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CRD - Central Rand Gold Limited - Annual report release

Release Date: 25/03/2009 11:00:03      Code(s): CRD
CRD - Central Rand Gold Limited - Annual report release                         
Central Rand Gold Limited                                                       
("CRG" or the "Company" or the "Group")                                         
(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: GG00B24HM601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
Annual Report Release                                                           
Central Rand Gold has recorded some significant highlights during 2008. These   
-    Receipt of the First New Order Mining Right                                
-    Commencement of trial mining                                               
-    Commissioning of first crushing and concentrating plant                    
-    One million injury free man hours achieved                                 
-    First gold pour                                                            
-    Targeting an exit rate of 100,000oz of gold per annum by 2009 year end     
    Chairman`s Report                                                           
Please note the Annual General Meeting ("AGM") of the Company is to be held     
at the offices of Carey Olsen, Carey House, Les Banques, St Peter Port,         
Guernsey, GY1 4BZ at 11 a.m. on 21 May 2009. Shareholders wishing to            
participate in the AGM, in Guernsey via video link from London may do so at     
the offices of Hunton & Williams, 30 St Mary Axe, London EC3A 8EP and           
shareholders wishing to participate in the AGM via video link from              
Johannesburg may do so at the offices of Taback and Associates (Proprietary)    
Limited, 13 Eton Road, Parktown, Johannesburg.                                  
For the Company Profile, Directors` Report, Corporate Governance and            
Sustainable Development Report, Directors` Responsibility Statement, Company    
Secretarial Confirmation, Auditor`s Report and full Financial Statements,       
please refer to the company`s website: www.centralrandgold.com.                 
Johan du Toit                                +27 (0) 11 551 4000                
Wayne Epstein                                +27 (0) 11 551 4000                
Evolution Securities Limited                 +44 (0) 20 7071 4300               
Simon Edwards / Chris Sim / Neil Elliot                                         
Macquarie First South Advisers (Pty) Ltd                                        
+27 (0) 11 583 2000                                                             
Thato Morojele / Annerie Britz / Melanie de Nysschen                            
Buchanan Communications Limited              +44 (0) 20 7466 5000               
Bobby Morse / Ben Willey                                                        
Jenni Newman Public Relations (Pty) Ltd      +27 (0) 11 772 1033                
Jenni Newman / Megann Outram                                                    
Chairman`s Report                                                               
It is my pleasure to report to shareholders on the significant progress made    
by Central Rand Gold during 2008 and to provide some insight into the           
continued advances the Company expects to make in 2009 and beyond.              
Before I do this, it is worth reflecting on the fact that the Company started   
out less than three years ago as a small exploration entity with a large        
vision. With just 10 employees and few technical and financial resources,       
bringing commercial gold mining back to Johannesburg was indeed a big and       
bold vision, but one that is now much closer to realisation.                    
Tracking the plan laid out in the IPO prospectus issued at the time of the      
Company`s IPO (the "Prospectus"), the Company achieved three major milestones   
during 2008:                                                                    
-    Receipt of our first New Order Mining Right on September 17 from South     
Africa`s Department of Minerals and Energy ("DME");                         
-    Commencement of our trial mining phase on October 1, utilising the plant   
    imported from Gekko Systems; and                                            
-    Pouring our first gold at Rand Refinery Limited on December 4.             
Throughout our Mining Right application process the DME gave us prompt and      
useful feedback, and I must thank them for the speedy and professional manner   
in which our Mining Right was considered and ultimately awarded. This is a      
positive message for investment in South Africa at a time when there is a       
global shortage of capital as a result of the financial meltdown which          
continues into 2009.                                                            
In terms of receiving our first Mining Right, I would like to acknowledge the   
support of the following groups that gave us solid backing through this         
exacting process: Umkhonto we Sizwe Military Veterans` Association; Youth in    
Minerals and Energy; the Congress of South African Students; and the Affected   
Community Elected Representatives.                                              
Community Focus                                                                 
Without doubt, the substantial forward momentum achieved during 2008 is         
testimony to the quality of our management team and the efforts of every        
member of the expanding CRG family. Importantly, the strides we have taken so   
far have also been made possible by the communities within which we operate.    
Their support, their cooperation and their enthusiasm - demonstrated by more    
than 20,000 people attending our various community meetings and workshops -     
has been critical to our success to date.                                       
In my previous Chairman`s Report, I placed a strong emphasis on the vital       
nature of our relationship with our communities and this has certainly proved   
to be the case. Our focus on communities sets us apart from many of our peers   
in the global mining industry and lays the foundation for our future.           
