Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Exploration and mining investment company Randgold & Exploration (R&E) on Tuesday reported headline earnings of R152.27-million for the six-months ended June 30, with the majority of the income having been derived from the settlement of a legal claim against the company's former auditors PwC.
The R150-million settlement received in June related to the group's claims against the auditing firm for damages arising from PwC's audit of the group between 1999 and 2003.
In addition to the settlement amount, the group’s income for the period comprised recoveries of R8.9-million and interest received of R7.3-million, with the earnings having offset operating expenses of R14.2-million.
At June 30, R&E held R353-million in cash and cash equivalents. After paying dividends of R161-million on July 28, the company's cash position was R191-million.
“The company will continue to take a commercial and pragmatic approach towards legal claims against third parties and their relative legal costs, focus on containing the operational costs where possible and on maintaining liquidity,” R&E said, commenting on its future outlook.