RANDGOLD PROVISIONAL RESULTS AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT for the year ended 31 December 2003 Increase in cash resources and elimination of debt o Foreign exchange losses now recognised in the income statement - decrease profits by R167 million o Acquisition of 55,1% of Free State Development and Investment Corporation Limited o Randgold Resources Limited announces decision to develop the Loulo project in Mali CONDENSED GROUP INCOME STATEMENTS Reviewed Audited Year ended Year ended 31 December 31 December R000 2003 2002 Revenue Gold sales - 404 064 Total cash costs - (154 599) Cash operating costs - (127 379) Royalties - (27 220) Profit from mining activities - 249 465 Dividends and interest received 9 357 3 766 Interest expense (6 447) (40 139) Depreciation and amortisation (994) (42 009) Impairment of goodwill (24 398) - Foreign exchange (loss)/profit (132 067) 56 401 Loss on financial instruments - (13 034) Rehabilitation provision - (1 586) Exploration and corporate expenditure (27 972) (63 121) Profit on sale of portion of investment in associate 241 429 - Loss on sale of investments (34 151) (1 493) Other income/expenses 14 987 (9 985) Profit on ordinary activities before taxes, equity income and minority interest 39 744 138 265 Taxation (29 593) - Profit on ordinary activities before equity income and minority interest 10 151 138 265 Equity income from associate 166 351 285 627 Minority interest 702 (38 594) Net profit for the year 177 204 385 298 Ordinary shares in issue (000s) 55 281 43 696 Earnings per share (cents) 367 895 Fully diluted earnings per share (cents) 366 887 Headline (loss)/earnings per share (cents) (12) 895 Fully diluted headline (loss)/earnings per share (cents) (12) 887 Reconciliation between earnings and headline earnings: Earnings for the year 177 204 385 298 Add back: Profit on sale of portion of investment in associate (241 429) - Impairment of goodwill 24 398 - Tax effect of adjustments 33 810 - Headline (loss)/earnings for the year (6 017) 385 298 CONDENSED GROUP BALANCE SHEETS Reviewed Audited 31 December 31 December R000 2003 2002 ASSETS Current assets Cash and cash equivalents 11 202 22 003 Receivables 3 466 6 219 Total current assets 14 668 28 222 Property, mineral rights and prospecting permits 79 133 14 713 Investment in associate 432 339 495 798 Investments 431 209 150 028 Other long-term assets 200 871 159 Total assets 1 158 220 688 920 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities 6 736 89 291 Income and mining taxation 39 170 - Total current liabilities 45 906 89 291 Long-term liabilities Provision for post-retirement benefits 58 670 52 000 Total liabilities 104 576 141 291 Shareholders' equity Share capital 553 437 Share premium 614 120 292 929 Other reserves 632 077 656 548 Accumulated losses (225 081) (402 285) Total shareholders' equity 1 021 669 547 629 Outside shareholders' interest 31 975 - Total liabilities and equity 1 158 220 688 920 CONDENSED GROUP CASH FLOW STATEMENTS Reviewed Audited Year ended Year ended 31 December 31 December R000 2003 2002 Cash (utilised in)/provided by operations (4 267) 106 681 Dividends and interest received 8 198 2 822 Interest paid (6 447) (36 027) Taxation paid (3 029) - Net cash (utilised in)/provided by operations (5 545) 73 476 Net cash from/(utilised in) investing activities 93 459 (74 554) Net cash utilised in financing activities (98 715) (98 991) Net decrease in cash and cash equivalents (10 801) (100 069) Cash and cash equivalents at beginning of year 22 003 122 072 Cash and cash equivalents at end of year 11 202 22 003 NET FAIR ASSET VALUE (REVIEWED) Price Fair value Per 31 December Shares share Percent 2003 DESCRIPTION held R held R000 Listed investments The Afrikander Lease Limited 7 300 000 3,25 3,46 23 724 Anglo American Platinum Corporation Limited 235 000 291,5 0,11 68 503 Durban Roodepoort Deep, Limited 500 000 20,6 0,23 10 300 Harmony Gold Mining Company Limited 315 000 108,5 0,12 34 178 JCI Limited 55 867 389 0,78 2,67 43 577 Kelgran Limited 2 321 115 0,11 2,47 255 Simmer and Jack Mines Limited 40 000 000 0,24 18,57 9 600 Western Areas Limited 4 042 500 41,5 3,84 167 764 Randgold Resources Limited 10 785 000 184,23 36,86 1 986 970 2 344 871 Other assets 339 760 Current assets 14 668 Property, mineral rights and prospecting permits 97 658 Afrikander Lease shares in Kabusha Mining and Finance (Pty) Limited (75% of fair value) 54 944 Other long-term assets (Group's holding) 172 490 Liabilities (104 576) Net assets 2 580 055 Shares in issue (000) 55 281 NAV per share (cents) 4 667 CONDENSED STATEMENTS OF CHANGES IN