As a company operating in an urban environment, we have major obligations to    
our communities and are committed to embracing them in a variety of ways        
which will create employment, improve skills levels, uplift standards of        
living and create wealth. Of our 259 employees at the end of 2008, no fewer     
than 109 come from the communities surrounding our operations and               
approximately 90% come from the historically disadvantaged sectors of South     
African society.                                                                
During 2009, several of the initiatives laid out in our Social and Labour       
Plan will get underway, adding value in a sustainable, meaningful and           
practical manner to our communities.                                            
On November 11, 2008, I was privileged to give the keynote address at a         
function to commemorate the official signing of our first New Order Mining      
Right. I used this occasion to stress the need for a broadening of our Black    
Economic Empowerment ("BEE") ownership structure to ensure that our             
communities become stakeholders. The board has taken action on this front and   
the 26% BEE stake in our South African operating company is being               
restructured to more directly benefit our communities. A stock exchange         
announcement to this effect was made on February 16, 2009 outlining the         
intended recall of shares in the operating subsidiary, CRGSA, from Puno Gold    
Investments (Proprietary) Limited to be placed in a trust, pending the          
outcome of the restructure geared towards new, more broadly-based, BEE          
In this regard, it is important to note that the project is of great            
importance to the Johannesburg and Gauteng region, as it will create a whole    
new generation of mining and associated businesses in the area. It has always   
been CRG`s strategy to maximise the considerable opportunities for the local    
communities which this project will bring. As such, we are committed to         
ensuring that our Broad-Based Black Economic Empowerment ("BBBEE") is           
precisely what it is meant to be - broad based and for the benefit of the       
communities and all the stakeholders involved in this exciting project.         
First gold pour                                                                 
On December 4, 2008, I attended Central Rand Gold`s first gold pour at Rand     
Refinery Limited in Germiston, South Africa, which was certainly a meaningful   
milestone for everyone involved with the Company.                               
The occasion of the gold pour was certainly a time for reflection and an        
opportunity to put our progress into context: what had started out as a         
concept 3 years earlier had now directly translated into gold output; an        
outfit that started out with less than 10 people had now transformed into a     
gold exploration and mining company employing over 250 people with many more    
employed by our contractors.                                                    
It was indeed fitting that Greg James, the Company`s first Chief Executive      
Officer, chose the day after the initial gold pour to announce that he would    
be standing down from his leadership role. It had always been Greg`s            
intention to get CRG to the gold production stage, and he achieved this         
within the timeline indicated at the time of the IPO. He took on this           
important job in 2006 and professionally and sensitively guided the Company     
through its sometimes difficult formative phase, which has seen CRG transform   
from an explorer to a miner.                                                    
The spirit that he infused into the Company continues, as do the strong         
relationships that he built internally and externally. My thanks, and those     
of the Board, go to him for his significant contribution to the Company.        
Our thanks also go to Riccardo Vittino who played an important role in the      
early stages of the Company and was our Financial Director until mid-2008.      
Johan du Toit, who succeeded Riccardo as Financial Director in August 2008,     
was appointed by the Board to succeed Greg as Chief Executive Officer with      
effect from December 2008. Johan, who held a senior management position with    
BHP-Billiton before joining CRG, has moved seamlessly into his new role. His    
major task during 2009 will be to guide the Company into commercial             
I would like to thank each and every member of the Board for the huge amount    
of effort they have put into, and continue to contribute, assisting our         
management team in the ongoing development of the Company.                      
Looking ahead                                                                   
As outlined in the IPO prospectus, the original intention of the Company was    
to undertake a comprehensive exploration programme that would lead to our       
first commercial gold production taking place during 2009. We are on track to   
produce our first commercial gold by mid-2009, gradually building up towards    
an annualised production rate of 100,000 ounces by the end of 2009.             
During 2009, we will be involved in a major capital expenditure programme as    
part of our objective to reach an annualised rate of 100,000 ounces by the      
end of the year. Importantly, the cash for this capital expenditure will be     
funded from the cash that was raised at the time of the IPO in November 2007    
and from revenue earned during the course of 2009. Significantly, we are also   
on track to convert a portion of our Resources to Reserves, another sign of     
the Company`s rapid transformation from explorer to miner.                      
It promises to be an extremely meaningful year as all the hard work that was    
channelled into receiving our Mining Right and commencing trial mining will     
now manifest itself in the return of commercial gold mining to the Central      
Rand Goldfield.                                                                 
After reaching a low in 2008, in line with adverse investor sentiment towards   
mining stocks, our share price has been somewhat re-rated, and this process     
should continue as we deliver on our targets and begin to realise the           
potential that undoubtedly exists in our operations.                            
