| Wed 3 Aug 2011, 17:08 | | RNG - Randgold & Exploration Company Limited - Reviewed results for the six |
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RNG
RNG
RNG - Randgold & Exploration Company Limited - Reviewed results for the six
months ended 30 June 2011
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" or "the group")
Reviewed results for the six months ended 30 June 2011
Commentary to the condensed consolidated interim financial statements for
the six months ended 30 June 2011
General
The board of Randgold & Exploration Company Limited (R&E) is pleased to
announce the interim results for the six months ended 30 June 2011.
Dividend in specie and special cash dividend
The distribution of the company`s remaining investment in Gold Fields
Limited (GFI) as well as a special cash dividend of 90 cents per R&E share,
as approved by shareholders on 30 November 2010, was effected on 17 January
2011. Refer to the notes to these condensed consolidated interim financial
statements for further details.
Income
The majority of the income recognised in the period under review was a
result of profit realised on the distribution of the investments held for
distribution and profit from the sale of prospecting rights.
Financial position
R&E is liquid with no interest-bearing debt. R&E`s total assets consist
primarily of cash. R&E had a net asset value per share of R2.47 at 30 June
2011.
Cash flow
R&E started the period under review with a cash balance of R291.8 million.
Operating activities utilised cash of R20.8 million during the period under
review, primarily as a result of taxation paid and operating expenses.
Investing activities yielded cash inflows of R11.8 million resulting from
dividends received and proceeds from the sale of prospecting rights.
The major cash outflow from financing activities for the period under
review was the special cash dividend paid of R64.6 million.
R&E remains in a strong cash position with R218.1 million in cash and cash
equivalents at 30 June 2011.
Outlook
Given R&E`s liquidity and position in the resources industry, management
will continue to focus on seeking new opportunities, where appropriate, for
the benefit of R&E and its shareholders. As in the past, a pragmatic
commercial approach will be adopted in dealing with the outstanding legal
claims.
DC Kovarsky Marais Steyn
Chairman Chief Executive Officer
Johannesburg
2 August 2011
Condensed consolidated interim statement of comprehensive income
For the six months ended
30 June 2011 30 June 2010
Reviewed Reviewed
Notes R`000 R`000
Revenue 1 826 12 048
Recoveries - JCI - 783 549
- Other - 25 205
Profit on sale of prospecting rights 7 9 963 -
Profit on distribution of investments 6 52 474 -
Foreign exchange gains 1 513 -
Other income 8 10 353
Other operating expenses (14 505) (38 592)
Profit from operating activities 51 279 792 563
Finance income 3 073 1 320
Profit before taxation 54 352 793 883
Taxation 954 (1 052)
Profit for the period 55 306 792 831
Other comprehensive income
Change in fair value of available-for- 6 (9 537) 11 618
sale investments
Realised gain reclassified to profit or (52 474) -
loss
Total comprehensive (loss)/income (6 705) 804 449
Profit attributable to:
Non-controlling interest - 628
Owners of the company 55 306 792 203
Profit for the period 55 306 792 831
Total comprehensive (loss)/income
attributable to:
Non-controlling interest - 628
Owners of the company (6 705) 803 821
Total comprehensive (loss)/income (6 705) 804 449
Basic and diluted earnings per share 8 77 1 103
(cents)
Dividend per share (cents) 8 - 1 101
Condensed consolidated interim statement of financial position
As at
30 June 31 December
2011 2010
Reviewed Audited
Notes R`000 R`000
Assets
Non-current assets 776 782
Plant and equipment 302 308
Intangible assets 474 474
Current assets 220 586 568 291
Trade and other receivables 2 481 2 649
Investments held for distribution 6 - 273 845
Cash and cash equivalents 218 105 291 797
Total assets 221 362 569 073
Equity and liabilities
Shareholders` equity 177 287 174 455
Issued capital 748 748
Share premium - -
Reserves - 62 011
Retained earnings 176 539 111 696
Liabilities
Non-current liabilities
Post-retirement medical benefit 36 114 36 429
obligation
Current liabilities 7 961 358 189
Tax liabilities - 11 220
Shareholders for dividend - 338 477
Trade and other payables 7 961 8 492
Total equity and liabilities 221 362 569 073
