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CRD - Central Rand Gold Limited - Summarised interim results for six months

Release Date: 28/08/2008 08:00:08      Code(s): CRD
CRD - Central Rand Gold Limited - Summarised interim results for six months     
ended June 30, 2008                                                             
Central Rand Gold Limited                                                       
("CRG" or the "Company")                                                        
(Incorporated as a company with limited liability under the laws of Guernsey,   
Company Number 45108)                                                           
(Incorporated as an external company with limited liability under the laws of   
South Africa, registration number 2007/0192231/10)                              
ISIN: GG00B248M601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
SUMMARISED INTERIM RESULTS FOR SIX MONTHS ENDED JUNE 30, 2008                   
Central Rand Gold Limited ("CRG" or "the Company"), the gold exploration and    
development company, is pleased to announce the financial results for the six   
months ended 30 June 2008.                                                      
Please refer to the Company`s website, www.centralrandgold.com for the full     
Interim Report.                                                                 
HIGHLIGHTS                                                                      
- Resource base upgraded in March by 1.8 million ounces to 35.7 million ounces; 
22.4 million ounces indicated, 13.3 million ounces inferred                     
- First three mining slots identified                                           
- Gekko trial mining plant expected to be commissioned in September, 2008       
- Positive results from underground bulk sampling                               
- Cash balance of US$133 million at June 30, 2008                               
Commenting on the interim results Greg James, CEO of Central Rand Gold, stated: 
"Since listing on the main boards of the London Stock Exchange and the JSE      
Limited in November 2007, Central Rand Gold has reached all of its milestones on
time.  Beyond the highly successful bulk sampling programme, which has          
demonstrated high gold grades in the disseminated pyrite ore, trial mining is   
scheduled to commence in October, 2008. This will generate cash flow and is a   
precursor to full mining due to commence in the first quarter of 2009."         
Contact:                                                                        
Greg James                             +27 (0) 11 551 4000                      
info@centralrandgold.com                                                        
Enquiries:                                                                      
Buchanan Communications Limited       +44 (0) 20 7466 5000                      
Bobby Morse/Robin Haddrill                                                      
Evolution Securities Limited          +44 (0) 20 7071 4300                      
Simon Edwards/Chris Sim/Neil Elliot                                             
Macquarie First South Corporate Finance   + 27 11 583 2000                      
Amanda Markman/Thato Morojele                                                   
Jenni Newman Public Relations (Pty) Ltd   + 27 11 772 1033                      
Jenni Newman                               +27 82 882 8888                      
jenninewman@jnpr.co.za                                                          
Megann Outram                             +27 83 320 7577                       
Chief Executive`s Review                                                        
CRG has made significant progress in the six months to June 30, 2008 and remains
on track to transition from exploration to mining in early 2009.                
New Order Mining Right                                                          
Following the submission of the Group`s New Order mining right application in   
October 2007, the period under review saw all other essential documentation     
submitted to the South African Department of Minerals and Energy - this included
the Environmental Management Programme, the Mining Work Programme and the Social
and Labour Plan.                                                                
Board Changes                                                                   
Michael McMahon was appointed as a non-executive director with effect from April
29, 2008.  He has served on the Boards of several of leading South African      
precious metal producers, adding considerable mining experience and insight to  
the Board.                                                                      
Johan du Toit was appointed Financial Director on June 12, 2008 with his        
appointment coming into effect from August 1, 2008. From 2004, Johan headed up  
the South African and European Financial Shared Services for BHP Billiton plc,  
delivering all aspects of financial management and reporting.                   
Exploration and Resources                                                       
In March 2008, the Group`s gold resource base was upgraded to 35.7 million      
ounces; 22.4 million ounces indicated, 13.3 million ounces inferred. This       
compares to the previous resource base of 33.8 million ounces; 21.4 million     
ounces indicated, 12.4 million ounces inferred.                                 
Considerable exploration activity took place during the period and has continued
into the second half of the year resulting in ongoing drilling, assaying, and   
bulk sampling initiatives across the Group`s prospecting areas. The first three 
mining slots - numbers 4 (Consolidated Main Reef ("CMR"), Kimberley Reef        
package), 8 and 9 (CMR, Main Reef package) - were identified for initial surface
mining activity when the Group moves into its mining phase.                     
The first half of the year resulted in considerable progress being made across a
number of important areas, placing the Group in an excellent position to move   
swiftly to full production once it receives its New Order mining right.         
In the second half of the year, the major focus will be on trial mining,        
continued exploration and bulk sampling activities, and advancing towards the   
commencement of full scale mining during 2009.                                  
Financial Highlights                                                            
The loss for the six months to June 30, 2008 amounted to US$16.7 million,       
equivalent to 7.17 cents per share. As at June 30, 2008, cash and cash          
equivalents totalled approximately US$133 million, decreasing by US$16 million  
from the $US149 million reported at December 31, 2007.                          
Cash utilised during the period reflects the investment in CRG`s mining         
operations, exploration, bulk sampling, plant acquisition and the recruitment of
high calibre mining teams prior to the commencement of full scale mining        
operations.                                                                     
In line with expectation, cash utilisation will accelerate from the second half 
of the year as the Group progresses into its trial mining phase with the        
commencement of the decline development and purchasing of concentrator plants.  