With a strong and dedicated management team and an efficient and motivated      
workforce, I am confident that Central Rand Gold and all the Company`s          
stakeholders can look forward to another notable year in 2009.                  
Alastair Walton                                                                 
Chief Executive Officer`s Report                                                
The past year has been hugely significant for Central Rand Gold and has laid    
the foundation for the Company to become a meaningful employer and gold         
producer in the southern Johannesburg area.                                     
As our Chairman has already noted, our progress to date would not have been     
possible without the single-minded dedication of our management and staff,      
widespread support from our local communities, and the efficiency and           
professionalism of the South African DME.                                       
Receiving our First New Order Mining Right was undoubtedly the highlight of     
the past year, enabling us to effectively put into place the operational        
plans we have been working on since 2006. Beginning trial mining and pouring    
our first gold were also highly meaningful achievements, paving the way for     
our full transition to commercial gold production during 2009.                  
Operational Progress                                                            
Trial mining began on October 1, 2008 at Slot 8 of our Consolidated Main Reef   
tenement, utilising a 20 tonnes per hour (12,000 tonnes per month) plant        
imported from Gekko Systems in Australia. From the outset, the intention was    
to process 100-500 tonne parcels of ore through the plant to test ore grades    
and recoveries.                                                                 
Through this trial mining initiative, we will be able to convert Resources      
into Reserves by affirming our mining and metallurgical processes, physically   
testing our mining and backfilling techniques, and refining our metallurgical   
processes and equipment.                                                        
While initial ore throughputs were lower than expected due to a proliferation   
of clay material, this improved after December 30 2008, when a flotation unit   
was commissioned, enabling the recovery rate to increase dramatically. Once     
the Carbon In Leach ("CIL") plant has been commissioned, it is expected that    
total recoveries will rise to around 80%.                                       
The CIL plant, which has the capacity to treat 10,000 tonnes of concentrate     
per month, has been purchased, and design work has been undertaken to enable    
commissioning of the plant to take place in April 2009. Similarly, an           
additional 30 tonnes per hour crushing and concentrating (18,000 tonnes per     
month) plant has been ordered and is expected to be commissioned during May     
Sampling of trial mining is underway, including analysis of the various size    
fractions and flotation test work on the tailings. Following several months     
of surface trial mining, it is anticipated that underground trial mining will   
commence in the second quarter of 2009, at a rate of around 12,000 tonnes of    
ore per month.                                                                  
The principal reasons for this exercise are to confirm that the drift and       
fill method is practical for the orebody, to confirm that dilution can be       
controlled, to confirm that backfilling methodology is cost effective and       
appropriate, and to confirm that our underground support design is effective.   
From an exploration point of view, 2008 was particularly satisfying and         
meaningful, providing the foundation for some exciting work going forward as    
CRG continues to gain momentum as a mining company.                             
Seven shafts were re-accessed and reconnaissance sampling and mapping was       
completed over the Consolidated Main Reef, Crown Mines and Langlaagte           
tenements. Preliminary mapping was also carried out on the City Deep tenement   
Significantly, there was confirmation of un-mined mineralised reefs and         
pillars through a comprehensive underground surveying and sampling programme.   
Reconnaissance drilling also took place on pyritic quartzites at the Village    
Main and City Deep tenements.                                                   
On February 29, 2008, we upgraded our Indicated Resources by 932,000 ounces     
to 22.4 million ounces, and our Inferred Resources by 828,000 ounces to 13.2    
million ounces. Our total Resource was upgraded by 1.8 million ounces to 35.6   
million ounces. An important feature of this resource upgrade was that an       
additional 530,000 ounces of the total was identified between the surface and   
200 metres below the surface.                                                   
Through our concentrated exploration programme, several initial production      
slots and surface targets were identified during the year - including slots     
2, 3, 4, 5, 7, 8, 9 and 14. Slot 8 at the Consolidated Main Reef tenement was   
chosen as the site for our first trial mining exercise.                         
