COMMENTARY

TO THE SUMMARSIED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012

General

The board of R&E is pleased to announce the audited results for the year ended 31 December 2012.

Income

The majority of the income recognised is mainly as a result of settlements and recoveries of R16 million, the disposal of prospecting rights to the value of R5 million and interest earned of R11.1 million on cash investments.

Financial position

R&E is liquid with no interest-bearing debt. R&E’s total assets consist primarily of cash and cash equivalents. R&E had a net asset value per share of R2.46 at 31 December 2012.

Cash flow

R&E started the year under review with a cash and cash equivalent balance of R211 million.

Operating activities utilised cash of R0.8 million, primarily as a result of interest received of R11.1 million offsetting operating expenses of R11.9 million.

Investing activities yielded cash inflows of R3.2 million received, primarily from the disposal of prospecting rights of R5 million offsetting the net acquisition of investments in equity securities of R1.8 million.

R&E remains in a healthy cash position with R214 million in cash and cash equivalents at 31 December 2012.

Outlook

The outlook for 2013 is similar to that for the previous year. Expenditure on litigation is expected to be at a similar level, which is likely to prevail until the claims in which the company is engaged have been finalised. Management will continue to focus on reducing the costs of its operations where possible.

 

DC Kovarsky                                                                             Marais Steyn
Chairman                                                                                   Chief Executive Officer

Johannesburg
18 March 2013

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Notes	2012 R’000	2011 R’000
		Audited	Audited
Revenue		29	1 826
Profit on disposal/distribution of investments		43	52 474
Recoveries	7	15 981	–
Other income		8 589	2 688
Personnel expenses		(12 322)	(16 137)
Profit on disposal of prospecting rights	6	5 037	9 963
Change in fair value of held-for-trading investments		30	–
Other operating expenses		(21 690)	(12 944)
Results from operating activities		(4 303)	37 870
Finance income		11 155	8 832
Profit before taxation		6 852	46 702
Taxation		–	949
Profit for the year		6 852	47 651
Other comprehensive income, net of tax
Change in fair value of available-for-sale investments		–	(9 537)
Realised gain reclassified to profit or loss		–	(52 474)
Total comprehensive income / (loss) for the year, net of tax		6 852	(14 360)
Profit attributable to:
Owners of the company		6 852	47 651
Profit for the year		6 852	47 651
Total comprehensive income attributable to:
Owners of the company		6 852	(14 360)
Total comprehensive income / (loss) for the year		6 852	(14 360)
Basic and diluted earnings per share (cents)	8	10	66

 

 

 

 

 

 

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		2012 R’000	2011 R’000
		Audited	Audited
ASSETS
Non-current assets		661	734
Plant and equipment		187	260
Intangible assets		474	474
Current assets		217 311	213 258
Investment in equity securities		1 892	–
Trade and other receivables		1 502	1 788
Cash and cash equivalents		213 917	211 470
Total assets		217 972	213 992
EQUITY AND LIABILITIES
Shareholders’ equity		175 878	169 026
Issued capital		746	746
Retained earnings		175 132	168 280
LIABILITIES
Non-current liabilities
Post-retirement medical benefit obligation		40 768	39 142
Current liabilities
Trade and other payables		1 326	5 824
Total equity and liabilities		217 972	213 992

 

SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	31 December 2012	31 December 2011
	Audited	Audited
	R’000	R’000
Attributable to equity holders of the company
Share capital	746	746
Balance at the beginning of the period	746	748
Shares repurchased during the year	–	(2)
Investment fair value reserve	–	–
Balance at the beginning of the period	–	62 011
Change in fair value of available-for-sale investments	–	(9 537)
Realised gain reclassified to profit or loss	–	(52 474)
Retained earnings	175 132	168 280
Balance at the beginning of the period	168 280	111 696
Profit for the period	6 852	47 651
Shares repurchased	–	(604)
Remeasurement of shareholders for dividend	–	9 537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
	31 December 2012	31 December 2011
	Audited	Audited
	R’000	R’000
Profit before taxation	6 852	46 702
Adjusted for:
Profit on disposal of investments	(43)	(52 474)
Profit on disposal of prospecting rights	(5 037)	(9 963)
Change in fair value of investments in equity securities	(30)	–
Depreciation	73	76
Change in post-retirement medical benefit liability	1 626	2 713
Finance income	(11 155)	(8 832)
Dividends received	(29)	(1 826)
Working capital changes	(4 212)	(1 775)
Cash utilised in operations	(11 955)	(25 379)
Interest received	11 155	8 832
Taxation paid	–	(10 455)
Cash flows from operating activities	(800)	(27 002)
Cash flows from investing activities	3 247	11 762
Dividends received	29	1 826
Proceeds on disposal of prospecting rights	5 037	9 963
Acquisition of investment in equity securities	(2 712)	–
Proceeds on disposal of investments in equity securities	893	–
Acquisition of plant and equipment	–	(38)
Proceeds from disposal of plant and equipment	–	11
Cash flow from financing activities	–	(65 087)
Dividends paid	–	(64 481)
Shares repurchased	–	(606)
Increase/(decrease) in cash and cash equivalents	2 447	(80 327)
Cash and cash equivalents at the beginning of the period	211 470	291 797
Cash and cash equivalents at the end of the period	213 917	211 470

 

NOTES
TO THE SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2012

1.  Reporting entity
R&E is a company domiciled and incorporated in the Republic of South Africa. The summarised consolidated financial statements of the company for the year ended 31 December 2012 include the company and its subsidiaries (together referred to as “the group”).

2.  Statement of compliance 
The summarised consolidated financial statements for the year ended 31 December 2012 have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRSs), the presentation and disclosure requirements of IAS34 Interim Financial Reporting applied to year end reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, as well as the requirements of the South African Companies Act.
Mr Van Zyl Botha CA (SA), financial director, is responsible for these summarised consolidated financial statements and has supervised the preparation thereof in conjunction with Ms Marleen Schalkwijk.

3.  Significant accounting policies 
The accounting policies set out below are the same as those applied by the company in its separate financial statements and the group in its consolidated financial statements as at and for the year ended 31 December 2011, except for IAS 12 Deferred Tax – Recovery of underlying assets that was adopted on 1 January 2012. There was no significant impact on these financial statements as a result of adopting this standard.

4. Independent audit by the auditor

These summarised consolidated financial statements for the year ended 31 December 2012 have been extracted from the complete set of annual financial statements on which the auditors, KPMG Inc, have expressed an unqualified audit opinion, dated 18 March 2013. The auditor’s reports and annual financial statements, which have been summarised in this report, are available for inspection at the registered office of the company.

5.  Segment reporting
The group operates in a single operating segment as an investment holding company with assets in the mining industry.

6.  Profit on disposal of prospecting rights
R&E disposed of certain of its prospecting rights which had a Rnil carrying value for R5 million. R&E has entered into various agreements for the sale of certain of its prospecting rights, with nil carrying values, to third parties. In terms of the agreements, however, there are still a number of conditions precedent outstanding at year-end and as a result the disposals have not been recognised as yet. The proceeds (and profit) which are expected to be realised from these transactions is R 7 million.

7.  Recoveries  
On 23 March 2012 Paul Main agreed to pay R&E USD 4 million, of which USD 2 million has been paid to date. The payment of the remaining amount has been postponed as announced and shareholders will be kept up to date of any further developments via SENS.

8.  Earnings per share

	2012	2011
Earnings per share	Per share  (in cents)	Per share (in cents)
Basic earnings and diluted earnings per ordinary share	10	66
The calculation of basic and diluted earnings per ordinary share is based on earnings of R6,9 million (2011: earnings of R47,7 million) attributable to ordinary shareholders of the company and a weighted average of 71 585 172 (2011: 71 756 219) shares in issue.
Headline earnings/(loss) and diluted headline earnings/(loss) per share	2	(21)
The calculation of the headline earnings and diluted headline earnings per share is based on a headline earnings of R1,8 million (2011: headline loss of R14,8 million) attributable to equity holders of the company and a weighted average of 71 585 172 (2011: 71 756 219) ordinary shares in issue during the year.
	2012 R’000	2011 R’000
Reconciliation between basic profit for the year and headline earnings/(loss)
Profit for the year attributable to equity holders of the company	6 852	47 651
Adjusted for:
Profit on disposal/distribution of investments	(43)	(52 474)
Profit on disposal of prospecting rights	(5 037)	(9 963)
Headline earnings/(loss) for the year attributable to equity holders of the company	1 772	(14 786)