Trial Mining                                                                    
A trial mining plant capable of processing 20 tons of ore per hour was acquired 
from Australia`s Gekko Systems in May, 2008. The plant was shipped from         
Melbourne on July 31, 2008 and is expected to arrive and be commissioned in     
Johannesburg in September, 2008.                                                
This plant, which will be located on the surface near slot 8 - the first slot to
be utilised for underground access, will be operational during October and is   
expected to ramp-up to a processing rate of around 12,000 tons of ore per month.
This translates into producing between c.675 ounces and c.1,500 ounces per month
from surface and shallow underground material. Acquired at a cost of US$5.74    
million, the plant comprises a comminution circuit, a gravity circuit and a     
flotation circuit.                                                              
Trial mining will confirm the Company`s mining and metallurgical concepts and   
determine the final configuration of mining/processing requirements, leading to 
the commencement of full scale mining from surface deposits by the end of the   
first quarter of 2009.                                                          
Bulk Sampling                                                                   
As part of CRG`s exploration programme (surface mapping, diamond drilling, shaft
re-access and resource conversion investigations), zones of mineralisation have 
been identified in the hanging wall of the Main Reef Leader and the South Reef  
on the CMR prospecting area, as well as in grits outside of the reef in the form
of disseminated pyrite.                                                         
CRG has undertaken an extensive bulk sampling exercise to quantify these        
mineralised zones. Initial results from the bulk sampling programme are         
demonstrated in the table below:                                                
Sample ID    Values(g/t) Geology Comments                                       
(WBS1)                                                                          
R_4801       0.5         Gritty Quartzite.                                      
                        Sulphides.                                              
R_4802       0.68        Quartzite                                              
R_4803       28.3        MPC (South reef).                                      
Sulphides                                               
R_4804       0.68        Quartzite                                              
R_4805       78.8        Gritty Quartzite.                                      
                        Sulphides. Veining                                      
R_4806       7.48        Gritty Quartzite.                                      
                        Sulphides. Veining                                      
R_4807       2.54        Quartzite                                              
R_4808       0.56        Quartzite                                              
R_4809       12.9        MPC (South reef).                                      
                        Sulphides                                               
R_4810       1 731.0     Quartzite                                              
R_4811       11.5        Quartzite                                              
R_4812       82.7        MPC (South reef).                                      
                        Sulphides                                               
R_4813       25.7        Gritty Quartzite                                       
R_4814       19.4        South Reef. Sulphides                                  
R_4815       1.86        Gritty Quartzite                                       
The initial bulk sampling indicate that these zones have the potential to add to
the mineable tonnage and resource estimates. This also suggests that mass mining
in larger stopes may also be viable.                                            
Bulk sampling is continuing and is currently focusing on a cross-cut from the   
Main Reef to the South Reef (on 5 level, East Shaft) and on 9 level (+/-190m    
below surface, East Shaft) and will commence in the near future on 5 level, New 
Unified Shaft (CMR, approximately 3500m to the west of East Shaft).             
Broad Based Black Economic Empowerment                                          
During the period, Central Rand Gold SA (Pty) Ltd ("CRGSA") continued to make   
significant progress in regard to Broad-Based Black Economic Empowerment and    
this process is continuing to advance in the second half of the financial year. 
To date, no fewer than 84% of CRGSA`s staff could be classified as Historically 
Disadvantaged South Africans. It is envisaged that as CRGSA moves into the      
production phase, communities within CRGSA`s mining areas will become           
increasingly integrated into the employment profile and the ongoing procurement 
processes that will result from mining activities.                              
Minority Shareholding                                                           
Since the last report issued at the end of April 2008 there has been no         
resolution to the dispute relating to procedural breaches of the CRGSA          
shareholders agreement between the Company and the minority shareholder, Puno   
Gold Investments (Proprietary) Limited. The dispute surrounds the allocation of 
intercompany loans which fund the budget and work programme and the incurring   
of, and level of, certain costs. The Group has tried to settle any disagreements
amicably, but so far without success. The next step, if so required, is for the 
parties to refer the matter to arbitration pursuant to the dispute resolution   
mechanism under the shareholders agreement. The Group believes that ultimately  
their position will prevail. The directors are still of the opinion that this   
will not have any material consequences in respect of the consolidated accounts 
of the Group.                                                                   
Principal Risks and uncertainties                                               
The Group faces risks in the operation of its business. The Group`s strategy    
takes into account known risks, but risks will exist of which we are currently  
unaware. There is discussion of the principal risks and uncertainties facing the
Group on page 22 of the 2007 Annual Report, available from the Company`s        
website, www.centralrandgold.com. Risks that have arisen over the the past six  
months include issues facing the world`s banking and financial sectors that have
potentially reduced the availability of capital and the willingness of banks to 
lend. Aside from this, there has been no significant change in the Company`s    
risk environment.                                                               
CENTRAL RAND GOLD                                                               
LIMITED                                                                         
Condensed Group                                                                 
Balance Sheet                                                                   
as at 30 June 2008                                                              
                                                                                
