Interim Results

25th Aug 2009 07:30



Immediate Release

25 August 2009

Central Rand Gold Limited

("Central Rand Gold" or "CRG")

(Incorporated as a company with limited liability under the laws of Guernsey,

Company Number 45108)

(Incorporated as an external company with limited liability under the laws of

South Africa, registration number 2007/019223/10)

ISIN: GG00B24HM601

Share code on LSE: CRND

Share code on JSE: CRD

2009 Interim Report 

Central Rand Gold Ltd ("CRG" or "the Company"), the South African gold mining and exploration holding company, today announces its Interim Results for the six months ended 30 June 2009. The full set of results is available on the Company's website: www.centralrandgold.com.

Central Rand Gold will host a conference call on Tuesday 25 August 2009 at 10:00 am (London, UK time) / 11:00am (South Africa) to update investors and analysts on its Q2 Results and Reserve Update.

Participants may join the call by dialling one of the three following numbers approximately 10 minutes before the start of the call.

From UK: (toll free) 0808 109 1498

From South Africa: (toll free) 0800 999 539

From Australia: (toll free) 1800 052 112

Participant pass code: 878026#

Johan du Toit, Chief Executive Officer, will lead the discussion and will be accompanied by other members of the management team. The discussion will be followed by a question and answer period.

 

For further information, please contact:

Central Rand Gold +27 (0) 11 551 4000

Johan du Toit / Wayne Epstein

Evolution Securities Limited +44 (0) 20 7071 4300

Simon Edwards / Chris Sim / Neil Elliot

Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 2000 

Thembeka Mgoduso / Annerie Britz / Melanie de  Nysschen / Manisha Ramlakhan

Buchanan Communications +44 (0) 20 7466 5000

Bobby Morse / Ben Willey / Katharine Sutton

Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 506 7300

Jenni Newman / Megann Outram / Lerato Tlatlane 

CHIEF EXECUTIVE'S REVIEW

Operational Update for the Six Months ended June 30, 2009

The first half of 2009 has been a challenging and rewarding period for Central Rand Gold. The highlights for the period to date are:

Maiden Resource to Reserve conversion released

Trial Mining plan developed and confirmed

Substantial Metallurgical progress

Operational management team strengthened

Strong focus on cost containment 

Cash on hand at June 30: US$46.3 million.

Anticipated need for further capital by mid 2010

RESOURCE TO RESERVE CONVERSION

The independent Resources to Reserves conversion report conducted by Snowden Mining Industry Consultants ("Snowden Report" or the "Report") is now available on the Company's website: www.centralrandgold.com.

This first report is based solely on two well-defined channels in the Main Reef on a portion of the Consolidated Main Reef ("CMR") property. In this report Snowden confirm that the mining method and mine plan can develop an economic mine (without the inclusion of any additional revenue which may arise from sweepings, vamping, Main Reef Leader pillars, auriferous middling material and surface material). 

Development and refining of the layout and methodology on this first production area is the first of many steps in building a large and sustainable business over the next few years.

The process for the Reserve conversion (which has been reported in accordance with the JORC codes) developed with Snowden was conservative in its assumption that only the Main Reef would be mined and the Board has confidence that the results of this process represent a strong base case upon which the Company hopes to build. The process has also established a methodology and template for further Resources to Reserves conversions elsewhere within CRG's other tenements over a strike length of approximately 40km. 

The Reserve Statement highlights:

The first CMR mine is economic and technically feasible;

JORC Probable Reserve of 270,900 ounces of gold (2.06 million tonnes at 4.1g/t) within the Main Reef on the CMR tenement in two well defined channels at depths of between 70m and 500m and 70m and 750m below surface over approximately 2km of strike. Trial mining is set to occur within one of these channels;

Conversion rate of 70% from Indicated Resource to Probable Reserve was achieved for Main Reef mineralisation exceeding 3g/t within the identified channels; and

Run of Mine Operating Costs for this initial Reserve conversion - US$580/oz.

The Ore Reserve is presented in the table below:

Area	Classification	Tonnes (Mt)	Au (g/t)	Au (oz)
East Limb	Probable	0.719	4.1	94,400
West Limb	Probable	1.342	4.1	176,500
Total	Probable	2.061	4.1	270,900

EXPLORATION 

Exploration at CRG has a twofold purpose:

Firstly, identifying and confirming Resources across the whole property; and 

Secondly, improving the confidence in existing Resources to allow for their inclusion into a mine plan.

Identification and confirmation of Resources

180 exploration diamond drill holes were drilled, supporting the delineation of a further 1.76 million ounces of gold (reported in March, 2008), within the Kimberley and Bird Reef Series as presented in Table 1 below. 

