Summarised group unaudited interim financial highlights for the six months ended 30 June 2016

Commentary to Summarised Group Interim Financial Statements

Loss for the period

The majority of income recognised in the period under review was derived from dividends and interest received on investments. The company recorded a net loss of R6.2m for the period compared to a profit of R0.3m for the corresponding period last year. This was as a result of minimal recoveries during the current reporting period and an increase in expenditure,
partly offset by increased interest received.

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 of R2.27 per share at 30 June 2016 (R2.34 per share at 31 December 2015). The decrease in net asset value is due to the loss incurred for the period.

Cash flow

R&E started the year under review with a cash and cash equivalent balance of R175.9 million. Operating activities utilised net cash of R11.9 million, primarily as a result of interest received of R7.4 million and recoveries of R750 000 offsetting net cash utilised in operations of R20.05 million.

Investment activities utilised cash of R70 000, primarily from the net acquisition of investments in listed equity securities of R207 000 and dividends received of R137 000. R&E remains in a healthy cash position with R170.5 million in cash and cash equivalents at 30 June 2016.

Outlook

The outlook for the balance of the year is largely dependent on the progress and outcome of legal proceedings in which the company is engaged. Legal expenses for the balance of the year are expected to be at a similar level. Management will continue to approach all legal matters and related expenses in a commercially pragmatic manner.

David Kovarsky 
Chairman Chief

Marais Steyn
Executive Officer

Johannesburg
20 September 2016


THE SUMMARISED GROUP UNAUDITED INTERIM FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 ARE AS FOLLOWS:

For the six months ended
30 June 2016
Unaudited
30 June 2015
Unaudited
% Change
Basic and diluted (loss)/earnings per ordinary share
Basic and diluted (loss)/earnings for the period (R’000) (6 206) 336 (1 951.65%)
Weighted average number of ordinary shares in issue (’000) 71 585 71 585
(Loss)/earnings per share (cents) (8.67) 0.47 (1 951.65%)
Headline and diluted headline (loss)/earnings per ordinary share
Headline and diluted headline (loss)/earnings for the period (R’000) (6 206) 336 (1 951.65%)
Weighted average number of ordinary shares in issue (’000) 71 585 71 585
Headline (loss)/earnings per share (cents) (8.67) 0.47 (1 951.65%)
Net asset and tangible net asset value per share
The net asset value per share is calculated using the following variables:
Net asset value (R’000) 162 343 162 575 (0.14%)
Ordinary shares outstanding (’000) 71 585 71 585
Net asset value per share (cents) 226.8 227.1 (0.14%)
Net tangible asset value per share (cents) 226.8 227.1 (0.14%)
Net asset value per share (cents) 226.8 227.1 (0.14%)
Net tangible asset value per share (cents) 226.8 227.1 (0.14%)
Loss from operating activities (13 615) (5 475) (148.64%)

Notice to shareholders

This announcement contains only a summary of the information contained in the full announcement made on SENS on Tuesday, 20 September 2016 (Full Announcement). Please refer to the Full Announcement for additional information. The Full Announcement is available for viewing on R&E’s website at www.randgoldexp.co.za or may be requested and obtained in person, at no charge, at the registered office of the company or the company’s sponsor during office hours. Any investment decisions by investors and/or shareholders should be based on consideration of the Full Announcement made on SENS. This short-form announcement is the responsibility of the R&E board of directors.

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SENS Announcement – Trading Statement

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 Company expects to report a loss and headline loss per share of between 8.62 cents and 8.72 cents for the six months ended 30 June 2016 compared to an earnings and headline earnings per share of 0.47 cents for the six months ended 30 June 2015, being a decrease of between 1935% and 1955%.The decrease in headline earnings amounts to approximately R6m, as a result of minimal recoveries during the current reporting period and an increase in expenditure, partly offset by increased interest received. The net asset value changed with 7 cents from R2.34 at 31 December 2015 to R2.27 at 30 June 2016.

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 2016 on or about 13 September 2016.