Condensed consolidated interim statement of changes in equity
For the six months ended
30 June 2011 30 June 2010
Reviewed Reviewed
Notes R`000 R`000
Share capital
Balance at the beginning and end of the 748 748
period
Share premium - 162 612
Balance at the beginning of the period - 986 054
Distribution dividend - (823 442)
Investment fair value reserve - 23 755
Balance at the beginning of the period 62 011 12 137
Change in fair value of available-for- (9 537) 11 618
sale investments
Realised gain reclassified to profit or (52 474) -
loss
Retained earnings 176 539 316 518
Balance at the beginning of the period 111 696 (514 787)
Transaction with non-controlling - 6 079
shareholders
Profit for the period 55 306 792 203
Distribution dividend - 33 023
Remeasurement of shareholders for 6 9 537 -
dividend
Non-controlling interest - 9 396
Balance at the beginning of the period - 250 378
Transaction with non-controlling - (168 034)
shareholders
Dividends paid to non-controlling - (73 576)
shareholders
Profit for the period - 628
Condensed consolidated interim statement of cash flows
For the six months ended
30 June 2011 30 June 2010
Reviewed Reviewed
R`000 R`000
Profit before taxation 54 352 793 883
Adjusted for:
Recoveries not settled in cash - (808 754)
Profit on distribution of investments (52 474) -
Profit from sale of prospecting rights (9 963) -
Other non-cash items (277) 5 277
Interest received (3 073) (1 320)
Dividends received (1 826) (12 048)
Working capital changes (178) 38 727
Cash flows from operations (13 439) 15 765
Interest received 3 073 478
Taxation paid (10 450) (329)
Cash flows from operating activities (20 816) 15 914
Cash flows from investing activities 11 757 85 534
Dividends received 1 826 12 048
Proceeds from disposal of recovered assets - 27 344
Proceeds on disposal of prospecting rights 9 963 -
Acquisition of plant and equipment (39) (288)
Proceeds from disposal of plant and equipment 7 -
Loan payments received - 46 430
Cash flow from financing activities (64 633) (73 576)
Dividends paid (64 633) -
Dividends paid to non-controlling - (73 576)
shareholders
Net (decrease)/increase in cash and cash (73 692) 27 872
equivalents
Cash and cash equivalents at the beginning of 291 797 294 806
the period
Cash and cash equivalents at the end of the 218 105 322 678
period
Notes to the condensed consolidated interim financial statements for the
six months ended 30 June 2011
1. Reporting entity
R&E is a company domiciled and incorporated in the Republic of South
Africa. The condensed consolidated interim financial statements of the
company for the six months ended 30 June 2011 include the company and its
subsidiaries (together referred to as "the group").
2. Statement of compliance
The condensed consolidated interim financial statements for the six months
ended 30 June 2011 have been prepared in compliance with the Listings
Requirements of the JSE Limited, International Financial Reporting
Standards (IFRS) (in particular International Accounting Standard 34
Interim Financial Reporting) and the AC 500 Standards as issued by the
Accounting Practices Board or its successor.
These condensed consolidated interim financial statements were approved by
the board of directors on 2 August 2011.
3. Significant accounting policies
The accounting policies applied by the group in these condensed
consolidated interim financial statements are the same as those applied by
the group in its consolidated financial statements as at and for the year
ended 31 December 2010, except for the following standards and
interpretations adopted on 1 January 2011:
Revised IAS 24 Related Party Disclosures
IFRIC 14 Amendment: Prepayments of minimum funding
requirements
Various improvements to Excluding amendments to IFRS 3 Business
IFRSs 2010 Combinations, IAS 27 Consolidated and Separate
Financial Statements
There was no significant impact on these condensed consolidated interim
financial statements as a result of adopting these standards and
interpretations.
4. Independent review by the auditor
The condensed consolidated interim financial statements of R&E were
reviewed by KPMG Inc. The individual auditor assigned to perform the review
is Mr CH Basson. The unmodified review report is available for inspection
at the company`s registered office.
5. Segment reporting
The group operates in a single operating segment as an investment holding
company with assets in the mining industry.
