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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Goalie who wrote (1045)	5/4/1998 5:05:00 PM
From: Goalie	Read Replies (1) \| Respond to of 7235

BUSINESS DAY 04 May 1998 Randgold posts R160m cash loss David McKay RANDGOLD, the SA mining house due to be restructured and possibly broken up this year,posted a cash loss before exploration expenditure of R160m for the year to March while London-listed subsidiary Randgold Resources had mixed fortunes. Randgold Resources added 2,2-million ounces of gold to its total mineable reserve of 11,8-million ounces in prospects predominantly centred in Mali. However its flagship mine Syama-regarded as critical to the group's immediate future - struggled with operational problems in the March quarter. Syama produced less gold due to downtime from "commissioning tie-ins", the company said. Oxide throughput led to shutdowns resulting in lower grades and recoveries than in the previous quarter.Costs were much higher at $417/oz from $311/oz. Randgold chairman Roger Kebble said Syama would in time become a "cash factory". Next month was expected to be a key month as the mine intended to deliver an operating cash profit while forcing costs below the benchmark $250/oz level. Randgold Resources reported a $13,8m loss in the March quarter compared with an about $10m loss in the December quarter. This brought Randgold Resources' loss for the year to March to $40m which in turn hit Randgold's bottom line along with losses at gold recovery company Crown Consolidated Gold Recoveries, an enterprise Randgold bought during the year. The acquisition of Crown and a loan to Randgold Resources was paid for from the sale of Randgold's interests such as Stilfontein, Rand Leases Properties and parts of the shares held in Kelgran, Durban Roodepoort Deep and Harmony. The group's R90m loan facility to Randgold Resources would be drawn down by November when it would be repaid by an issue of shares. Kebble said talks on restructuring continued. Advisers were "working vigorously" on a number of possible structures and an announcement was likely in November. It was possible Randgold might disappear.