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Reviewed results for the six months ended 30 June 2013
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")
Reviewed results for the six months ended 30 June 2013
COMMENTARY TO THE CONDENSED CONSOLIDATED REVIEWED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013
General
The board of R&E is pleased to announce the interim results for the six months ended 30 June 2013.
Income
The majority of the income recognised in the period under review derived from the settlement of a legal claim, profit realised on the disposal of prospecting
rights and finance income.
Financial position
R&E is liquid with no interest-bearing debt. R&E's total assets consist primarily of cash. R&E has a net asset value per share of R2.69 at 30 June 2013
(which represents an increase of 8.5% from 30 June 2012).
Cash flow
R&E started the period under review with a cash balance of R214 million. Operating activities generated cash of R15.3 million, primarily as a result of the settlement
of a legal claim of R19.5 million and interest received of R5.4 million against operating expenses of R14.6 million (which included legal and forensic costs of
R8.9 million).
Investing activities yielded cash inflows of R1.5 million received from the sale of prospecting rights.
R&E remains in a healthy cash position with R231 million in cash and cash equivalents at 30 June 2013.
Outlook
The outlook for 2013 is similar to that for the previous year. Expenditure on litigation is expected to be at a similar level, which is likely to prevail until
the claims the company has initiated have been are finalised. Management will continue to focus on reducing the operational costs of its operations where possible
and to maintain liquidity.
David Kovarsky
Chairman
Marais Steyn
Chief Executive Officer
Johannesburg
8 August 2013
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended
30 June 30 June
2013 2012
Reviewed Reviewed
Notes R'000 R'000
Dividends received 28 -
Profit on disposal of prospecting rights 6 1 076 5 037
Profit on sale of equity securities 140 -
Recoveries 7 22 136 15 521
Foreign exchange (losses)/gains (35) 532
Other income 2 473 2 041
Other operating expenses (14 621) (19 879)
Results from operating activities 11 197 3 252
Finance income 5 357 5 597
Profit before taxation 16 554 8 849
Taxation - -
Profit for the period 16 554 8 849
Other comprehensive income - -
Total comprehensive income 16 554 8 849
Profit attributable to:
Owners of the company 16 554 8 849
Total comprehensive income attributable to:
Owners of the company 16 554 8 849
Basic and diluted earnings per share (cents) 8 23 12
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended
30 June 30 June
2013 2012
Reviewed Reviewed
R'000 R'000
Share capital balance at the beginning and end
of the period 746 746
Retained earnings 191 686 177 129
Balance at the beginning of the period 175 132 168 280
Profit for the period 16 554 8 849
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
As at
30 June 31 December
2013 2012
Reviewed Audited
R'000 R'000
Assets
Non-current assets 145 661
Plant and equipment 96 187
Intangible assets 49 474
Current assets 233 555 217 311
Trade and other receivables 1 188 1 502
Investment in equity securities 952 1 892
Cash and cash equivalents 231 415 213 917
Total assets 233 700 217 972
Equity and liabilities
Shareholders' equity 192 432 175 878
Issued capital 746 746
Retained earnings 191 686 175 132
Liabilities
Non-current liabilities
Post-retirement medical benefit obligation 39 058 40 768
Current liabilities
Trade and other payables 2 210 1 326
Total equity and liabilities 233 700 217 972
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended
30 June 30 June
2013 2012
Reviewed Reviewed
R'000 R'000
Profit before taxation 16 554 8 849
Adjusted for:
Loss on sale of other assets 65 -
Profit on disposal of prospecting rights (1 076) (5 037)
Other non-cash items (1 426) 256
Profit on disposal of equity securities (140) -
Movement in post-retirement medical aid benefit liability (1 710) 219
Depreciation 27 37
Loss on fair value of equity instruments 397 -
Interest received (5 357) (5 597)
Dividends received (28) -
Working capital changes 1 198 (3 614)
Cash flows from operations 9 930 (5 143)
Interest received 5 357 5 597
Cash flows from operating activities 15 287 454
Cash flows from investing activities 2 211 5 037
Dividends received 28 -
Proceeds from disposal of prospecting rights 1 500 5 037
Proceeds from disposal of equity securities 721 -
Acquisition of investment in equity securities (587) -
Investment in mark to market 549 -
Net increase in cash and cash equivalents 17 498 5 491
Cash and cash equivalents at the beginning
of the period 213 917 211 470
Cash and cash equivalents at the end of the period 231 415 216 961
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013
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 2013 include the company and its subsidiaries (together referred to as the "group").
