philippe Liétard to begin the conference. Philippe Liétard: Hello?

Hello, please go ahead. Your line is live. Philippe Liétard: Okay, thank you, thank you. And good morning and good afternoon and welcome to you all for the presentation of our first quarter results. The first quarter was indeed one of which really tested the metal of Randgold Resources management. There was a military coup in Mali and a few flare-ups in its aftermath, followed by change of government. And these are inevitably impacted on our operational environment not to mentioned on the mood of the country. While several like such contractors left Mali on the advice of the government’s our own team held it’s nerve and came through the crisis without needing to realize it’s production guidance. That’s dramatic, but equally challenging where the developments at our other businesses not only at Tongon, we are shutting down and starting to ramp up production and at Kibali, which is maintaining its momentum, with construction getting underway. Also during this quarter we published our annual for 2011 and I believe that it marks a further advance and address to communicate fully and transparently with stakeholders and with the market. I’m particularly proud of the sustainability chapters which presents how we take our investment in social equity as seriously as our investment in the discovery, the development and the operation of our mines. It is available on our website, if you want to see it. We’ve also recently had our Annual General Meeting and at the time when investors are increasingly questioning company board, our shareholders overwhelmingly supported all the motions put to them, including doubling of the dividend. This again concerns our view that are shareholders subscribe to our long-term strategies and regard themselves as owners of the company rather than mere traders of our paper. And with that, I will hand you over to Mark for his overview of the company’s performance and prospects. Mark?

Thank you very much, Philippe, and again good afternoon and good morning to everyone who is finding from Africa and Europe and the Americas. I think just – my intention by the way is not go through a detailed presentation, but just to touch on the highlights. The full presentation that we gave at the London Stock Exchange is available on webcast on our website. So I’ll refer you to that if you’d like more detail. Key is to give you an outline and then open for questions, a strong start to the year, very much in line with guidance. As Philippe said, also in line with our – focus on global best practice, our 2011 accounts included comprehensive sustainability report. And in the presentation today, my first slide highlights some key social safety and sustainability issues. One pleasing to see our reduction in the missions on the back of the switch to grid power at Taiwan, more or less made huge inroads to ensuring it’s recycling percentage or higher level of recycling of water up to 90% now our Gounkoto joined Morila and Tongon with lost time injuries this last quarter, which is a significant achievement. We have some work to do at Loulo, we had four loss time injuries this last quarter. Kabali lost time injury frequency rate has come down materially from last year’s average. So again we are making progress and on top of that and despite some of the challenges that we had to deal with as management we still talk to support our communities and make sure that we acted as a good and supportive corporate citizen within the countries that we operate. Moving to the next slide, key is just to remind you that we did update our reserves and resources and again…

Thank you. (Operator Instructions) And our first question comes from the line of Josh Wolfson from Stifel Nicolaus. Please go ahead.

Hi good morning, guys. Thank you for taking my questions. I have got a lot of them, so unfortunately have to bear with me. First off, the lower tax rate in Mali, I guess I had sort of rumored later in the last year, but there was some talk about also increase the steel ownership, has that basically been put to rest?

Yeah, the way it works is that they proposed for the future mining, they just proposal lower tax rate, which is what we shared with you Josh, because the ECOWAS community is trying to get everyone in the line and right now there risk of ECOWAS is down at 25%. That was too biggest state for Mali to take in one, but at the same time, looking on and we have the benefit of being able to accept any improvement in physical regime under our convention. Looking ahead, however, the Mali government has proposed a lower tax rate in a slightly higher royalty for new comers, new comers issue this. And that – and that’s really the – the – we haven’t seen the new legislation of some, it’s in draft form and as you can imagine that legislation will now like until there is a new property constituted in elected government.

And any idea where that – that growth rate would be?

Between 6% and 9% that’s the proposal.

Yeah, but just to reiterate Jeff that wouldn’t supply to us under existing convention.

Okay unless I guess it does turn out to be better in which case you have the option.

We have the option to. We have a option to take anything that’s better.

Okay that’s good. Next up for the Loulo low-grade, what would be your timeline to put that into production?

We are saying scoping study by the end of the year and really right now we are saying we should we be ready to push the button towards the end of next year. My big focus right now is that there is a bit of exploration to do and some basic gap analysis which (inaudible). I am just reluctant to take out the both from Kibali in the next three quarters. We really need to get Kibali up and running. The valuation teams under Rob can run this project to that point and then we will make a decision on how we engineer it.

Okay.

A rough timeline scoping into the next year, end of next year final study.

Okay. And I just I am bit confused the original scoping, the original numbers are put out or something like of 7,000,000 ounces at 3.5 and the numbers were looking at today are potentially different. What sort of changed from the last update?