 

9.  Net asset and tangible net asset value per share 
The net asset value per share is calculated using the following variables:

	31 December 2012	31 December 2011
Net asset value (R’000)	175 878	169 026
Ordinary shares outstanding	71 585 172	71 585 172
Net asset value per share (cents)	246	236
Net tangible asset value per share (cents)	245	235

The number of shares outstanding at 31 December 2012 and 31 December 2011 has been adjusted for the 2,999,893 treasury shares held.

10. Material changes
Settlement with Paul Main
R&E and ASI (African Strategic Investment (Holdings) Limited) concluded a settlement agreement with Paul Main on 23 March 2012.  In terms of the settlement agreement, Main agreed to pay R&E USD4 million, of which USD2 million (R 15.3 million) has been paid to date and recognised as “Recoveries” in profit.  The remaining USD2 million will be recognized on receipt or when the company is virtually certain of receipt.  As a consequence of various extensions granted to Main to make payment of the second instalment, Main has paid extension payments to the company amounting to R 7.4 million, which have been recognised in profit and included in “Other income” in the Statement of Comprehensive Income.

Disclosure of Contingent Liabilities
In December 2012, an application by current and former mineworkers (who claim to have contracted silicosis on certain gold mines in South-Africa) was issued against R&E and twenty nine other Respondents.  A notice of intention to oppose the application was filed by R&E in February 2013, and in due course an answering affidavit will be served. At this stage, no damages have been quantified by the Applicants against R&E and R&E is not able to determine its potential liability if any, arising from the application.

11. Related party transactions 
There were no related party transactions during the period under review other than in the normal course of business,
i.e. key management remuneration.

12. Events after reporting date
There were no significant events between the reporting date and the approval date of these results.

Directors
DC Kovarsky (Chairman)**, M Steyn (CEO)*, V Botha*, MB Madumise#, JH Scholes**
(*Executive, **Independent non-executive, #Resigned 23 March 2012 independent non-executive)

Company Secretary 
V Botha CA (SA)

Transfer secretaries
Computershare Investor Services (Pty) Ltd
(Registration number 2004/003647/07)
70 Marshall Street, Johannesburg, 2001

Sponsor
PSG Capital
First Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600

A. TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited (“JSE Listings Requirements”), companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by more than 20% from those of the previous corresponding period.

Shareholders are hereby advised that a reasonable degree of certainty exists that the earnings per share for the year ended 31 December 2012 is expected to be between 9 and 11 cents per share (2011: 66 cents). Headline earnings per share is expected to be between 1 and 3 cents per share (2011: Headline loss of 21 cents).

The information contained in this trading statement has not been reviewed or reported on by the Company’s external auditors. R&E expects to release its financial results for the year ended 31 December 2012 in due course.

B. CHANGES TO THE CHAIRMAN OF THE AUDIT COMMITTEE

In compliance with paragraph 3.59 of the JSE Listings Requirements, the board of directors of R&E hereby notifies its shareholders of the resignation of Mr. DC Kovarsky as the chairman of the audit committee. Mr. DC Kovarsky will remain a member of the audit committee. Shareholders are further advised that Mr. JH Scholes has been appointed as the chairman of the audit committee.

The effective date of the aforementioned changes is 14 March 2013.

Johannesburg
15 March 2013
Sponsor
PSG Capital

Shareholders are referred to the announcement released on SENS on 6 December 2012 regarding the settlement agreement entered into with Mr. Paul Main (“Mr. Main”) and the extension of the date by when payment of the final installment in the amount of $2 million was to be made by Mr. Main to R&E.

Following the aforementioned announcement, shareholders are hereby advised that R&E and Mr. Main have concluded a further addendum to the agreement in terms of which R&E has granted a further extension to Mr. Main for the payment of the final installment of $2 million until 15 March 2013, such date having previously been extended from 30 November 2012 to 31 January 2013.

