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CRD - Central Rand Gold Limited - Annual report release

Release Date: 29/04/2010 09:23:03      Code(s): CRD
CRD - Central Rand Gold Limited - Annual report release                         
                                                                                
Central Rand Gold Limited                                                       
(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                                                          
("CRG" or the "Company" or the "Group")                                         
ANNUAL REPORT RELEASE                                                           
For  full  copies of the Company`s Annual Report and Accounts, including  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.                                
In  addition, the notice of the 2010 annual general meeting to be held on  28   
June  2010 has now been released using electronic means. Shareholders should,   
therefore,  download copies of the circular, notice and  forms  of  proxy  at   
www.centralrandgold.com.                                                        
Shareholders  are  advised that 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 (not the registered  office)  at   
11.00  a.m.  UK time on 28 June 2010. 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 Rudolph, Bernstein & Associates, Block B, 7 Eton Road, Sandhurst,   
Johannesburg.                                                                   
HIGHLIGHTS                                                                      
-    Trial mining successfully completed                                        
-    Receipt of the Snowden Mining Industry Consultants ("Snowden") Report      
dated 19 August 2009 and issue of first resource - reserve conversion           
statement; further updated by the Snowden    Report dated 12 April 2010         
-    Key management appointments                                                
-    Appointment of mining contractors, Australian Contract Mining ("ACM")      
-    Commissioning of metallurgical plants and smelting of first gold           
-    Implementation of local economic development initiatives and community     
programmes                                                                      
CHAIRMAN`S REPORT TO SHAREHOLDERS                                               
In this, my first annual Chairman`s Report to shareholders, having taken over   
as  Chairman  upon  Alastair Walton`s retirement on  14  April  2010,  it  is   
important  to examine and reflect on the critical realignment and  refocusing   
strategies and processes the Company has undertaken and adopted to  safeguard   
its future in a challenging financial and operational environment. Although I   
was  on  the Board for the whole of 2009, given the historic nature  of  this   
report,  Alastair  Walton  has also agreed to sign this  report  as  outgoing   
Chairman.                                                                       
While  2008 was a year of some major firsts - especially the awarding of  our   
first  New  Order Mining Right - the emphasis in 2009 was much  more  on  re-   
scoping  our  activities,  optimisation  and  management  of  resources   and   
facilities to best deal with the realities that we faced as we moved from the   
conceptual to the physical, and consequently firming up our business case.      
Without  doubt, 2009 was a difficult year for our Company against a  backdrop   
of  economic and financial market instabilities and uncertainties all  around   
the  world. The fact that we have ultimately been able to move to  the  trial   
mining  and  processing phase of our development is testimony to  the  spirit   
that is embedded in CRG`s people.                                               
Under the new management team, led by our Chief Executive Officer (CEO) Johan   
du  Toit,  significant  advances were made during  2009,  especially  from  a   
technical  point of view. Don Harper (Head of Mining) and Keith Matier  (Head   
of   Geology)  have  strengthened  the  team  through  their  experience  and   
expertise,  which  is now being leveraged to speed up CRG`s  transition  from   
trial  mining  to  commercial mining. Complementing the  skills  of  the  new   
management  team  was the appointment of ACM, whose expertise  in  mechanised   
underground mining and development - including long-hole stoping - is proving   
to  be  a  major  improvement  on the contract mining  arrangement  that  was   
previously in place.                                                            
While  2009  was  disappointing from a production point of  view,  with  gold   
output  40,000 ounces lower than originally anticipated (mainly  due  to  the   
difficulties  that necessitated a change in mining contractor),  improvements   
in metallurgical processes towards the end of the year bode well for 2010.      
Additional Funding                                                              
As  was  stated in the Company`s 2007 prospectus, there was a clear intention   
to  raise  further capital during 2009 for proof of concept  and  development   
purposes. Due to the global economic down turn that took place, it was deemed   
preferable  to batten down the hatches and use the funds the Company  had  to   
focus  on  proof of concept - i.e. trial mining and processing; and  then  to   
seek  further funding during 2010 in order to move into the production  phase   
of CRG`s evolution.                                                             
The  share placement that was announced on 22 January 2010 raised a total  of   
US$6  million  through a cashbox structure to existing shareholders,  and  to   
Directors   and   senior  management.  We  are  thankful  that   shareholders   
demonstrated sufficient confidence in CRG to support this exercise.             
These funds were specifically raised to provide sufficient working capital to   
enable  underground  trial mining to be completed and the  viability  of  the   
proposed  mine plan to be proven, both vital pre-cursors to taking  the  next   
logical  step  into  commercial  mining,  and  to  providing  technical   and   
operational detail to support further funding.                                  
As  was  announced  at  the  time of the cashbox  placing  in  January  2010,   
additional  equity finance of at least US$35 million will soon be  sought  to   
fund  the  Company`s  mine  development plan and  provide  the  platform  for   
sustainable gold production going forward. It was considered prudent  by  the   
Board to only seek this capital once trial mining had been completed and  the   
results  of  these trials had been documented by Snowden, hence  considerably   
"de-risking" the next phase in our development.                                 
Community Involvement                                                           
CRG  has  always  been about much more than just mining. From its  beginning,   
there  has been a genuine desire and commitment towards uplifting communities   
and improve the quality of life of thousands of people in the areas where our   
mining  operations take place. Bringing tangible benefits to communities  has   
been a targeted priority, not merely a by-product of our core activity.         
In  this  regard, it has been rewarding for the Company to become  intimately   
involved  in  local economic development projects - such as  helping  in  the   
start-up of a large number of small businesses - and facilitating a range  of   
important education projects aimed at improving school leaving pass rates and   
assisting  university students. Further details of these vital  interventions   
are  available  further on in this report. CRG has ensured,  through  various   
proactive  initiatives,  that its presence as a  miner  has  broader  ongoing   
benefits for the society in which it operates.                                  
Board Changes                                                                   
On  the  completion of trial mining and the release of the  updated  CPR  (14   
April  2010),  the  Company believed it was an appropriate  moment  to  bring   
forward  the  previously stated Board changes detailed  in  the  announcement   
dated  22  January  2010. I took over the Chairmanship to  lead  the  Company   
through  its  next  phase of development. Accordingly,  Alastair  Walton  and   
Robert  Kirkby  resigned from the Board with immediate  effect.  Other  Board   
changes reported on this day included Miklos Salamon succeeding Robert Kirkby   
as  a senior Independent Non-Executive Director and Jerome Brauns and Patrick   
Malaza  being appointed to the Board as a Non-Executive Director and  Finance   
Director, respectively. Jerome, who is a prominent Advocate, has assisted the   
