Ladies and gentlemen, we’re at the Randgold Quarter Two Results International Investment Call. My name is Jane and I’ll be your coordinator today. (Operator Instructions) You may begin. Philippe Liétard: Thank you, and hi, everyone, and welcome to you all to the quarterly review of our results. I speak to you today having just returned from a visit to MALI. Our Board meeting was held at Loulo, which it is from time to time and this was a great opportunity for the board to review in greater details the progress made at Randgold’s mentobaton center of the vast new Loulo Gounkoto complex. On Monday we had the official opening of the Gounkoto mine in the presence of the government allegation led by the minister economy and finance. We used this occasion to have in depth discussions over several days with the senior government of ministers about the state of affairs in MALI and about the difficult situation in Northern MALI. While we still expect the transition government to be reorganized shortly to provide a stronger unified approach to the return of democracy and to tackle the complicated northern problem, one message is very clear. The priority is not to reverse the economic progress of the past decade and to preserve the investment climate for the investors. In this context, it is a true pleasure to introduce a sparkling set of reserves to you today. Martin will shortly take you through the details of our performance in the quarter and the half-year when the sovereign state of and the group did well across the board. This has been a time in which Randgold has had to contend with many challenges, operational, developmental, and at least, political. We are in reference with which the team has dealt firstly with the fallout from…

Thanks very much Philippe and good morning and afternoon ladies and gentlemen. We’re in London, we’ve got Graham our CFO and Paul, at Exploration relative of Communications with us and Citi partner Nicole from Europe. Again, as usual I gave a presentation mid-day at the London Stock Exchange. It was I must say extremely well attended. We had standing reminding, to start CNGB performance in the Olympic. And we – as you can see, we had a stereotypical results a little bit, I mean, I guess reflect on these results is what’s reflecting first on the market. And one thing we have been saying for some time is, the industry is certainly struggling with trying to keep up with the latest demands from the market in our inverted commerce. We’re seeing new flavor of the market rather the courses, the last four or five courses where we can move from the demands from the market of being large and liquid and then growth and then everything is all about producing answers. And then for a while we’ve been looking at cash cost and we’re seeing to change how we calculated and recently this being the year with all the dividend and then we’re suddenly all affect from capital discipline. I think that – the thing that differentiates us from many of these sort of single focused events or fans is that we’ve always – and we feel that we haven’t allowed ourselves to be seduced by these demands. But rather kept our focus on performing against what we believe is a clear destination and under the guidance of a simple sustainable strategy. And that’s really kept our business. And so, when you look at the score, I would submit to you that yet the numbers are important and as you…

Yeah, production, it will all come out in the next year’s figures. So again, very good, very significant improvement in cash cost of the period, which is again what we forecast based on just improving grade. Big – the big driver behind the Loulo improvements and thus the combined complex is the underground improvement, and that’s all around as we all know, when it’s underground mining it’s all in the development meters. And we’ve now got the development meters up to our planned rate of 1,000 meters a month at Yalea and 800 meters a month at Gara. And with that comes an opening, record opening of the ore body multiple extraction and so we’re very comfortable that we’re on track to meet our two milestones: 180,000 tons from underground by the end of the quarter, and 200,000 ton run rate by the end of the year. And in fact, to support that July we hoisted 100,000 tons out of Yalea alone. So that’s – next slide will show you, we’ve got now really opening up the oil body but multiple available faces. We’ve even got – as we speak today we’ve got about – nearly a month of drilled reserve available. So we just need to step back into the subset and blast it. So that is way ahead of where we were just a year ago. We’ve also worked our teams very well in delivering on our Paste Fill strategy or backfill strategy. We are scheduled to bring in the new integrated backfill plant in both operations during next year but in the meantime we’ve also developed an interim solution where we will be able to backfill some of the high grade stokes in the Yalea section vertical patch from September onwards. And that’s going to last –…

(Operator Instructions) Your first question comes from Josh Wolfson. Please go ahead.