	Recoverable Tonnes after 10% Geological loss	Mean Rec. Au Grade (g/t)	Metal Content kg ('000)	Metal Content oz ('000)
Inferred	6.8	3.8	25.6	828
Indicated	9.61	3.0	29.0	932
Total	16.41	3.3	54.6	1 760

Table 1: March 2008 Inferred and Indicated Resource upgrade.

A further 48 diamond drill holes were drilled for geotechnical purposes, focusing mainly in the immediate portal area to test rock strength and general ground conditions for portal placement.

The diamond drilling that has been performed has also helped to confirm the grades and widths as modelled in the existing Resource estimate undertaken by Dr Lemmer and described in the Company's 2007 Listing Prospectus. The results of drilling in the Slot 8 area of CMR are presented below in Table 2. It is important to note that these holes have not necessarily targeted high grade areas and the grades presented in the table of results do not necessarily reflect the expected grades to be mined.

Table can be viewed on the Company website: www.centralrandgold.com.

Table 2: Diamond drill holes drilled in the Slot 8 area of CMR targeting the Main Reef Package.

The reported intervals above are continuous gold mineralised drill intercepts, corrected for lithological dip. In areas of core loss within the reef value zone, a nominal 0.01g/t grade has been applied. 

The location and distribution of these holes is portrayed in the map attached (Figure 1).

Figure can be viewed on the Company website: www.centralrandgold.com.

Figure 1: Diamond drill holes drilled in the Slot 8 area of CMR targeting the Main Reef Package

In addition to this, a concerted campaign of reverse circulation drilling (552 holes) was used to broadly identify shallow resources with slot mining potential. This drilling targeted areas of shallow mineralisation in the CMR and Crown Mines areas. 

Concentration has now been placed on the systematic trenching, sampling and evaluation of the close-to-surface targets indentified during the earlier reverse circulation drilling phase. 

This exploration for gold on the Main, White and Kimberley Reefs on Slots 4, 5, 7, 8 and 9 (see Figure 2) has discovered an Exploration Target of between 200,000 and 250,000 tonnes at an anticipated in situ grade of between 2.4 and 4.4g/t. The Exploration Target depth is up to 30 metres below surface. These figures are based on weighted average composite sampling and gold assay of material obtained from systematic trenching, reverse circulation drilling and diamond drilling*. * The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the definition of a Resource. Further exploration work is ongoing, and includes trial mining and processing of this shallow target to establish grade and orebody continuity, mineability, dilution and throughput characteristics 

Improving the confidence in existing Resources to allow for their inclusion into mine planning ahead of mine development

Focus is shifting from regional exploration and resource drilling of secondary reef targets to focused systematic diamond drilling ahead of the developing decline and in and around the footprint of the second decline. It is targeting largely the western Slot 8 and Slot 9 areas as can be seen in Figure 2. This will confirm Main Reef block grades, as estimated in the Resource Model, as well as allowing for further geotechnical ground condition assessment.

Figure can be viewed on the Company website: www.centralrandgold.com.

Figure 2: Slot positions

TRIAL MINING

Mine Progress

The Resource to Reserve conversion process has culminated in the conversion of 270,900oz Au from Resources to Probable Reserves in our first targeted mining area. 

The original mine plan that was proposed in this area was to perform extensive development over the full extent of the Western side of CMR with a drift-and-fill mining method being utilised. After an extensive review process it was determined that, even though this approach would produce the 90,000 tonnes originally required, the sustainable headgrade achieved would be uneconomical 

The technical team reviewed this approach and, after Snowden's confirmation of its applicability, the Company has elected to concentrate on two higher grade payshoot areas within the same area. This should result in lower development costs, higher headgrades but lower tonnages being extracted. This presents a more favourable start-up operating model for the Company. The mining method now chosen (long hole, mechanised stoping) is new to the Witwatersrand Goldfields, posing some questions that only physical mining will answer. Through trial mining and mining optimisation it is expected that these uncertainties will be overcome. This will also address any refinements needed to the mine plan and the overall economics of this part of the project and future extensions.

Further investment in process plants may increase recoveries to the point where reducing pay-limits will significantly enhance revenue from the pay-shoots and render the intervening material recoverable. This is, as yet, unconfirmed and excluded from the current plan and model.

The decline on Slot 8 is progressing well, having achieved some 300 metres as at August 20, 2009, and is currently approximately 35 metres away from the reef. The Company is achieving an average progression rate of 4.6 metres per day, which will allow for the first reef drive to be intersected by the end of August. Trial stoping is expected to begin at the end of 2009 or in January 2010. 

The Company has engaged the services of Australian Contract Mining ("ACM"), an Australian based mining contractor with specific expertise in mechanised underground mining and development (particularly in long-hole stoping). ACM will assist CRG with the underground development and the mining (previously contracted to Mathoma Mining Consortium) and will also train CRG's staff to be able to implement the methods effectively without external assistance.