In consideration for the extension granted, Mr. Main is required to make a further extension payment to R&E  which is payable at the same time as the final installment and in any event on or before 15 March 2013.

Sandton
22 February 2013

Sponsor:
PSG Capital

Shareholders of R&E are hereby advised that the Company has yesterday, 21 January 2013, been served with an application seeking the permission of the High Court to pursue a class action for damages against R&E, and 29 other respondents.

The application is brought by thirty applicants, comprising of current and former mineworkers who claim to have contracted silicosis alternatively by the dependants of mineworkers who died as a result of silicosis contracted on certain gold mines in South Africa, which are alleged to have been owned and/or controlled at various times by the respondents to the application.

R&E is cited as the twenty ninth respondent.

The Company is currently reviewing the application and obtaining legal advice on the appropriate course of action. Shareholders will be kept abreast of further developments.

Sandton
22 January 2013

Sponsor:
PSG Capital

Shareholders are referred to the announcement released on SENS on 19 September 2012 regarding the settlement agreement entered into with Mr Paul Main (“Mr Main”) and the extension of the date by which payment had to be made by Mr Main in respect thereof.

Following the aforementioned announcement shareholders are hereby advised that R&E and Mr Main had subsequently reached a further agreement in terms of which the Company granted a further extension to Mr Main for the payment of the final outstanding installment of $2 million, until the end of January 2013, subject to Mr Main compensating R&E for the delay in paying such installment.
Sandton
06 December 2012

Sponsor:
PSG Capital

On 26 September 2012 JCI Limited published a SENS announcement informing its shareholders that an application for its provisional liquidation had been brought by Black Bear Resources Limited in the North Gauteng High Court, which it intends opposing.

R&E will monitor the progression of the application and inform shareholders of relevant developments.

Sandton
28 September 2012

Sponsor:
PSG Capital

Shareholders are referred to the announcements released on SENS on 23 May 2012 and 06 July 2012 respectively regarding the settlement agreement entered into with Mr. Paul Main.

Following the aforementioned announcements, shareholders are hereby advised that R&E and Mr. Paul Main have subsequently concluded a further agreement in terms of which R&E has granted a further extension to Mr. Paul Main for the payment of the final outstanding installment of $2 million until the end of November 2012.

The extension is granted subject to the condition that Mr. Paul Main will compensate R&E for the delay in paying such installment to R&E.

Sandton
19 September 2012

Sponsor:
PSG Capital Proprietary Limited

COMMENTARY TO THE CONDENSED CONSOLIDATED REVIEWED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2012

General

The board of Randgold & Exploration Company Limited (R&E) is pleased to announce the interim results for the six months ended 30 June 2012.

Income

The majority of the income recognised in the period under review was a result of a legal settlement, profit realised on the disposal of prospecting rights and finance income.

Financial position

R&E is liquid with no interest-bearing debt. R&E’s total assets consist primarily of cash. R&E had a net asset value per share of R2.48 at 30 June 2012.

Cash flow

R&E started the period under review with a cash balance of R211 million. Operating activities generated cash of R0.5 million, primarily as a result of a legal settlement of R15.5 million and interest received of R5.6 million offsetting operating expenses of R19.9 million, which includes legal and forensic costs of R11.6 million.

Investing activities yielded cash inflows of R5 million received from the sale of prospecting rights.

R&E remains in a healthy cash position with R217 million in cash and cash equivalents at 30 June 2012.

Outlook

On 11 July 2012 the company announced the withdrawal of the cautionary announcement under which it was trading, as negotiations regarding a possible investment opportunity were terminated. The negotiations were conducted under a confidentiality agreement. Management continues to review investment opportunities for the benefit of R&E and its shareholders.

