Found this link on Gold-Eagle forum:
btimes.co.za
Randgold & Exploration set to vanish in
restructure
'Randgold has served its purpose and is likely to leave the stage
now'
RANDGOLD & Exploration is likely to be delisted during the
restructuring of Consolidated African Mines, JCI Gold, Western
Areas, Randfontein Estates, Barnex, Freddev and Randgold's
62%-held subsidiary Randgold Resources.
Randgold Resources listed on the London Stock Exchange in 1997,
but Roger Kebble, the chairman of both Randgold and Randgold
Resources, does not expect Randgold Resources to apply for a listing
on the JSE. Western Areas has by far the largest market
capitalisation at R2-billion but is not necessarily to be the
consolidation vehicle.
At a presentation of Randgold results this week, Kebble joked that
the amount of time being taken to restructure the groups
demonstrated "a touching faith in life everlasting". Kebble assured the
audience that the objective is to maximise all shareholders' value in a
simple and quick process. Rest assured that even while the
negotiations are under way (Kebble's son Brett is the main negotiator
for the JCI camp), Randgold's business units will continue to focus on
performance improvements.
Kebble was keen to spell out the five-year score-card of what the
current management team had achieved at Randgold. Mediocre
assets have been enhanced and two substantial independent SA gold
businesses built in the form of Durban Roodepoort Deep (still
11%-held) and Harmony.
Randgold Resources was formed as the vehicle for development of
African gold mines: "It has been an outstanding success by any
measure and is having a massive impact on the growth of West
Africa," says Kebble. Finally, the portfolio of non-core mineral rights
is being put into a vehicle, Minrico; other mineral rights holders are
being invited to pool their holdings into what could become a
one-stop mineral-rights shop listed separately on the JSE. Randgold's
10% of Navachab is for sale. "Randgold has served its purpose and
is likely to leave the stage now," says Kebble.
In the year to March 1999, Randgold lost R78.9-million on three
items: R10-million on the sale of investments; R40-million was paid in
interest on preference shares; and its share of the loss incurred by
Randgold Resources' Syama gold mine was R29-million. The
non-cash loss of R153-million reflected R120-million of amortisation
at Syama, deferred interest of R15-million and foreign-exchange
losses of R16-million on a $48-million bond. The net asset value at
March 31 was R12.09 - a big premium to the R8 trading price.
Reporting from London, Randgold Resources' CE Mark Bristow
spoke of the company's concern that its market rating was not
entirely based on its performance but rather on the destiny of the
holding company - something beyond its control.
Meanwhile, Randgold Resources continues apace. Its Malian gold
mine Syama made a cash profit for the second successive quarter in
spite of a fistful of operational problems in February (a torn conveyor
belt, poor product-classification and roaster repairs). Gold
production improved by 8%, and during March, just over 19 000oz
of gold were recovered at a working cost of $228/oz. In the March
1998 quarter, costs were at $419/oz and the production less than half
the current level. The target is 22 000oz a month.
Randgold Resources is to develop a mine from scratch at Morila,
Mali. Proven and probable reserves stand at 3.3-million ounces and
the estimated resource 4.45-million ounces. An independent audit
confirms that gold is present, that the designs are realistic, costing
conservative and cashflow projections accurate. Bristow says Morila
is considered a low-risk development in the context of West Africa.
Production is expected from January 2000. Morila will be funded
through project finance from London banks led by Rothschilds.
Randgold Resources has consolidated and trimmed its
resource-triangle and reduced its corporate and exploration budget.
The promising Tanzanian site Golden Ridge will be sold.
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