02 September 2016
Johannesburg
Sponsor
PSG Capital Proprietary Limited

SENS Announcement – Results of Annual General Meeting

RESULTS OF THE ANNUAL GENERAL MEETING OF R&E

Shareholders are hereby advised that at the annual general meeting of the Company held at 11:00 today, 18 May 2016, at MW Business Centre, Michelangelo Hotel, Mandela Square, Sandton (“Annual General Meeting”), all of the proposed ordinary and special resolutions were passed by the requisite majority of votes cast by R&E shareholders present or represented by proxy. The detailed voting results of the Annual General Meeting are set out below.

Annual General Meeting Results:

Votes for resolution (%)* Votes against resolution (%)* Number of shares voted at the Annual General Meeting Number of shares voted at the Annual General Meeting as a percentage of shares in issue (%) Shares abstained as a percentage of shares in issue (%)
Ordinary Resolution Number 1: To re-elect P Burton as a director of the Company 99.96% 0.04% 45 830 584 64.02% 0.00%
Ordinary Resolution Number 2: To re-appoint DC Kovarsky as a member of the audit and risk committee of the Company 99.96% 0.04% 45 830 584 64.02% 0.00%
Ordinary Resolution Number 3: To re-appoint JH Scholes as a member of the audit and risk committee of the Company 99.96% 0.04% 45 830 584 64.02% 0.00%
Ordinary Resolution Number 4: To re-appoint P Burton as a member of the audit and risk committee of the Company 99.96% 0.04% 45 830 584 64.02% 0.00%
Ordinary Resolution Number 5: To re-appoint KPMG Inc as the auditor of the Company 99.96% 0.04% 45 830 584 64.02% 0.00%
Ordinary Resolution Number 6: To pass a non-binding advisory vote on the remuneration policy of the Company. 99.96% 0.04% 45 830 584 64.02% 0.00%
Special Resolution Number 1: Approval of non-executive directors’ remuneration 99.96% 0.04% 45 830 584 64.02% 0.00%
Special Resolution Number 2: Approval of right to provide financial assistance as contemplated in section 45 of the Companies Act 99.96% 0.04% 45 830 584 64.02% 0.00%

Notes:
* In relation to the total number of shares voted at the Annual General Meeting.

18 May 2016
Johannesburg
Sponsor
PSG Capital Proprietary Limited

SENS Announcement – Summarised Group Financial Statements for the year ended 31 December 2015

ABRIDGED GROUP FINANCIAL STATEMENTS 2015

COMMENTARY TO THE SUMMARISED GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 AND NOTICE OF ANNUAL GENERAL MEETING

GENERAL

The board of R&E is pleased to announce the audited results for the year ended 31 December 2015. Mr Van Zyl Botha CA(SA), financial director, is responsible for the annual financial statements and these summarised annual results and has supervised the preparation thereof in conjunction with Mrs Mandrie Steyn CA(SA) (group financial manager).

INCOME

The majority of the income recognised is mainly as a result of recoveries of R7.5 million, the sale of prospecting rights realising a profit of R3.9 million and interest of R11.6 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 R2.34 at 31 December 2015.

CASH FLOW

R&E started the year under review with a cash and cash equivalent balance of R173.9 million. Operating activities utilised net cash of R8.6 million, primarily as a result of recoveries of R7.5 million offsetting cash utilised in operations of R16.1 million. Investing activities generated cash flows of R0.4 million, primarily from the proceeds on disposal of prospecting rights of R4 million less the net acquisition of investments in listed equity securities of R3.7 million. R&E remains in a healthy cash position with R175.9 million in cash and cash equivalents at 31 December 2015.

OUTLOOK

The outlook for 2016 is largely dependent on the progress and outcome of current legal matters. Expenditure on litigation is expected to be at a similar level as 2015. Until the claims in which the company are engaged in have been finalised, this pattern of expenditure is likely to prevail.