                                                          Audited               
                            30 June        30 June        31 December           
2008           2007           2007                  
                      Note  US$            US$            US$                   
                                                                                
NON CURRENT ASSETS                                                              
Property, plant and    2     3,330,737      2,633,457      3,045,316            
equipment                                                                       
Prepayment                   2,201,946      -              -                    
Loan receivable        3     5,808,240      6,557,596      6,279,167            
11,340,923     9,191,053      9,324,483             
                                                                                
CURRENT ASSETS                                                                  
Prepayments and other        1,264,623      1,362,739      1,139,639            
receivables                                                                     
Cash and bank                132,550,655    6,582,072      149,194,757          
balances                                                                        
Security deposits and        2,864,734      1,442,855      2,072,757            
guarantees                                                                      
                            136,680,012    9,387,666      152,407,153           
                                                                                
TOTAL ASSETS                 148,020,935    18,578,719     161,731,636          

EQUITY AND                                                                      
LIABILITIES                                                                     
Share Capital          4     5,023,696      32,167,075     5,017,375            
Share Premium          4     191,405,973    -              191,405,973          
Share-based                  23,174,143     -              18,152,511           
Compensation Reserve                                                            
Merger Reserve               -              1,785,155      -                    
Treasury Shares        5     (35,079)       -              (31,120)             
Foreign Currency             (9,806,552)    209,267        (9,311,702)          
Translation Reserve                                                             
Accumulated Losses           (70,271,315)   (23,526,065)   (52,711,338)         
139,490,866    10,635,432     152,521,699           
Minority Interest            -              -              -                    
TOTAL EQUITY                 139,490,866    10,635,432     152,521,699          
                                                                                