Hey. Good morning, Mark. Congratulations on the quarter. I have a small question first. I’ll start off with that. For Morila, what are your expectations for the stockpile adjustments for the remainder of the year?

Zero. So the cash cost should stay around 800, because of the grade. But we don’t have any more stock adjustments, cause we’re moving into what we call mineralized waste, which doesn’t carry any value in our balance sheet.

Okay. And then there were some comments about discussions with the DLC government on unifying the mining code. From your perspective at this point any changes that you see that will be forthcoming for new mining codes that’s decided upon?

Josh, again the DLC continues to surprise, certainly me. It’s 10 years on since the first mining code was signed off by the various stakeholders in the transitional initiative with the DLC. It’s a good code. It doesn’t really favor – it’s more in favor of the industry, sorry, in favor of the government. If you stack it up against the top-20 country codes that are from the countries that are endowed with natural resources or minerals. Rightfully have put us on notice to say they’re going to review us now. I think everyone says when they see a government reviews, they assume it’s going to all be negative, but they’re very open-minded. They’re saying, can it be better? What do we need? Where are we? And we had a three-day workshop in Kinshasa. I think we’re one of the few industry players that actually made the effort to go and engage. They took us very seriously and our advice to them is we’ve seen it all around, these countries run out of chainencde. They’re all – the previous codes are grandfathered because of conventions and stability clauses and you end up with a myriad of legislation that the bureaucrats and departments can’t understand and are difficult to apply. So our strong advice was even if it was better or worse, we would recommend that stay as it is and make sure that we improve the effectiveness of it and make it work. Because it is invaritone better written codes. There’s very little gray area. The regulations are good and it works well. So that was our advice. We spent a lot of time with the DLC players where there’s elected parliamentary groups or the cabinet itself. So we’ve got traction because we’ve actually done something that a lot of people talked about but never got round to doing.

Okay. Well, hopefully it works out in your favor.

Josh, I’ll just point out that we have a protection in our convention, which and in fact it’s in the legislation, where we protect it for ten years after any approved legislation changes. So whatever comes out we have an opportunity to grandfather for at least 10 years.

Okay. Moving on to Loulo for a minute. For the underground there, I guess grades were a bit lower than what we would have expected if you were mining fully from the purple patch. Is that still expected this year? Or is there some blending or sequencing that’s being done before that?

We stayed on target for our guidance is that we grow into the purple patch, we’ve cautioned the market that we won’t mine it 100%. One, it’s bad practice because you’ll rip the heart out of the ore body. And two, we wanted – we’ll only get deep into the meat of it as we have enough back fill, otherwise you’ve got to mine it in a way that we leave parts behind and we want to extract as close to 100% as possible. I think I’ll just give you a heads up. We’re guiding 4.2 for the Loulo/Guonkoto complex this year. So we’ll see a continued improvement in grade and then the upper 4 next year, lower 5 of the following year and then the upper 5s in 2015 and into the 6 or just on 6 in 2016. So you’ll see a steady improvement in the grades going forward and accurate.

Okay. That’s it for my questions. Thanks, Mark.

Thank you, Josh.

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

Hello, Mark; everybody. The number was pleasing, certainly were very attractive. I think good numbers this quarter. Going forward, though, I just wanted to, the Tongon still expecting funding improvements and recovery and the plant availability to determine 70,000-ounce targets still there at the Tongon?

Probably a little below the 270, but it’s going to be I think what we’re looking at we’ll continue to beat our plans going forward. It’s just trying to catch up the first quarter is going to be a little difficult. But the flip side is we’ve got more upside on Loulo/Gounkoto then our guidance, and we’re saying a little bit with Morila. So on balance we’re sitting at mid-range of our range, as we were in the beginning of the year, and we’re comfortable with the cash guidance of 650. So a bit of strings in a roundabouts, but nothing – as far as we’re concerned in turn we’re paying on what we call projects you know?

And in total, just to remember it’s 830? Is it 35 now?

