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Randgold Resources - Report for the quarter and 6 MONTHS ENDED 30 JUNE
2002
Randgold & Exploration Company Limited
Reg No 1992/005642/06
Sharecode : RNG
ISIN : ZAE000008819
NASDAQ trading symbol : RANGY
Randgold Resources Limited
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: RRUS
Report for the quarter and 6 MONTHS ENDED 30 JUNE 2002
* Net profit for the quarter up 51% to
US$5.3 million
* Half year operating profit from mining up
by US$6.5 to US$23.6 million year on year
* Listed on Nasdaq 11 July 2002 - placement
of 5 000 000 new shares raises US$32.5 million
* The Company continues to maintain its position
as a low cost producer
Randgold Resources Limited has 22.6 million shares in issue as at 30
June 2002 (27.6 million shares as at 11 July 2002)
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Unaudited
Quarter Quarter Quarter
Ended ended ended
30 June 31 March 30 June
US$000 2002 2002 2001
Gold sales
revenue 19 344 17 423 19 907
Cost of sales
Production
costs 6 727 6 258 12 368
Transport and
refinery
costs 94 108 124
Transfer to
deferred
stripping
costs (1 126) (1 361) (494)
Cash operating
costs 5 695 5 005 11 998
Royalties 1 271 1 210 1 377
Total cash costs 6 966 6 215 13 375
Operating profit
from
mining
activity 12 378 11 208 6 532
Depreciation
and
amortisation 1 854 1 948 1 355
Exploration
and
corporate
expenditure 3 726 2 101 2 731
Profit from
operations 6 798 7 159 2 446
Interest
received 40 35 714
Interest
expense (1 105) (968) (1 596)
(Loss)/profit on
financial
instruments (55) (1 131) 6 233
Other income and
expenses (417) (1 607) (3 476)
Profit on ordinary
activities before
taxes and minority
interests 5 261 3 488 4 321
Income tax - - (14)
Minority s
Shareholders`
interest 54 21 435
Net profit 5 315 3 509 4 742
Basic earnings
per share (US$)
Average shares in
issue
CONSOLIDATED INCOME STATEMENT
cont`d Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
US$000 2002 2001
Gold sales revenue 36 767 48 361
Cost of sales
Production costs 12 985 28 051
Transport and refinery costs 202 224
Transfer to deferred
stripping costs (2 487) (241)
Cash operating costs 10 700 28 034
Royalties 2 481 3 199
Total cash costs 13 181 31 233
Operating profit from
mining activity 23 586 17 128
Depreciation and amortisation 3 802 2 810
Exploration and corporate
expenditure 5 827 4 857
Profit from operations 13 957 9 461
Interest received 75 1 567
Interest expense (2 073) (3 320)
(Loss)/profit on financial
instruments (1 186) 5 932
Other income and expenses (2 024) (6 022)
Profit on ordinary activities
before taxes and minority
interests 8 749 7 620
Income tax - (103)
Minority shareholders`
interest 75 904
Net profit 8 824 8 421
Basic earnings per share
(US$) 0.39 0.25
Average shares in issue 22 529 727 33 092 962
CONSOLIDATED BALANCE SHEET
Unaudited Audited
At At
30 June 31 Dec
US$000 2002 2001
Assets
Cash and equivalents* 10 996 11 157
Receivables 16 754 16 558
Inventories 10 745 9 743
Total current assets 38 495 37 458
Property, plant and
equipment cost 165 680 163 076
Accumulated depreciation (87 167) (83 339)
Net property, plant and
equipment 78 513 79 737
Other long-term assets 4 846 2 359
Total assets 121 854 119 554
Bank overdraft 2 046 1 708
Accounts payable and accrued
liabilities 19 303 22 075
Total current liabilities 21 349 23 783
Provision for environmental
rehabilitation 4 484 4 340
Liabilities on financial
instruments 8 384 2 452
Long-term loans 51 211 57 147
Loans from outside
shareholders in subsidiaries 1 468 1 335
Total long-term
liabilities 65 547 65 274
Total liabilities 86 896 89 057
Shareholders` equity 34 958 30 497
Total liabilities and
Shareholders` equity 121 854 119 554
*Note: Included in cash and cash equivalents is an attributable amount
of US$4.4 million relating to the N.M. Rothschild & Sons Limited debt
service reserve account. This amount is held in escrow for partial
repayment of the Morila project loan.
