Friday tips round-up: Randgold Resources, BT Group

Randgold Resources´ latest set of financials flagged new problems at its accident-prone Tongon mine in the Ivory Coast, which will contine to cap any upside to production there this year while repairs are under way. Fortunately, that is not the most important of its assets, although it did push up its total cash costs by eight per cent. Meanwhile, output at its main Loulo-Gounkoto complex in Mali saw flat production, with the stand-out now being Kibali. The next task now for the company is to find another significant discovery at one of its 'greenfield' sites. The decision to reduce the number of these where it is exploring should make that easier. In any case, the company continues to benefit from having a cost of production which is still amply below the world price for the 'yellow metal'. "Even so, they still sell on an estimated 1.4 times net assets; any purchase would have to assume some recovery in the gold price," The Times´Tempus writes. Contrary to investors´ fears, BT did not overstretch itself financially by going after the rights to next year´s European Champions League matches. In fact, that purchase seems to be allowing it to sign up new clients for its broadband offering at a quicker pace than its rivals. Nevertheless, it is too soon to know for certain if that audacious move will pay off although its decision to offer free or cheap sports services to customers was the correct one. In parallel, the rate at which the company loses consumers has been declining and is now at its lowest in five years. The Global Services division, a source of concern in prior years, saw its order intake improve to a five-year high. All in all, the firm was even able to increase its estimate for cash flow to over £2.6bn and declare a final dividend of 7.5p, a 15% rise, and extend its promise to increase it by between a further 10% to 15% for one more year. It is also now planning to extend its harebuy-back programme for another fiscal year. "By no means a raging buy, but existing shareholders should be happy enough," writes The Times´ Tempus. Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB