| Fri 8 Feb 2002, 0:00 | | Randgold & Exploration Company - Preliminary Repor |
|
December 2001
RANDGOLD & EXPLORATION COMPANY LIMITED
Reg. No. 1992/005642/06
Sharecode: RNG
ISIN Number: ZAE000008819
NASDAQ trading symbol: RANGY
PRELIMINARY REPORT FOR THE YEAR ENDED 31 DECEMBER 2001
* Convertible bond repaid
* Randgold Resources posts healthy profits
* Randgold value underpinned by its gold investments
CONSOLIDATED INCOME STATEMENT
Reviewed Audited
Year Year
Ended ended
R000 31 Dec 2001 31 Dec 2000
Revenue
Product sales 585 567 107 206
Cash cost
Cash operating cost (204 237) (29 587)
Royalties (40 376) (5 652)
Total cash costs (244 613) (35 239)
Operating profit 340 954 71 967
Interest received 18 305 17 666
Profit on Morila sale
and other income 10 344 911 899
Interest expense (61 331) (103 635)
Depreciation & amortisation (50 885) (5 545)
Corporate & exploration (100 799) (125 636)
Loss on sale of investments (11 386) (23 845)
Foreign exchange
differences & other (75 048) (6 923)
Income on ordinary
activities before
discontinued operations &
minority interest 70 154 735 948
Minority interest (56 408) (58 420)
Discontinued operation (54 500) (658 493)
Net (loss)/income for
the period (40 754) 19 035
Ordinary shares
in issue (000) 41 702 41 437
(Loss)/earnings per
share (cents) (98) 46
Headline loss per
share (cents) (98) (2 049)
Dividend nil nil
CONSOLIDATED BALANCE SHEET
Reviewed at Audited at
R000 31 Dec 2001 31 Dec 2000
Assets
Non-current assets
Property, plant and
Equipment 975 483 586 884
Current assets 574 792 802 052
Inventories 124 975 79 884
Receivables 189 980 189 331
Investments 117 303 46 763
Cash and short-term
investments 142 534 486 074
Total assets 1 550 275 1 388 936
Liabilities and shareholders equity
Capital and reserves 192 747 26 295
Minority shareholder's
interest in subsidiaries 161 532 121 251
Long-term liabilities 760 576 590 838
Current liabilities 435 420 650 552
Total equity and liabilities 1 550 275 1 388 936
CONSOLIDATED CASH FLOW STATEMENT
Reviewed Audited
Year ended Year ended
R000 31 Dec 2001 31 Dec 2000
Net cash provided
by/(utilised in)
operations 209 151 (187 145)
Net cash (utilised in)/
provided by investing
activities (51 754) 296 770
Net cash (utilised in)/
provided by financing
activities (500 937) 358 781
Net (decrease)/increase
in cash and cash
equivalents (343 540) 468 406
Cash and cash equivalents
at beginning of period 486 074 17 668
Cash and cash equivalents
at end of period 142 534 486 074
NET ASSET VALUE
Market value
16 Jan
Units Price Percent 2002
DESCRIPTION held R held R000
Listed investments
Durban Roodepoort
Deep, Limited 5 600 000 18.20 3.5% 101 920
Durban Roodepoort
Deep, Limited
"B" options 1 791 392 0.10 20.0% 179
Western Areas
Limited 217 800 27.80 0.2% 6 055
JCI Gold Limited 641 400 8.00 0.4% 5 131
Consolidated
African Mines
Limited 26 653 900 0.53 4.0% 14 127
Kelgran Limited 2 321 115 1.19 2.7% 2 762
Randgold Resources
Limited 13 312 480 59.25 59.3% 788 764
918 938
Other assets 68 993
Liabilities (139 028)
Net assets 848 903
Shares in issue (000) 41 702
NAV per share (cents) 2 036
STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
12 months 12 months
ended ended
R000 31 Dec 2001 31 Dec 2000
Equity at beginning
of period 26 295 (12 662)
Issue of new shares 1 583 227
Other reserves 205 623 19 695
Net (loss)/income
for the period (40 754) 19 035
192 747 26 295
COMMENTS
Randgold & Exploration has through its gold investments over the past year
offered significant value protection, borne out by an increase in the
calculated NAV from 492 cents to 2 036 cents. In addition to its gold
investments, the Group's wholly owned mineral rights management company,
Minrico, has acquired the management of a further 1 600 000 hectares of
mineral rights in the Northern Cape, much of it in prospective diamond and
base mineral terrain. Added to the existing rights it manages, it now has
approximately
4 000 000 hectares under its management of which some 70% is actively
being explored.
