Ladies and gentlemen, welcome to Randgold Fourth Quarter Results Conference Call. Today’s Speaker will be Mr. Mark Bristow, CEO from GOLD. Sir, please go ahead.

Thank you very much, and good afternoon, and for those who have dialed in for Europe and good morning I believe to the Americans. As you know we represented our quarterly results as discussed at the start of the Indaba Week in Cape Town. And I think I started by just touching on looking back a year and what we said last year and the fact that in that stage most of the industry was really focused on survival and how to think to that. And that we came out, if you recall, with our Chairman explaining, we have a profitable business, we’re comfortable about our future, we declared an increased dividend when everyone was considering whether they should pay dividends or not. And we were clear that we are comfortable with us running our gold business that’s capable of continuing to deliver real value for all our stakeholders up through the cycles. And now I’m pleased to confirm that today we again reinforced that ability, and we showed too that the Randgold management team can really step up to the plate and correct deviations. 2016 was not an easy year, but ended well for us with a strong record breaking quarter four, and overall many records on an annual basis as well. We, as customary, touched on not only where the records in the production section of our business, but we brought down our lost time injury frequency rate to below 7 [ph]. We continue to bring down infection rates in malaria on our mines. Materially again we showed a continued improvement or reduction of our HIV infections rates. We highlighted the importance of ongoing biodiversity and offset programs to manage our own environmental impact across our group, and also pointed to the continued investment in our skill base…

[Operator Instructions] our first question comes from Josh Wolfson from Dundee Capital Market. Please go ahead.

Nice to see you guys stay consistent and stick to the plan. One of the small change that I guess I noticed from the November analyst day update was a little bit higher capital spend this year than previously expected. Would you be able to discuss what changed since then?

Sure Josh. Graham you want to catch that or do you want me to handle it?

Sure, I’ll go ahead. So Josh if you look at the guidance we gave in the November roadshows, we were probably at about 280 million and of course we’re guiding around 300 million now, and really the key difference between those two marks is that the capital that we’ve approved for the Massawa feasibility study. So we’ve put in about $30 million in 2017 for the Massawa feasibility which is what we need to take us through to being able to make a decision on that project. The rest is pretty much in line with the guidance that we gave in November, and noting that the November capital included the likes of the Gounkoto Super Pit. So you’ve got $55 million in capital for Gounkoto which in the prior year we didn’t have, but that’s really driven by this Super Pit combination of the deferred strip as well as some rebuilds on the equipment that we need there. And the rest is, as I said, very much in line with the guidance we gave in November.

And in terms of that 30 million at Massawa will that be spent against the total capital outlay or is that money that would be before you would start counting towards spending for that number?

That capital that we have at the moment is simply for the project. So if you look at our five year plan that we presented to you, it’s a plan that doesn’t include Massawa’s capital and it doesn’t include Massawa’s ounces. What it does include is the capital to take us through to feasibility. So if that answers your question. So the plan that you’ve seen in terms of the IRR and the cash generation is from project going forward and it doesn’t include the 30 million that we spent in order to complete the feasibility.

So if we were operating under the assumption that Massawa would start to move forward as a formal project, when would you start the capital spending forward?

As soon as we’ve made the decision.

In our own models and if you look back to what we showed you in November, we’re working towards being in a position about the middle of 2018 to make that decision and then sort 18 months - two year construction. So that would be the perfect world, but as Mark says, it’s a function of how we develop over the next year with the feasibility work.

And I think just to put it all on the table Josh, because we do internally run these things and as Graham says, the group is supporting that decision base that spend at the moment. We’ve already spend, we’ve capitalized about $32 million in Massawa-Sofia project and we’ve got another 27 to 30 million to run. And the test that we make with our Board is, if we spent that money, are we going to have a project worth or a lot more than that or not? And the answer is absolutely, yes. Even if it doesn’t fit our quarters [ph], you can see how close it is. And relative to the other project in Africa, it’s a very attractive project and it sits at acceptable jurisdiction. So that all bodes well and we don’t want to go. This is a complex ore body, it’s got complex gold deportment. We’ve done the work, we know what drill spacing we’ve got to do to ensure that we have reliable variograms across both ore bodies and we intend to do that because that takes out a large chunk of the rest. But when we come to develop a mine that capitalized expenditure will be recouped under the convention [inaudible]. So it does, it certainly gets - we’ll get it back. But in calculating our returns we calculate those returns based on the decision dates. We always give you the numbers and you can do that math as well. So that’s the way we run our business.

And on that topic of the numbers, would you be able to disclose what the Gounkoto IRR is using your [indiscernible] budgeting assumption?

The problem with that Josh is that we make positive cash flow right from year one. So it’s infinity, it’s [inaudible] IRR calculation.

So I guess it meets the hurdle?

Yeah, it does. It slides through the [inaudible].

Our next question comes from Howie Flinker from Flinker & Company. Please go ahead.

I’m confused by a statement about Kibali. On one hand the numbers appear to indicate that the pretax profit rose from about 33 million last year in the quarter to about 41 million. But on page 2 it looks as if Kibali’s profit was nearly wiped out by FX, I’m confused.

Don’t be confused, Graham will set you right, but you are on the right track.

So Howie what we’ve shown you is the profit from mining, okay, which is really your EBITDA number from --.

Oh! EBITDA, oh, I see it, okay.