NON CURRENT                                                                     
LIABILITIES                                                                     
Borrowings                   73,561         81,085         105,271              
Operating lease              41,826         -              38,226               
liability                                                                       
                            115,387        81,085         143,497               
                                                                                
CURRENT LIABILITIES                                                             
Trade and other              2,227,400      1,282,648      2,534,315            
payables                                                                        
Loan payable                 5,808,240      6,557,596      6,279,167            
Provisions                   185,437        -              125,212              
Taxation payable             160,778        -              92,066               
Borrowings                   32,827         21,958         35,680               
                            8,414,682      7,862,202      9,066,440             
                                                                                
TOTAL LIABILITES             8,530,069      7,943,287      9,209,937            
                                                                                
TOTAL EQUITY AND             148,020,935    18,578,719     161,731,636          
LIABILITIES                                                                     
CENTRAL RAND                                                                    
GOLD LIMITED                                                                    
Condensed Group                                                                 
Income Statement                                                                
for the 6 months                                                                
ended 30 June 2008                                                              
                                                                                
                                                    Audited                     
6 months       6 months        12 months                   
                     ended          ended           ended                       
                     30 June        30 June         31 December                 
                     2008           2007            2007                        
Note  US$            US$             US$                         
                                                                                
Other income          8,991          149,525         414,588                    
and gains                                                                       
Employee              (2,688,072)    (799,083)       (4,048,968)                
benefits                                                                        
expense                                                                         
Directors`      6     (5,688,631)    (238,208)       (10,083,856)               
emoluments                                                                      
Other share-          -              (2,516,469)     (10,957,934)               
based payments                                                                  
Depreciation          (386,942)      (224,976)       (525,007)                  
Operating             (383,994)      (225,816)       (621,952)                  
lease payments                                                                  
Exploration           (8,692,130)    (8,685,102)     (14,627,369)               
expenditure                                                                     
Other expenses        (3,692,357)    (1,961,430)     (5,880,416)                
Operating loss        (21,523,135)   (14,501,559)    (46,330,913)               
Interest              4,493,286      362,030         2,333,192                  
received                                                                        
Finance costs         (461,359)      (131,649)       (494,776)                  
Loss before           (17,491,208)   (14,271,178)    (44,492,497)               
income tax                                                                      
Income tax            (68,769)       -               (92,066)                   
expense                                                                         
Loss for the          (17,559,977)   (14,271,178)    (44,584,563)               
period                                                                          
                                                                                
Loss is                                                                         
attributable                                                                    
to:                                                                             
Minority              -              -               (38)                       
shareholders                                                                    
Equity holders        (17,559,977)   (14,271,178)    (44,584,525)               
of the Parent                                                                   
                     (17,559,977)   (14,271,178)    (44,584,563)                

Shares in             246,919,650    168,666,648     246,599,650                
issue                                                                           
Weighted              245,075,309    165,984,512     180,935,078                
average number                                                                  
of ordinary                                                                     
shares in                                                                       
issue                                                                           
Fully diluted         246,611,958    165,984,512     182,149,270                
weighted                                                                        
average number                                                                  
of ordinary                                                                     
shares in                                                                       
issue                                                                           
Basic loss per        (7.17)         (8.60)          (24.64)                    
share (cents)                                                                   
Headline loss         (7.16)         (8.60)          (24.43)                    
per share                                                                       
(cents)                                                                         
Diluted loss          (7.12)         (8.60)          (24.48)                    
per share                                                                       
(cents)                                                                         
Diluted headline      (7.12)         (8.60)          (24.27)                    
earnings per share                                                              
(cents)                                                                         
                                                                                
Reconciliation                                                                  
between loss                                                                    
attributable to the                                                             
equity holders of                                                               
the Group and the                                                               
headline loss                                                                   
earnings                                                                        
attributable to the                                                             
equity holders of                                                               
the Group:                                                                      
Loss attributable to  (17,559,977)   (14,271,178)    (44,584,525)               
equity holders of                                                               
the Group                                                                       
Loss on disposal of   388            -               375,259                    
property, plant and                                                             
equipment                                                                       
Headline loss         (17,559,589)   (14,271,178)    (44,209,266)               
attributable to                                                                 
equity holders of                                                               
the Group                                                                       
CENTRAL RAND GOLD LIMITED                                                       
Condensed Group Statement of Changes in Equity                                  
for the period ended 30 June 2008                                               
                                                                                