As a result of ongoing reconnaissance mapping and trenching, un-mined           
sections of the North Reef and Main Reef were identified and un-mined           
duplicated sections of the Bird and Kimberley Reefs - due to faulting - were    
also identified. Large sections of un-worked Elsburg Reef were located          
towards the southern boundary of the CMR, Crown Mines and City Deep ("3C`s")    
tenement areas.                                                                 
Importantly, this all adds up to good potential for additional tonnages         
through the discovery of mineralised halos in the hanging wall and footwall     
of conglomerate bands found in the Main Reef package. There is also leaching    
In addition, exploration activity has established that there are viable         
grades in the soils, that there is uncomplicated mineralogy in the ore          
bodies, and that gold bearing ore exists outside of the reef horizons in        
disseminated pyrite, mineralised halos and grit bands, boosting the potential   
for an increase in mineable resources.                                          
Exploration during 2009 will focus on a variety of activities, including        
surface drilling (grade control and resource drilling), pyritic quartzites,     
underground drilling, bulk sampling, regional mapping and ground geophysics,    
all of which play a vital role in assisting us to build up a strong and         
sustainable resource base for the future.                                       
Significantly, we are in the process of converting Resources into Reserves      
and we expect to release our first reserve statement by the beginning of        
April 2009.                                                                     
As a member of the Central Basin Environmental Corporation - which also         
comprises DRDGold Limited and West Wits Mining Limited with the Government of   
South Africa being an interested party - CRG will be contributing towards the   
building of a pumping station, which is expected to be located around 600       
metres below surface. This is largely the result of DRDGold`s decision to       
stop pumping water (due to two fatalities at its East Rand Proprietary Mines`   
South West Vertical Shaft 1), as from early October last year.                  
Work on the new pumping station will begin in early 2009 and is expected to     
be completed in late 2010. As a result of the pumping station, water levels     
in CRG`s affected tenements, will be maintained at levels of 400-500 metres     
below the surface, enabling our operations to be conducted normally and         
safely for the next few years.                                                  
We have also begun investigating installing a pump station in other areas       
that will assist in dropping the water levels further.                          
Since the Company`s inception in 2006, we at CRG have placed a major emphasis   
on safety in everything that we do throughout our operations. There is never    
room for complacency, and we are always striving to maintain an accident and    
injury free environment in an industry which is more dangerous than most.       
It was thus with great pride that we achieved an important safety milestone     
in December 2008 - one million man hours without any lost time injuries.        
Significantly, this notable safety achievement occurred during a period when    
we were heavily involved in re-accessing and re-equipping shafts -              
potentially dangerous and hazardous work - and comprehensive drilling and       
exploration operations.                                                         
We are extremely gratified to have achieved this milestone as the safety of     
our employees and contractors is the Group`s paramount objective. Maintaining   
safety at our operations will continue to be at the heart of all of our         
activities, as we move into our commercial mining phase.                        
Granting of New Order Prospecting Rights                                        
On February 25, 2009, CRGSA received notification from the DME that             
applications for transfers of New Order Mining and Prospecting Rights in        
terms of Section 11 of South Africa`s Minerals and Petroleum Resources          
Development Act, 2002, had been approved for seven of the Group`s exploration   
This is a significant step forward for us as the contiguous nature of the       
Rights granted will enable us to optimise the development and production        
schedules over the entire area.                                                 
Just as 2008 was a momentous year for the Company, 2009 should be equally       
important, as it will test our mining techniques and herald our arrival as a    
viable and sustainable commercial producer of gold.                             
As stated in the Prospectus, our aim is to be producing gold at an annualised   
rate of 100,000 ounces by the end of 2009. This aim will be aided by the        
acquisition of additional crushing and concentrating plants, which will take    
our ore processing and crushing capacity to around 150 tonnes per hour, by      
the end of the year.                                                            
In line with the economic slowdown and credit crunch that has impacted world    
financial markets, we have realigned the business to ensure that our current    
financial resources will be able to support a sustainable cash positive         
situation at a production rate of 100,000 ounces per year without us having     
to seek further capital.                                                        
CRG has come a long way in a short space of time in gold mining terms and       
during 2009 we expect to make considerable progress towards laying the          
foundation for growing in the years that lie ahead.                             
