Randgold & Exploration Company Limited (R&E) is an investment holding company with assets in the mining industry.
R&E was incorporated in South Africa as a public company on 29 September 1992 to take over the gold interests of Rand Mines Limited, being South Africa’s oldest mining house.
R&E alleges that it was the victim of widespread frauds and thefts of its assets, in the period 1999 to 2005, which resulted in the company being stripped of the majority of its assets. On 1 August 2005 R&E was suspended on the JSE as a result of it not being able to produce audited financial statements for the financial year ended 31 December 2004, as required under the JSE Listings Requirements. This was as a direct result of the forensic process to determine the whereabouts of R&E’s substantial investment in Randgold Resources Limited (which comprised the majority of R&E’s asset base).
Based on forensic investigations, legal assessments and the opinion of counsel, R&E embarked on a process of attempting to recover damages in respect of the alleged misappropriation of its assets.
Some significant recoveries have been made, including (as at 31 December 2011) R215,7 million from, among others, liquidated estates and settlements. A settlement of approximately R 784 million was agreed with JCI Limited and JCI Investment Finance (Pty) Limited. (Link to legal report extracted from the settlement circular of 12 May 2010)
Following the publication of audited financial results for the financial years ended 31 December 2007, 2008 and 2009, the board of R&E sought a re-listing of its ordinary shares on the JSE, thereby allowing shareholders to trade their ordinary shares in R&E.
The JSE subsequently approved the relisting of R&E effective 4 June 2010 under the abbreviated name “Randgold” and share code “RNG”.
The present board believes that, as a listed entity, the market will reward R&E’s loyal shareholders appropriately and unlock additional value, over and above the approximate R 1.1 billion that has since been distributed and unbundled to shareholders on 5 July 2010 in terms of the JCI settlement as well as the distribution made on 17 January 2011.