David Kovarsky
Chairman

Marais Steyn
Chief executive officer

Johannesburg
18 March 2016

SUMMARISED GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2015

Audited
2015
Audited
2014
Notes R’000 R’000
Revenue 207 64
Profit/(loss) on disposal of investments 288 (102)
Recoveries 7 7 528 158 903
Other income 163 60
Personnel expenses (6 089) (15 521)
Profit on disposal of prospecting rights 6 3 951
Change in fair value of listed equity securities (571) (191)
Change in fair value of cash investments 1 118 (2 364)
Other operating expenses (13 304) (17 743)
(Loss)/profit from operating activities (6 709) 123 106
Finance income 11 681 13 341
Profit before taxation 4 972 136 447
Taxation (20)
Profit for the year 4 952 136 447
Other comprehensive income
Items of other comprehensive income that will not be subsequently reclassified to profit or loss
Actuarial gains 414 105
Total comprehensive income for the year 5 366 136 552
Profit attributable to:
Owners of the company 4 952 136 447
Profit for the year 4 952 136 447
Total comprehensive income attributable to:
Owners of the company 5 366 136 552
Total comprehensive income for the year 5 366 136 552
Basic and diluted earnings per share (cents) 8 7 191

SUMMARISED GROUP STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2015

Audited
2015
Audited
2014
Notes R’000 R’000
Assets
Non-current assets 9 86
Equipment 7 37
Intangible assets 2 49
Current assets 181 862 177 348
Investment in listed equity securities 5 702 2 259
Trade and other receivables 222 1 134
Cash and cash equivalents 175 938 173 955
Total assets 181 871 177 434
Equity and liabilities
Shareholders’ equity 167 763 162 397
Ordinary share capital 716 746
Retained earnings 167 047 161 651
Liabilities
Non-current liabilities
Post-retirement medical benefit obligation 12 872 13 753
Current liabilities
Trade and other payables 1 236 1 284
Total equity and liabilities 181 871 177 434

SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015

Audited
31 December 2015
Audited
31 December 2014
Notes R’000 R’000
Attributable to equity holders of the company
Ordinary share capital 716 746
Retained earnings 167 047 161 651
Balance at the beginning of the period 161 651 186 166
Dividend paid (225 cents per share) (161 067)
Treasury share reclassified 30
Profit and total comprehensive income for the year 5 366 136 552

SUMMARISED GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2015

Audited
31 December 2015
Audited
31 December 2014
Notes R’000 R’000
Profit before taxation 4 972 136 447
Adjusted for:
(Profit)loss on disposal of listed equity securities (288) 102
Profit on disposal of prospecting rights (3 951)
Change in fair value of listed equity securities 571 191
Depreciation 30 38
Post-retirement medical benefit obligation – interest cost 994 1 119
Interest received (11 681) (13 341)
Dividends received (207) (64)
Working capital changes 864 155
Cash (utilised)/generated in operations (8 696) 124 647
Interest received 11 681 13 341
Post-retirement medical benefit liability – benefits paid (1 461) (1 503)
Post-retirement medical benefit liability – settlements paid (1 305)
Taxation paid (20)
Cash flows from operating activities 1 504 135 180
Cash flows from investing activities 479 (1 318)
Dividends received 207 64
Proceeds on disposal of prospecting rights 4 000
Acquisition of investment in listed equity securities (5 852) (2 458)
Proceeds on disposal of listed equity securities 2 124 1 076
Cash flow from financing activities (161 067)
Dividend paid (161 067)
Increase/(decrease) in cash and cash equivalents 1 983 (27 205)
Cash and cash equivalents at the beginning of the year 173 955 201 160
Cash and cash equivalents at the end of the year 175 938 173 955

NOTES TO THE SUMMARISED GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

1. REPORTING ENTITY
R&E is a company domiciled and incorporated in the Republic of South Africa. The summarised group annual financial statements of the company for the year ended 31 December 2015 includes the company and its subsidiaries (together referred to as “the group”).

2. BASIS OF PREPARATION
The summarised group financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for abridged reports, and the requirements of the Companies Act applicable to summary financial statements. The Listings Requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (“IFRS)” and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting.

3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of the group financial statements, from which the summarised group financial statements were derived, are in terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous group annual financial statements. The accounting policies have been applied consistently by all group entities.

4. INDEPENDENT AUDIT BY THE AUDITOR
These summarised group financial statements for the year ended 31 December 2015 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 2016. The auditor’s report and annual financial statements, which have been summarised in this report, are available for inspection at the registered office of the company. This abridged report is extracted from audited information, but is not itself audited. The directors take full responsibility for the preparation of this report and that the financial information has been correctly extracted from the underlying annual financial statements.