Company  with legal matters in the past and will be a considerable  asset  on   
the  Board. It is intended that he be appointed Chairman of Central Rand Gold   
South Africa (Pty) Limited ("CRGSA"), succeeding me in this position. Patrick   
has been the Chief Financial Officer since 1 July 2009.                         
The newly constituted Board would like to thank Alastair and Robert for their   
guidance and vision which have been invaluable to CRG progressing to where it   
is today.                                                                       
Thanks                                                                          
CRG  has  come  a long way since its listing in 2007 and has seen  a  lot  of   
changes  to both its personnel and its strategy, during this time. I  believe   
it  is  now  well  positioned  to convert from trial  mining  to  sustainable   
commercial mining, validating the promise and potential that has always  been   
evident.                                                                        
My  heartfelt  thanks  go  to  all of my fellow  Board  members  and  to  the   
management  and staff of CRG who have worked tirelessly, often  in  difficult   
circumstances,  to  advance  the  Company  towards  reaching  its   undoubted   
potential.                                                                      
I am confident that CRG has the right team in place to move forward into full   
scale  commercial gold mining and carve out a niche as a sustainable producer   
in years to come.                                                               
Michael McMahon                                                                 
Chairman (from 14 April 2010)                                                   
Over  the past few years, I have enjoyed an interesting and rewarding journey   
with  CRG  and  it  has indeed been a privilege to have  been  so  intimately   
involved  with  such a unique mining project. I have come into  contact  with   
some  fantastic  people  during  this  time  -  within  CRG  and  within  the   
communities  where  the Company`s projects are located. Importantly,  I  have   
been able to learn a lot about South Africa and its people. My thanks go  out   
to  all  involved in CRG during my time as Chairman. I wish you all the  best   
for the future.                                                                 
Alastair Walton                                                                 
Outgoing Chairman who retired on 14 April 2010                                  
Chief Executive Officer`s Report                                                
Introduction                                                                    
2009  was  a  difficult  year for Central Rand Gold ("CRG").  The  investment   
landscape  turned  very negative owing to the global liquidity  crisis.  This   
scenario compromised CRG`s original operational plans as envisaged during its   
2007  Initial  Public  Offering,  of raising  a  further  US$156  million  to   
establish  its  mining operation. In addition, it became clear  during  2009,   
that  both operationally and managerially many changes were necessary  within   
CRG in order to effectively and economically deliver a viable and sustainable   
mining business. Given this combination of factors, the year was used to plan   
and  execute these many changes, and to work towards substantially de-risking   
the  project by completing trial mining and processing with a view to  having   
sound  technical  data and experience upon which a capital  raising  in  2010   
could  be  based  -  and  to endeavour to do this within  the  existing  cash   
resources of CRG.                                                               
Cash preservation                                                               
The focus of cash preservation was to realign and re-prioritise the Company`s   
cash spend, to ensure it had sufficient funds available to complete all trial   
mining  objectives.  Any  spend  that  did  not  assist  in  achieving  these   
objectives was, where practical, eliminated from the cost base. Consequently,   
CRG  implemented: staff redundancies; termination of non critical outsourcing   
agreements;  re-scoping  of development activities  by  reducing  from  three   
planned  declines to one; replacement of underperforming mining  contractors;   
any  exploration  work, shaft re-access and other programmes  that  were  not   
immediately  necessary were temporarily halted; new major  sponsorships  were   
curtailed;  and stringent controls were placed on staff and office  expenses.   
These  strategies, together with the January 2010 cashbox fund raising,  have   
proven  to  be effective, with the Company being able to complete  its  trial   
mining objectives by the end of the first quarter 2010.                         
Exploration and Geological Update                                               
In  mid  2009, diamond-drilling focus shifted from more regional  exploration   
and  resource  drilling  of  secondary reef targets,  to  focused  systematic   
diamond  drilling ahead of the developing decline in and around the potential   
footprint  of  the second decline. The focus of these holes was  as  much  to   
evaluate ground conditions and mining block availability ahead of mining,  as   
it was to obtain grade information.                                             
Exploration trenching conducted during 2009 and continued through  2010,  has   
identified  substantial  potential for open pit  mining  in  and  around  the   
current footprint of the underground mining operation.                          
During  the resource evaluation drilling phases, independent quality  control   
audits were regularly undertaken on the various analytical laboratories used,   
as well as on the drilling database itself.                                     
Quality control and assurance procedures for the drilling in the decline area   
are currently being undertaken internally.                                      
Reserve Conversion                                                              
An essential component for a successful mining project is confirmation of the   
Ore  Reserves  in  the ore about to be mined. This has been recorded  in  the   
release  of  the  maiden independent resources-to-reserves conversion  report   
signed-off  by  Snowden Mining Industry Consultants (Snowden), indicating  an   
initial Australasian Joint Ore & Reserve Committee ("JORC") and South African   
Mineral  Resources Committee ("SAMREC") compliant Probable Reserve of 271,000   
ounces  of  gold  (2.06 million tonnes at 4.1g/t). This  estimate  was  based   
solely on two well-defined pay channels in the Main Reef on a portion of  the   
Consolidated  Main  Reef ("CMR") tenement. In this report, Snowden  confirmed   
that the mining method and mine plan are suitable to develop an economic mine   
-  without  the  inclusion of any additional revenue  which  may  arise  from   
sweepings, vampings, Main Reef Leader pillars, auriferous parting and surface   
material.  Snowden have updated this estimate to a revised  JORC  and  SAMREC   
compliant Probable Reserve of 482,000 ounces of gold (3.73 million tonnes  at   
4.0g/t) as at 12 April 2010.                                                    
Trial Mining                                                                    
In early 2009, CRGSA commenced a programme of underground trial mining on the   
Main  Reef  at  CMR. The key objectives were to demonstrate that  the  mining   
method is appropriate, that the Main Reef can be safely and efficiently mined   
and that the reserve modifying factors are reasonable.                          
Decline and Reef Development                                                    
A  decline from a portal at Slot 8 is being developed to access the two  pay-   
shoots in the initial mining area at CMR.                                       
The  Slot 8 decline is approximately 125 metres below surface with 810 metres   
of  decline development completed to date. In addition, 440 metres of on reef   
development  and  crosscuts have been developed. In  total  1,250  metres  of   
development  has  been completed with a single double boom jumbo.  Since  the   
appointment  of  ACM,  rates  of 240 metres per  month  have  regularly  been   
achieved.                                                                       
Stoping                                                                         
Three  stopes  have been successfully blasted and extracted using  mechanised   
long  hole stoping and three Cemented Aggregate Fill ("CAF") support  pillars   
have  been  poured.  This  simple, but highly  productive  mechanised  mining   