               Attributable to equity holders of the Company                    
                                                                                
Group           Ordinary   Shares not  Share       Merger     Foreign           
               Share      yet issued  Premium     Reserve    Currency           
               Capital                                       Translation        
                                                             Reserve            
US$        US$         US$         US$        US$                
                                                                                
Balance at 31   -          -           -           20,533,20  704,673           
December 2006                                      9                            
Shares issued   -          -           -           9,869,165  -                 
by                                                                              
subsidiaries                                                                    
during the                                                                      
year                                                                            
Share based     -          -           -           2,606,250  -                 
payments by                                                                     
subsidiary -                                                                    
consulting                                                                      
fees                                                                            
Corporate       -          32,167,075  -           (31,223,4  (943,605)         
reorganisatio                                      69)                          
n                                                                               
Foreign         -          -           -           -          448,199           
currency                                                                        
adjustments                                                                     
Loss for the    -          -           -           -          -                 
period                                                                          
Balance at 30   -          32,167,075  -           1,785,155  209,267           
June 2007                                                                       

Balance at 31   5,017,375  -           191,405,973 -          (9,311,702)       
December 2007                                                                   
Treasury        6,321      -           -           -          -                 
shares issued                                                                   
Share based     -          -           -           -          -                 
payments -                                                                      
employees and                                                                   
director`s                                                                      
shares                                                                          
Foreign         -          -           -           -          (494,850)         
currency                                                                        
adjustments                                                                     
Loss for the    -          -           -           -          -                 
period                                                                          
Balance at 30   5,023,696  -           191,405,973 -          (9,806,552)       
June 2008                                                                       
CENTRAL RAND GOLD LIMITED                                                       
Condensed Group Statement of Changes in Equity                                  
continued                                                                       
for the period ended 30 June 2008                                               
                                                                                
                                                                                
Group           Treasury  Accumulated   Total         Mi  Total                 
Shares    Losses                      no                         
                                                     ri                         
                                                     ty                         
                                                     in                         
te                         
                                                     re                         
                                                     st                         
               US$       US$           US$           US  US$                    
$                          
                                                                                
Balance at      -         (10,667,195)  10,570,687    -   10,570,687            
31 December                                                                     
2006                                                                            
Shares          -         -             9,869,165     -   9,869,165             
issued by                                                                       
subsidiaries                                                                    
during the                                                                      
year                                                                            
Share based     -                       2,606,250     -   2,606,250             
payments by                                                                     
subsidiary -                                                                    
consulting                                                                      
fees                                                                            
Corporate       -         1,412,308     1,412,309     -   1,412,309             
reorganisati                                                                    
on                                                                              
Foreign         -         -             448,199       -   448,199               
currency                                                                        
adjustments                                                                     
Loss for the    -         (14,271,178)  (14,271,178)  -   (14,271,178)          
period                                                                          
Balance at      -         (23,526,065)  10,635,432    -   10,635,432            
30 June 2007                                                                    
                                                                                
Balance at      (31,120)  (52,711,338)  152,521,699   -   152,521,699           
31 December                                                                     
2007                                                                            
Corporate       -                       -             -   -                     
reorganisati                                                                    
on                                                                              
Treasury        (6,321)   -             -             -   -                     
shares                                                                          
issued                                                                          
Share based     2,362     -             5,023,994     -   5,023,994             
payments -                                                                      
employees                                                                       
and                                                                             
director`s                                                                      
shares                                                                          
Foreign         -         -             (494,850)     -   (494,850)             
currency                                                                        
adjustments                                                                     
Loss for the    -         (17,559,977)  (17,559,977)  -   (17,559,977)          
period                                                                          
Balance at      (35,079)  (70,271,315)  139,490,866   -   139,490,866           
30 June 2008                                                                    
CENTRAL RAND GOLD LIMITED                                                       
Condensed Group Cash Flow                                                       
Statement                                                                       
for the 6 months ended 30                                                       
June 2008                                                                       
                                                                                