A little higher than that. The mid-range is – the range is 825 to 865. In fact the midpoint.

Got it. Okay. And then I guess the question that was asked your feelings on the status of the MALI government and what might happen in terms of dealing with the problems in the North? And also whether they’ve an election due at some point so to kind of bed down what is now the government?

Yeah, I think Philippe touched on it very clearly, and I think our view, the market sees Fox and MALI and we work very hard to try and take it away. We get a lot of credit for sometimes things we don’t do. The market, there’s no conflict in MALI as far as industry and the government, or the authorities and the population. The fact of the matter in quick summary is in March we saw the previous government that was in power lose its political mandates. You can – people are always quick to say CÔTE D’IVOIRE but it was – the bottom line is it lost its mandate. And the consequence of that was – and there was a void there and you – if you look across the globe, there’s no other better example of how a country dealt with such a significant loss of mandates. And very quickly it was restored to constitutional rule with an interim government with the help of ecoices put in place. I mean the United Nations and African Union were far away. Right. And so it happened very quickly and then there was a rethink because the people on reflection started feeling that, that interim government wasn’t representative enough to establish a new political mandate, which would be the elections that have to be done in the next year or so. So there’s a lot of attention put into broadening the base of the interim government and making it more representative, but I must say that ecoices played a big role in it. That’s one side of the problem. The other side of the problem is the military issue that Philippe referred to and that’s a direct result of the international community and certainly an unintended results, but it’s a direct…

Right, right. So...

I believe that working in Tanzania with the hostility we see between government and industry is a lot more risky than working in MALI, where we’re completely aligned with the people in what we do.

Oh, okay. You’re working in Tanzania now?

I’m just making a point.

Oh, okay. Just – so there is a fair chance in the next sort of few months or the next 12 months, we could see some headbands, military action out there in the North?

I think everyone’s saying that, the Americans, the French and the Malians themselves.

Okay. (inaudible) And then a quick operating question going to the second half, I know you’ve been a couple of questions of rather, but what going to be the mix in the second half at Loulo in terms of production from Guonkoto, Yalea cut back into that?

Yeah, we’re looking at – we’re going to grow – if you look at our guidance, there’s 500,000 ounces, so do the math. As a mine, we’ll – we’ve got much better throughput, as you’ve seen in this quarter. We’re going to improve on our grades, and so if you look – looking quarterly, quarter 1, quarter 2, we all continue – we’re going to average out at 4.2 grams for the year, so again we had – started off on low grade in the first quarter, so I think – and the back of that is going to be continued improvements of tons out of the underground. We’ve got the flexibility that this Yalea South brings as far as the push back goes and as Graham says, next three quarters or four quarters. And then I’ve got CÔTE D’IVOIRE, a little skinny patch at the moment with a penso and then we get back into higher grades and quick tonnage. So as we stand at the moment, we’re looking okay to get to our guidance by year-end, and in fact, if it all works out, we could beat it.

I mean, on balance, Patrick here, we said we thought it would be about 50/50 on Guonkoto. It might be slightly more Guonkoto and in that mix.

60/40 at the moment. We’d like to get back to sort of the 50/50s and then eventually by year-end next year sort of two-thirds/a third, which is line with the way the reserves balance. But we say on Guonkoto without running it into the ground because we’re in this tax holiday, and it’s good for us and good for the government because they get better preferred dividends.

So it’s one year for Guonkoto and then next year maybe back to Loulo and...

If we’re going to have product good back in from Loulo as well. The Loulo guys aren’t going to let Guonkoto beat them.

And the material from the actual – the contract at Yalea, is that going to go through as planned in the second half?

It started already a little bit. We’re still struggling a bit. It’s very oxidized. It’s the rainy season. So we’ll feed it as best we can as we go, and we’ve got to also manage the quantity we put in the plant because it’s high copper oxide, which sucks our cyanide. So we can’t put too much of it. We have to blend it slowly to keep our recoveries up but sort of up in the 80s.