It is worth noting that at the time the Company was conceptualising its         
projects and activities, the gold price was approximately US$650 an ounce and   
the exchange rate was ZAR7=US$1. In the middle of February 2009, the gold       
price was around US$970 an ounce while the exchange rate was above              
I would in particular like to pay tribute to my predecessor, Greg James, for    
the huge role he played in getting CRG to the vital production stage. He has    
left a very strong legacy and created a strong foundation from which the        
Company can build its future. A special mention must also be made of Riccardo   
Vittino, who was our Financial Director until the middle of 2008, and who       
also contributed significantly to CRG`s progress. My sincere thanks must go     
to everyone - staff, shareholders, contractors, community members and other     
stakeholders - who has played a role in getting the Company and the rest of     
the Group to where they are today.                                              
Johan du Toit                                                                   
Chief Executive Officer                                                         
Group and Company Balance Sheets as at 31 December 2008                         
                    Group                  Company                              
2008       2007        2008       2007                      
              Note  US$`000    US$`000     US$`000    US$`000                   
NON CURRENT                                                                     
Property,      2     10,458     3,045       -          -                        
plant and                                                                       
Investment in        -          -           8,174      5,348                    
Loans          3     5,205      6,279       84,350     41,834                   
                    15,663     9,324       92,524     47,182                    
Security       4     6,095      2,073       576        860                      
deposits and                                                                    
Prepayments          5,332      1,140       152        905                      
and other                                                                       
Inventories          732        -           -          -                        
Cash and cash        69,601     149,195     66,089     147,881                  
                    81,760     152,408     66,817     149,646                   
TOTAL ASSETS         97,423     161,732     159,341    196,828                  
to holders of                                                                   
the parent                                                                      
Share capital  5     5,023      5,017       5,023      5,017                    
Share premium        191,406    191,406     191,406    191,406                  
Share-based          26,429     18,153      26,429     18,153                   
Treasury       6     (4)        (31)        -          -                        
Foreign              (42,900    (9,312)     (66,203    (8,014)                  
currency             )                      )                                   
Accumulated          (92,490    (52,711     2,391      (10,574                  
losses               )          )                      )                        
87,464     152,522     159,046    195,988                   
Minority             -          -           -          -                        
interest in                                                                     
TOTAL EQUITY         87,464     152,522     159,046    195,988                  
NON CURRENT                                                                     
Environmental        244        -           -          -                        
n and other                                                                     
Operating            41         28          -          -                        
Borrowings           46         105         -          -                        
331        133         -          -                         
Trade and            3,758      2,660       295        840                      
Loan payable         5,205      6,279       -          -                        
Environmental        324        -           -          -                        
n and other                                                                     
Taxation             310        92          -          -                        
Operating            2          11          -          -                        
Borrowings           29         35          -          -                        
                    9,628      9,077       295        840                       
TOTAL                9,959      9,210       295        840                      
TOTAL EQUITY         97,423     161,732     159,341    196,828                  
Group and Company Income Statement for the years ended 31 December 2008 and     
31 December 2007                                                                
Group                        Company                          
                  2008          2007           2008       2007                  
            Notes US$`000       US$`000        US$`000    US$`000               
Other              252           415            6,093      1,242                
income and                                                                      
Employee     10    (7,809)       (4,049)        -          -                    
Directors`   7, 10 (9,830)       (10,084)       (4,576)    (4,849)              
Other share-       -             (10,958)       -          (8,442)              
Depreciatio        (1,210)       (525)          -          -                    
Operating          (809)         (622)          (189)      (101)                
Exploration        (20,310)      (14,628)       (200)      (55)                 
Other              (6,043)       (5,880)        (3,089)    (2,559)              
Operating          (45,759)      (46,331)       (1,961)    (14,764              
loss                                                       )                    
Interest           7,051         2,333          14,926     4,190                
Finance            (853)         (495)          -          -                    
Loss before        (39,561)      (44,493)       12,965     (10,574              
income tax                                                 )                    
Income tax         (218)         (92)           -          -                    
Loss for           (39,779)      (44,585)       12,965     (10,574              
the year                                                   )                    

Loss is                                                                         
e to:                                                                           
Minority           -             -                                              
Equity             (39,779)      (44,585)                                       
holders of                                                                      
the parent                                                                      
                  (39,779)      (44,585)                                        
Shares in          246,919,65    246,599,650                                    
issue              0                                                            
Weighted           245,387,15    180,935,078                                    
average            0                                                            
number of                                                                       
shares in                                                                       
Basic loss         (16.21)       (24.64)                                        
per share                                                                       
Headline           (16.21)       (24.43)                                        
loss per                                                                        
Diluted            (16.21)       (24.64)                                        
loss per                                                                        
Group and Company Statement of Changes in Equity for the years ended 31         
December 2008 and 31 December 2007                                              
Attributable to equity holders of the Parent Company               
             Ordinary     Share       Merger          Share-      Treasury      
             Share        Premium     Reserve         based       shares        
             Capital                                  Compensa                  
             US$`000      US$`000     US$`000         US$`000     US$`000       
Balance at    -            -           20,533          -           -            