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

6. PROSPECTING RIGHTS
During 2015, R&E group disposed of certain of its prospecting rights that had a carrying value of R1 to a third party realising a profit of R3.9 million. Certain prospecting rights with a carrying value of R49 435 expired during 2015. R&E has entered into an agreement for the sale of a certain prospecting right for R5.9 million with a nil carrying value to third parties. In terms of the agreement, however, there were a number of conditions precedent outstanding at year-end and the disposal have therefore not been recognised as yet.

7. RECOVERIES
R&E received liquidation dividends from BNC Investments Proprietary Limited and The Insolvent Deceased Estate of Roger Brett Kebble during 2015.

8. EARNINGS PER SHARE

2015
Per share
(in cents)
2014
Per share
(in cents)
Earnings per share
Basic earnings and diluted earnings per ordinary share 7 191
The calculation of basic and diluted earnings per ordinary share is based on earnings of R4.9 million
(2014: earnings of R136.4 million) attributable to ordinary shareholders of the company and a weighted
average of 71 585 172 (2014:71 585 172) shares in issue.
Headline earnings and diluted headline earnings per share 1 191
The calculation of the headline earnings and diluted headline earnings per share is based on headline
earnings of R1 million (2014: headline earnings of R136.4 million) attributable to equity holders of the company and a weighted average of 71 585 172 (2014: 71 585 172) ordinary shares in issue.
Reconciliation between basic earnings for the year and headline earnings
Profit for the year attributable to equity holders of the company 4 952 136 447
Adjusted for:
Profit on disposal of prospecting rights (3 951)
Headline earnings for the year attributable to equity holders of the company 1 001 136 447

9. NET ASSET AND TANGIBLE NET ASSET VALUE PER SHARE

The net asset value per share is calculated using the following variables:

31 December
2015
31 December
2014
Net asset value (R’000) 167 763 162 397
Ordinary shares outstanding 71 585 172 71 585 172
Net asset value per share (cents) 234 227
Net tangible asset value per share (cents) 234 227

The number of shares outstanding at 31 December 2015 and 31 December 2014 has been adjusted for the 2 999 893 treasury shares held.

10. MATERIAL CHANGES
No material changes occurred during 2015.

11. RELATED PARTY TRANSACTIONS
There were no related party transactions during the period under review other than in the normal course of business. Key management remuneration for the current year was R4.2 million (2014: R12.4 million remuneration which includes bonus payments to executive directors of R8.4 million). JH Scholes, a director of R&E, is also a director of Malan Scholes Attorneys, which provides legal prospecting right consulting services to R&E on an ad hoc basis. The cost of these services amounted to R253 045 during 2015 (2014: R 173 966).

12. EVENTS AFTER REPORTING DATE
There were no significant events between the reporting date and the approval date of these results.

13. NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the annual general meeting of R&E will be held at MW Business Centre, Michelangelo Hotel, Mandela Square, Sandton, at 11:00 on Wednesday, 18 May 2016. A copy of the notice of the annual general meeting incorporating the summarised group financial statements will be distributed to shareholders on 23 March 2016. The date on which shareholders must be recorded in the Share Register maintained by the transfer secretaries, for purposes of being entitled to attend and vote at the annual general meeting is Friday, 13 May 2016, with last day to trade being Friday, 6 May 2016.

Directors: DC Kovarsky (Chairman)**, M Steyn (CEO)*, V Botha*, P Burton**, JH Scholes** (*Executive, **Independent non-executive).

Company secretary: V Botha CA(SA).

Transfer secretaries:Computershare Investor Services Proprietary Limited,70 Marshall Street, Johannesburg, 2001.

Sponsor: PSG Capital Proprietary Limited, First Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600 (Registration number 2004/003647/07).
23 March 2016

SENS Announcement – Trading Statements

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 2015 is expected to be 6.92 cents per share (2014: 190.61 cents), being a decrease of 96.37%. Headline earnings per share is expected to be 1.4 cents per share (2014: 190.61 cents), being a decrease of 99.27%. The reason for the material decrease in earnings and headline earnings per share in the current financial period is due to the settlement agreement concluded with PricewaterhouseCoopers in the 2014 financial period for the amount of R150 million received by the Company. This was a once off event.