Got it. Okay. Good enough. Thanks very much.

Your next question comes from the line of Howie. Please go ahead.

Hi, Mark.

How’s it going?

I’ve got two balance sheet questions and then two arithmetic questions, which I don’t understand. On your balance sheet year-over-year your gross plant is up about $400 million. Is that all Kibali?

Say that again, Howie ? Up, what?

Your gross plant and equipment.

Yes.

Is $400 million bigger now than it was 12 months ago. Is that all Kibali?

No. It’s Kibali and the development in the underground mines at Guonkoto and Yalea but those make up the majority.

Okay. And the large receivable at the end of the quarter, is that just cause you had some sales near quarter end?

Absolutely.

Yeah.

Clearly, we had some.

And we will discuss this – there’s a new accounting entry there, Howie, related to this priority dividend at Guonkoto where we raise a receivable and a corresponding liability in respect of the government’s 10% share. So there’s $27million on both sides of the balance sheet there, which when we pay the dividend and that reduces by the amount we pay out, so in July we paid a $65 million dividend $13 million of that related to the state. So that $27 million reduces by $13 million, and then builds up as we accrue profits at Guonkoto.

Okay. The only thing I don’t understand is at Loulo, or Guonkoto, either one, if one takes tons times grade, the change in production year-over-year is substantially different, one favorably, one unfavorably. What am I missing?

If there is any slight variation, it’s lockup, because we don’t try and boast production of gold in the lockup.

No. It’s not slide-in. It’s my referencing. For example, in Loulo your tons increased by about 25% and your grade increased by about 50%. But your ounces produced dropped by 40%. So what am I missing year-against-year, 38,000 against 66,000?

Yeah, but your terms struck from 870,000 tons to 296,000 tons.

I was looking at mining, tons mined.

Then you’ve got to go to tons processed. You’ve got to go tons grade, tons recovery, Howie. We’re not in university to do that to grade.

That’s where I errored in both cases. Okay. Thanks.

Okay. You had me worried for a moment there, Howie.

No. We’re done. I’ll go back to grade one.

Just ask somebody else to do it for you. You’ve got lots of bankers in New York.

Thank you.

Thank you. Our next question comes from the line of James Bender. Please go ahead.

Hello, everyone. I just have a quick question. Most of my other questions have been answered. It’s for the CapEx guidance, does that maintain for the year?

Yes. It’s maintained for the year, and we’re working on improving the underground capital profile as we really get stuck in the development. What we’ve agreed on the first year is that we’ve got to develop every level as strike draws and purple and restraw. But as we get comfortable with the mining, we’ll start looking at dropping the footwell draws every couple of levels. So there’s some flexibility on the capital. But at this stage, we’re playing on target. And most important, the Kibali capital-spend is exactly on budget. So we expect to spend at our full cost.

Perfect. And just to confirm, for the Loulo-Guonkoto complex for 2012, you had a 60/40 split on Guonkoto, 60% and Loulo, 40% in by next year. Around 50/50?

Yeah, next year – well, we’re going 60/40 this year. We’ll probably just end up somewhere between that.

Okay.

And then next year we’ll do similar in the first half and it will flip in the second half. And then we’ll be down to two-thirds, Loulo, one-third, Guonkoto. That’s the ratio of the reserves going forward.

Okay. Okay. That’s it for me.

I think I’ll just add to that, that we’ve come to the end of the capital. So we’ve put a line under construction capital at both Tongon and at Guonkoto. So we’ve closed off the capital program. Any capital going forward is now sustaining capital. So for the people’s record.

Thanks.

Thank you. (Operator Instructions) There are no more questions coming through.

Thanks, guys, and thank you, everyone. Thanks again for your time. And again, as usual we’re always on the end of a phone or e-mail should there be additional questions or requests for more clarification. We’re available to have a chat with you or just follow up telephonically. Thanks very much.

Thank you for joining today’s call. You may now replace your handset.