31 December                                                                     
Shares        -            -           9,869           -           -            
issued by                                                                       
during the                                                                      
Share-based   -            -           2,606           -           -            
payments by                                                                     
subsidiary -                                                                    
Shares and    -            -           -               18,153      -            
issued to                                                                       
directors of                                                                    
Corporate     3,392        29,452      (33,008)        -           (12)         
Foreign       -            -           -               -           -            
Net income    3,392        29,452      -               18,153      (12)         
directly in                                                                     
Loss for the  -            -           -               -           -            
Total         3,392        29,452      -               18,153      (12)         
income and                                                                      
expense for                                                                     
the period                                                                      
Shares        245          18,110      -               -           -            
during the                                                                      
Shares        1,262        143,844     -               -           -            
issued on                                                                       
Treasury      118          -           -               -           (118)        
issued to                                                                       
Share Trust                                                                     
Treasury      -            -           -               -           99           
issued to                                                                       
Balance at    5,017        191,406     -               18,153      (31)         
31 December                                                                     
Shares and    -            -           -               8,276       -            
issued to                                                                       
directors of                                                                    
Foreign       -            -           -               -           -            
Net income    5,017        191,406     -               26,429      (31)         
directly in                                                                     
Loss for the  -            -           -               -           -            
Total         5,017        191,406     -               26,429      (31)         
income and                                                                      
expense for                                                                     
the period                                                                      
Treasury      6            -           -               -           (6)          
issued to                                                                       
Share Trust                                                                     
Treasury      -            -           -               -           33           
issued to                                                                       
Balance at    5,023        191,406     -               26,429      (4)          
31 December                                                                     
             Attributable to equity holders of the                              
             Parent Company                                                     
Foreign       Accumulated    Total       Minority    Total         
             Currency      Losses                     Interest    Equity        
US$`000       US$`000        US$`000     US$`000     US$`000       
Balance at    704           (10,667)       10,570      -           10,570       
31 December                                                                     
Shares        -             -              9,869       -           9,869        
issued by                                                                       
during the                                                                      
Share-based   -             -              2,606       -           2,606        
payments by                                                                     
subsidiary -                                                                    
Shares and    -             -              18,153      -           18,153       
issued to                                                                       
directors of                                                                    
Corporate     -             2,541          2,365       -           2,365        
Foreign       (10,016)      -              (10,016)    -           (10,016)     
Net income    (9,312)       (8,126)        33,547      -           33,547       
directly in                                                                     
Loss for the  -             (44,585)       (44,585)    -           (44,585)     
Total         (9,312)       (52,711)       (11,038)    -           (11,038)     
income and                                                                      
expense for                                                                     
the period                                                                      
Shares        -             -              18,355      -           18,355       
during the                                                                      
Shares        -             -              145,106     -           145,106      
issued on                                                                       
Treasury      -             -              -           -           -            
issued to                                                                       
Share Trust                                                                     
Treasury      -             -              99          -           99           
issued to                                                                       
Balance at    (9,312)       (52,711)       152,522     -           152,522      
31 December                                                                     
Shares and    -             -              8,276       -           8,276        
issued to                                                                       
directors of                                                                    
Foreign       (33,588)      -              (33,588)    -           (33,588)     
Net income    (42,900)      (52,711)       127,210     -           127,210      
directly in                                                                     
Loss for the  -             (39,779)       (39,779)    -           (39,779)     
Total         (42,900)      (92,490)       87,431      -           87,431       
income and                                                                      
expense for                                                                     
the period                                                                      
Treasury      -             -              -           -           -            
issued to                                                                       
Share Trust                                                                     
Treasury      -             -              33          -           33           
issued to                                                                       
Balance at    (42,900)      (92,490)       87,464      -           87,464       
31 December                                                                     
Group and Company Cash Flow Statement for the years ended 31 December 2008      
and 31 December 2007                                                            
                Group                    Company                                
                2008        2007         2008        2007                       
                US$`000     US$`000      US$`000     US$`000                    

CASH FLOWS FROM                                                                 
(Loss)/Profit    (39,561)    (44,493)     12,965      (10,574)                  
before tax                                                                      
Adjusted for:                                                                   
Depreciation     1,210       525          -           -                         
Employment       8,769       20,708       3,755       12,718                    
