To view the PDF file, sign up for a MySharenet subscription.

JSE LIMITED - GEN - General - Rand Refinery Limited - Announces Shareholder Loan Facility

Release Date: 25/07/2014 12:00
Code(s): JSER     PDF:  
Wrap Text
GEN - General - Rand Refinery Limited  - Announces Shareholder Loan Facility

Rand Refinery Limited
(Incorporated in the Republic of South Africa)
(Registration number 1920/006598/06)
(“Rand Refinery” or the “Company”)

RAND REFINERY ANNOUNCES SHAREHOLDER LOAN FACILITY


Rand Refinery announces that its shareholders (“Shareholders”) have approved, and certain
Shareholders have extended to the Company, a R1.2 billion irrevocable, subordinated loan facility
(“the Facility”). The Facility, if drawn down, is convertible to equity after a period of two years. The
Facility has been secured as a precautionary measure following challenges encountered in the
implementation of its new enterprise resource planning (“ERP”) software system.


Following the adoption of the ERP system in April last year, Rand Refinery experienced
implementation difficulties which have led to a difference between the actual inventory and the
accounting records of approximately 87,000 ounces of gold. Uncertainty around the true position has
prevented the Company from being able to finalise its annual financial statements for the financial
year ended 30 September 2013. This information has been shared with the Company’s regulators,
shareholders, insurers and banks. Rand Refinery’s operations are unaffected by this matter and the
processing of gold continues at full capacity.


Rand Refinery requested financial assistance from Shareholders as a precautionary measure, should
resolution of the difficulties result in a financial loss for the Company.


The major shareholders of the Company comprise AngloGold Ashanti Limited (42.41% holding - JSE
code: ANG), Sibanye Gold Limited (33.15% - JSE code: SGL), DRDGOLD Limited (11.3% - JSE
code: DRD), Harmony Gold Mining Company Limited (10.38%- JSE code: HAR) and Gold Fields
Operations Limited, a subsidiary of Gold Fields Limited. (2.76% - JSE code: GFI).

                                                                                          
The maximum commitments of each of the initial lenders will be as follows:
     •      AngloGold Ashanti:        R573,8m
     •      Sibanye:                  R 448,5m
     •      Harmony:                  R140,4m
     •      Gold Fields:              R37,3m


While DRDGOLD has agreed that Rand Refinery obtain support, it is not participating in the loan
facility.


The Rand Refinery management team, under the leadership of recently appointed Mark Lynam, has
appointed external financial and technical specialists, including Accenture, to assist. Actions and
controls implemented to date have stabilised the situation and the focus now is on resolving the
matter and finalising the accounts. Rand Refinery’s board of directors, and Shareholders are
confident that these will be resolved timeously and that the Company will retain its reputation for
integrity, reliability and quality.


Established in 1920, Rand Refinery is the largest integrated single-site precious metals refining and
smelting complex in the world. It processes 380 tons of gold per annum from South Africa’s largest
gold mines, as well as other mines on the continent. It has played a key role in implementing South
Africa’s beneficiation strategy. It is accredited by various metal exchanges across the globe. It is one
of only five international London Bullion Metals Association (LBMA) referees and the only one of its
kind in the southern hemisphere.


For media queries

Brunswick: (011) 502 7400

Marina Bidoli (083) 253 0478

Rob Pinker (083) 326 7794




                                                                                          

Date: 25/07/2014 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story