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
US$000 2002 2001
Net cash generated
from operations 7 424 18 993
Net cash (utilised)
/generated by
investment
activities (2 578) (12 561)
Net cash (utilised)
/generated by
financing
activities (5 345) (11 362)
Net (decrease)/
increase in cash
and equivalents (499) (4 930)
Cash and cash
equivalents at beginning
of period 9 449 61 638
Cash and cash equivalents
at end of period
net of overdraft 8 950 56 708
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Number
Of Share Share
Ordinary capital premium
Shares US$000 US$000
Balance -
31 Dec 2000 33 076 629 3 307 240 742
Prior year adjustment
Restated balance -
1 Jan 2001 33 076 629 3 307 240 742
Net profit
Movement on financial
instruments
Balance -
30 Jun 2001 33 076 629 3 307 240 742
Net profit July -
Dec 2001
Share options
exercised 997 404 100 1 639
Share buyback and
related expenses (11 612 403) (1 161) (80 551)
Balance -
31 Dec 2001 22 461 630 2 246 161 830
Net profit
Movement on financial
instruments
Share options
exercised 136 194 12 353
Balance -
30 Jun 2002 22 597 824 2 258 162 183
Accumu-
Other lated Total
reserves losses equity
US$000 US$000 US$000
Balance -
31 Dec 2000 - (150 108) 93 941
Prior year adjustment 2 388 515 2 903
Restated balance -
1 Jan 2001 2 388 (149 953) 96 844
Net profit 8 421 8 421
Movement on financial
instruments (4 133) (4 133)
Balance -
30 Jun 2001 (1 745) (141 172) 101 132
Net profit July -
Dec 2001 9 338 9 338
Share options
exercised 1 739
Share buyback and
related expenses (81 712)
Balance -
31 Dec 2001 (1 745) (131 834) 30 497
Net profit 8 824 8 824
Movement on financial
instruments (4 728) (4 728)
Share options
exercised 365
Balance -
30 Jun 2002 (6 473) (123 010) 34 958
COMMENTS
The figures are shown prior to the effects of the new share issue which
took place after the period end.
The Company made an operating profit of US$12.4 million for the quarter
ended 30 June 2002 compared with US$6.5 million for the corresponding
period in 2001. For the six months ended 30 June 2002 profits were
US$23.6 million compared to US$17.1 for the corresponding period in
2001. This improvement reflects the cessation of the operation at Syama
at the end of 2001.
The current quarter`s net profit of US$5.3 million is substantially
better than the US$3.5 million reported the previous quarter, mainly due
to higher gold sales revenues and substantially lower losses on
financial instruments attributable to the unmatched portion of the hedge
book.
The main balance sheet movements for the six months are a decrease in
long-term loans which reflect the scheduled repayments and an increase
in deferred liabilities on financial instruments resulting from a
movement on the mark-to-market value of the hedge book.
Randgold Resources received its third distribution from Morila amounting
to US$5.4 million in May 2002.
The reduction in revenues from the corresponding period in 2001 is due
to the inclusion of Syama`s final operating results in the six months
ended June 2001.
ACCOUNTING POLICIES
The abridged financial statements in this report have been prepared in
accordance with the Group`s accounting policies, which are in terms of
International Accounting Standards and except for as noted below are
consistent with the prior period.
As at 1 January 2001 the Group adopted International Accounting Standard
39("IAS 39"). The effect of the adoption has been disclosed in the
consolidated statement of equity.
The consolidated financial information includes the financial statements
of the Company, its subsidiaries and the joint venture.
Joint ventures are those investments in which the Group has joint
control and are accounted for under the proportional consolidated method
and under this method, the proportion of assets, liabilities, income and
expenses and cashflows of each joint venture attributable to the Group
are incorporated in the consolidated financial statements under
appropriate headings. Intercompany accounts and transactions are
eliminated on consolidation.
OPERATION - MORILA
Morila has continued to produce satisfactory results and for the quarter
150 126 ounces were produced at a cash cost of US$108/oz. These results
were marginally better than forecast. As reported in the previous
quarter, infill drilling in the high grade northern pit confirmed
earlier projections. Further analysis has indicated that the ex-pit
grades will be better than plan in the short to medium term and will
impact positively on planned production and results.
The life of mine model is currently being updated with the latest
results. A project team is busy working on "mine to mill" optimisation
to evaluate ways to further improve production throughput.
