Randgold profits rise ahead of shareholder vote on $6bn Barrick merger

Randgold Resources has reported a 25 per cent profit increase on the eve of a shareholder vote on its proposed $6bn (£4.6bn) merger with Barrick Gold.

The gold miner said its profit for the third quarter was $73.2m, an increase on the $58m profit made in the second quarter, and up 20 per cent from the same period in 2017.

The company said increased output offset the impact of a strike at its Tongon gold mine in Côte d'Ivoire as production – 308,638 ounces – remained in line with the previous quarter.

Randgold shareholders will vote tomorrow on the $6bn acquisition by Canada's Barrick Gold to create New Barrick.

The majority of Barrick shareholders approved the deal in a vote earlier this week.

The merger was announced in September and it would create the world's biggest gold miner with a value of about $18bn.

Barrick will own around two-thirds of the new company and Randgold will hold the remaining 33.4 per cent stake.

Randgold chief executive Mark Bristow, who will become the new company's chief executive, said New Barrick would aim to deliver “sector-leading returns.”

He said: “In order to achieve this we will need to take a very critical look at our asset base and how we run the business, and be prepared to make tough decisions.

“By employing a strategy similar to the one that proved very successul at Randgold, but on a larger scale, the new Barrick group will leverage some of the world's best mines and talents to create real value for shareholders.”

Randgold shares on the London Stock Exchange will be cancelled and New Barrick Group will be listed in Toronto and New York, operating under the branding of the Barrick Group.