Well the unfed resources are underground. The whole 7,000,000 ounces is underground. What we’re looking at is short-term opportunities to expand the plot and so that is still the case extra resource ounces which we’re working on. This separates some of the immediately or potentially available resource that’s not in the mining plan which will be able to feed in expanded plants, and its surface, yeah rather than underground.

Okay. And then the resources that came let say 2.53 (inaudible) time and 80 million tons that is in the current resource, correct?

Yeah, if you look at the current resources it’s slightly what we’ve done is looked at that we it’s a conservative estimate. It’s designed to stay it is a preliminary economic assessment, Joshua. This is not a feasibility study But when you look at the resources we provided we said if we can get 2.5 grams then we think we can beat that. We’ve looked at the strip ratio at the transport costs and everything else on marginal bases it makes the real return for that sort of capital and that is what we’ve said. Is this something that we should be training time on to see if we can add another 80,000 ounces a year or two, I think in the onset, yes it’s worth the time and we will not take it and put it into real numbers.

Okay, and then it looks like I would assume those resources to be incorporated. So a little open pit but it doesn’t appear to be at a research statement that we’re...

As a similar resource statements under...

Okay.

It’s in the resource statements under the Baboto Loulo 3 and all the other bits. Loulo 1, Loulo 2, P 64 Faraba. We took you through that allocation when you were going through it on the resource. It’s a complex trust such that complex open pit complex and its basically all the resources out of open-pit reserve, you will get to that 18 million tons.

Okay. And then for the you mentioned that briefly on the calls, the difference between what was actually holding the surface at Loulo underground was processed the great area that was clearly the dilution from the hangwall issue.

It was just what we did as we had in one of the levels in Yalea, the main level, the reef drive went off-reef and when we mined, we mind a wedge a large way of – and again we were really under pressure with development and starting right on top of each other and we’ve rectify that, but that basically ended up with some significant dilution in the rate.

So some low grade generally from stock.

Yeah, that is not dilution. Philippe Liétard: No, so you will there’s about 290,000 tons was fit in from underground, I think we had about 260, – there is an additional 30,00 tons of low grade in January.

Okay. And some of the numbers you put out today for the Loulo low grade opportunity are those similar economics, I guess, you are experiencing today at a Loulo complex that 365 a ton mining and then $20 to $23 processing. Philippe Liétard: Yeah, that’s correct that are the actual costs

The actual processing costs a $20 already. Philippe Liétard: So just to be clear Joush, the $23 include $3 of – in respect to that material, so the prices – to $20. (inaudible)

Okay, and then I guess I was a bit surprised that the Kibali in the number seem fairly reasonable except for the underground mining costs, what was – what was the source there is substantial increase there? Philippe Liétard: It’s always been around $51, it’s you know we are going to be, I mean we’ve always said that probably a conservative number, but that’s the number that came out from the feasibility. We are – already at that level at Loulo, before even getting to full production. So we are confident that we’ll at least get there and remember as also, a lot of back fold it is – it has come big starting areas, we’ve heard on the conservative side.

There is a high end cement components in that backfill there Josh, and looking at around 7% and in the feasibility work and there is also a high fuel costs, benchmark to Morila, looking at around $150 a liter in the Kibali areas, the Kibali, underground cost also contains the development costs to open up that block of ground. So it doesn’t include the capital for the decline and the shaft etcetera, but it doesn’t also include the expense.. Philippe Liétard: Operating cash....

Operating development. Philippe Liétard: That’s just not starting production costs and starting plus developments portion to open up that block ground.

Okay. And then in terms of what you are answered with your study state protections are for per ton mining costs a little underground would be – what are they writing at this stage/ Philippe Liétard: With, we are at 51 this quarter and we budget it to get down to the 30.

Okay. And then just a last question, thank you for being patient, you mentioned that Gounkoto pit deepening because a portion had been not as deep as you thought was that the jobs that you are talking about or it’s a... Philippe Liétard: There are two things. We originally thought that we’ve got underground in the south because there was a suggestion that higher grade was going ahead. It hasn’t gone that deep we’ve closed it off. So at this stage it’s not quite in a pit and we’ve not kind of lot under the pit. So it may seems to deepen the first pit in the south. In the north, we got the jog zone. That’s an underground target, the question is what the interface study and where do you put the underground. Geotechnically, it is multiple orebodies, the jog zone. So it requires a little bit more geotechnical work as far as drilling goes. We now confirm the variations of the graves and we now want to a do a little bit more geo technical work and then on the basis of that we’ll design the mine and complete the interface study between underground and open pit.

Okay. Thank you very much for taking the questions.

(inaudible).

Thank you. Our next question comes from the line of Patrick Chidley from HSBC. Please go ahead.