2. Statement of compliance
The condensed consolidated reviewed interim financial statements are prepared and presented in accordance with International Financial Reporting Standards, which
include International Accounting Standard (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee
and the requirements of the Companies Act of South Africa (Act 71 of 2008). These condensed consolidated interim financial statements were approved by the board of
directors on 5 August 2013.
Mr Van Zyl Botha CA(SA), the financial director of R&E, is responsible for these interim financial statements and has supervised the preparation thereof.
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 for the year ended 31 December 2012.
4. Independent review by the auditor
The condensed consolidated interim financial statements of R&E for the six months ended 30 June 2013 have been reviewed by the company's auditor, KPMG Inc. In their
review report dated 5 August 2013, which is available for inspection at the companys registered office, KPMG Inc state that their review was conducted in
accordance with the International Standard on Review Engagements 2410, Review of Interim Information Performed by the Independent Auditor of the Entity, and have
expressed an unmodified conclusion on the condensed consolidated interim financial statements.
5. Segment reporting
The group operates in a single operating segment as an investment holding company with assets in the mining industry.
6. Profit on disposal of prospecting rights
R&E disposed of certain of its prospecting rights which had a R0.4 million carrying value for R1.5 million.
7. Recoveries
R&E concluded a settlement agreement with Mr Paul Main on 23 March 2012 in terms of which USD4 million was payable by Mr Main to R&E. The settlement relates to
the group's claim against him for damages in respect of 2 million Randgold Resources Limited shares. Shareholders are referred to the announcements made by the
company on 30 May 2013 relating to this settlement. R&E recognised the final payment of R22 million received in cash during June 2013.
8. Earnings per share
For the six months ended
Basic earnings and diluted earnings per 30 June 30 June
ordinary share 2013 2012
Reviewed Reviewed
Basic and diluted earnings for the period (R'000) 16 554 8 849
Weighted average number of ordinary shares in ssue 71 585 172 71 585 172
Earnings per share (cents) 23 12
Headline and diluted headline earnings
per ordinary share
Headline and diluted headline earnings
for the period (R'000) 15 338 3 812
Weighted average number of ordinary shares
in issue 71 585 172 71 585 172
Headline earnings per share (cents) 21 5
Reconciliation between basic and headline earnings
for the period R'000 R'000
Profit for the period attributable to the equity
holders of the company 16 554 8 849
Adjusted for:
Profit on disposal of prospecting rights (1 076) (5 037)
Profit on disposal of available-for-sale investments (140) -
15 338 3 812
Tax effect of adjustments - -
Headline earnings for the period attributable to
equity holders of the company 15 338 3 812
9. Net asset and tangible net asset value per share
The net asset value per share is calculated using the following variables:
30 June 30 June
2013 2012
Reviewed Reviewed
Net asset value (R'000) 192 432 177 875
Ordinary shares outstanding 71 585 172 71 585 172
Net asset value per share (cents) 269 248
Net tangible asset value per share (cents) 269 247
The number of shares outstanding at 30 June 2013 and 30 June 2012 has been adjusted for the 2,999,893 treasury shares held.
10. Material changes
The final settlement received from Mr Paul Main is material in its totality.
11. Related party transactions
There were no related party transactions during the period under review other than in the normal course of business, i.e. key management remuneration.
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*, P Burton#**, JH Scholes** (*Executive, **Independent non-executive, #Appointed 23 May 2013)
Company secretary and financial director: V Botha CA(SA)
Transfer secretaries: Computershare Investor Services (Pty) Ltd (Registration number 2004/003647/07), 70 Marshall Street, Johannesburg, 2001
Sponsor: PSG Capital, 1st Floor, Ou Kollege Building, 35 Kerk Street, Stellenbosch, 7600
Date: 08/08/2013 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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