RANDGOLD & EXPLORATION COMPANY LIMITED - Summarised Group Financial Statements For The Year Ended 31 December 2017 And Notice Of Annual General Meeting

Release Date: 26/03/2018 09:00
Code(s): RNG
 
Wrap Text
Summarised Group Financial Statements For The Year Ended 31 December 2017 And Notice Of Annual General Meeting

Randgold & Exploration Company ltd
(Incorporated in the Republic of South Africa)
(Registration Number: 1992/005642/06)
Sharecode: RNG
ISIN: ZAE000008819
(R&E or the company)


ABRIDGED GROUP FINANCIAL STATEMENTS 2017


COMMENTARY TO THE SUMMARISED GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 AND NOTICE OF ANNUAL GENERAL MEETING

GENERAL
The board of R&E is pleased to announce the audited results for the year ended 31 December 2017. Mr Van Zyl Botha CA(SA), 
Financial Director, is responsible for the annual financial statements and these summarised annual results and has supervised 
the preparation thereof in conjunction with Mrs Mandrie Steyn CA(SA) (Group Financial Manager).

INCOME
The 2017 group results reflected a total comprehensive loss for the year of R7.0 million (2016: R7.9 million). 
This was mainly as a result of an increase in legal fees. During the year income was derived primarily from third party recoveries 
of R1.1 million (2016: R6.4 million), the sale of prospecting rights realising a profit of R9.1 million and interest of R13.0 million 
(2016: R13.7 million) earned on cash investments. The company spent R6.7 million (2016: R6.4 million) on personnel costs, R22.4 million 
(2016: R18.3 million) on legal and forensic fees, and other operational costs totalled R2.1 million (2016: R4.8 million).


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 
per share of R2.13 at 31 December 2017. (2016: R2.23)

CASH FLOW
R&E started the year under review with a cash and cash equivalent balance of R170.0 million. The group's cash outflow of R9.9 million was 
the net result of interest earned on cash, the disposal of prospecting rights and recoveries received, less cash utilised to fund its 
operations during the year. R&E remains in a healthy cash position with R160.1 million in cash and cash equivalents at 31 December 2017.

OUTLOOK
The outlook for 2018 is largely dependent on the progress and outcome of current legal matters. Expenditure on litigation is expected to be 
at a similar level as 2017. Until the claims in which the company are engaged have been finalised, this pattern of expenditure is likely 
to prevail.

David Kovarsky        Marais Steyn
Chairman              Chief Executive Officer

Johannesburg
23 March 2018


SUMMARISED GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2017


                                                                             Audited      Audited
                                                                                2017         2016
                                                                     Notes     R'000        R'000
Dividends received - listed equity securities                                    294          296
Profit on disposal of listed equity securities                                    33           66
Recoveries                                                               7     1 158        6 441
Other income                                                                     150            -
Personnel expenses                                                            (6 711)      (6 444)
Profit on disposal of prospecting rights                                 6     9 120            -
Change in fair value of listed equity securities                                (389)         917
Change in fair value of cash investments                                         851         (545)
Other operating expenses                                                     (24 528)     (23 196)
Loss from operating activities                                               (20 022)     (22 465)
Finance income                                                                13 005       14 445
Finance expense                                                                    -         (654)
Loss before taxation                                                          (7 017)      (8 674)
Taxation                                                                           -            -
Loss for the year                                                             (7 017)      (8 674)
Other comprehensive income
Items of other comprehensive income that will 
not be subsequently reclassified to profit or loss
Actuarial (losses)/gains                                                         (42)         687
Total comprehensive income for the year                                       (7 059)      (7 987)

Basic and diluted loss per share (cents)                                 8       (10)         (12)
 