EQUITY Share Share Accumulated Other R000 capital premium losses reserves Total Balance at 1 January 2002 417 271 576 (787 583) 679 662 164 072 Net profit for the year - - 385 298 - 385 298 Share options exercised 20 21 353 - - 21 373 Exchange difference arising on translation of foreign subsidiary - - - (179 221) (179 221) Net dilution gain due to share capital movements in subsidiary/associate - - - 98 065 98 065 Listed investments - marked to market - - - 88 416 88 416 Movement on cash flow hedges - - - (30 374) (30 374) Currency translation differences - - transfer from foreign currency translation reserve - - - (28 328) (28 328) transfer to distributable reserve - - - 28 328 28 328 Balance at 31 December 2002 437 292 929 (402 285) 656 548 547 629 Net profit for the year - - 177 204 - 177 204 Share options exercised 13 16 706 - - 16 719 Shares issued during the year 103 304 485 - - 304 588 Net dilution due to share capital movements in subsidiary/associate - - - 5 041 5 041 Listed investments - - marked to market - - - (35 597) (35 597) Revaluation of investments on acquisition of subsidiary - - - 3 590 3 590 Movement on cash flow hedges - - - 2 495 2 495 Balance at 31 December 2003 553 614 120 (225 081) 632 077 1 021 669 CONDENSED SEGMENTAL ANALYSIS Geographical Non-South Segments African South African Business gold Investments Segments mining Exploration & corporate R000 activities activities activities Total YEAR ENDED 31 DECEMBER 2003 Profit for the year Gold sales - - - - Total cash cost - - - - Cash profit/(loss) - - - - Net dividends and interest - (167) 3 077 2 910 Depreciation and Amortisation - (63) (931) (994) Impairment of goodwill - - (24 398) (24 398) Foreign exchange differences (132 067) - - (132 067) Loss on sale of investment - - (34 151) (34 151) Profit due to decrease in holding in associate 241 237 - 192 241 429 Exploration and corporate expenditure (1 294) (2 172) (24 506) (27 972) Other income/ (expenditure) - 3 481 11 506 14 987 Profit/(loss) before tax, equity income and minority interest 107 876 1 079 (69 211) 39 744 Equity income from associate 166 351 - - 166 351 Minority interest - (261) 963 702 Taxation - (74) (29 519) (29 593) Net profit/(loss) 274 227 744 (97 767) 177 204 Capital expenditure - 225 215 440 Assets 433 363 329 724 528 1 158 220 External liabilities - - 104 576 104 576 Geographical Non-South Segments African South African Business gold Investments Segments mining Exploration & corporate R000 activities activities activities Total YEAR ENDED 31 DECEMBER 2002 Profit for the year Gold sales 404 064 - - 404 064 Total cash cost (143 315) - (11 284)(154 599) Cash profit/(loss) 260 749 - (11 284) 249 465 Net dividends and interest (21 967) - (14 406) (36 373) Depreciation and amortisation (41 947) - (62) (42 009) Foreign exchange differences (13 034) - - (13 034) Loss on financial instruments - - 56 401 56 401 Loss on sale of investments - - (1 493) (1 493) Exploration and corporate expenditure (63 121) - - (63 121) Other expenditure/ (income) (19 877) (1 141) 9 447 (11 571) Profit/(loss) before tax, equity income and minority interest 100 803 (1 141) 38 603 138 265 Equity income from associate 285 627 - - 285 627 Minority interest (38 594) - - (38 594) Taxation - - - - Net profit/(loss) for the year 347 836 (1 141) 38 603 385 298 Capital expenditure 167 503 - 245 167 748 Assets 1 414 467 - 132 895 1 547 362 External liabilities 1 307 316 - 176 714 1 484 030 COMMENTS The Group disposed of 2,5 million of its shares in Randgold Resources Limited ("Randgold Resources") during the year to repay all of its loans, including R32 million to Consolidated Mining Management Services Limited and the balance of a R40 million loan to ABSA, and to improve cash resources. The Group's interest in Randgold Resources is at present 37%. In December 2003, Randgold & Exploration acquired 55,1% in Free State Development and Investment Corportion Limited ("FSD") for the issue of 1,5 million new Randgold & Exploration shares. This transaction has enhanced the mineral rights portfolio of the Group. Minrico Limited ("Minrico") continues its search for suitable partners to develop its mineral portfolio. As reported previously, Minrico has two platinum joint ventures, one with Pan Palladium in the northern Bushveld and the other with Eurasia plc on Doornbosch in the eastern Bushveld. Minrico is also negotiating a joint venture to explore a part of its diamond portfolio as well as considering dimension stone and other base mineral opportunities. