Randgold Resources (GOLD) - Get Report , the biggest gold producer on the London Stock Exchange, posted a stronger-than-expected rise in full-year profit and boosted its annual dividend by more than 50%.

Randgold said its net profit for the fourth quarter of 2016 came in at $94.3 million, the company said, a 74.35% increase from the same three-month period last year. Full-year profits increased 38% to $294.22 billion. The South Africa-based group will increase its dividend 52% to $1 per share, paid in cash.

Randgold shares rose more than 4% in early London trading to change hands at closed at 7,140 pence each, making it the top gainer in European and extending its three month advance to 5% against a 6.06% decline in cash gold prices.

"This year we also took the market through our 10 year plan and showed how we intend to remain profitable at a long term gold price of $1 000 per ounce while producing at an annual rate in excess of 1.2 million ounces and generating cash that will support our continued investment in our future as well as well as being able to continue to pay dividends," said CEO Mark Bristow.

Production increased for the sixth consecutive year, Randgold said, rising 26% in the final three months of the year against the fourth quarter of 2015 to 378.4 million ounces as cash costs fell 17%. Randgold's average gold price for the quarter ended in December was $1,206 an ounce, up from $1,091 in the final three months of 2015. The full-year average price, the company said, was $1,244 against a 2015 average of $1,152. Production