technique, is common in Australia but new to the Witwatersrand.                 
Hanging  wall conditions experienced to date have been good and  no  abnormal   
roof support structures have been required.                                     
No  damage  occurred to CAF pillars or the hanging wall after stope  blasting   
and subsequent extraction of blasted material.                                  
One  of the stopes was successfully split-fired to separate low grade parting   
from  the Main Reef and extract these strata separately. The split-firing  of   
low grade parting ore from the Main Reef ore gives flexibility on a stope-by-   
stope  basis, to either split-fire, or to take the entire package (Main Reef,   
parting and the sweepings and vampings lying on the parting), depending  upon   
grade.                                                                          
These trials have also demonstrated that:                                       
-    90%  of  blasted stope material is recovered by the loader on the  level   
    below. The 10% of broken stope ore left behind after blasting is confirmed  
to                                                                              
be amenable to water jetting; and                                           
-    Roof  support  using split sets and mesh allows for  safe  and  economic   
    mining.                                                                     
Processing                                                                      
It  has  been recognised that gold output is maximised by the most  effective   
utilisation  of the 18,000 tonne per month Carbon-in-Pulp ("CIP")  plant.  To   
improve recovery and reduce costs the plant has been reconfigured to separate   
the  feed  into  two  streams, with the higher grade stream  directed  to  an   
upgraded  CIP  plant and the lower grade material directed  to  the  existing   
flotation plant. Optical sorting has also been trialled and will be added  to   
the plant flow sheet.                                                           
Result of Optical Sorting Trials                                                
On  reef development the optical sorter rejects 50% of the material fed to it   
whilst recovering 85% of the reef, with a reduction in dilution resulting  in   
an uplift from an estimated 1.5 g/t to 3 g/t.                                   
For  stoped  ore  the optical sorter will be used to separate  a  high  grade   
stream  to  be  sent  direct to the CIP plant from the  low  grade  flotation   
circuit stream.                                                                 
Safety                                                                          
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.       
During 2009, CRG moved from the exploration to the development phase, with an   
increase  in  workforce  and risk exposure. The mining  method  ensures  that   
employees  are not exposed to an unsupported roof in new or old workings,  at   
any  time. The underground workforce, under the leadership of ACM, is focused   
on achieving world class safety outcomes.                                       
The following are the safety statistics:                                        
Type of injury           2009         2008                                      
Dressing Cases           9            5                                         
Lost Time Injuries       5            -                                         
Incidents                41           5                                         
There were no fatalities during 2009.                                           
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.                 
Water                                                                           
After  an  unfortunate double fatality, East Rand Proprietary Mines (part  of   
the  DRD  Gold Limited Group) ceased pumping water from its SWV  shaft.  This   
pump  station  had served the purpose of maintaining the water level  in  the   
Central Rand Basin, in which CRG sits.                                          
By  the end of 2008, the water had flooded the pump station. The water in the   
basin  continues to rise at an average of 0.54m per day and as at 31 December   
2009 was at approximately 671m below the surface.                               
Murray  and  Roberts  Limited developed various engineered  options  for  the   
establishment of a pump station at various depths. The immediate target is to   
stop  the  water  table at 400 metres below surface ("mbs"),  whereafter  the   
basin can be dewatered further.                                                 
Based  on  the above engineering study, the capital cost is estimated  to  be   
ZAR178  million at 400mbs. It has been estimated that the pump  station  will   
cost ZAR91 million and the HDS plant will cost ZAR87 million.                   
The Department of Water Affairs ("DWA") and the CEO`s of the various mines in   
the  Western  and Central Basins met on 26 March 2010 to discuss  short  term   
solutions to the acid mine drainage problem. At this meeting DWA and Industry   
agreed  to support the submersible pump station solution financially as  this   
solution will solve:                                                            
-    Government`s environmental concerns and is also interested in  a  supply   
    of clean water;                                                             
-    DRD has an interest in a supply of water to its ERGO mine tailings         
retreatment operations;                                                         
-    CRG obviously wishes to protect its underground workings; and              
-    Peripheral mines who currently decant from the adjoining West and East     
Rand Basins into the Central Basin need this Basin to continue pumping.         
Final negotiations are expected to be concluded by May 2010.                    
Cash Position                                                                   
As at the end of December 2009, the Company had approximately US$15.9 million   
on hand. Set out below is an abridged cash flow statement.                      
Cash and cash equivalents at beginning of year          US$`000                 
Cash and cash equivalents at beginning of year           69 601                 
Cash used in operations                                (42 716)                 
Interest received                                         2 899                 
Finance costs                                              (83)                 
Sundry income                                                 2                 
Mine property, plant and equipment                     (27 996)                 
Security deposits                                         (221)                 
Repayment of borrowings                                    (36)                 
Effects of exchange rate movement on cash balances       14 449                 
Cash and cash equivalents at end of year                 15 899                 
Capital Raising                                                                 
On 22 January 2010, we successfully placed a total of 24,691,964 new ordinary   
shares  of  1p  each  (GBP0.01) in the capital of the Company  (the  "Placing   
Shares")  at  a  price  of 15p per share (GBP0.15) to  raise  GBP3.7  million   
(US$6.0 million) (the "Placing"). The Placing was supported by the Directors,   
senior  management  and  certain  existing  substantial  shareholders.  About   
23,781,964  Placing  Shares  were placed using  the  cashbox  structure  with   
existing investors, and 910,000 Placing Shares were placed with Directors and   
senior  management  of the Company. The Placing Shares represented  9.99%  of   
CRG`S  existing ordinary share capital prior to the Placing and 9.09% of  the   
issued  share capital, as enlarged by the Placing. The Placing price  of  15p   
per  share  represented a discount of 4.76% to the closing  mid-price  on  21   
January  2010, of 15.75p per share. The Placing was underwritten by Evolution   
Securities Limited (Evolution). As indicated in the Chairman`s Report, it  is   
envisaged  that additional equity finance of at least US$35 million  will  be   
sought  to fund the Company`s mine development plan and provide the  platform   
for sustainable gold production going forward.                                  
Black Economic Empowerment (BEE)                                                
Significant activity took place during the year regarding the Company`s Black   
Economic  Empowerment  (BEE) shareholding. Events  that  took  place  can  be   
summarised as follows:                                                          
Date              Event                                                         