Morila Results
Unaudited Unaudited Unaudited
Quarter Quarter Quarter
ended ended ended
30 June 31 March 30 June
US$000 2002 2002 2001
Mining
Tons mined (000) 6 557 8 096 5 974
Ore tons mined (000) 865 975 874
Milling
Tons processed (000) 788 733 737
Ore grade milled (g/t) 6.41 6.51 7.47
Recovery (%) 91.4 92.0 92.5
Ounces produced 150 126 148 996 163 882
Average price
Received (US$/ounce) 304 291 274
Cash operating cost
(US$/ounce) 87 80 80
Total cash cost
(US$/ounce) 108 104 99
Cash profit (US$000) 28 428 28 018 28 529
Attributable (40%)
Ounces produced 60 050 59 598 65 553
Cash profit (US$000) 11 371 11 207 11 412
Morila Results
Cont`d Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
US$000 2002 2001
Mining
Tons mined (000) 14 635 10 116
Ore tons mined (000) 1 840 1 836
Milling
Tons processed (000) 1 520 1 327
Ore grade milled (g/t) 6.46 8.15
Recovery (%) 91.7 92.9
Ounces produced 299 122 324 410
Average price received
(US$/ounce) 298 270
Cash operating cost
(US$/ounce) 83 76
Total cash cost (US$/ounce) 106 95
Cash profit (US$000) 56 446 56 429
Attributable (40%)
Ounces produced 119 649 129 764
Cash profit (US$000) 22 578 22 572
FINANCIAL INSTRUMENTS
Details of financial instruments at 30 June 2002.
Randgold Resources` share of gold which has been sold forward at a fixed
price of US$275/oz over the period July 2002 to December 2004 amounts to
146 170 ounces. The Company`s share of purchased call options for the
same period amounts to 51 742 ounces at prices between US$340/oz and
US$360/oz and sold call options of 148 500 ounces at US$353/oz.
Morila has some additional hedging for 2002 of which the Company`s share
is 12 000 ounces of put options bought at US$275/oz and 12 000 ounces of
call options sold at US$310/oz.
DISCONTINUED OPERATIONS
Rehabilitation and monitoring activities continued at Syama. Phased
disposal of the plant and infrastructure remains under consideration, as
discussions are pursued with parties interested in acquiring the
Randgold Resources share of the operation. Prime Corporate Finance Pty
Limited of Australia have been appointed to market the Syama Mine.
Furthermore, management completed a full asset assessment.
Syama Income Statement
Unaudited Unaudited Unaudited
Quarter Quarter Quarter
ended ended ended
30 June 31 March 30 June
US$000 2002 2002 2001
Gold sales revenue - - 1 998
Cost of sales
Production costs - - 6 680
Transport and
refinery costs - - 50
Cash operating
costs - - 6 730
Royalties - - 148
Total cash costs - 6 878
Depreciation and
amortisation - - -
Loss from operations - - (4 580)
Interest received - - -
Interest expense - - (639)
(Loss)/profit on
financial
instruments (55) (1 030) 6 233
Other income
and expenses (577) (752) (3 674)
Loss on ordinary
activities
before taxes (632) (1 782) (2 960)
Income tax 6 - (14)
Net loss (632) (1 782) (2 974)
Syama Income Statement
Cont`d Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
US$000 2002 2001
Gold sales revenue - 13 559
Cost of sales
Production costs - 18 025
Transport and refinery costs - 102
Cash operating costs - 18 127
Royalties - 807
Total cash costs - 18 934
Depreciation and amortisation - -
(Loss) from operations - (5 375)
Interest received - -
Interest expense - (1 394)
(Loss)/profit on financial
instruments (1 085) 6 233
Other income and expenses (1 329) (6 591)
Loss on ordinary activities
before taxes (2 414) (7 127)
Income tax 4 (103)
Net loss (2 414) (7 230)
The Syama Mine was placed on full care and maintenance during December
2001.
PROJECTS AND EVALUATION
Loulo Project - Updated Feasibility Study
The updated feasibility study reported on last quarter was progressed
further with the commissioning of a detailed internal review audit
process aimed at testing the project for potential fatal flaws and
advancing it to a point where it is a bankable document.
Work is currently focused on:
* Geohydrology modelling and confirmation of site
selection for water, waste and tailings storage
facilities;
* Ongoing infrastructural studies; and
* Optimum sizing and costing of various development
scenarios against the base case.
In addition a study which will focus on the potential for the
underground exploitation of the deeper extensions to the Loulo deposit
was commissioned this quarter.
Discussions have been initiated with the Malian authorities to finalise
the capital structure of the operating company as well as the fiscal
regime under which the project would operate. The incorporation of an
Interministerial Commission which will oversee the deliberations with
government is awaited.