CRG continues with surface slot mining whilst the underground mine development is underway. For the 2009 year to August 12, 2009, CRG has mined approximately 56,930 tonnes from surface with an average headgrade of 3.81g/t. 

METALLURGICAL PROGRESS 

Considerable metallurgical progress has been made. Initially commissioned in October 2008, the 20tph Gekko crushing and concentrating plant had a flotation circuit added and commissioned in January 2009. Following debottlenecking and upgrading, throughput at the plant has been gradually increased with July reaching a total of 10,016 tonnes with a 67% recovery (not unreasonable for surface, oxidised material) and a production availability rate of around 75%. Throughput, recovery and production availability will increase once underground sulphide material is being treated.

A Bateman 30tph crushing and concentrating plant was commissioned in June 2009. Concentrate from the Gekko and Bateman crushing and concentrating plants is now being fed to the 10,000tpm Carbon-In-Leach concentrate treatment plant which was assembled on site over a three month period and commissioned at the end of May 2009. Included in the CIL plant is a smelt house facility that enables CRG to produce bullion bars (88%-90% gold), which is transported to Rand Refinery Limited for final refinement and sale. The first smelt on site occurred in July 2009.

A further Gekko crushing and concentrating plant, with a capacity of 50tph (30,000 tonnes per month), was ordered during the period and is expected to be delivered to site and commissioned around November of this year.

OPERATIONAL MANAGEMENT CHANGES

A number of important management changes have been made that strengthen CRG's operations and provide the necessary skills and experience to achieve the Company's objectives.

Keith Matier was appointed Chief Geologist with effect from May 1, 2009

Don Harper was appointed Head of Mining with effect from June 1, 2009

Patrick Malaza was appointed Chief Financial Officer with effect from July 1, 2009

The addition of Keith, Don and Patrick to the management team has appropriately strengthened the Company's capabilities as it moves from a conceptual stage towards being an operating company.

Keith Matier has spent more than 16 years in the mining and exploration industry, specifically in gold and platinum, and is particularly well versed in operational grade control and mineral resource management. He is a "competent person" in terms of the JORC Codes. 

Don Harper has particular knowledge and experience in the fast-track development of declines and long hole stoping. A qualified and experienced mining engineer, he has more than 19 years' experience in the underground base metal and gold sectors in Australia. He is a seasoned operator in high-speed trackless decline development and mechanised, narrow vein, stoping mining techniques. 

Patrick Malaza, a qualified chartered accountant, has held senior finance management positions with several major companies over the past 22 years. In addition to managing large and complex finance teams, he has successfully led and completed projects in costing models, international accounting standards compliance, external annual and interim reporting, management reporting, structured/asset finance, infrastructure investments, information systems, procurement processes and systems improvements and internal controls.  

COST CONTAINMENT AND FINANCIAL REVIEW

A comprehensive cost containment exercise has resulted in a substantial reduction in ongoing costs across the Company's operations and activities.

As a result of a voluntary retrenchment programme introduced in June 2009, the permanent workforce has been reduced by 33 (13%). The use of consultants has been reduced wherever possible and the shaft re-access programme has been placed on care and maintenance. Infrastructure spending and certain exploration activities have also been cut back to focus only on priority items. This emphasis on cost containment will be continued in the six months to December 31, 2009.

As presented in the Interim Financial Statements attached, the loss for the six months to June 30, 2009 amounted to US$14.55 million, equivalent to 5.89 cents per share. As at June 30, 2009, cash and cash equivalents totalled approximately US$46.45 million, decreasing by US$23.15 million from the $US69.6 reported at December 31, 2008.

COMMUNITY INVOLVEMENT AND BLACK ECONOMIC EMPOWERMENT

Since its inception, CRG has been committed to uplifting the communities in which it operates through a wide variety of initiatives aimed at education, job creation, sport and living improvement programmes while providing opportunities for individuals with scholastic and sporting talents the platform to excel. 

Recent activities include:

A partnership with South Africa's Department of Education to provide bursaries to top students from the poorest backgrounds living in close proximity to the Company's mining tenements. A total of 13 bursaries have been awarded covering tuition, a stipend, books and accommodation close to Wits University;

A weekend and vacation school project that aims to improve the Grade 12 pass rate for some of the poorest performing schools in our community area by teaming up learners with some of the best teachers in Gauteng; and

A CRG-sponsored soccer tournament featuring players from 29 Soweto schools competing for a R150,000 (US$18,750) prize pool. The winning school received R80,000 (US$10,000) (the players received an extra R20,000 (US$2,500) to share), the second placed school received R30,000 (US$3,750) and the school that came third was awarded R20,000 (US$2,500).