The latest draft of the Minerals and Petroleum Development Bill will be
released for public comment soon. Whilst the aims of the Bill are
supported, and much of what it intends to achieve is already being
achieved by Minrico, we await the disclosure of how the State intends to
address the all important issues relating to the exploration, development
and entrepreneurial aspects of our industry.
FINANCIAL REVIEW
The results for the year ended 31 December 2001 have been prepared in
terms of South African statements of Generally Accepted Accounting
Practice, and in accordance with the Group's accounting policies which are
consistent with that of the previous year. These results have been
reviewed by our auditors, PricewaterhouseCoopers Inc., and a copy of their
report is available for inspection at the Company's registered office.
The operating profit from the Group's 40% share in the Morila operation
amounted to R341 million (2000 :
R72 million). The main expenses incurred were the Group's corporate and
exploration costs, foreign exchange conversion losses on the repayment of
the US dollar denominated convertible bond and interest paid on the Morila
project financing, Randgold Resources corporate facility and the
convertible bond.
Randgold Resources announced at the beginning of 2001 that the Syama mine
would be placed on care and maintenance. In line with the decision to
discontinue operations, the Syama results are shown separately on the
income statement. The Group's portion of Syama's net loss for the year
amounted to R54.5 million (2000 : R658.5 million). This comprised of
Syama's gold sales revenue of R141.9 million (2000 : R343.5 million),
production and rehabilitation costs of
R197.3 million (2000 : R402.1 million) and net sundry expenditure of R1.7
million (2000 : R11.2 million revenue). During the previous financial
year, the mine's assets were written down by R541.8 million to its net
realisable value, hence no depreciation was charged for the year (2000 :
R79.5 million).
The Company used the proceeds received from a compulsory repurchase by
Randgold Resources of 34.08% of its shares to redeem the US$48 million
convertible bond which fell due in September 2001. In September a R70
million, one year loan was obtained from ABSA. The largest portion of the
loan was used to replace other short-term financing facilities.
Shareholders are referred to the press announcement published today by
Randgold Resources for a more detailed review of results.
PROSPECTS
The Company is addressing certain negative structural issues which are
creating a significant value gap in its market rating. The settlement of
the convertible bond in September is considered an important milestone in
this regard. ABSA Corporate & Merchant Bank has been appointed to assist
in the process.
R A R Kebble Johannesburg
Chairman 8 February 2002
Randgold & Exploration Company Limited
Registered office:
5 Press Avenue, Selby, 2025, Johannesburg, PO Box 82291, Southdale, 2135,
Republic of South Africa,
Telephone +27(11) 309-6000
Telefax: +27(11) 837-2396,
e-mail: haddond@randgold.co.za
Share transfer secretaries:
Computershare Services Limited, Edura House,
41 Fox Street, Johannesburg, 2001,
PO Box 62391, Marshalltown, 2107,
Republic of South Africa,
Telephone: +27(11) 370-7700
Fax: +27(11) 836-0792
Depositary bank:
American Depositary Receipts,
The Bank of New York, Shareholder Relations Department, 101 Barclay
Street, New York, NY 10286,
Telephone: 1 (800) 524-4458
Investor and media relations:
For further information contact Kathy du Plessis on
Telephone +27(11) 728-4701, Telefax +27(11) 728-2547, e-mail:
randgold@dpapr.com
Disclaimer :
Certain of the statements made in this document are forward-looking in nature a
are based on certain assumptions which involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the
future. Randgold & Exploration undertakes no obligation to update any forward-
looking statements. Mining and exploration by its very nature, is a risky
business and one in which the producers have little influence over the price
of their product. Consequently investors should be mindful of the inherent
risks associated with all mineral development projects.