16 February 2009  Central Rand Gold Netherlands Antilles NV ("CRGNV"),          
                 giving the requisite 90 days` notice as stipulated under       
                the CRGSA Shareholders` Agreement, exercised the call           
option granted to it to acquire Puno Gold Investments           
                (Pty) Ltd`s (Puno) entire interest in CRGSA (the Call           
                Option).                                                        
                                                                                
7 April  2009     Puno made an urgent application to the South Gauteng          
                 Division of the High Court of South Africa to interdict        
                CRGNV from proceeding with the Call Option pending the          
                final determination, by arbitration, of the validity and        
enforceability of: 1) the various funding calls made by         
                CRGSA, under the auspices of the CRGSA Shareholders`            
                Agreement, for Puno to make its pro rata contribution to        
                funding requirements ; and the consequent Call Option           
and; 2) the interpretation of the shareholder funding           
                provisions of the Shareholders` Agreement.                      
                                                                                
June 2009         CRG was informed that Puno had complained to the              
Financial Services Board averring that CRG had made            
                false statements in its listing prospectus and further          
                continued to issue false information to its                     
                shareholders.                                                   

9 September 2009  Application was made seeking to interdict CRGSA from          
                 proceeding with mining operations at its Consolidated          
                Main Reef, Langlaagte, City Deep and Crown Mines                
tenements, pending the final determination by                   
                Arbitration Award or Court Order of the interpretation          
                of the provisions of the Shareholders` Agreement entered        
                into between Puno and CRGNV in respect of CRGSA, which          
provide for the completion of, and timeframe within             
                which, a Bankable Feasibility Study is to be prepared in        
                respect of the anticipated mining of the Tenements. The         
                matter, which was initially scheduled to be heard on 13         
October 2009, was postponed to 5 November 2009.                 
                                                                                
5 November 2009   At the hearing of the interdict applications, the Court       
                 dismissed Puno`s request for an urgent interdict to halt       
CRG`s trial mining activities and made a costs order            
                against Puno to pay the costs incurred by the CRG Group         
                in opposing the application. Puno subsequently indicated        
                that they intend to appeal this decision and intend to          
do so once the formal Court Order is made available.            
                                                                                
25 November 2009  CRG is advised that at a meeting held on 24 November          
                 2009, the Financial Services Board rejected the                
complaint lodged by Puno that CRG had made false                
                statements in its listing prospectus and continued to           
                issue false information to its shareholders.                    
                                                                                
1 April 2010      Court rejects Puno application for leave to appeal the        
                 decision handed down by the South African High Court on        
                5 November 2009.                                                
Currently, pre-arbitration formalities are being finalised in regard  to  the   
arbitration  between CRG and Puno, in relation to inter alia the validity  of   
the Call Option.                                                                
Environmental, Social and Labour, and Corporate Social Investment               
CRG  is  fully  committed  to  implementing highly  effective  and  proactive   
Environment, Social and Labour strategies and programmes.                       
Considerable progress was made in all of these areas during 2009, laying  the   
ideal foundation for further tangible advancements in 2010.                     
Details  on  all  of  these activities - including the George  Harrison  Park   
training  centre,  the Amathuba (industrial hive) local economic  development   
initiatives,  and education projects covering bursaries, a school  achievers`   
programme  and  an inter-school soccer tournament in Soweto -  are  available   
later on in this annual report.                                                 
Prospects                                                                       
During  2009  the  Company  made  significant  progress  towards  becoming  a   
sustainable commercial producer of gold. The first quarter of 2010 was  vital   
in  confirming  the  Company`s mining methodologies and operations,  and  has   
provided a strong platform from which to deliver a stable, sustainable,  cash   
positive operation.                                                             
CRG`s  focus for the remainder of 2010 will be to raise the additional  funds   
it  requires  to  commence commercial gold production and  to  continue  with   
exploration  activities  to identify future mining areas.  CRG  is  now  well   
positioned   to  transition  from  trial  mining  to  full-scale   commercial   
production.                                                                     
The Company expects to achieve a production capacity of 45,000 oz per year by   
2013.  Expansion  into  other  tenement areas  will  follow  the  process  of   
replicating  the current technology and methods (as optimised  in  the  trial   
mining). Such expansion could be funded from retained earnings, debt, further   
new  capital,  or  a  combination of these, according to the  wisdom  of  the   
moment.                                                                         
Word of thanks                                                                  
I  would like to pay special tribute to Alastair Walton (former Chairman) and   
Robert Kirkby (former Non-Executive Director), for the significant role  they   
have  played in setting the direction and putting CRG on the right  platform,   
for  future  take  off. My sincere thanks must also go to everyone  -  staff,   
shareholders,  contractors, community members and other  stakeholders  -  who   
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 STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2009       
AND 31 DECEMBER 2008                                                            
                                                                                
                                          Group             Company             
                                         2009     2008     2009     2008        
Notes     US$`000      US$  US$`000  US$ `000      
                                                  `000                          
                                                                                
NON CURRENT ASSETS                                                              
Property, plant and equipment    2      34,298   10,458        -        -       
                                                10,458                          
Intangible assets                3       1,316        -        -        -       
Investment in subsidiaries                   -        -    9,776    8,174       
Security deposits and                    5,806    4,637      203      172       
guarantees                                        4,637                         
Loans receivable                 4       7,818    5,205  209,936   84,350       
                                                 5,205                          
49,238   20,300  219,915   92,696        
                                                20,300                          
                                                                                
CURRENT ASSETS                                                                  
Security deposits and                      510    1,458      382      404       
guarantees                                                                      
Prepayments and other                    5,272    5,332      164      152       
receivables                                                                     
Inventory                                1,574      732        -        -       
Cash and cash equivalents               15,899   69,601    8,847   66,089       
Non-current assets held for      5       2,750        -        -        -       
sale                                                                            
26,005   77,123    9,393   66,645        
                                                                                
TOTAL ASSETS                            75,243   97,423  229,308  159,341       
                                                                                
EQUITY                                                                          
Attributable to equity                                                          
holders of the parent                                                           
Share capital                            5,023    5,023    5,023    5,023       
Share premium                          191,406           191,406  191,406       
                                               191,406                          
Share-based compensation                27,482   26,429   27,482   26,429       
reserve                                                                         
Treasury shares                            (2)      (4)        -        -       
Foreign currency translation          (28,400)          (49,404)                
reserve                                        (42,900)          (66,203)       
Accumulated profits/(losses)         (138,825)            54,640    2,391       
(92,490)                          
                                       56,684   87,464   229,147   159,046      
Non controlling interest                     -        -        -        -       
TOTAL EQUITY                            56,684   87,464  229,147  159,046       

NON CURRENT LIABILITIES                                                         
Environmental rehabilitation             1,434      244        -        -       
and other provisions                                                            
Loan payable                     4       7,818    5,205        -        -       
Operating lease liability                   26       41        -        -       
Borrowings                                  12       46        -        -       
                                        9,290    5,536        -        -        

CURRENT LIABILITIES                                                             
Trade and other payables                 7,620    3,758      161      295       
Environmental rehabilitation               701      324        -        -       
and other provisions                                                            
Taxation payable                           895      310        -        -       
Operating lease liability                   26        2        -        -       
Borrowings                                  27       29        -        -       
9,269    4,423      161      295        
                                                                                
TOTAL LIABILITIES                       18,559    9,959      161      295       
                                                                                
TOTAL EQUITY AND LIABILITIES            75,243   97,423  229,308  159,341       
                                                                                
GROUP AND COMPANY INCOME STATEMENT FOR THE YEARS ENDED 31 DECEMBER 2009         
AND 31 DECEMBER 2008                                                            

                                                                                
                                        Group               Company             
                                      2009       2008      2009      2008       
Notes    US$`000    US$`000   US$`000   US$`000      
                                                                                