Loss on          1           375          -           -                         
disposal of                                                                     
property, plant                                                                 
and equipment                                                                   
Net gain on      (165)       (316)        (6,040)     (989)                     
Increase in      18          38           -           -                         
operating lease                                                                 
Sundry income    -           (4)          -           -                         
Interest         (6,225)     (2,333)      (5,847)     (4,190)                   
Finance costs    27          495          -           -                         
Changes in                                                                      
working capital                                                                 
(Increase)/decr  (5,144)     (246)        646         (906)                     
ease in                                                                         
prepayments and                                                                 
Increase in      (852)       -            -           -                         
Increase/(decre  2,107       2,402        (402)       (840)                     
ase) in trade                                                                   
and other                                                                       
Increase in      660         -            -           -                         
Cash flows used  (39,155)    (22,849)     5,077       (4,781)                   
in operations                                                                   
Interest         6,225       2,333        5,847       4,190                     
Finance costs    (27)        (495)        -           -                         
Sundry income    -           4            -           -                         
Net cash (used   (32,957)    (21,007)     10,924      (591)                     

CASH FLOWS FROM                                                                 
Purchases of     (10,856)    (1,902)      -           -                         
property, plant                                                                 
and equipment                                                                   
Proceeds from    18          132          -           -                         
disposal of                                                                     
property, plant                                                                 
and equipment                                                                   
Increase in      -           -            (69,219)    (16,306)                  
Net cash used    (10,838)    (1,770)      (69,219)    (16,306)                  
in investing                                                                    
CASH FLOWS FROM                                                                 
Proceeds from    -           141          -           -                         
Repayment of     (30)        -            -           -                         
(Increase)/decr  (5,347)     (1,795)      60          (860)                     
ease in                                                                         
Proceeds from    2           172,431      6           172848                    
issuance of                                                                     
Net cash (used   (5,375)     170,777      66          171,,988                  

Net              (49,170)    148,000      (58,229)    155,091                   
ease in cash                                                                    
and cash                                                                        
Cash and cash    149,195     7,530        147,881     -                         
equivalents at                                                                  
beginning of                                                                    
Effects of       (30,424)    (6,335)      (23,563)    (7,210)                   
exchange rate                                                                   
movements on                                                                    
cash balances                                                                   
Cash and cash    69,601      149,195      66,089      147,881                   
equivalents at                                                                  
end of year                                                                     
Basis of presentation and general information                                   
1.   General information                                                        
These are the non statutory financial statements, extracted from the Group      
and Company annual financial statements for the year ended 31 December 2008.    
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 (Netherland Antilles) N.V, was incorporated in the            
Netherlands Antilles. CRG`s operating subsidiary is Central Rand Gold South     
Africa. CRG has a primary listing on the London Stock Exchange (`LSE`) and a    
secondary listing on JSE Limited (`JSE`).                                       
Legally, Central Rand Gold Limited ("CRG Ltd") 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 Ltd experiences the impact of UK Company laws and because one of   
its subsidiaries, Central Rand Gold (Netherlands Antilles) N.V. ("CRGNV"), is   
incorporated in the Netherlands Antilles, the Group is also impacted by the     
company laws of the Netherlands Antilles.                                       
The Group and Company annual financial statements for the year ended 31         
December 2008 were approved for issue on 24 March 2009. The auditor has         
issued their unqualified auditors` opinions on the Group and Company            
financial statements for the year ended 31 December 2008.                       
Accounting policies                                                             
The Group and Company annual financial statements have been prepared in         
accordance with International Financial Reporting Standards (`IFRS`) and        
The accounting policies have been consistently applied to all years             
Foreign currency rates                                                          
The US Dollar rates of exchange applicable to the period are as follows:        
                     Period ended 31        Period ended 31                     
December 2008          December 2007                       
                     Closing    Average     Closing    Average                  
South African Rand    0.10601    0.12327     0.14800    0.14435                 
British Pound (GBP)   1.44792    1.85518     1.99730    2.02969                 
2.   Property, plant and equipment                                              
During the year, the Group spent US$10,856,280 on crushing and concentrating    
plant and equipment, on renovations of the Head Office and computer equipment   
and software to increase office capacity 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 interim results for the six months ended June     
30, 2008 there has been no resolution to the dispute relating to procedural     
breaches of the Central Rand Gold South Africa (Proprietary) Limited (`CRG      
SA`) shareholders agreement between CRG SA and our BEE partner, Puno Gold       
Investments (Proprietary) Limited. During 2007, the dispute arose between the   
shareholders of CRG SA in regard to the allocation of intercompany loans        
which fund the budget and work programme and the incurring of, and level of,    
certain costs by CRG SA. As per the provisions of the shareholders agreement,   
the Chief Executive Officers and subsequently the Chairmen of both Puno and     
CRG SA met in an effort to amicably resolve the matter. These meetings have     
unfortunately proven to be unsuccessful. On 16 February 2009, CRG NV, the       
direct holding Company of CRG SA, exercised the call option granted to it in    
terms of the shareholders agreement and gave Puno 90 days notice, to acquire    
Puno`s entire interest in CRG SA. The Directors believe that this will not      
have any material consequences in respect of the consolidated accounts of the   
Group as the 26% shareholding will be held in trust pending the outcome of      
discussions relating to new BEE arrangements. Notwithstanding this position,    
we have pending the outcome of any dispute allocated 100% of the intercompany   
balances directly through from the Company to CRG SA. This additional 26% of    
intercompany debt excluding interest amounts to ZAR 114,139,770                 
(US$12,099,957) between 1 January and 31 December 2008 (ZAR 29,541,700          
(US$4,278,795) between June 2007 and 31 December 2007).                         