It’s your revenue less your cash cost to give you a profit from mining. And then we’ve done a reconciliation from that profit from mining number down to an after tax profit. And in that sense, your EBITDA is adjusted for, first of all, depreciation and in particular an FX adjustment which we’ve talked about being the depreciation of the Congolese franc and the impact on our TVA balances that are owed to us. So those two numbers than adjust that profit for mining down towards a net profit number which is what’s disclosed there.

I see. So also the adjustment - the money owed to you by the government on value added tax prepaid. That’s probably a large part of the FX loss I’ll call it. Is that correct?

That’s all the FX loss.

Basically all of it relates to that. So in the quarter it was about $12 million worth of FX adjustment on the balance sheet.

That explains it, okay, thanks. Nice work in a tough market guys.

Our next question is from David Haughton from CIBC. Please go ahead.

Moving in to the full underground mining rate at Kibali in 2018, what’s your target for that throughput rate once you get to the full level?

Sorry, just say that again?

For Kibali underground what are you targeting as your full run rate for production?

So it goes up to 3.6 million tons when we’ve got some of the upper pedal still available to truck out from the surface. Once we get in to the deeper part of the mine down in the lot, it stays at about 3.3 million tons. Next year we’re guiding to mine from underground about 2 million tons of ore and it’s a growing profile of course with quarter four being the most. We start getting in to the run rate of that 3 million tons plus by the end of quarter four next year.

So we’ll see that in 2019 pretty much?

Yes.

Then just going over to Gounkoto Super Pit, quite a lot of strip there; I presume that most of that pre-strip would be in the first few years, is that correct to get to your average ultimately 13.7 to one strip?

It’s really more of an accounting issue than it is a strike pre-strip. In terms of the accounting rules what they say is, you look at the life of a mine pit strip ratio which in this case is around 13. And then they say in any period that you’re measuring when your strip ratio goes above that average of 13, the difference between the actual and 13 is then treated as capitalized strip. So it’s more a function of that accounting than it is a question of just one big pushback, because actually we manage the pushback gradually over the whole life of the pit.

Well that’s good [indiscernible] I model old mines. But perhaps you could just give us an indication which years you think would be the highest strip years than average?

Sure. I can tell you straight off the back that 2017 is around 16, just a little bit higher than the rest of the life of mine. Then there’s a few another years and then 2020 is quite a big pushback there, 2021 is higher, 2022 and 2023. So it sort of moves around a little bit. We can sit down and go through the details, obviously as we progress I think these things tend to change.

Thinking about Massawa knocking on the door of your 20% hurdle rate, the CapEx that you’ve got upfront of 438 million, does that include the buy-ups or would say that’s up for a later date when you need it for the NZ20.

$77 million is forecast in 2024 to bring in the buy-ups expansion. So the initial 360 million is the first or the main capital what will be cash flow through 2019, ’19 and 2020 and then sustaining from 2020 out all the way to 2028 is or 2027 is sort of between $3 billion and $5 billion with the additional $77 million scheduled in 2024.

[Operator Instructions] We have a question from Tanya Jakusconek from Scotia Bank. Please go ahead.

I just wanted to come back to Kibali and just make sure I understand. So Mark we’re going to be connecting the production shaft, I think you said early Q3 and you also mentioned that you made some modification to the sulfide circuit, can you talk about a little bit what changes were made recently versus when the circuit was operating in Q1-Q2?

The original plan was provided for the expansion of the ultra-fine grind and associated pump cells and various peripherals to support that expansion of the ultra-fine grind and the associated leech trade. And we’ve also changed the flow-sheet relating to ensure that we are managing the resident’s time with the concentrate product. We’ve got plenty of leech capacity in Kibali and we’ve shown, if you go to the presentation to the analyst that visited this year, you’ll see two options, the current flow-sheet and then the next option of the reconfiguration of the [CIL] thing says conditional things to ensure that we put that concentrate in solution with cyanide and then that goes up to ultra-fine grind and then we feed it in to the pump cells. And the focus now has to do to switch that around. So what the net product of that is, is that we continue to leech the ultra-fine grind product for a longer period about 36 hours and we’ve shown a very significant improvement in recoveries with that flow-sheet change. But really the capital project is all around expanding the ultra-fine grind concentrate circuit for us to allow for us to manage larger nest holes as we - and that’s the thing that really was the highlighter and one of the highlight that came out of 100% sulfide test period. That’s really the major part of - there’s a couple of pumping circuits and water balances that we also improved as a product of that test work. But that’s a major one and we’ve also and will fund it to our team of external auditors that we brought in and the [indiscernible] team. So we’re pretty sure that once we have that all commissioned, we’ll be ready for the next test.

Okay, and you said that the recovery is really improved Mark, so what for the magnitude are we seeing from this --.

[Inaudible]

Sorry.

I said have a look at the [inaudible] and you can see the improvement. And we believe that we boys say that’s sort of the mid-80s and so we’re right there, and whatever reason to be able to add a few more percent to what we actually called the quarter four.

[Operator Instructions] We have no other questions. Mr. Mark Bristow, back to you for the conclusion.

Thank you everyone for joining the call. And again as usual Graham and I are available if you want to follow-up with anything. It’s a bit hectic for the next day or two, but pop us an email and we’d be happy or Cathy or Lewis and we’ll be happy to get back to you and schedule a time where we’d make us also available to answer any further questions. Thank you again for making the time.

This concludes today’s conference call. Thank you all for your participation, you may now disconnect.