SUMMARISED GROUP STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2017

                                                                             Audited       Audited
                                                                                2017          2016
                                                                               R'000         R'000
Assets 
Non-current assets                                                                17            24
Equipment                                                                         17            23
Intangible assets                                                                  -             1
Current assets                                                               166 661       176 842
Investment in listed equity securities                                         6 472         6 683
Trade and other receivables                                                       85           118
Cash and cash equivalents                                                    160 104       170 041
 
Total assets                                                                 166 678       176 866

Equity and liabilities
Shareholders' equity                                                         152 717       159 776
Ordinary share capital                                                           716           716
Retained earnings                                                            152 001       159 060

LIABILITIES
Non-current liabilities
Post-retirement medical benefit obligation                                    11 404        11 849

Current liabilities
Trade and other payables                                                       2 557         5 241
Total equity and liabilities                                                 166 678       176 866


SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2017

                                                                              Audited      Audited
                                                                          31 December  31 December
                                                                                 2017         2016
                                                                                R'000        R'000
Attributable to equity holders of the company
Ordinary share capital                                                            716          716

Retained earnings                                                             152 001      159 060
Balance at the beginning of the period                                        159 060      167 047
Total comprehensive income for the year                                        (7 059)      (7 987)



SUMMARISED GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2017

                                                                              Audited      Audited
                                                                          31 December  31 December
                                                                                 2017         2016
                                                                                R'000        R'000
Loss before taxation                                                           (7 017)      (8 674)
Adjusted for:
Profit on disposal of listed equity securities                                    (33)         (66)
Profit on disposal of prospecting rights                                       (9 120)           -
Change in fair value of listed equity securities                                  389         (917)
Purchase of computer equipment                                                      -          (18)
Depreciation                                                                        6            2
Post-retirement medical benefit obligation - interest cost                        975        1 190
Interest received                                                             (13 005)     (14 445)
Interest paid                                                                       -          654
Dividends received                                                               (294)        (296)
Working capital changes                                                        (2 651)       4 109
Cash utilised in operating activities                                         (30 750)     (18 461)
Interest received                                                              13 005       14 445
Interest paid                                                                       -         (654)
Post-retirement medical benefit liability - benefits paid                      (1 462)      (1 526)
Cash flow from operating activities                                           (19 207)      (6 196)
Cash flow from investing activities                                             9 270          299
Dividends received                                                                294          296
Proceeds on disposal of prospecting rights                                      9 120            -
Acquisition of investment in listed equity securities                          (2 269)      (1 647)
Proceeds on disposal of listed equity securities                                2 125        1 650
Cash flow from financing activities                                                 -            -

Decrease in cash and cash equivalents                                          (9 937)      (5 897)
Cash and cash equivalents at the beginning of the year                        170 041      175 938
Cash and cash equivalents at the end of the year                              160 104      170 041


NOTES TO THE SUMMARISED GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

1.REPORTING ENTITY
R&E is a company domiciled and incorporated in the Republic of South Africa. The summarised group annual financial statements of 
the company for the year ended 31 December 2017 includes the company and its subsidiaries (together referred to as "the group").

2.BASIS OF PREPARATION
The summarised group financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements 
for abridged reports, and the requirements of the Companies Act applicable to summary financial statements. The Listings Requirements 
require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of 
International Financial Reporting Standards ("IFRS") and the SAICA Financial Reporting Guides as issued by the Accounting Practices 
Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Accountants Council and to also, as a minimum, 
contain the information required by IAS 34 Interim Financial Reporting.

3.SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of the group financial statements, from which the summarised group financial 
statements were derived, are in terms of IFRS and are consistent with the accounting policies applied in the preparation of the 
previous group annual financial statements.The accounting policies have been applied consistently by all group entities.

4.INDEPENDENT AUDIT BY THE AUDITOR
These summarised group financial statements for the year ended 31 December 2017 have been extracted from the complete set of annual 
financial statements on which the auditors, KPMG Inc., have expressed an unqualified audit opinion, dated 23 March 2018. 
The auditor's report and annual financial statements, which have been summarised in this report, are available for inspection at the 
registered office of the company. This abridged report is extracted from audited information, but is not itself audited. The directors 
take full responsibility for the preparation of this report and that the financial information has been correctly extracted from the 
underlying annual financial statements.