                                                                                
Other income and gains                7,598        252    32,177     6,093      
Employee benefits expense           (9,688)    (7,809)      (61)         -      
Directors` emoluments          6    (1,676)    (9,830)     (874)   (4,576)      
Depreciation and                    (2,479)    (1,210)         -         -      
amortisation                                                                    
Inventory write down                (1,947)          -         -         -      
Operating lease expense               (833)      (809)      (47)     (189)      
Exploration expenditure            (33,696)   (20,310)     (393)     (200)      
Other expenses                      (5,956)    (6,043)   (1,582)   (3,089)      
Operating profit/(loss)            (48,677)   (45,759)    29,220   (1,961)      
Interest receivable                   3,996      7,051    23,029    14,926      
Finance costs                       (1,108)      (853)         -         -      
Profit/(loss) before income        (45,789)   (39,561)    52,249    12,965      
tax                                                                             
Income tax expense                    (546)      (218)         -         -      
Profit/(loss) for the year         (46,335)   (39,779)    52,249    12,965      
                                                                                
Loss is attributable to:                                                        
Non controlling interest                  -          -                          
Equity holders of the              (46,335)   (39,779)                          
parent                                                                          
(46,335)   (39,779)                           
                                                                                
Loss per share for loss                                                         
attributable to the equity                                                      
holders during the year                                                         
(expressed in US cents per                                                      
share)                                                                          
Basic loss per share                (18.77)    (16.21)                          
Diluted loss per share              (18.77)    (16.21)                          
GROUP AND COMPANY STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31      
DECEMBER 2009 AND 31 DECEMBER 2008                                              
                                                                                
Group               Company             
                                      2009       2008      2009      2008       
                                   US$`000    US$`000   US$`000   US$`000       
                                                                                
Profit/(Loss) for the year         (46,335)   (39,779)    52,249    12,965      
                                                                                
Other comprehensive income:                                                     
Exchange differences on              14,500   (33,588)    16,799   (58,189)     
translating foreign                                                             
operations                                                                      
Income tax relating to                    -          -         -         -      
components of other                                                             
comprehensive income                                                            
Other comprehensive income           14,500   (33,588)    16,799   (58,189)     
for the period, net of tax                                                      
Total comprehensive income         (31,836)   (73,367)    69,047   (45,224)     
for the period                                                                  
                                                                                
Total comprehensive income                                                      
is attributable to:                                                             
Non controlling interest                  -          -         -         -      
Equity holders of the              (31,836)   (73,367)    69,047   (45,224)     
parent                                                                          
                                  (31,836)   (73,367)    69,047   (45,224)      
GROUP AND COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED 31         
DECEMBER 2009 AND 31 DECEMBER 2008                                              
                   Attributable to equity holders of the Parent Company         
Group               Ordinary Share  Share Premium   Share Based   Treasury      
Capital                 Compensation     Shares       
                                                       Reserve                  
                          US$`000        US$`000       US$`000    US$`000       
Balance at 31                                                         (31)      
December 2007                                                                   
Total                        5,017        191,406        18,153                 
comprehensive                                                                   
income for the                                                                  
year                                                                            
Loss for the year                                                        -      
Other                            -              -             -                 
comprehensive                                                                   
income                                                                          
Foreign currency                                                         -      
adjustments                                                                     
Transactions with                -              -             -                 
owners, recorded                                                                
directly in                                                                     
equity                                                                          
Employee Share                                                                  
Option Scheme:                                                                  
Treasury shares                                                        (6)      
issued to                                                                       
Employee Share                                                                  
Trust                                                                           
Treasury shares                  6              -             -         33      
issued to                                                                       
Directors and                                                                   
employees                                                                       
Share-based                      -              -             -          -      
payments:                                                                       
Employees and                                                                   
Directors shares                                                                
and options                                                                     
Balance at 31                    -              -         8,276        (4)      
December 2008                                                                   
Total                        5,023        191,406        26,429                 
comprehensive                                                                   
income for the                                                                  
year                                                                            
Loss for the year                                                        -      
Other                            -              -             -                 
comprehensive                                                                   
income                                                                          
Foreign currency                                                         -      
adjustments                                                                     
Transactions with                -              -             -                 
owners, recorded                                                                
directly in                                                                     
equity                                                                          
Employee Share                                                                  
Option Scheme:                                                                  
Share-based                                                              2      
payments:                                                                       
Employees and                                                                   
Directors shares                                                                
and options                                                                     
Balance at 31                    -              -         1,053        (2)      
December 2009                                                                   
                            5,023        191,406        27,482                  
GROUP AND COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED 31         
DECEMBER 2009 AND 31 DECEMBER 2008 (continued)                                  
              Attributable to equity holders of the Parent Company              
Balance at         Foreign  Accumulated     Total          Non       Total      
31 December       Currency       Losses            Controlling      Equity      
2007           Translation                            Interest                  
                  Reserve                                                       
                  US$`000      US$`000   US$`000      US$`000     US$`000       
Total              (9,312)     (52,711)                      -                  
comprehensive                             152,522                               
income for                                                                      
the year                                                                        
Loss for the                                                       152,522      
year                                                                            
Other                    -     (39,779)                      -                  
comprehensive                            (39,779)                               
income                                                                          
Foreign                                                           (39,779)      
currency                                                                        
adjustments                                                                     
Transactions      (33,588)            -                      -                  
with owners,                             (33,588)                               
recorded                                                                        
directly in                                                                     
equity                                                                          
Employee                                                          (33,588)      
Share Option                                                                    
Scheme:                                                                         
Treasury                                                                        
shares issued                                                                   
to Employee                                                                     
Share Trust                                                                     
Treasury                 -            -         -            -                  
shares issued                                                                   
to Directors                                                                    
and employees                                                                   
Share-based              -            -        33            -           -      
payments:                                                                       
Employees and                                                                   
Directors                                                                       
shares and                                                                      
options                                                                         
Balance at               -            -     8,276            -          33      
31 December                                                                     
2008                                                                            
Total             (42,900)     (92,490)    87,464            -       8,276      
comprehensive                                                                   
income for                                                                      
the year                                                                        
Loss for the                                                        87,464      
year                                                                            
Other                    -     (46,335)                      -                  
comprehensive                            (46,335)                               
income                                                                          
Foreign                                                           (46,335)      
currency                                                                        
adjustments                                                                     
Transactions        14,500            -    14,500            -                  
with owners,                                                                    
recorded                                                                        
directly in                                                                     
equity                                                                          
Employee                                                            14,500      
Share Option                                                                    
Scheme:                                                                         
Share-based                                                                     
payments:                                                                       
Employees and                                                                   
Directors                                                                       
shares and                                                                      
options                                                                         
Balance at               -            -     1,055            -                  
31 December                                                                     
2009                                                                            
                 (28,400)    (138,825)    56,684            -       1,055       
Company                            Ordinary  Share Premium     Share Based      
Share Capital                   Compensation       
                                                                  Reserve       
                                   US$`000        US$`000         US$`000       
Balance at 31 December 2007          5,017         191,406          18,153      
Total comprehensive income                                                      
for the year                                                                    
Profit for the year                      -               -               -      
Other comprehensive income                                                      
Foreign currency                         -               -               -      
adjustments                                                                     
Transactions with owners,                                                       
recorded directly in equity                                                     
Shares issued during the                 6               -               -      
year                                                                            
Employee Share Option                                                           
Scheme:                                                                         
Share-based payments:                    -               -           8,276      
Employees and Directors                                                         
shares and options                                                              
Balance at 31 December 2008          5,023         191,406          26,429      
Total comprehensive income                                                      
for the year                                                                    
Profit for the year                       -              -               -      
Other comprehensive income                                                      
Foreign currency                          -              -               -      
adjustments                                                                     
Transactions with owners,                                                       
recorded directly in equity                                                     
Employee Share Option                                                           
Scheme:                                                                         
Share-based payments:                     -              -           1,053      
Employees and Directors                                                         
shares and options                                                              
Balance at 31 December 2009          5,023         191,406          27,482      
Company                             Foreign    Accumulated    Total Equity      
                                  Currency         Losses         US$`000       
Translation                                      
                                   Reserve                                      
                                                  US$`000                       
                                   US$`000                                      
Balance at 31 December 2007        (8,014)        (10,574)         195,988      
Total comprehensive income                                                      
for the year                                                                    
Profit for the year                      -          12,965          12,965      
Other comprehensive income                                                      
Foreign currency                  (58,189)               -        (58,189)      
adjustments                                                                     
Transactions with owners,                                                       
recorded directly in equity                                                     
Shares issued during the                 -               -               6      
year                                                                            
Employee Share Option                                                           
Scheme:                                                                         
Share-based payments:                    -               -           8,276      
Employees and Directors                                                         
shares and options                                                              
Balance at 31 December 2008       (66,203)           2,391         159,046      
Total comprehensive income                                                      
for the year                                                                    
Profit for the year                       -        52,249           52,249      
Other comprehensive income                                                      
Foreign currency                    16,799               -          16,799      
adjustments                                                                     
Transactions with owners,                                                       
recorded directly in equity                                                     
Employee Share Option                                                    -      
Scheme:                                                                         
Share-based payments:                     -              -           1,053      
Employees and Directors                                                         
shares and options                                                              
Balance at 31 December 2009       (49,404)          54,640         229,147      
                                     2009        2008      2009      2008       
US$`000     US$`000   US$`000   US$`000       
                                                                                