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcement that accompanied the recent trading update published on 26 March 2004. With the publication of these results, the cautionary announcement is hereby withdrawn. FINANCIAL REVIEW The provisional results for the year ended 31 December 2003 have been prepared in terms of the South African Statements of Generally Accepted Accounting Practice, including accounting standard AC 127, "Interim Financial Reporting", and in accordance with the Group's accounting policies which are consistent with those used in the audited financial statements for the year ended 31 December 2002. The provisional results have been reviewed by our auditors, PricewaterhouseCoopers Inc., and a copy of their unmodified review report on the condensed financial statements contained in this provisional report is available for inspection at the Company's registered office. The consolidated results reflect a net profit of R177 million for the year ended 31 December 2003, which is a decrease of 54% from the net profit of R385 million for the previous year. Earnings per share for the year ending 31 December 2003 were R3,67 (2002: R8,95). Randgold & Exploration's investment in Randgold Resources (Holdings) Limited ("RRH") was previously treated as an investment in a foreign entity. As at the commencement of the current reporting period, RRH has been viewed as integral to the operations of Randgold & Exploration and therefore the classification has changed to an integral foreign operation. RRH is the vehicle through which Randgold & Exploration holds its equity stake in Randgold Resources. Previously, RRH operated independently, but due to the nature of its operations and the manner in which these are now financed, its operations are now considered to be integral to those of Randgold & Exploration. As a result of the change in classification the financial impact on shareholders equity amounted to R167 million, which largely contributed to the 54% decrease in net profit from the previous year. With the available opportunities to expand and to pursue potential acquisitions, the directors have decided not to declare a dividend at this time. PROSPECTS Randgold & Exploration has agreed to support the proposed share offers of The Afrikander Lease Limited ("Afrikander Lease"), which, if fully concluded, will result in Randgold & Exploration becoming a substantial shareholder in Afrikander Lease. In terms of this agreement, Randgold & Exploration will: o For a total consideration of R82,5 million, subscribe for 24 million Afrikander Lease shares ("the initial subscription"), and receive a 3-year American option to subscribe for a further 24 million Afrikander Lease shares at R5 each. o After a period of 18 months from the initial subscription, be entitled, at a further consideration of R88,5 million, to subscribe for a second tranche of 24 million Afrikander Lease shares and receive another 3-year American option to subscribe for a further 24 million Afrikander Lease shares at R5 each. o Provide a R15 million short-term facility available to Afrikander Lease which, if drawn, will be repayable in Afrikander Lease shares or in cash. In addition, Randgold & Exploration has agreed to underwrite a proposed R100 million rights offer by Afrikander Lease. Randgold Resources has recently announced the go-ahead for the development of its Loulo project in Mali. The first gold production is forecast for July 2005. The Group continues to pursue new opportunities for growth in terms of its stated intention of becoming an active mining corporation. For and on behalf of the board RB Kebble HC Buitendag Chief Executive Officer Financial Director Johannesburg 30 March 2004 Randgold & Exploration Company Limited ("Randgold & Exploration") Reg No 1992/005642/06 Share code RNG ISIN number ZAE000008819 Nasdaq trading symbol RANGY Registered office 28 Harrison Street Johannesburg 2001 PO Box 11165 Johannesburg 2000 Republic of South Africa Tel +27 (11) 688 5011 Fax +27 (11) 834 5086 South African Transfer Secretaries Computershare Limited 70 Marshall Street Johannesburg 2001 PO Box 61051 Marshalltown 2107 Republic of South Africa Tel +27 (11) 370 5000 Fax +27 (11) 834 2446 United States Depository American Depository Receipts The Bank of New York Shareholder Relations Department 101 Barclay Street New York NY 10286 Tel +91 212 815 3326 Fax +91 212 571 3050 Investor relations For further information contact George Poole on Tel +27 (11) 688 5012 Fax +27 (11) 836 3757 e-mail gpoole@jci.co.za Website www.randgold.co.za
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6-K Filing
Randgold & Exploration (RANGF) Inactive 6-KCurrent report (foreign)
Filed: 7 Apr 04, 12:00am