                                                        Audited                 
                             6 months     6 months      12 months               
ended        ended         ended                   
                             30 June      30 June       31 December             
                             2008         2007          2007                    
                             US$          US$           US$                     

CASH FLOWS FROM OPERATING                                                       
ACTIVITIES                                                                      
Loss before tax               (17,491,208) (14,271,178)  (44,492,497)           
Adjusted for :                                                                  
Depreciation                  386,942      224,976       525,007                
Employment benefit            4,700,410    2,516,469     20,708,141             
expenditure (Share based                                                        
payments)                                                                       
Loss on disposal of fixed     388          -             375,259                
assets                                                                          
Net loss/(gain) on foreign    (1,297,011)  744,278       (315,618)              
exchange                                                                        
Other income received         -            -             (4,027)                
Interest received             (4,493,286)  (362,030)     (2,333,192)            
Finance costs                 461,359      131,649       494,776                
Changes in working capital                                                      
Increase in receivables       (124,985)    (468,776)     (245,676)              
Increase in provisions        60,225       -             125,212                
Increase/(decrease) in trade  (306,972)    1,023,523     2,275,188              
and other payables                                                              
Cash flows absorbed by        (18,104,138) (10,461,089)  (22,887,427)           
operations                                                                      
Other income received         -            -             4,027                  
Interest received             4,493,286    362,030       2,333,192              
Finance costs                 (461,359)    (131,649)     (494,776)              
Net cash used in operating    (14,072,211) (10,230,708)  (21,044,984)           
activities                                                                      

CASH FLOWS FROM INVESTING                                                       
ACTIVITIES                                                                      
Purchases of property, plant  (1,087,344)  (890,276)     (1,901,596)            
& equipment                                                                     
Proceeds from disposal of     388          -             131,594                
property, plant and                                                             
equipment                                                                       
Increase in operating lease   3,601        -             38,226                 
liability                                                                       
Increase in non-current       (2,201,946)  -             -                      
prepayment                                                                      
Net cash used in investing    (3,285,301)  (890,276)     (1,731,776)            
activities                                                                      
                                                                                
CASH FLOWS FROM FINANCING                                                       
ACTIVITIES                                                                      
Proceeds and repayments of    (34,564)     103,043       140,952                
borrowings                                                                      
Increase in security          (791,977)    (1,164,946)   (1,794,849)            
deposits                                                                        
Proceeds from issuance of     2,362        10,902,552    172,431,236            
shares                                                                          
Net cash used in financing    (824,179)    9,840,649     170,777,339            
activities                                                                      
                                                                                
Net (decrease)/increase in    (18,181,691) (1,280,335)   148,000,579            
cash and cash equivalents                                                       
Cash and cash equivalents at  149,194,757  7,529,622     7,529,622              
beginning of period                                                             
Effects of exchange rate      1,537,589    332,785       (6,335,444)            
movement on cash balances                                                       
Cash and cash equivalents at  132,550,655  6,582,072     149,194,757            
end of period                                                                   
CENTRAL RAND GOLD                                                               
LIMITED                                                                         
Notes to the Condensed Interim Group                                            
Financial Statements                                                            
                                                                                
1. Basis of presentation and general                                            
information                                                                     
                                                                                
General information                                                             
                                                                                
Central Rand Gold Limited is a Guernsey incorporated company and it             
is also registered in South Africa as an external company. One of its           
subsidiaries, Central Rand Gold (Netherlands Antilles) N.V, was                 
incorporated in the Netherlands Antilles. CRG`s operating subsidiary            
is Central Rand Gold South Africa (Proprietary) Limited and is                  
registered in South Africa. CRG has a primary listing on the London             
Stock Exchange ("LSE") and a secondary listing on JSE Limited                   
("JSE").                                                                        

Legally, CRG complies with the company laws of its place of                     
incorporation being Guernsey and the company laws of the place of its           
external registration being South Africa. By virtue of its LSE                  
listing, CRG experiences the impact of UK company laws and because              
one of its subsidiaries, Central Rand Gold (Netherlands Antilles) N.V           
, is incorporated in the Netherlands Antilles, the Group is also                
impacted by the company laws of the Netherlands Antilles.                       