Tongon Prefeasibility
Following the decision to progress to the next stage of evaluation aimed
at culminating in a Type 3 feasibility study, an additional 16 borehole
infill drilling programme was completed this quarter. The preliminary
results confirm the "ore zone" comprises en echelon, multiple lensoid
bodies along strike and down-dip. The additional drilling has reduced
the interhole spacing to 100 metres and in the better drilled areas, to
50 metres. The existence of mineralisation within the "gap" area was
also confirmed. Modelling of results are in progress and once complete
will form the basis for further phases of drilling planned to commence
at the end of the current rainy season. This drilling will focus on
improving the definition of the resource outlined to date as well as
testing strike and depth extensions.
At the same time additional metallurgical testwork is in progress as
well as other aspects of feasibility investigation including preliminary
environmental assessments.
EXPLORATION ACTIVITIES
On the Morila joint venture Permit diamond drilling of the San Extension
Electro-magnetic Restitivity anomaly situated 4 kilometres north west of
the current orebody highlighted anomalous zones (0.2 to 1.5 g/t over
widths of 1 to 12 metres) associated with Morila style alteration down
to a vertical depth of 300 metres.
On the Loulo Project trenching and re-sampling of old diamond core has
defined mineralised zones 350 metres west of and in the hanging wall of
the Loulo 0 deposit. The mineralisation locates within an 800 metre
strike length of folded limestone.
On the Tongon Project, Cte d`Ivoire, a sixteen hole diamond-drilling
programme was completed over the southern zone. Drilling outlined
multiple mineralised zones over a 1 400 metre by 150 metre area.
Mineralisation is still open to the east and at depth. Geological and
resource modelling is currently in progress.
On the Tiasso target within the Boundiali Permit in northern Cte
d`Ivoire surface exploration work continues to define zones of
mineralisation and gold in soil anomalism over an area of 2 000 metres
by 500 metres. Pitting indicates that the mineralised system extends
beneath lateritised cover.
During the quarter the Company continued to generate and incorporate new
opportunities into the exploration portfolio. In Senegal the Council of
Ministers announced the granting of two new permits to Randgold
Resources. The Company has now consolidated a contiguous portfolio of
three permits (1 200km}) within the highly prospective Sabodala Belt in
eastern Senegal. The portfolio includes five targets with known bedrock
gold mineralisation and multiple gold in soil anomalies. A Heads of
Agreement was signed with Japanese company OMRD covering the Sagala and
Kekoro permits (1 000km}) in the Mali South region.
Elsewhere in Mali and Cte d`Ivoire the Company continues to focus on
priority targets with the potential to outline new discoveries which
will require follow up programmes next season.
CORPORATE AND NEW BUSINESS
In order to meet the strategic objective of improving the tradeability
and liquidity of the Company`s stock, Randgold Resources successfully
listed its shares on the Nasdaq Stock Market on 11 July 2002, issued and
allotted
5 000 000 new shares to new shareholders and raised US$32.5 million. The
Company`s GDRs have been exchanged for American Depositary Receipts
(ADRs) which trade on the Nasdaq and LSE. Each ADR equates to two
ordinary shares.
The Company is pleased to report that the third democratic presidential
election, in the Republic of Mali since 1991, was successfully concluded
without incident on 8 June 2002. Further legislative elections are
scheduled to take place on 28 July 2002.
Corporate activity is also focused on new business, both internally
generated and with the aim of participating in the rationalisation
taking place in the gold mining industry. To this end, due diligence
reviews of exploration and mining opportunities have progressed.
On behalf of Randgold Resources Limited
R A R Kebble D M Bristow
Chairman Chief Executive
6 August 2002
DISCLAIMER:
Statements made in this release with respect to Randgold Resources`
current plans, estimates, strategies and beliefs and other statements
that are not historical facts are forward-looking statements about the
future performance of Randgold Resources. These statements are based on
management`s assumptions and beliefs in light of the information
currently available to it. Randgold Resources cautions you that a
number of important risks and uncertainties could cause actual results
to differ materially from those discussed in the forward-looking
statements, and therefore you should not place undue reliance on them.
The potential risks and uncertainties include, among others, risks
associated with: fluctuations in the market price of gold, gold
production at Morila, estimates of reserves and mine life and
liabilities arising from the closure of the Syama. Randgold Resources
assumes no obligation to update information in this release.
