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Gold/Mining/Energy : RANDGOLD and EXPLORATION (RANGY) -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (374)	5/12/1999 2:52:00 AM
From: baystock	Read Replies (1) \| Respond to of 448

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.