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 2015 on or about 23 March 2016.

Johannesburg
10 March 2016
Sponsor
PSG Capital

SENS Announcement – Summarised Group Unaudited Interim Financial Statements for the six months ended 30 June 2015

COMMENTARY TO SUMMARISED GROUP INTERIM FINANCIAL STATEMENTS

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Income

The majority of the R6.3 million income recognised in the period under review was derived from a further recovery of R4.4 million from the Insolvent Deceased Estate of RB Kebble.

Financial position

R&E is liquid with no interest-bearing debt. R&E’s total assets consist primarily of cash and cash equivalents and mineral prospecting rights. R&E’s net asset value of R2.27 per share at 30 June 2015 remained unchanged from 31 December 2014.

Cash flow

R&E started the year under review with a cash and cash equivalent balance of R173.9 million. Operating activities utilised net cash of R5.1 million, primarily as a result of recoveries of R4.4 million offsetting net cash utilised in operations of R9.5 million.

Investment activities utilised cash outflows of R2.8 million, primarily from the net acquisition of investments in equity securities of R2.9 million. R&E remains in a healthy cash position with R171.8 million in cash and cash equivalents at 30 June 2015.

Outlook

The outlook for the balance of the year is largely dependent on the progress and outcome of legal proceedings in which the company is engaged. Legal expenses for the balance of the year are expected to be at a similar level.
Management will continue to approach all legal matters and related expenses in a commercially pragmatic manner.

David Kovarsky Marais Steyn
Chairman Chief Executive Officer
Johannesburg
14 August 2015

SUMMARISED GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six months ended
Notes 30 June 2015
Unaudited
R’000
30 June 2014
Unaudited
R’000
Revenue 80 19
Profit/(loss) on disposal of investments 192 (7)
Recoveries 6 4 443 158 903
Other income 1 651 244
Other operating expenses (11 841) (14 215)
(Loss)/profit from operating activities (5 475) 144 944
Finance income 5 811 7 322
Profit before taxation 336 152 266
Taxation
Profit for the period 336 152 266
Other comprehensive income
Items of other comprehensive income that will not be subsequently reclassified to profit or loss
Actuarial (losses)/gains
(158) 690
Taxation
Total comprehensive income for the period 178 152 956
Profit attributable to:
Owners of the company 336 152 266
Total comprehensive income attributable to:
Owners of the company 178 152 956
Basic and diluted earnings per share (cents) 7 0.47 213

SUMMARISED GROUP INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended
Notes 30 June 2015
Unaudited
R’000
30 June 2014
Unaudited
R’000
Attributable to equity holders of the company
Ordinary share capital
746 746
Retained earnings 161 829 178 055
Balance at the beginning of the period 161 651 186 166
Dividend paid (225 cents per share) (161 067)
Profit and total comprehensive income for the period 178 152 956

SUMMARISED GROUP INTERIM STATEMENT OF FINANCIAL POSITION

As at
Notes 30 June 2015
Unaudited
R’000
30 June 2014
Audited
R’000
Assets
Non-current assets 71 86
Equipment 22 37
Intangible assets 49 49
Current assets 178 318 177 348
Trade and other receivables 1 011 1 134
Investment in equity securities 5 470 2 259
Cash and cash equivalents 171 837 173 955
Total assets 178 389 177 434
Equity and liabilities
Shareholders’ equity 162 575 162 397
Ordinary share capital 746 746
Retained earnings 161 829 161 651
Liabilities
Non-current liabilities
Post-retirement medical benefit obligation
13 677 13 753
Current liabilities
Trade and other payables 2 137 1 284
Total equity and liabilities 178 389 177 434