6. Distribution of 2 270 687 GFI shares and special cash dividend of 90
cents per R&E share
On 30 November 2010, R&E shareholders approved the distribution of R&E`s
remaining listed investment in GFI (amounting to 3.16193 GFI shares per 100
R&E shares held), as well as a cash dividend of 90 cents per share. These
distributions were effected on 17 January 2011. STC was paid on the portion
of the distribution not made out of share premium.
As a result of this distribution, the investment fair value reserve at 17
January 2011 of R52.4 million was reclassified to profit or loss.
R`000
Investment held for distribution - 1 January 2011 273 845
Value of GFI shares at distribution date - 17 January 2011 (264 308)
Decrease in fair value of investment held for distribution 9 537
recognised in other comprehensive income
Investment fair value reserve - 1 January 2011 (62 011)
Realised gain reclassified to profit or loss 52 474
R`000
Shareholders for dividend - 1 January 2011 338 477
Remeasurement - 17 January 2011 (9 537)
Distribution 328 940
GFI Shares 264 307
Cash 64 633
7. Profit on sale of prospecting rights
During the period under review, R&E disposed of certain of its prospecting
rights which had a nil carrying value to a third party for R10 million
(refer to note 10).
8. Earnings per share and dividend per share
For the six months ended
Basic earnings and diluted earnings per 30 June 2011 30 June 2010
ordinary share Reviewed Reviewed
Basic and diluted earnings for the period 55 306 792 203
(R`000)
Weighted average number of ordinary shares in 71 813 235 71 813 128
issue
Earnings per share (cents) 77 1 103
Headline and diluted headline earnings per
ordinary share
Headline and diluted headline (loss)/earnings (7 131) 805 717
for the period (R`000)
Weighted average number of ordinary shares in 71 813 235 71 813 128
issue
Headline (loss)/earnings per share (cents) (10) 1 122
Reconciliation between basic and headline R`000 R`000
earnings for the period
Profit for the period attributable to the 55 306 792 203
equity holders of the company
Adjusted for:
Profit on distribution/disposal of investments (52 474) (2 139)
held for distribution/available-for-sale
investments
Profit on disposal of prospecting rights (9 963) -
Impairment of investment held for distribution - 15 653
(7 131) 805 717
Tax effect of adjustments - -
Portion attributable to non-controlling - -
interest
Headline (loss)/earnings for the period (7 131) 805 717
attributable to equity holders of the company
Dividend per share
Total dividend declared (R`000) - 790 419
Eligible shares in issue 71 813 235 71 813 128
Dividend per share (cents) - 1 101
Total dividend payable from R&E`s share - 823 442
premium (R`000)
Dividend payable to group entities recognised - (33 023)
in retained earnings (R`000)
Shareholders for dividend per statement of - 790 419
financial position (R`000)
9. Net asset and tangible net asset value and per share
The net asset value per share is calculated using the following variables:
30 June 2011 31 Dec 2010
Reviewed Audited
Net asset value (R`000) 177 287 174 455
Ordinary shares outstanding 71 813 235 71 813 235
Net asset value per share (cents) 247 243
Net tangible asset value per share (cents) 246 242
The number of shares outstanding at 31 December 2010 and 30 June 2011 has
been adjusted for the 3 million treasury shares held.
10. Material changes
There have been no material changes to the information contained in the
independent mineral asset valuation reports that were disclosed to
shareholders in the settlement circular, however, two prospecting rights
over various farms (collectively known as the Jeanette Prospecting Right
and Weltevreden Prospecting Right) were disposed of during the reporting
period (refer to note 7).
11. Related party transactions
There were no related party transactions during the period under review.
12. Events after reporting date
There were no significant events between the reporting date and the
approval date of these results.
Directors: DC Kovarsky (Chairman)**, M Steyn (CEO)*, V Botha*, MB
Madumise**, JH Scholes** (*Executive, **Independent non-executive)
Secretary and Registered office: RP Pearcey FCIS, 7th Floor Fredman Towers,
13 Fredman Drive, Sandown, 2196
Transfer secretaries: Computershare Investor Services (Pty) Ltd
(Registration number 2004/003647/07) 70 Marshall Street, Johannesburg, 2001
Sponsor: PSG Capital
Date: 03/08/2011 17:08:01 Produced by the JSE SENS Department.
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