CASH FLOWS FROM OPERATING                                                       
ACTIVITIES                                                                      
(Loss)/Profit before tax                                  52,249    12,965      
                                 (45,789)    (39,561)                           
Adjusted for :                                                                  
Depreciation and amortisation        2,479       1,210         -         -      
Employment benefit expenditure       1,053       8,769       280     3,755      
(Share-based payments)                                                          
Loss on disposal and scrapping         501           1         -         -      
of property, plant and                                                          
equipment                                                                       
Impairment of inventory              1,947           -         -         -      
Impairment of assets                 4,476           -         -         -      
Net gain on foreign exchange                                                    
(7,596)       (165)  (32,177)   (6,040)       
Increase in operating lease              9          18         -         -      
liability                                                                       
Sundry income                          (2)           -         -         -      
Interest received                              (6,225)                          
                                  (3,996)              (23,029)   (5,847)       
Finance costs                        1,108          27         -         -      
Changes in working capital                                                      
(Increase)/decrease in                  60     (5,144)      (12)       646      
prepayments and other                                                           
receivables                                                                     
Increase in inventory                (842)       (852)         -         -      
Increase/(decrease) in trade         3,862       2,107     (134)     (402)      
and other payables                                                              
Increase in provisions                  13         660         -        -       
Cash flows used in operations                                        5,077      
(42,717)    (39,155)   (2,823)                 
Interest received                    2,899       6,225     2,165     5,847      
Finance costs                         (83)        (27)         -         -      
Sundry income                            2           -         -         -      
Net cash (used in)/from                                    (658)    10,924      
operating activities              (39,899)    (32,957)                          
                                                                                
CASH FLOWS FROM INVESTING                                                       
ACTIVITIES                                                                      
Purchases of property, plant &                                 -         -      
equipment                         (26,915)    (10,856)                          
Proceeds from disposal of              104          18         -         -      
property, plant and equipment                                                   
Purchases of intangible assets                       -         -         -      
                                  (1,185)                                       
Increase in loans receivable             -           -         -         -      
(103,205  (69,219)       
                                                              )                 
Net cash used in investing                                                      
activities                        (27,996)    (10,838)  (103,205  (69,219)      
)                 
                                                                                
CASH FLOWS FROM FINANCING                                                       
ACTIVITIES                                                                      
Repayment of borrowings               (36)        (30)         -         -      
(Increase)/decrease in security      (221)     (5,347)       (9)        60      
deposits                                                                        
Proceeds from issuance of                -           2         -         6      
shares                                                                          
Net cash (used in)/from              (257)     (5,375)       (9)        66      
financing activities                                                            
                                                                                