SUMMARISED GROUP INTERIM STATEMENT OF CASH FLOWS

For the six months ended
Notes 30 June 2015
Unaudited
R’000
30 June 2014
Unaudited
R’000
Profit before taxation 336 152 266
Adjusted for:
(Profit)/loss on disposal of investments (192) 7
Post-retirement medical benefit obligation ­ interest cost 496 559
Post-retirement medical benefit obligation ­ benefits paid (730) (751)
Depreciation 15 19
(Profit)/loss on fair value of investments (101) 20
Interest received (5 811) (7 322)
Dividends received (80) (19)
Working capital changes 976 160 962
Cash (utilised)/generated in operations (5 091) 305 741
Interest received 5 811 7 322
Cash flows from operating activities 720 313 063
Cash flows from investing activities (2 838) (482)
Dividends received 80 19
Proceeds on disposal of investment in equity securities 882 299
Acquisition of investment in equity securities (3 800) (800)
Cash flows from financing activities (161 067)
Dividend paid (161 067)
(Decrease)/increase in cash and cash equivalents (2 118) 151 514
Cash and cash equivalents at the beginning of the period 173 955 201 160
Cash and cash equivalents at the end of the period 171 837 352 674

NOTES TO THE SUMMARISED GROUP INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

1. Reporting entity

R&E is a company domiciled and incorporated in the Republic of South Africa. The summarised group interim financial statements of the company for the six months ended 30 June 2015 include the company and its subsidiaries (together
referred to as the “group”).

2. Statement of compliance

The summarised group interim financial statements are prepared and presented in accordance with International Financial Reporting Standards (IFRS), which include International Accounting Standard (IAS) 34 Interim Financial Reporting,
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the requirements of the Companies Act of South Africa (Act 71 of 2008), as amended, and the Listings Requirements of the JSE Limited. These summarised group interim financial statements were approved by the board of directors on 11 August 2015.

Mr Van Zyl Botha CA(SA), the financial director of R&E, is responsible for these interim financial statements and has supervised the preparation thereof in conjunction with Mrs Mandrie Steyn CA(SA) (group financial manager).

3. Significant accounting policies

The accounting policies applied by the group in these summarised group interim financial statements in accordance with IFRS are the same as those applied by the group in its group financial statements for the year ended 31 December 2014.

4. No independent review by the auditor

The company’s auditor has not reviewed or audited the summarised group interim financial statements of R&E for the six months ended 30 June 2015.

5. Segment reporting

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

6. Recoveries

R&E received a distribution from the Fourth Liquidation and Distribution Account of the Insolvent Deceased Estate of RB Kebble.

7. Earnings per share

For the six months ended
Notes 30 June 2015
Unaudited
R’000
30 June 2014
Unaudited
R’000
Basic earnings and diluted earnings per ordinary share
Basic and diluted earnings for the period (R’000) 336 152 266
Weighted average number of ordinary shares in issue 71 585 172 71 585 172
Earnings per share (cents) 0.47 213
Headline and diluted headline earnings per ordinary share
Headline and diluted headline earnings for the period (R’000) 336 152 266
Weighted average number of ordinary shares in issue 71 585 172 71 585 172
Headline earnings per share (cents) 0.47 213

8. Net asset and tangible net asset value per share

The net asset value per share is calculated using the following variables:

For the six months ended
Notes 30 June 2015
Unaudited
R’000
30 June 2014
Unaudited
R’000
Net asset value (R’000) 162 575 178 801
Ordinary shares outstanding 71 585 172 71 585 172
Net asset value per share (cents) 227 250
Net tangible asset value per share (cents) 227 250

The number of shares outstanding at 30 June 2015 and 30 June 2014 has been adjusted for the 2,999,893 treasury shares held.

9. Material changes

IAS 8 ­ Prior period classification error

In the summarised group unaudited interim financial statements for the six months ended 30 June 2014 previously published, the dividend paid was inadvertently classified as part of the statement of comprehensive income, instead of the statement of changes in equity. As this reclassification does not affect the balance sheet, a third balance sheet is not required. The reclassification also does not have any impact on or affect the calculation of basic or headline earnings per share. The effect of the reclassification is set out below.