This condensed consolidated interim financial information was                   
approved for issue on 27 August 2008.                                           
                                                                                
Accounting policies                                                             
                                                                                
The Annual Financial Statements of Central Rand Gold Limited for the            
year ended 31 December 2007 were prepared in accordance with                    
International Financial Reporting Standards ("IFRS").                           
                                                                                
The condensed set of Financial Statements included in this half-                
yearly financial report has been prepared using accounting policies             
consistent with IFRS and in accordance with IAS 34 `Interim Financial           
Reporting`.                                                                     
                                                                                
                                                                                
The accounting policies applied in the Interim Financial Statements             
are the same as those applied in the most recent Annual Financial               
Statements for the year ended 31 December 2007.                                 
                                                                                

Foreign currency                                                                
rates                                                                           
                                                                                
The US Dollar rates of exchange                                                 
applicable to the periods are as                                                
follows:                                                                        
                                                                                
2008       2007        2007                       
                              Six        Six months  Year                       
                              months to  to 30 June  ended 31                   
                              30 June                December                   
Closing    Closing     Closing                    
                              Average    Average     Average                    
                                                                                
South African Rand             0.13       0.14        0.15                      
0.13       0.14        0.14                       
British Pound                  2.00       2.00        2.00                      
                              1.98       1.97        2.03                       
                                                                                
2. Property, plant                                                              
and equipment                                                                   
                                                                                
During the period the Group spent $1,087,344 on the renovations of              
the Head Office to increase office capacity, on mining modelling                
software and on equipment to continue with the shaft re-access                  
programme.                                                                      
                                                                                
3. Loan receivable                                                              
                                                                                
Puno Gold Investments                                                           
(Proprietary) Limited                                                           

Since the last report for the year ended 31 December 2007 there has             
been no resolution to the dispute relating to procedural breaches of            
the Central Rand Gold South Africa (Proprietary) Limited (CRGSA)                
shareholders agreement between CRGSA and our BEE partner, Puno Gold             
Investments (Proprietary) Limited. The dispute surrounds the                    
allocation of intercompany loans which fund the budget and work                 
programme and the incurring of, and level of, certain costs. The                
Group has tried to settle any disagreements amicably, but so far                
without success. The next step, if so required, is for the parties to           
refer the matter to arbitration pursuant to the dispute resolution              
mechanism under the shareholders agreement. The Group believes that             
ultimately their position will prevail. The directors are still of              
the opinion that this will not have any material consequences in                
respect of the consolidated accounts of the Group. Notwithstanding              
this position, the Group have pending the outcome of any dispute                
allocated 100% of the intercompany balances directly through from the           
Company to CRGSA. This additional 26% of intercompany debt excluding            
interest amounts to ZAR 29,541,700 (US $4,278,795)                              
between 30 June 2007 and 31 December 2007 and ZAR 33,251,171 (US                
$4,229,549) between 1 January 2008 and 30 June 2008.                            
                                                                                
The loan payable to Puno Gold Investments (Proprietary) Limited                 
contains the same allocations referred to above.                                