Net (decrease)/increase in cash                                                 
and cash equivalents              (68,152)    (49,170)  (103,872  (58,229)      
                                                              )                 
Cash and cash equivalents at        69,601     149,195    66,089                
beginning of year                                                  147,881      
Effects of exchange rate            14,450                46,630                
movement on cash balances                     (30,424)            (23,563)      
Cash and cash equivalents at        15,899      69,601     8,847    66,089      
end of year                                                                     
BASIS OF PREPARATION 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 2009.    
Central Rand Gold Limited ("CRG") 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.  ("CRGNV"),  was   
incorporated  in  the  Netherlands Antilles. CRG`s  operating  subsidiary  is   
Central  Rand Gold South Africa ("CRGSA"). 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. One of its subsidiaries, CRGNV, is incorporated  in  the   
Netherlands  Antilles, therefore 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  2009  were  approved for issue on 28 April 2010.  The  auditor  has   
issued  their  unqualified  auditors`  opinions  on  the  Group  and  Company   
financial statements for the year ended 31 December 2009.                       
Accounting policies                                                             
The  Group  and  Company annual financial statements have  been  prepared  in   
accordance    with   International   Financial   Reporting   Standards    and   
Interpretations (collectively "IFRS") issued by the International  Accounting   
Standards  Board (IASB) as adopted by the European Union ("EU") in accordance   
with EU laws (IAS Regulation EC  1606/2002).                                    
The   accounting  policies  have  been  consistently  applied  to  all  years   
presented.                                                                      
Going concern                                                                   
The  Directors  have prepared the financial statements on the  going  concern   
basis having considered the current trading, the current funding position and   
the  projected funding requirements of the business for at least the next  12   
months from the date of approval of the financial statements.                   
Current trading                                                                 
The  Group  is  developing a series of former mine workings to the  south  of   
Johannesburg  with  a  view to using new technology  and  mining  methods  to   
extract gold in sufficient quantities to be commercially viable. In the  year   
to 31 December 2009, the Group incurred a loss of US$46.3 million as a result   
of these development activities.  Since the year end, the Group has continued   
its programme of development, completed a successful trial mining project  at   
its  decline  on  the Central Main Reef and has received a Competent  Persons   
Report  from  Snowden  Mining  Industry Consultants  Pty  Limited  which  has   
concluded favourably on the viability of the Group`s plans.                     
Current funding                                                                 
At 31 December 2009, the Group had cash of US$15.9 million.                     
On  22nd January 2010, the Group undertook a share placing which raised  US$6   
million, net of fees, to provide additional working capital during the period   
of trial mining.                                                                
At 31st March 2010, the Group had cash of US$11.1 million.                      
Projected funding requirements                                                  
The  Group  has  prepared  initial projections for  its  planned  development   
activities  and  operations which show that the Group needs to  raise  up  to   
US$35 million to fund its investment in capital equipment and working capital   
through  to  31 December 2013, by when the projections show the Group  to  be   
generating positive free cash flow and in full commercial production.           
The  Directors  have  engaged Evolution Securities to  assist  the  Group  in   
raising  new  equity funding and it is anticipated that the fundraising  will   
take place by the end of July 2010.                                             
The  success of the fundraising is dependent on a number of factors, the most   
important  of  which from a financial point of view is whether the  Group  is   
able  to  reach a satisfactory outcome in its on-going negotiations with  the   
South African Government and other mining companies on the collective funding   
of  a  new  water  pumping facility for the Central  Rand  Basin.  The  Group   
requires the new facility to ensure that the water table is maintained at  no   
less  a  depth than 400 metres. The Directors are confident, based  on  their   
discussions  to  date,  that a satisfactory outcome is  achievable  but  they   
recognise  the need for certainty in this matter in advance of a  fundraising   
exercise.  Should this not be satisfactory outcome there may  be  a  need  to   
increase funds to be raised.                                                    
On  the  assumption  that new funding is raised, the risks  inherent  in  any   
mining  operation will apply to the Group.  In addition, the nature  of  what   
the  Group is seeking to do, i.e. moving from trial mining to full commercial   
production  in  former  mine  workings, brings associated  risks  around  the   
execution of the development programme being delivered on time and  on  cost.   
In  the  event that actual revenues are lower than projected or actual  costs   
exceed  budget  in the period to full commercial production, particularly  in   
2012 and 2013 and these factors result in the need for additional funding, it   
is  possible  that the Group may have to seek additional sources  of  finance   
either by way of debt or equity raising to complete its development programme   
and reach full commercial production.                                           
Conclusion                                                                      
The  requirement for a fundraising and the dependency of this on the  Group`s   
discussions  relating  to  the  water  pumping  facility  referred  to  above   
represent  a  material uncertainty that may cast significant doubt  upon  the   
Group`s  and  the  Company`s ability to continue as a going concern  and  may   
therefore  be  unable to realise its assets and discharge its liabilities  in   
the  normal  course of business.  Nevertheless, after taking account  of  the   
Group`s  funding  position,  its  cash flow projections  and  the  risks  and   
uncertainties  associated with these, and the Directors`  expectation  for  a   
successful fundraising, the Directors have a reasonable expectation that  the   
Group  and  Company  have  adequate  resources  to  continue  in  operational   
existence  for  the foreseeable future. For these reasons  they  continue  to   
prepare  the  financial statements on a going concern basis. These  financial   
statements  do not include any adjustments that would result from  the  going   
concern basis of preparation being inappropriate.                               
Foreign currency rates                                                          
The US Dollar rates of exchange applicable to the period are as follows:        
                  Period ended 31         Period ended 31 December              
                  December 2009           2008                                  
                  Closing    Average        Closing     Average                 
South African      0.13482    0.12057        0.10601     0.12327                
Rand                                                                            
Pound Sterling     1.59257    1.56593        1.44792     1.85518                
2. Property, plant and equipment                                                
During  the  year,  the  Group spent US$26,914,650 on  processing  plant  and   
equipment and mine development.                                                 
3. Intangible Assets                                                            
CRGSA  was  deemed  to  have  exercised the  option  to  acquire  the  entire   
shareholding in FEIC once the New Order mining right was granted by the  DMR.   
Furthermore  CRGSA  has,  in  accordance with the  further  requirements  for   
transfer   of   the  shareholding   spent  not  less  than  US$2,000,000   on   
exploration.  Ministerial consent in terms of section 11 of the  Mineral  and   
Petroleum  Resources  Development Act has been  obtained  to  the  change  in   
shareholding  in  FEIC  on  25  February 2009.  CRGSA  paid  US$1,000,000  as   
consideration  for  the purchase of FEIC effective 25  February  2009.  As  a   
consequence  of the change in shareholding, FEIC became a subsidiary  of  the   
group  and  has  been  consolidated in the group  financial  statements.  The   
acquisition of the New Order Mining Right held by FEIC was capitalised as  an   
intangible asset on transaction date.                                           
4. 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 CRGSA and our BEE  partner,  Puno  Gold   
Investments (Proprietary) Limited.                                              
During  2007, a dispute arose between the shareholders of CRGSA 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 CRGSA.  As       
per  the  provisions of the shareholders agreement, the  Chief  Executive       
Officers and subsequently the Chairmen of both Puno and CRGSA met  in  an       
effort  to amicably resolve the matter. These meetings have unfortunately       
proven  to  be  unsuccessful.  On 16 February  2009,  CRGNV,  the  direct       
holding  company  of CRGSA, 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 CRGSA.                                        
During  April 2009, Puno made an urgent application to the South  Gauteng       
Division  of  the  High  Court of South Africa to  interdict  CRGNV  from       
proceeding  with  an  Option to call for Puno`s  entire  shareholding  in       
CRGSA pending the final determination by arbitration of the validity  and       
enforceability of: 1) the various funding calls made by CRGSA, under  the       
auspices of the CRGSA Shareholders` Agreement, for Puno to make  its  pro       
rata  contribution  to  funding requirements;  and  the  consequent  Call       
Option  and; 2) the interpretation of the shareholder funding  provisions       
of  the Shareholders` Agreement. The parties agreed that the matter would       
proceed  to  arbitration as sought in the application and  currently  the       
pre-arbitration  formalities  are  being  finalised  in  regard  to   the       
arbitration.  It is expected that absent agreement on the  terms  of  the       
arbitration  by no later than the end of April 2010, the matter  will  be       
unilaterally referred to the Arbitration Foundation of South Africa.            
In  the  event  that  Puno is successful in relation to  its  litigation,       
CRGNV  will be unable to exercise its call option over Puno`s  shares  in       
CRGSA  and  will therefore not be able to introduce a new BBBEE compliant       
partner  who the Directors believe will be more beneficial for the  Group       
as  a  whole. Puno issued an urgent application out of the South  Gauteng       
High  Court,  Johannesburg, South Africa against CRGNV, the  Company  and       
CRGSA,  in which it sought to interdict CRGSA from proceeding with mining       
operations  pending  an arbitration award or court order  on  the  proper       
interpretation  of clause 18 of the Shareholders Agreement  entered  into       
between  Puno, CRGSA, CRGNV and the Company. The effect of Puno`s success       
would  result  in a retention of their 26% shareholding. Absent  success,       
the shares would be purchased by CRGSA for a nominal value.                     
In a judgment delivered by Acting Judge, Alan Horwitz SC, on Thursday,  5       
November  2009,  Puno`s application was dismissed with  costs,  including       
the  costs of two counsel. The Court found that Puno had failed  to  make       
out  a  case for the relief sought on each and every ground which  formed       
the  subject  of  the  application hearing. In particular,  Acting  Judge       
Horwitz  found that the applicant, Puno, had failed to make  out  a  case       
against  CRGSA  which  could substantiate Puno`s  interpretation  of  the       
clause  under  scrutiny or its alleged prejudice  suffered  as  a  result       
there-from.                                                                     
Puno  has  sought leave from the South Gauteng High Court to appeal  this       
ruling,  the  matter  was argued on 5 April 2010, and Puno`s  application       
was dismissed.                                                                  
The  Directors  are  confident of success at the arbitration  proceedings       
and  further believe that the return of the shares by Puno 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  151,903,560 (US$ 18,315,012) between 1 January and 31 December  2009       
(ZAR  114,139,770  (US$  12,099,957) between 1 January  and  31  December       
2008).                                                                          
The loan payable to Puno contains the same allocations referred to above.       
5. Non-current assets held for sale                                             
Land  and  buildings  to  the value of US$455,018  and  plant  and  equipment   
(consisting  of  the Gekko 20 ton per hour gold processing plant  and  mining   
head  gears  purchased for the trial mining and shaft reaccess programme)  to   
the value of US$2,295,311 has been classified as held for sale at 31 December   
2009.  Management  is committed to a plan to sell the assets  and  an  active   
programme to find a buyer and complete the plan has been initiated.             
6. Directors` emoluments                                                        
In  May  2009,  Mr  M  Sullivan resigned as Chief Operating  Officer  of  the   
Company. The first and second tranche of share options were not forfeited and   
the  vesting remains the same as described. The final portion of the  options   
granted were forfeited. The total number of share options that were forfeited   
are  821,999. Due to his resignation the future share options were recognised   
on  the  date  of  his resignation. The value of the accelerated  share-based   
payments  for these share options is GBP 97,661 (US$ 152,931). The  value  of   
the  share options that were forfeited as a result of his resignation is  GBP   
353,851  (US$  554,106). The value of the forfeited share options  that  were   
previously recognised was reversed in the period. The value of this  reversal   
is GBP 81,199 (US$ 127,152).                                                    
7. Commitments                                                                  
Group                                               2009       2008             
                                                   US$`000    US$`000           
a) Purchase of shares in companies                                              
                                                                                
