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Summarised consolidated unaudited interim financial statements for the six months ended 30 June 2014
RANDGOLD & EXPLORATION COMPANY LIMITED
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")
SUMMARISED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
COMMENTARY TO SUMMARISED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
General
The board of R&E is pleased to announce the interim results for the six months ended 30 June 2014. The period saw
the conclusion of a further successful claim against third parties, resulting in settlement income of R150 million.
Income
The majority of the income recognised in the period under review derived from the settlement of a legal claim
against the company's former auditors.
Financial position
R&E is liquid with no interest-bearing debt. R&E's total assets consist primarily of cash and cash equivalents. R&E
had a net asset value of R179 million or R2.50 per share as at 30 June 2014 (net of the dividend declared, which
amounted to R161 million or R2.25 per share).
Cash flow
R&E started the period under review with a cash and cash equivalent balance of R201 million. Operating activities
generated cash of R152 million, primarily as a result of the settlement of a legal claim of R150 million, recoveries of
R8.9 million and interest received of R7.3 million, offsetting operating expenses of R14.2 million. Operating expenses
include legal and forensic costs of R8.2 million. As at 30 June 2014, R&E held R353 million in cash and cash
equivalents. After paying the dividend of R161 million on 28 July 2014, the company's cash position was
R191 million.
Outlook
The company will continue to take a commercial and pragmatic approach towards legal claims against third parties
and their relative legal costs, focus on containing the operational costs where possible and to maintain liquidity.
David Kovarsky Marais Steyn
Chairman Chief Executive Officer
Johannesburg
19 August 2014
SUMMARISED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended
30 June 2014 30 June 2013
Unaudited Reviewed
Notes R'000 R'000
Dividends received 19 28
Profit on disposal of prospecting rights 1 076
(Loss)/profit on sale of equity securities (7) 140
Recoveries 6 158 903 22 136
Foreign exchange losses (35)
Other income 244 2 473
Other operating expenses (14 215) (14 621)
Results from operating activities 144 944 11 197
Finance income 7 322 5 357
Profit before taxation 152 266 16 554
Taxation
Profit for the period 152 266 16 554
Actuarial losses 690
Dividends paid (161 067)
Total comprehensive (loss)/income
for the period (8 111) 16 554
Profit attributable to:
Owners of the company 152 266 16 554
Total comprehensive (loss)/income
attributable to:
Owners of the company (8 111) 16 554
Basic and diluted earnings per share (cents) 7 213 23
SUMMARISED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended
30 June 2014 30 June 2013
Unaudited Reviewed
R'000 R'000
Share capital balance at the beginning and end of the period 746 746
Retained earnings 178 055 191 686
Balance at the beginning of the period 186 166 175 132
(Loss)/profit for the period (8 111) 16 554
SUMMARISED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
As at
30 June 2014 31 December 2013
Unaudited Audited
R'000 R'000
Assets
Non-current assets 105 124
Plant and equipment 56 75
Intangible assets 49 49
Current assets 356 274 204 360
Trade and other receivables 1 955 2 030
Investment in equity securities 1 645 1 170
Cash and cash equivalents 352 674 201 160
Total assets 356 379 204 484
Equity and liabilities
Shareholders' equity 178 801 186 912
Issued capital 746 746
Retained earnings 178 055 186 166
Liabilities
Non-current liabilities
Post-retirement medical benefit obligation 14 665 15 547
Current liabilities
Trade and other payables 162 913 2 025
Total equity and liabilities 356 379 204 484
SUMMARISED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended
30 June 2014 30 June 2013
Unaudited Reviewed
R'000 R'000
Profit before taxation 152 266 16 554
Adjusted for:
Loss on sale of other assets 65
Profit on disposal of prospecting rights (1 076)
Other non-cash items (146) (1 426)
Loss/(profit) on disposal of equity securities 7 (140)
Actuarial gains 690
Movement in post-retirement medical aid
benefit liability (882) (1 710)
Depreciation 19 27
Loss on fair value of equity instruments 20 397
Interest received (7 322) (5 357)
Dividends received (19) (28)
Working capital changes 160 962 1 198
Cash flows from operations 305 741 9 930
Interest received 7 322 5 357
Dividends paid (161 067)
Cash flows from operating activities 151 996 15 287
Cash flows from investing activities (482) 2 211
Dividends received 19 28
Proceeds from disposal of prospecting rights 1 500
Proceeds from disposal of equity securities 299 721
Acquisition of investment in equity securities (800) (38)
Net increase in cash and cash equivalents 151 514 17 498
Cash and cash equivalents at the beginning of the period 201 160 213 917
Cash and cash equivalents at the end of the period 352 674 231 415
NOTES TO THE SUMMARISED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
1. Reporting entity
R&E is a company domiciled and incorporated in the Republic of South Africa. The summarised consolidated
interim financial statements of the company for the six months ended 30 June 2014 include the company and its
subsidiaries (together referred to as the "group").
2. Statement of compliance
The summarised consolidated 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,
the requirements of the Companies Act of South Africa (Act 71 of 2008) and the Listings Requirements of the
JSE Limited. These summarised consolidated interim financial statements were approved by the board
of directors on 12 August 2014.
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 summarised consolidated interim financial statements
are the same as those applied by the group in its consolidated financial statements for the year ended
31 December 2013.
4. No independent review by the auditor
The company's auditor has not reviewed or audited the summarised consolidated interim financial statements of
R&E for the six months ended 30 June 2014.
5. Segment reporting
The Group operates in a single operating segment as an investment holding company with assets in the mining
industry.
6. Recoveries
R&E concluded a settlement agreement with PriceWaterHouseCoopers ("PwC") on 16 April 2014 in terms of
which R150 million was payable by PwC to R&E. The settlement relates to the group's claims against PwC for
damages arising from PwC's audit of the group during the period 1999 to 2003. Shareholders are referred to the
announcement made by the company on 16 April 2014 relating to this settlement. R&E recognised the payment
of R150 million received in cash during June 2014.
7. Earnings per share
For the six months ended
Basic earnings and diluted earnings per 30 June 2014 30 June 2013
ordinary share Unaudited Reviewed
Basic and diluted earnings for the period (R'000) 152 266 16 554
Weighted average number of ordinary shares in issue 71 585 172 71 585 172
Earnings per share (cents) 213 23
Headline and diluted headline earnings
per ordinary share
Headline and diluted headline earnings for the 152 266 15 338
period (R'000)
Weighted average number of ordinary shares in issue 71 585 172 71 585 172
Headline earnings per share (cents) 213 21
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 152 266 16 554
Adjusted for:
Profit on disposal of prospecting rights (1 076)
Profit on disposal of available-for-sale investments (140)
152 266 15 338
Tax effect of adjustments
Headline earnings for the period attributable to equity
holders of the company 152 266 15 338
8. Net asset and tangible net asset value per share
The net asset value per share is calculated using the following variables:
30 June 2014 30 June 2013
Unaudited Reviewed
Net asset value (R'000) 178 801 192 432
Ordinary shares outstanding 71 585 172 71 585 172
Net asset value per share (cents) 250 269
Net tangible asset value per share (cents) 250 269
The number of shares outstanding at 30 June 2014 and 30 June 2013 has been adjusted for the 2,999,893
treasury shares held.
9. Material changes
The final settlement received from PwC is material in its totality.
10. 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.
11. 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) 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, 35 Kerk Street, Stellenbosch, 7600
Date: 19/08/2014 09:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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