The group’s current asset base, comprising primarily of net cash reserves, provides the critical mass for the ongoing pursuit of civil claims for the recovery of allegedly misappropriated assets. It is the board’s opinion that R&E’s management, forensic and legal teams have the necessary experience and resilience to prosecute the legal claims. As in the past, a pragmatic commercial approach will be adopted in dealing with the outstanding legal claims.
DC Kovarsky        Marais Steyn
Chairman           Chief Executive Officer

Johannesburg
6 August 2012

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
		For the six months ended
		30 June 2012	30 June 2011
		Reviewed	Reviewed
	Notes	R’000	R’000
Revenue		–	1 826
Profit on disposal of prospecting rights	6	5 037	9 963
Profit on distribution of Investments		–	52 474
Recoveries	7	15 521	–
Foreign exchange gains		532	1 513
Other income		2 041	8
Other operating expenses		(19 879)	(14 505)
Results from operating activities		3 252	51 279
Finance income		5 597	3 073
Profit before taxation		8 849	54 352
Taxation		–	954
Profit for the period		8 849	55 306
Other comprehensive income
Change in fair value of available-for-sale investments		–	(9 537)
Realised gain reclassified to profit or loss		–	(52 474)
Total comprehensive income		8 849	(6 705)
Profit attributable to:
Owners of the company		8 849	55 306
Total comprehensive income attributable to:
Owners of the company		8 849	(6 705)
Basic and diluted earnings per share (cents)	8	12	77

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
		As at
		30 June 2012	31 December 2011
		Reviewed	Audited
		R’000	R’000
Assets
Non-current assets		697	734
Plant and equipment		223	260
Intangible assets		474	474
Current assets		218 250	213 258
Trade and other receivables		1 289	1 788
Cash and cash equivalents		216 961	211 470
Equity and liabilities
Shareholders’ equity		177 875	169 026
Issued capital		746	746
Retained earnings		177 129	168 280
Liabilities
Non-current liabilities
Post-retirement medical benefit obligation		39 361	39 142
Current liabilities
Trade and other payables		1 711	5 824
Total equity and liabilities		218 947	213 992

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
	For the six months ended
	30 June 2012	30 June 2011
	Reviewed	Reviewed
	R’000	R’000
Share capital balance at the beginning and end of the period	746	748
Investment fair value reserve	–	–
Balance at the beginning of the period	–	62 011
Change in fair value of available-for-sale investments	–	(9 537)
Realised gain reclassified to profit or loss	–	(52 474)
Retained earnings	177 129	176 539
Balance at the beginning of the period	168 280	111 696
Profit for the period	8 849	55 306
Remeasurement of shareholders for dividend	–	9 537

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
	For the six months ended
	30 June 2012	30 June 2011
	Reviewed	Reviewed
	R’000	R’000
Profit before taxation	8 849	54 352
Adjusted for:
Profit on distribution of Investments	–	(52 474)
Profit on disposal of prospecting rights	(5 037)	(9 963)
Other non-cash items	256	(277)
Interest received	(5 597)	(3 073)
Dividends received	–	(1 826)
Working capital changes	(3 614)	(178)
Cash flows from operations	(5 143)	(13 439)
Interest received	5 597	3 073
Taxation paid	–	(10 450)
Cash flows from operating activities	454	(20 816)
Cash flows from investing activities	5 037	11 757
Dividends received	–	1 826
Proceeds on disposal of prospecting rights	5 037	9 963
Acquisition of plant and equipment	–	(39)
Proceeds from disposal of plant and equipment	–	7
Cash flow from financing activities	–	(64 633)
Dividends paid	–	(64 633)
Net increase/(decrease) in cash and cash equivalents	5 491	(73 692)
Cash and cash equivalents at the beginning of the period	211 470	291 797
Cash and cash equivalents at the end of the period	216 961	218 105

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2012

1.   Reporting entity
R&E is a company domiciled and incorporated in the Republic of South Africa. The condensed consolidated interim financial statements of the company for the six months ended 30 June 2012 include the company and its subsidiaries (together referred to as “the group”).

2.   Statement of compliance
The condensed consolidated interim financial statements for the six months ended 30 June 2012 have been prepared in compliance with the Listings Requirements of the JSE Limited, IAS 34 Interim Financial Reporting, the AC 500 series as issued by the Accounting Practices Board or its successor and the South African Companies Act, 71 of 2008, as amended. These condensed consolidated interim financial statements were approved by the board of directors on 6 August 2012.

Mr Van Zyl Botha CA(SA), financial director, is responsible for these interim financial statements and has supervised the preparation thereof in conjunction with the group accountant, Ms Marleen Schalkwijk.

