Reuters - Shares in Randgold Resources (RRS.L) shed 2.5 percent after the West Africa-focused gold miner posted "mixed" second-quarter results accompanied by a share offering, with Numis Securities cutting its rating to "sell from "reduce".

Randgold operations - Photo: www.randgoldresources.com

Randgold posted net profit of $18.9 million for the second quarter to June 30, up from $13 million in the previous quarter but slightly down on the $20.2 million reported for the second quarter last year.

The miner has teamed up with AngloGold Ashanti (ANGJ.J) to make a C$546 million ($501 million) bid for Moto Goldmines (MGL.TO) and said some of the proceeds from an offering of 5 million shares could also be used for the bid.

Numis says in a notes that with Randgold's production declining and its Yalea underground mine yet to prove itself it believes the company may struggle to maintain production in the second half.

The broker maintains its target price of 2,960 pence for Randgold but downgrades its rating to "sell" due to the recent increase in its share price.

Evolution repeats its "sell" rating on Randgold, given the stock's high rating, although it concurs with the firm's acquisition strategy and its move to use its very highly rated paper to make acquisitions.