| Fri 21 May 2010, 10:24 | | RNG - Randgold & Exploration Company Limited - Condensed report of historical |
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RNG
RNG
RNG - Randgold & Exploration Company Limited - Condensed report of historical
financial information of the Free State Development and Investment Corporation
Limited ("FSD")
Randgold & Exploration Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1992/005642/06)
Share Code: RNG & ISIN: ZAE000008819
("R&E" or "the company")
Condensed report of historical financial information of the Free State
Development and Investment Corporation Limited ("FSD")
Introduction
Shareholders are referred to the announcement on SENS on 12 May 2010 and to
the circular distributed to shareholders on such date containing details
regarding the exercise by R&E of the security provided by JCI Gold Limited
("JCI gold") a subsidiary of JCI Limited, to R&E in respect of an outstanding
loan due by JCI Gold to R&E of R 161 960 265. R&E as a result of the exercise
of the security against such loan became the beneficial owner of 6 690 610 FSD
shares ("FSD excussion"), the full and further details of which are set out in
the aforementioned circular. The JSE Limited has requested R&E, following its
ruling requiring the shareholders of R&E to ratify the FSD excussion by way of
ordinary resolution, to publish, on SENS, the condensed audited historical
financial information of FSD (registration number 1944/016931/06), for the
years ended 31 December 2007, 2008 and 2009. Copies of the signed audited
annual financial statements of the FSD Group are available for inspection at
the registered office of R&E during normal business hours.
CONDENSED REPORT OF HISTORICAL FINANCIAL INFORMATION
This report has been extracted from the consolidated financial statements of
FSD and its subsidiaries ("FSD Group") which have been prepared in accordance
with IFRS and in compliance with the Companies Act, as amended. The basis of
preparation has been consistently applied, except where otherwise indicated.
These financial statements were audited by KPMG Inc, who issued an unqualified
audit opinion in respect of the financial statements.
Statement of financial position
31 December 31 December 31 December
2009 2008 2007
R`000 R`000 R`000
Assets
Non-current assets 474 225 279 118 772
Intangible assets 474 474 474
Loans receivable - 224 805 118 298
Current assets 556 370 294 323 433 660
Trade and other receivables 640 2 634 -
Loans receivable 261 629 19 957 -
Cash and cash equivalents 294 101 271 732 433 660
Total assets 556 844 519 602 552 432
Equity and liabilities
Capital and reserves 541 644 502 403 458 533
Ordinary share capital 2 223 2 223 2 223
Share premium 9 272 9 272 9 272
Capital redemption reserves 28 28 28
Retained earnings 530 121 490 880 447 010
Current liabilities 15 200 17 199 93 899
Loans payable - 3 560 3 857
Trade and other payables 4 - 60 249
Income tax payable 15 196 13 639 29 793
Total equity and liabilities 556 844 519 602 552 432
Statement of comprehensive income
2009 2008 2007
R`000 R`000 R`000
Revenue 15 200 6 730 -
Other operating income - - 395 000
Operating expenses (2 569) (2 549) (5 746)
Results from operations 12 631 4 181 389 254
Finance income 38 257 56 271 17 009
Profit before taxation 50 888 60 452 406 263
Income tax expense (11 647) (16 582) (20 674)
Profit and total comprehensive 39 241 43 870 385 589
income for the year
Statements of changes in equity
Ordinary Share Capital Retained Total Non- Total
share premium redemp- earnings share- controll equity
capital tion holders ing
reserves equity share-
holders
interest
R`000 R`000 R`000 R`000 R`000 R`000 R`000
Balance at 2 223 9 272 28 56 279 67 802 - 67 802
1 January
2007
Loan - - - 5 142 5 142 - 5 142
acquired
for no
conside-
ration
Profit for - - - 385 589 385 589 - 385 589
the year
Balance at 2 223 9 272 28 447 010 458 533 - 458 533
31 December
2007
Profit for - - - 43 870 43 870 - 43 870
the year
Balance at 2 223 9 272 28 490 880 502 403 - 502 403
31 December
2008
Profit and - - - 39 241 39 241 - 39 241
total
comprehen-
sive income
for the
year
2 223 9 272 28 530 121 541 644 - 541 644
Statement of cash flows
2009 2008 2007
R`000 R`000 R`000
Cash flows from operating activities (9 699) (68 052) 60 166
Cash (utilised in)/generated by operating (571) (65 432) 54 506
activities
Taxation paid (10 090) (32 736) -
Interest received 962 30 116 5 660
Cash flows from investing activities 35 628 (93 876) 369 761
Dividends received 15 200 6 730 -
Loans advanced (114 922) (129 354) (28 000)
Loans repaid 135 350 28 748 2 761
Proceeds from disposal of prospecting - - 395 000
rights
Cash flows from financing activities (3 560) - 3 733
Loans repaid (3 560) - -
Loan received from holding company - - 3 733
Increase/(decrease) in cash and cash 22 369 (161 928) 433 660
equivalents
Cash and cash equivalents at beginning of 271 732 433 660 -
the year
Cash and cash equivalents at end of the 294 101 271 732 433 660
year
COMMENTARY
The FSD Group results for the 2009 year were positive, showing net income of
R50,9 million before taxation. This is mainly as a result of finance income
earned on funds invested and loans to the JCI group.
The net profit for the 2009 year is R39,2 million (2008: R43,8 million; 2007:
R385,6 million) resulting in earnings of 177 cents per share (2008: 197 cents;
2007: 1 735 cents). The earnings per share calculation takes into account an
amount of 22 226 597 shares which remained unchanged during all periods. There
was no change in the number of shares in issue during the reporting period.
No dividends were declared by the FSD Group during any of the periods reported
on.
The major assets of the FSD Group at 31 December 2009 consist of cash and
secured loans.
The FSD Group`s prospecting rights are stated at cost less impairments as
there is currently insufficient geological information to allow FSD to declare
the resources or reserves.
Total Group assets amount to R556,8 million (2008: R519,6 million; 2007:
R552,4 million). The net asset value per share at 31 December 2009 was 2 437
cents (2008: 2 260 cents; 2007: 2 063 cents) and the net tangible asset value
per share at 31 December 2009 was 2 435 cents (2008: 2 258 cents; 2007: 2 061
cents).
The Group was in a positive cash position at 31 December 2009, with cash and
cash equivalents reaching R294,1 million at year-end (2008: R271,7 million;
2007: R433,7 million).
Johannesburg
21 May 2010
Sponsor and corporate advisor:
PSG Capital (Pty) Limited
Date: 21/05/2010 10:24:24 Produced by the JSE SENS Department.
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