3.   Significant accounting policies
The accounting policies applied by the group in these condensed consolidated interim financial statements are the same as those applied by the group in its consolidated financial statements as at and for the year ended 31 December 2011.

4.   Independent review by the auditor
The condensed consolidated interim financial statements of R&E were reviewed by KPMG Inc. The unmodified review report is available for inspection at the company’s registered office.

5.   Segment reporting
The group operates in a single operating segment as an investment holding company with assets in the mining industry.

6.   Profit on disposal of prospecting rights
R&E disposed of certain of its prospecting rights which had a nil carrying value for R5 million.

7.   Recoveries
R&E entered into a settlement agreement with Paul Main in terms of which USD4 million is payable by Paul Main to R&E. The settlement relates to the group’s claim against him for damages in respect of two million Randgold Resources Limited shares. Shareholders are referred to the announcements made by the company on 23 May and 6 July 2012 relating to this settlement. R&E recognised only R15.5 million (USD2 million) of the settlement received in cash at 30 June 2012 and will recognise the remaining USD2 million on receipt or when the company is virtually certain of receipt thereof.

8.   Earnings per share

		For the six months ended
	Basic earnings and diluted earnings per ordinary share	30 June 2012 Reviewed	30 June 2011 Reviewed
	Basic and diluted earnings for the period (R’000)	8 849	55 306
	Weighted average number of ordinary shares in issue	71 585 172	71 813 235
	Earnings per share (cents)	12	77
	Headline and diluted headline earnings per ordinary share
	Headline and diluted headline earnings/(loss) for the period (R’000)	3 812	(7 131)
	Weighted average number of ordinary shares in issue	71 585 172	71 813 235
	Headline earnings/(loss) per share (cents)	5	(10)
	Reconciliation between basic and headline earnings for the period	R’000	R’000
	Profit for the period attributable to the equity holders of the company	8 849	55 306
	Adjusted for:
	Profit on distribution of available-for-sale investments	–	(52 474)
	Profit on disposal of prospecting rights	(5 037)	(9 963)
		3 812	(7 131)
	Tax effect of adjustments	–	–
	Headline earnings/(loss) for the period attributable to equity holders of the company	3 812	(7 131)

9.   Net asset and tangible net asset value per share
The net asset value per share is calculated using the following variables:

		30 June 2012	30 June 2011
		Reviewed	Reviewed
	Net asset value (R’000)	177 875	177 287
	Ordinary shares outstanding	71 585 172	71 813 235
	Net asset value per share (cents)	248	247
	Net tangible asset value per share (cents)	247	246

The number of shares outstanding at 30 June 2012 and 30 June 2011 has been adjusted for the 2,999,893 treasury shares held.

10.  Material changes
The settlement with Paul Main is material in its totality but as only 50% of the settlement amount has been received and the other 50% is payable by 31 August 2012, the payments are viewed as two separate transactions.

11.  Related party transactions
There were no related party transactions during the period under review other than in the normal course of business, i.e. key management remuneration.

12.  Events after reporting date
There were no significant events between the reporting date and the approval date of these results.

Directors: DC Kovarsky (Chairman)**, M Steyn (CEO)*, V Botha*,
MB Madumise#, JH Scholes** (*Executive, **Independent non-executive, #Resigned 23 March 2012 independent non-executive)

Secretary and Registered officer: V Botha CA(SA)

Transfer secretaries: Computershare Investor Services (Pty) Ltd (Registration number 2004/003647/07), 70 Marshall Street, Johannesburg, 2001

Sponsor: PSG Capital, 1st Floor, Ou Kollege Building, 35 Kerk Street, Stellenbosch, 7600

17 August

In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by more than 20% from those of the previous corresponding period.

Shareholders are hereby advised that a reasonable degree of certainty exists that the earnings per share for the six months ended 30 June 2012 is expected to be between 10 and 14 cents per share (2011: 77 cents). Headline earnings per share is expected to be between 4 and 6 cents per share (2011: -10 cents).

The information contained in this trading statement has not been reviewed or reported on by the Company’s external auditors. R&E expects to release its financial results for the six months ended 30 June 2012 on or about 17 August 2012.

Johannesburg
08 August 2012
Sponsor
PSG Capital