The loan payable to Puno Gold Investments (Proprietary) Limited contains the    
same allocations referred to above.                                             
4.   Security Deposits and Guarantees                                           
During the year, an additional guarantee of US$ 4,329,521 was issued to the     
South African Department of Minerals as a guarantee for the rehabilitation of   
land disturbed by mining operations.                                            
5.   Share Capital and share premium                                            
During the year under review 320,000 shares were issued to the Employee Share   
Trust at par value.                                                             
6.   Treasury shares                                                            
During the year 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   
vested on 19 June 2008 and 20,000 shares to Mr K Kunene vested on 9 May 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.                        
On 1 November 2008, a further 1,535,000 shares were issued to directors and     
senior management in accordance with the share scheme. The shares were issued   
at US$ 0.01.                                                                    
7.   Director`s emoluments                                                      
Three directors of the Group, Mr S Ramokgopa, Mr REM Vittino and Mr G James,    
resigned during the period.                                                     
Mr S Ramokgopa received a cash termination benefit of US$ 179,851 and           
retained 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 US$ 1,076,293.                                                 
Mr REM Vittino received a cash termination benefit of US$ 157,474 and           
retained the first and second tranches of his share options. The final          
portion of his share options granted were forfeited (821,999 shares). 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 US$ 471,002.                                                   
Mr G James retained the first and second tranches of his share options. The     
final portion of his share options granted were forfeited (1,643,998 shares).   
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 US$ 503,117.                                             
8.   Commitments                                                                
                                                    2008               2007     
                                                 US$`000            US$`000     
a) Purchase of shares in companies                                              
Purchase price of Ferreira Estate and Investment                                
Company Limited (`FEIC`)                            1,000              1,000    
b) Various contractual amounts payable                                          
Fees payable to iProp Limited for prospecting         500                500    
Option fees payable to Gravelotte Mines Limited       100                100    
Fees payable to the Department of Minerals and                                  
Energy within one year                                  3                  4    
Plant and equipment contracted for                  6,295                  -    
c) Donations payable                                                            
Donations payable to Umkhonto we Sizwe Military                                 
Veterans Association (MKMVA)                           83                  -    
9.   Segment Reporting                                                          
The Group operates primarily in one business and geographical segment, being    
the acquisition of mineral rights and data gathering in the Central Rand        
goldfield of South Africa. Accordingly, no analysis of segment revenue,         
results or net assets has been presented.                                       
10.  Share-based payments                                                       
Grant of options in the Company                                                 
During the year further share options were granted to selected employees. The   
options granted are summarized below.                                           
Vesting          Strike Price      Allocatio    Number of share                 
                                  n            options granted                  
555,556 on the   Exercise price    Selected     1,666,667                       
first            escalates in      staff                                        
anniversary of   accordance with                                                
admission being  the vesting of                                                 
8 November       tranches. One                                                  
2008, 555,556    third at                                                       
on the second    Placing Price                                                  
anniversary of   of GBP1.25, one                                                
admission and    third at 150%                                                  
the balance on   of Placing                                                     
the third        Price and one                                                  
anniversary of   third at 200%                                                  
admission        of Placing                                                     
Grant of shares in the Company                                                  
During the year the Company granted the following shares to Directors and       
Senior Managers of the Group.                                                   
Name          Purchase   Number of   Purchas   Release Period                   
             Date       shares      e Price                                     
Directors                                      100,000 on grant                 
                                              date, 100,00 on                   
1st anniversary                   
                                              of the                            
                                              appointment date                  
                                              and the                           
remainder on the                  
                                              2nd anniversary                   
                                              of the                            
                                              appointment date                  
Mr M McMahon  27 June    300,000     GBP0.01                                    
Mr K Kunene   9 May 2008 20,000      GBP0.01   20,000 on grant                  
Issued on behalf of: Central Rand Gold Limited                                  
Date: 25 March 2009                                                             
Date: 25/03/2009 11:00:01 Supplied by www.sharenet.co.za                     
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