For the six months ended
Notes 30 June 2014
Unaudited
R’000
Previously published
30 June 2014
Unaudited
R’000
Restated figures
Summarised group interim statement of comprehensive income
Profit for the period 152 266 152 266
Actuarial gains 690 690
Dividend paid (161 067)
Total comprehensive (loss)/income for the period (8 111) 152 956
Total comprehensive (loss)/income attributable to:
Owners of the company
(8 111) 152 956
Summarised group interim statement of changes in equity (8 111) (8 111)
Dividend paid (161 067)
(Loss)/profit and total comprehensive (loss)/income for the period (8 111) 152 956
Summarised group interim statement of cash flows 151 996 151 996
Cash flows from operating activities 151 996 313 063
Cash flows from financing activities (161 067)

10. Related party transactions
Hulme Scholes, a director of R&E, is also a director of Malan Scholes Attorneys, which provides legal prospecting right consulting services to R&E on an ad hoc basis. The cost of these services amounted to R171 197 during the current period under review (June 2014 ­ R46 194).

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

11. Events after reporting date

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

12. Legal update

What follows represents an update to the shareholders of R&E regarding the legal matters in which the R&E group remains engaged, either in consequence of claims instituted by it against third parties or as a result of proceedings brought against it. The progression of the claims has been reported in prior legal reports, SENS announcements and updates to shareholders, including circulars and annual reports.

Legal update

The consolidated class application by mineworkers/the dependents of mineworkers for permission to institute a class action against various companies including R&E arising from silicosis and/or tuberculosis (but excluding silico-
tuberculosis) allegedly contracted on gold mines in South Africa:

1. R&E has been cited as the twenty ninth respondent in an application instituted in the High Court of South Africa, Gauteng Local Division, Johannesburg, which was consolidated with three other applications in August 2013, launched by mineworkers, alternatively dependents of mineworkers, who allegedly contracted silicosis and/or tuberculosis whilst working on gold mines in South Africa. They contend that during the period 1993 to 1996, R&E owned and/or controlled certain gold mines referred to in the papers and failed to take steps to prevent silicosis and tuberculosis from being contracted. This is disputed by R&E.

2. In terms of the consolidated application and as a first step in the process of proceeding with a class action against the twenty-nine respondents that have been cited, the applicants require the permission of the court to proceed with a class action and the certification by the court of both a silicosis and tuberculosis class.

3. Initially, the main application was confined to the certification of a silicosis class against R&E, which it opposed, and in respect of which it filed opposing papers. In September 2014, the applicants served a joinder application requesting permission to join R&E as a respondent to the tuberculosis class. R&E did not oppose its joinder. It subsequently filed papers opposing the certification of the tuberculosis class.

4. The hearing in respect of the certification of the classes is scheduled to take place in October 2015. Without prejudice to any of R&E’s rights, R&E has decided to abide the outcome of the certification stage. Should certification be ordered by the court, R&E will thereafter consider its position.

The minority shareholders application:

5. On 29 March 2011, David Smyth, Patrick Smyth, Anglorand Securities Limited, James Gubb, Elizabeth Gubb, Milkwood Investments and Jag Investments proceeded with an application for an order declaring the Settlement Agreement concluded between R&E, JCI Ltd (JCI) and JCI Investment Finance (Pty) Ltd on 20 January 2010 and the Litigation Settlement Agreement concluded between the various parties on 22
January 2010 to constitute or involve unfairly prejudicial, unjust or inequitable conduct. The application is opposed by R&E and opposing papers have been filed.

6. In March 2014, the parties to the application (which includes Investec Bank Limited), agreed to refer a dispute concerning the legal standing of the applicants (and those who have made common cause with them) to sue, to the High Court of South Africa, Gauteng Division, Pretoria to decide. Judge Rabie was appointed to hear the application, which was argued before him in June 2014 and resumed in November 2014. Judgment is awaited.

7. Following a decision on the locus standi issue, R&E will assess its position. In the interim, R&E is considering an invitation by applicants to file a further affidavit dealing with various allegations that surfaced for the first time in their replying affidavit.

8. No monetary relief is claimed against R&E in the main application. Further details of the application may be found in the previous Legal Report of R&E on pages 20 ­ 21 of R&E’s Annual Report for 2014.

The action against Gold Fields Operations Ltd (Gold Fields):

9. In August 2008, R&E and African Strategic Investment (Holdings) Ltd (formerly Randgold Resources (Holdings) Ltd) (ASI) instituted action against Gold Fields for relief having its origin in the alleged theft of Randgold Resources Ltd and Aflease Shares, the extent of which claims extend to several billion rand. If successful, a favourable judgment could be sizable.

