Randgold & Exploration posts R792,8m profit

4th August 2010 By: Creamer Media Reporter

JOHANNESBURG (miningweekly.com) – JSE-listed Randgold & Exploration (R&E), led by CEO Marais Steyn, on Wednesday reported a R792,8-million net profit for the six months ended June 30, 2010.

This was compared with a net profit of R11-million the year before.

The majority of the income had come from a R783,5-million recovery from a legal settlement with JCI, and a further R25,2-million in a separate litigation settlement.

R&E’s shares were suspended on the JSE between 2005 and June this year, as it was unable to produce audited financial statements for its 2004 financial year.

The company, which was formerly headed by the late Brett Kebble, had previously reported that this was owing to the fact that it was the “victim of widespread fraud and thefts of its assets” between 1999 and 2005.

This had led to a five-year shareholder dispute between JCI and R&E.

Now that it had implemented a settlement agreement with JCI, and given its now liquid financial position, the company’s management would seek out new opportunities, it stated.

The company had the potential to develop as a diversified miner in gold, base metals, platinum and iron-ore.

R&E said that, excluding the JCI settlement, the company is liquid with no interest-bearing debt.

After the settlement distribution and unbundling of the company’s holding of JCI shares, R&E has a net asset value R7,01 a share.  

R&E also had R323-milion in cash and cash equivalents on hand.