Good morning, Mark, everybody.

Yes.

Just a quick question on Kibali on the wind settlement program. That’s to mention those some storm damage and some of the houses and things. And just wanted to see how many people have now moved from the mining site and resettled and how many remain and what sort of outlook source progressing on that?

Regarding that 3,900 families or houses we’ve done about 700 and counting 60 a week so that has been our last day. So it’s a little bit more than that. And we cleared the foot print for the main KCD criteria. We had a few more to move recently. We are busy moving that. That’s key for our infill drilling to really keep the open pit program on schedule. We’re still forecasting to complete that project in quarter two next year. With a little bit of luck, we are slightly ahead of plan even though we had to go back and we had about 41 houses that were damaged in various ways from this big windstorm. It went through the whole region. And then it happens from year to year. What it did to project is highlighted some QA and QC defects in our construction program. What we did is with the community went back oscillated all the issues some of the houses we completely rebuilt, others we just fixed up because there were defects on the roof structure. It was important for us. It got us lot more goodwill with the community. We moved the people out the houses into temporary combination. We fixed the houses and gave them back to them and we’re back on track. So that’s – and we are now at a point where we have 100% of the houses being constructed by – from lease contractors.

All right. And also I mean we’ve heard in the region there has been some projects affected by lots of and mine is – that seemed to be manageable. Are you seeing influx of people into the sites, into the area as a results mine or how you’re handling that?

I think we just suggest that we do our business a lot different than other people.

Okay. And then the other sort of for the – soft issue would be Tom going to mention you’re making progress with labor unions and we did have some problems in the first quarter, has that been going so far this quarter and what do you think is the outlook?

I think we had a very following the coup in Mali, we as a team went to deal with the situation in Tongon and it was very constructive. We all sat down, worked through a number of issues. The complication is being educating a workforce that’s never worked before where they are – we recognized the union, we encourage unionization unlike many other companies and the first round of any union incorporation is that people think that the union committee’s only job is to maximize their earnings. And that’s a realization people have to get ahead around very quickly. At the same time in Ivory Coast, the National Union is very French in the way it looks at what union’s responsibilities are, that’s very different to both our view and government’s view of managing the labor cut. And so we have had a number of engagements in every now and then when the National Union sectary general feels strongly about his view and doesn’t agree with us. We end up in a standoff which has to be settled. And so far what I can say is in every situation we settled amicably with the help and support of the labor department and the labor inspectors and management, my role is being on facilitating this, I really do believe it’s part of our bolding our social life into is ensuring that we respect – our workers and we come to an agreed negotiated manual agreement on how we are going to operate together. And we have been through this in Morila, we went through it in Loulo, we went through it in Gounkoto. I’m sure we’re going to go through it in Kibali and at the end of the day the – as you have seen Patrick, our alignment with our workforce in our operations is genuine and real, and I think we will – we pose in the back of this. We got to certainly have from time to time additional challenges but I think we have really got everyone aligned on the importance of getting Tongon to deliver on its ounces.

Okay. So and then so far this quarter we have (inaudible)?

So far this quarter, we are on the first time we have touchwood 30 days and we are on design 10,000 tons a day. So average that was so – it’s being fought.

Good. And just in relation to that maybe I don’t know when the rainy season starts there again that you sort of taking extra precautions this year with asset Tongon and changes of some getting into (inaudible) sort of thing?

Yeah, we have just had a workshop program onsite where we have reviewed all the rainy season plans for all our sites. I will remind you that Gounkoto had a real wake-up call last year. I always remind the Malians – one would swear it never rains in West Africa because every year they get this big surprise, when the rains come. But we have put a lot of effort as a management team into planning for the rains that because Tongon is critical because it’s not quieter at a point where that pits is fully flexible. It’s still developing that we just come out of the transitional zone, just point where it’s mostly drilling and blasting up. And from the quarter is definitely looking like a real one, it’s I’m a lot happy, and we have got it under control. A massive pushback on the rivers will impact out maybe a couple of days, but it is not going to damage us like it did last year.

Okay. And then just on construction of Kibali, I don’t know when the rainy season is, can you tell us when that actually has a heavy rain, I mean (inaudible).

Heavy rain is in eight months of the year.

All right.

So we are in that right now. And we are operating quite well. So it’s a different mindset and everyone understands that. So it’s not like Mali. Philippe Liétard: They have a dry season.

They have a dry season and in Kibali and we have a wet season in West Africa.

All right. And getting stuff aside from I guess it’s coming from Kenya, is that you’re getting (inaudible)?

We’ve mobilized the whole mining fleet while as moving fleet and we’re busy with the mining fleet now and we have had no hassles. We put in that infrastructure that as a whole thing, we are doing it.