Registered office:
La Motte Chambers, La Motte Street, St Helier, Jersey JEI IBJ, Channel
Islands
Web-site: www.randgoldresources.com
Registrars:
Computershare Investor Services (Channel Islands) Limited,
P.O. Box 83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW,
Channel Islands
Transfer agents:
Computershare Services Plc, P.O. Box 663, 7th Floor, Jupiter House,
Triton Court, 14 Finsbury Square, London EC2A 1BR
Investor & media relations:
For further information contact Kathy du Plessis on Telephone +27(11)
728-4701, Fax +27(11) 728-2547,
e-mail: randgoldresources@dpapr.com
Date: 06/08/2002 12:47:00 PM Produced by the JSE SENS Department
Randgold Resources Posts Further Profit Gain
Randgold Resources Posts Further Profit Gain
Randgold & Exploration Company Limited
Reg No 1992/005642/06
Sharecode : RNG
ISIN : ZAE000008819
NASDAQ trading symbol : RANGY
Randgold Resources Limited announcement for information:
RANDGOLD RESOURCES POSTS FURTHER PROFIT GAIN AND RAISES US$32.5 MILLION AS PART
OF NASDAQ LISTING
London, 6 August 2002 - Randgold Resources, the London and Nasdaq-listed gold
producer, has sustained its strong performance with a 51% improvement in net
profit for the June quarter, while its half-year operating profit from mining
increased by 38% year-on-year.
Reporting its results today, the Company said the increase in net profit from
US$3.5 million for the March quarter to US$5.3 million for the June quarter was
mainly attributable to higher gold sales revenues. The improvement from US$17.1
million to US$23.6 million in operating profit for the half-year reflects the
benefits of discontinuing mining at Syama.
To facilitate trading by North American investors, the Company last month
obtained a secondary listing on Nasdaq. At the same time, it raised US$32.5
million through a share offering which would be used to repay some debt and to
fund the continuing pursuit of growth opportunities. Randgold Resources issued
5 million new shares - in the form of ordinary shares and American Depositary
Shares - to new shareholders, primarily to improve the tradeability of its stock
and broaden its investor base.
Reviewing the past quarter, chief executive Dr Mark Bristow said the Morila
joint venture in Mali had continued to produce excellent results. Production of
150 126 ozs of gold at a cash cost of US$108/oz had been in line with
expectations. Infill drilling results indicate that grades in the northern pit
will be higher than forecast in the short to medium term, which will impact
positively on production over the next few quarters.
Bristow also said satisfactory progress continued to be made with the
development of the Company`s two advanced projects, Loulo in Mali and Tongon in
the Cte d`Ivoire.
At Loulo, the updated feasibility study is being advanced to the bankable stage.
Work is currently focused on geohydrology modelling and studies related to
facility site selection, infrastructure, optimum sizing and costing of the
various development scenarios, and the potential for the underground
exploitation of the deeper extensions to the deposit. In addition, discussions
regarding the capital structure of the operating company and the fiscal regime
under which it would operate are under way with the Malian authorities.
At Tongon, an additional infill drilling programme was completed during the
quarter as part of a Type 3 feasibility study. Modelling of the results is in
progress and will form the basis for further drilling at the end of the current
rainy season. The next round of drilling will focus on improving the definition
of the resource and on testing strike and depth extensions. Additional
metallurgical testwork and preliminary environmental assessments are also in
progress.
On the exploration front, the Company continued to focus on its priority targets
in the Morila, Loulo and Tongon regions as well as at Boundiali in the Cte
d`Ivoire. It also continued to generate and incorporate new opportunities into
its exploration portfolio. In Senegal, it has been granted two new permits and
has now consolidated a contiguous holding of some 1 200 km2 in the highly
prospective Sabodala Belt. In the Mali south region, it has entered into a
joint-venture agreement with the Japanese company OMRD regarding the Sagala and
Kekoro permits.
"If we take stock of our overall position at this point, I think we have some
cause to be satisfied. We are a high-quality, low-cost producer with strong
cash flows, a robust balance sheet, a substantial gold inventory, two ten-year
gold projects already defined, and a promising exploration portfolio. It is
also worth noting that we are one of the few producers capable of surviving
unhedged in any realistically foreseeable gold price scenario," Bristow said.
For further information call :
(CEO) Mark Bristow on +44 779 775 2288
or +27(0)82 800 4293
(FD) Roger Williams on +27(0)83 308 9989
(Chairman) Roger Kebble on +27(11) 309 6036
Issued on behalf of Randgold Resources Limited by du Plessis Associates. dPA
contact Kathy du Plessis on Tel: 27-11- 728 4701, mobile: +27(0)83 266 5847 or
e-mail randgoldresources@dpapr.com
Date: 06/08/2002 12:48:00 PM Produced by the JSE SENS Department
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