4. Share capital and share                                                      
premium                                                                         
                                                                                
During the period under review 320 000 shares were issued to the                
Employee Share Trust at par value.                                              
                                                                                
5. Treasury shares                                                              

During the period the Company issued 320,000 treasury shares at a               
value of GBP0.01 per share to the Employee Share Trust. 100 000                 
shares to Mr M McMahon and 20 000 shares to Mr K Kunene have vested             
before 30 June 2008. The balance of the 200 000 shares for Mr M                 
McMahon vest as follows: 100 000 will vest on 29 April 2009 and 100             
000 on 29 April 2010. No other shares were issued from the Employee             
Share Trust.                                                                    

6.Directors`                                                                    
emoluments                                                                      
                                                                                
A director of the Group, Mr S Ramokgopa, resigned during the period.            
His cash termination benefits amounted to $204,243. Mr. S Ramokgopa             
retains his share options granted to him on 31 October 2007. Due to             
his resignation the future share options were recognised on the date            
of his resignation. The value of the accelerated share-based payments           
for these share options is $1,231,627.                                          
                                                                                
7.Commitments                                                                   

                                               Group                            
                                               June        December             
                                               2008        2007                 
US$         US$                 
a) Purchase of                                                                  
shares in companies                                                             
                                                                                
Purchase price of                                                               
Ferreira Estate and                                                             
Investment Company                                                              
Limited (``FEIC``)                                                              

                                                                                
                                               1,000,000   1,000,000            
                                                                                
b) Various contractual                                                          
amounts payable                                                                 
                                                                                
                                               Group                            
June        December             
                                               2008        2007                 
                                                US$         US$                 
Payment for the                                 3,483,769   -                   
purchase of a pilot                                                             
plant from Gekko                                                                
Systems                                                                         
(Proprietary)                                                                   
Limited                                                                         
Fees payable to                                 62,260      -                   
Maersk Logistics SA                                                             
(Proprietary)                                                                   
Limited for                                                                     
transport of the                                                                
pilot plant                                                                     
Fees payable to                                 -           500,000             
iProp Limited for                                                               
prospecting                                                                     
Fees payable to                                 250,000     -                   
Gravelotte Mines                                                                
Limited to exercise                                                             
the option to                                                                   
purchase the                                                                    
prospecting right                                                               
Option fees payable                             -           100,000             
to Gravelotte Mines                                                             
Limited                                                                         
                                               3,796,029   600,000              

8.Segment reporting                                                             
                                                                                
The Group operates predominately in one business and geographical               
segment being the acquisition of mineral rights and data gathering on           
the Central Rand Goldfield of South Africa and related commercial               
activities. Accordingly, no analysis of segment revenue, results or             
net assets has been presented.                                                  

9.Share based                                                                   
payments                                                                        
                                                                                
Grant of options in                                                             
the company                                                                     
                                                                                
During the period further share options were granted to selected                
employees. The options granted are summarized below.                            
                                                                                
Vesting               Strike Price        Allocation  Number of share           
                                                     options granted            

555,556 on the first  Exercise price      Selected          1,666,667           
anniversary of        escalates in        staff                                 
admission being 8     accordance with the                                       
November 2008,        vesting tranches.                                         
555,556 on the        One third at                                              
second anniversary    Placing Price of                                          
of admission and the  GBP1.25, one third                                        
balance on the third  at 150% of Placing                                        
anniversary of        Price and one third                                       
admission.            at 200% of Placing                                        
                     Price.                                                     

Grant of shares in                                                              
the company                                                                     
                                                                                
During the period under review the Company granted the following                
shares to Directors and Senior Manager of the Group.                            
                                                                                
                     Purchase Number of  Purchase    Release                    
Name                  date     shares     price       period                    
Directors                                                                       
Mr M McMahon          27 June             GBP 0.01    100,000 on                
                     2008     300,000                grant date,                
100,000 on 1st             
                                                     anniversary of             
                                                     the appointment            
                                                     date and the               
remainder on               
                                                     the 2nd                    
                                                     anniversary of             
                                                     the appointment            
date.                      
                                                                                
                                                                                
                                                                                

Senior management                                                               
Mr K Kunene           9 May               GBP 0.01    20,000 on grant           
                     2008     20,000                 date.                      

10. Related parties                                                             
                                                                                
Except for the grant of shares in the Company disclosed in Note 9 -             
Share-based payments, and the resignation of a director disclosed in            
Note 6 - Directors Emoluments, no other disclosable related party               
transactions occurred in the period.                                            
Date: 28/08/2008 08:00:06 Supplied by www.sharenet.co.za                     
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