5.SEGMENT REPORTING
The group operates in a single operating segment as an investment holding company.

6.PROSPECTING RIGHTS
During 2017 R&E received proceeds of R 9.1 million from the disposal of the Doornbosch prospecting right.

7.RECOVERIES
During 2017 R&E received liquidation dividends from The Insolvent Deceased Estate of Roger Brett Kebble of R1.1 million.

8.LOSS PER SHARE 
                                                                                 2017           2016
                                                                            Per share      Per share
Loss per share                                                              (in cents)     (in cents)
Basic loss and diluted loss per ordinary share                                    (10)           (12)

The calculation of basic and diluted loss per ordinary share is based
on loss of R7.0 million (2016: R8.6 million) attributable to ordinary 
shareholders of the company and a weighted average of 71 585 172 
(2016: 71 585 172) shares in issue.

Headline loss and diluted headline loss per share                                 (23)           (12)
   
The calculation of the headline loss and diluted headline loss per share
is based on headline loss of R16.1 million(2016: R8.6 million) attributable 
to equity holders of the company and a weighted average of 71 585 172 
(2016: 71 585 172) ordinary shares in issue.

Reconciliation between basic loss for the year and headline loss
Loss for the year attributable to equity holders of the company                (7 017)        (8 674)
Adjusted for:
Profit on disposal of prospecting rights                                       (9 120)             -
Headline loss for the year attributable to equity holders of the company      (16 137)        (8 674)


9.NET ASSET AND TANGIBLE NET ASSET VALUE PER SHARE
The net asset value per share is calculated using the following variables:

                                                                          31 December    31 December
                                                                                 2017           2016
Net asset value (R'000)                                                       152 717        159 776
Ordinary shares outstanding                                                71 585 172     71 585 172
Net asset value per share (cents)                                                 213            223
Net tangible asset value per share (cents)                                        213            223


The number of shares outstanding at 31 December 2017 and 31 December 2016 has been adjusted for the 2 999 893 treasury shares held.

10.MATERIAL CHANGES
No material changes occurred during 2017.

11.RELATED PARTY TRANSACTIONS
There were no related party transactions during the period under review other than in the normal course of business. Key management remuneration 
for the current year was R4.8 million (2016: R4.5 million). JH Scholes, a director of R&E, is also a director of Malan Scholes Attorneys, which 
provides legal prospecting right consulting services to R&E on an ad hoc basis. The cost of these services amounted to R45 790 during 2017 
(2016: R119 860).

12.EVENTS AFTER REPORTING DATE
There were no significant events between the reporting date and the approval date of these results.

13. NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the annual general meeting ("the meeting" or "the annual general meeting") of shareholders of R&E will be held at 
The Westin Cape Town, Convention Square, Lower Long Street, Cape Town, at 11:00 on Friday 18 May 2018. A copy of the notice of the annual general 
meeting, incorporating the summarised group financial statements will be distributed to shareholders on 26 March 2018. The date on which shareholders 
must be recorded in the share register, maintained by the transfer secretaries, for purpose of being entiteled to attend and vote at the meeting.
is Friday, 11 May 2018, with the last day to trade being, Tuesday, 8 May 2018.  

Directors
DC Kovarsky (Chairman)**, M Steyn (CEO)*, V Botha*, P Burton**, JH Scholes**
(*Executive, **Independent Non-executive)

Company secretary: V Botha CA(SA)

26 March 2018

Sponsor: PSG Capital Proprietary Limited, First Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600

Transfer Secretaries: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank 2196 (Registration number 2004/003647/07)


Date: 26/03/2018 09:00:00 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.

Email this JSE Sens Item to a Friend.

Share This Story