Right. Okay. And then just one last question on – I wonder if there is any update on these talks about power solutions in the Massawa-Loulo area hydropower?

As you see there is a new president in Senegal which we are delighted about, he is actually a geologist Macky Sall and we need to get him a little bit of time to settle his business down, his government down, but we will be added to early on, once I think we – he has got a bit of work to do and then almost (inaudible) silly season in West Africa, because everyone goes to know that, so as soon as we reach through that well will be knocking on his door.

It sounds like it’s going to be one, two three years – yeah three years before you get that potentially that low grade trend, that (inaudible).

Yeah, I think for us, good to you guys, anyway.

If in the meantime, if there is some progress towards getting a low power cost that might be the key to make that stuff really work.

And I mean to be really frank with you, we’ve – we’re moving Loulo from 340,000 ounces last year to 500 this year. That’s to begin our step forward, we just got the management team settled. And that’s just real Texas one (inaudible) instead of putting them under – we’ve got a lot to do, we’ve got some additional flexibility and the processing capacity at Loulo who got to get through this average situation suggestion, in the meantime, we’re all to get a run that trade off study and look at the options and the geologist will focus on confirming the (inaudible) to indicated. And then you if at all stacks together it should be pretty quick to get the feasibility study sorted. But I’m reluctant to put that unreasonable pressure on the team right now, I want to see Kibali ready on top on things and it’ll be great to see another two quarters of Loulo delivering on its budget.

All right, okay. Thanks very much.

Thank you. We have a question from the line of (inaudible). Please go ahead.

Hi, Mark.

Hello (inaudible) how are you.

Good you?

Well, I’m good, thanks.

Okay, how’s your back by the way.

Fine.

Oh good. In your quarterly report you would note that you set up a separate entity for Gounkoto.

Yes.

However, I should pronounce it. And you used the word, I forgot what word you used but will there be no taxes for two years at all and with it?

Correct.

Zero?

Zero.

Okay, I wasn’t sure, what and you can extend that five if you?

As we find that you know we got a – that the trigger is anything we have to tax more than a 100 million in capital.

All right, I got you. Okay, that’s it.

Thank you.

Thanks.

Thank you. (Operator Instructions) And we have a question from the line of Angela Tindyebwa. Please go ahead. Hello, Angela your line is live. Would you like to ask a question?

Good morning, I’m calling on behalf of Nana Sangmuah .

Hello Angela.

Hello, and I have a question on Loulo, what’s the mix of open-pit and underground that you’ve seen in the second half of the year?

The mix this quarter was 70:30. The mix that was slowly that under you see, we showed the mix Loulo and Gounkoto but Loulo itself the mix will be around 50:50. Philippe Liétard: We are expecting, the second half it’s really when you start purchasing (inaudible) of 675,000 tons. And then the underground is about 1.9 million tons for the year.

Processed. Philippe Liétard: Processed to I’m sorry, guys. That’s on the mind so, you know, so.

So we you have to look at purchase. Philippe Liétard: And.

And we are just doing the calculation.

Thanks.

It’s that – I’ll just work though it to you first quickly. There are enough stockpiling or anything. There are how many ounces of that underground, I mean – the underground ounces Well, first of all the open pits answers from Yalea.

5 grams..

So we’ve got two (inaudible) it’s about, 50-50.

50-50.

Yeah.

And in Q2, there will be mainly an underground connection, right?

Yes, Q2 is underground. If you look at it over the year, 50% of the gold production will come from Gounkoto and 50% will come from Loulo. Of that 50% in Loulo, it will be nearly 50-50 again from underground and open pit.

Excellent. And on Gounkoto, what’s the sequence of grade you’re looking at for the second half of the year? So I understand at the at the beginning, you’re still in the lower grade zones but how does that progress?

Absolutely. So Gounkoto grades for the second half of the year will be around 5 grams, for quarter three and quarter four.

Excellent, okay. That’s it from me. Thank you.

Thank you, Angela.

Thank you. (Operator Instructions) We have no further questions coming through. I’ll hand the call back to your host for any closing comments. Thank you. Philippe Liétard: All right, ladies and gentlemen. Thank you very much for your time again. I hope you’ve find it useful and certainly can go away with the understanding that we’re still operating as we got at our shareholders throughout this last quarter. And that we – at this stage believe we’re on track with our business plan. If there is anybody who would like to follow up with the team we are available and otherwise just you can drop us an email, we will make sure that we pick up with you during the next week or so, because tomorrow we’re pretty tied up with continuing to see our shareholders in our London. But we will be available for calls throughout next week. Thank you for your time.

Ladies and gentlemen thanks for attending for today’s conference. You may now replace your handset.