Like Randgold's mines, Stellar Pacific's properties are in the south-west of Mali.


Randgold Resources kept as 'buy' as France intervenes in Mali

Mon 12:28 pm by Philip Whiterow Canaccord expects the miner’s operations to remain largely uninterrupted.Canaccord expects the miner’s operations to remain largely uninterrupted.


France’s military intervention in the conflict in Mali should help stabilise the country, which will be good news for Randgold Resources (LON:RRS) according to Canaccord Genuity.

The French entered the conflict on Friday after Islamic rebels attacked a town 400km from the capital Bamako. Laurent Fabius, France’s Foreign Minister, said its involvement would last "a matter of weeks".

Canaccord said while the French intervention was unexpected, the potential for military action in Mali had been a known risk for some time.

If successful, it will allow for the country to re-establish security in the north east, possibly followed by democratic elections, added the broker.

Randgold’s operations in Mali are expected to account for 65-70% of 2013 production but are located in the south-west, on the other side of the country from the fighting.

The broker notes that Randgold has also operated through difficult periods in the past and has built up strategic supplies in preparation of possible military action.

Because of this, Canaccord expects the miner’s operations to remain largely uninterrupted and reiterated both its ‘buy’ rating and target price of 9,000p/share.

“With the anticipated ‘headline risk’ now being realised, and given our experience with Randgold Resources in similar circumstances, we see this as a potential buying opportunity,” the broker added.

Shares were unchanged today at 5,900p.