Purchase of shares of Ferreira Estate and           -          1,000            
Investment Company Limited (`FEIC`)                                             

b) Various contractual amounts payable                                          
                                                                                
Fees payable to iProp Limited for prospecting       500        500              

Option fees payable to Gravlotte Mines Limited      -          100              
                                                                                
Fees payable to Department of Minerals and energy                               
within one year                                     12         7                
                                                                                
Plant and equipment contracted for                  -          6,295            
                                                                                
c) Donations payable                                                            
                                                                                
Donations payable to Umkhonto we Sizwe Military                                 
Veterans Association (MKMVA)                        109        83               
8. Segment Reporting                                                            
The  entity`s  chief  operating decision maker  reviews  information  on  one   
operating segment, being the acquisition of mineral rights and data gathering   
in  the  Central  Rand  Goldfield of South Africa  therefore  management  has   
determined  that  there  is  only  one reportable  segment.  Accordingly,  no   
analysis  of  segment revenue, results or net assets has been  presented.  No   
corporate or other assets are excluded from this segment.                       
9. Share-based payments                                                         
Grant of options in the Company                                                 
During  the year the Company granted the following share options to Directors   
and Senior Managers of the Group. The options are summarised below.             
Vesting              Strike Price      Allocation     Number  of                
shares                     
600,000    on     31 Exercise price    Mr S.J. du                               
October        2009, escalates in      Toit           1,800,000                 
600,000    on     31 accordance with                                            
October   2010   and the vesting                                                
600,000    on     31 tranches. One                                              
October 2011.        third at price                                             
                    of GBP0.50, one                                             
third at GBP1.00                                            
                    and one third at                                            
                    GBP1.50.                                                    
1,033,333 on 3       Exercise price    Executive                                
September 2010,      escalates in      Management     3,100,000                 
1,033,033 on 3       accordance with                                            
September 2011 and   the vesting                                                
the balance on 3     tranches. One                                              
September 2012.      third at price                                             
                    of GBP0.30, one                                             
                    third at GBP0.60                                            
                    and one third at                                            
GBP0.90.                                                    
300,000 on 1 June    Exercise price    Mr D. Harper     900,000                 
2010, 300,000 on 1   escalates in                                               
June 2011 and        accordance with                                            
300,000 on 1 June    the vesting                                                
2012.                tranches. One                                              
                    third at price                                              
                    of GBP0.30, one                                             
third at GBP0.60                                            
                    and one third at                                            
                    GBP0.90.                                                    
                                                                                
Issued on behalf of: Central Rand Gold Limited                                  
Date: 29 April 2010                                                             
For full copies of the Company`s Annual Report and Accounts, including 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.                                 
Contact:                                                                        
Johan du Toit                                     +27 (0) 11 551 4000           
Patrick Malaza                                    +27 (0) 11 551 4000           
Enquiries:                                                                      
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           
Thembeka Mgoduso / Annerie Britz /                                              
Melanie de Nysschen                                                             
Buchanan Communications Limited                   +44 (0) 20 7466 5000          
Bobby Morse / Katharine Sutton / James Strong                                   
Jenni Newman Public Relations (Pty) Ltd           +27 (0) 11 772 1033           
Jenni Newman / Megann Outram                                                    
Date: 29/04/2010 09:23:01 Supplied by www.sharenet.co.za                     
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