10. On 22 April 2015, Gold Fields delivered its plea to the action denying any liability to R&E and ASI.

11 Gold Fields has joined JCI, the trustees of the Estate Late Roger Brett Kebble (the Brett Kebble Estate), John Chris Lamprecht (Lamprecht) and Roger Ainsley Ralph Kebble to the action, claiming a contribution against them as wrongdoers to the extent that Gold Fields is found to be liable to R&E and/or ASI. Both Lamprecht and JCI have filed pleas denying that they are liable to Gold Fields and raised special defences relating to, among others, the prescription of Gold Fields’ right to join them to the proceedings. Apart from the special defences raised by JCI, JCI has indicated that it will abide the decision of the court.

12. In addition, Gold Fields has served notices on additional persons (who have not been joined to the proceedings), notifying them that should it be found to be liable to R&E and/or ASI, it thereafter intends instituting action against such persons and claiming relief from them.

13. R&E has called upon Gold Fields to discover the documents which it intends placing reliance on at trial and the matter is proceeding.

The action against Charles Orbach and Company (Charles Orbach):

14. The action instituted by R&E against Charles Orbach in the High Court of South Africa, Gauteng Local Division, Johannesburg relates to a claim for damages arising from the alleged negligent assurance given by Charles Orbach on the provisional results of R&E for the financial year ended 31 December 2004. Charles Orbach has responded to R&E’s claim and raised a special defence that if found to be liable, the extent of its liability is limited by the limitation of liability provision on which it relies.

15. On 30 September 2014, the parties agreed to have such special defence determined by way of arbitration. The matter was argued before Judge Malan on 23 January 2015, who upheld such special defence. R&E appealed against the aforesaid judgment to three retired Supreme Court of Appeal Judges. Its appeal was argued on 13 July 2015 and was successful. On 27 July 2015, the appeal award was delivered. R&E’s exception to the limitation of liability provision (which was declared to be void) was upheld and Judge Malan’s award was overturned. Costs of both the arbitration before Judge Malan and the appeal were granted in favour of R&E.

The action against certain former directors/employees of R&E:

16. The action instituted in 2008 by R&E, ASI and First Wesgold Mining (Pty) Ltd (First Wesgold) out of the High Court of South Africa, Gauteng Local Division, Johannesburg, against Hendrik Buitendag (Buitendag), John
Stratton (Stratton), Charles Cornwall, Lieben Swanevelder, Lunga Ncwana and Lamprecht, is being defended.

The action against Bookmark Holdings (Pty) Ltd (Bookmark), Sello Rasathaba (Rasathaba) and Lamprecht:

17. The action instituted in 2008 by R&E and ASI in the High Court of South Africa, Gauteng Local Division, Johannesburg, claiming damages against Bookmark, Rasathaba and Lamprecht is being defended.

The action against Buitendag, Lamprecht and Stratton:

18. The action instituted in 2008 by R&E against Buitendag, Lamprecht and Stratton in the High Court of South Africa, Gauteng Local Division, Johannesburg, in respect of a trading account ostensibly conducted by R&E at Tlotlisa Securities (Pty) Ltd is being defended.

The action against Patricia Beale (Beale):

19. The action instituted in 2008 by R&E and ASI out of the High Court of South Africa, Gauteng Local Division, Johannesburg claiming damages against Beale is being defended.

The action against the Brett Kebble Estate:

20. Having proved claims against the Brett Kebble Estate in excess of R2.7 billion, R&E instituted an action in the High Court of South Africa, Western Cape Division, Cape Town. No further steps have been taken in the matter.

General:

21. The board of R&E continues to evaluate the legal matters in which the R&E group is engaged from time to time, mindful of the commercial and other practicalities associated with such litigation.

SENS Announcement – 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 six months ended 30 June 2015 is expected to be 0.47 cents per share (2014: 213 cents), being a decrease of 99.78%. Headline earnings per share is expected to be 0.47 cents per share (2014: 213 cents), being a decrease of 99.78%.

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 2015 on or about 14 August 2015.

Johannesburg
11 August 2015
Sponsor
PSG Capital