CRG is committed to transparent and sustainable Broad-based Black Economic Empowerment. The dispute with our current BEE partner, Puno Gold Investments (Proprietary) Limited, regarding alleged breaches of the CRGSA shareholders' agreement has been referred to arbitration. This process should be concluded in 2010. 

WATER 

CRG is a member of Central Basin Environmental Corporation ("CBEC"), a Section 21 company, established to find a long term and sustainable solution for water-related issues in the Central Basin area. CBEC, which also comprises DRDGold Ltd and West Wits Mining Ltd, is currently analysing various options to keep the area suitably de-watered to allow ongoing underground mining operations. As mentioned in the Company's 2008 annual report, CRG will be required to make a substantial contribution to the building of a pump station in the Central Basin as part of the CBEC initiative. It is expected that an announcement will be made by CBEC in the last quarter of 2009. 

MILESTONE RECAP

At this stage of the Company's progression, with the achievement of the initial conversion of Resources to Reserves, it is worth taking a step back and reflecting on what tangible progress has been made on our Johannesburg gold mining project in a relatively short space of time.

Milestone 1: Upgrading our Resource base through a comprehensive exploration and shaft re-access programme.

The ongoing exploration programme has thus far delivered results in support of original expectations. The early drilling programme and ongoing digitisation have brought about an increase in our Indicated and Inferred Resources by 1.8 million ounces to 35.6 million ounces as announced in March 2008. More of this will follow and greatly enhance our understanding of geological structures in target areas.

Milestone 2: Obtaining necessary local community support and developing strategic alliances in order to ensure the future sustainability of the mine and receipt of New Order Mining Rights.

As a company operating in an urban environment, we are committed to our communities in a variety of ways, including creating employment, improving skills levels, uplifting standards of living and generating wealth. This was demonstrated at the Company's public participation meetings where more than 20,000 members of the local community were present. Achieving the New Order Mining Right was only possible through such, and CRG will continue to work closely with communities in the future. 

Further demonstration of our commitment to these core values can be found in our strategic alliances with groups such as Umkhonto we Sizwe Military Veterans' Association, Youth in Minerals and Energy and the Congress of South African Students. 

Milestone 3: Receiving first New Order Mining Right and resolving ownership structures through Section 11 Applications

The first New Order Mining Right was awarded to CRG in September 2008. It was achieved in record time over the CMR, Langlaagte and Crown Mines tenements.  

In February 2009, the Group was also granted New Order Mining and Prospecting Rights over seven tenements in accordance with section 11 of South Africa's Mineral and Petroleum Resources Development Act of 2002, effectively transferring these Rights from the founding partners into the Central Rand Gold Group. 

Milestone 4: Trial mining - Metallurgy and Underground Trial Mining

The Company has successfully commissioned two crushing and concentrating plants (the Gekko 20tph plant and Bateman 30tph plant) as well as a 10,000tpm CIL concentrate treatment plant. The first decline to be utilised to access underground ore is approximately 35m away from the reef intersection which is scheduled to occur by the end of August 2009.

Milestone 5: Maintaining a strong safety record

The Company has developed and implemented a robust safety control environment focussing on standards and awareness. To date, zero fatalities and two lost time injuries have been reported.

The milestones achieved to date lay a strong foundation for the future of CRG. 

GOING FORWARD

The Story so far

In line with CRG's progress to date and as indicated in this review, significant investments have already been made by the Company in developing its exploration programme, securing its first New Order Mining Right and procuring metallurgical and mining equipment in the advancement of the Company's surface mining operations and decline development. 

The second half of 2009 will be strongly focused on testing and proving that CRG's concepts are practical and workable and are providing the platform for sustainable gold production. Essentially, the July-December 2009 period will serve as a vital test or pilot phase, which will determine the future direction of the Company. 

Looking forward

At the time of CRG's Initial Public Offering, it was outlined that the Company's initial capital was to carry it into production and that development from that point would require more funding, probably towards the mid-end of 2009 (CRG's Listing Prospectus November 2007 - page 98).

In response to market turmoil (a risk identified in the risk analysis section of the Listing Prospectus - page 18) the Company identified that it could confirm its viability with a considerably scaled down development plan, conserve it cash resources and defer consideration of larger scale and further funding until markets stabilised. This is the plan currently in execution.

Cash in hand, planned expenditure and revenue expectations indicate that further development of the mine will require further capital from about the middle of 2010.

Appropriate rates of development, the resultant cash flows and the required future funding are under current consideration with a view towards finalisation and communication in the early part of 2010 - at which time uncertainty surrounding underground work will be rapidly reducing.

Key deliverables over the next 12 months

CRG's key deliverables for the period to mid-2010 have been agreed by the Company's Board of Directors to be:

To execute the trial mining operation over the course of the next few months;

To demonstrate that the mining methods as well as the metallurgical and economic assumptions used in the Snowden Report are robust and conservative in practice;

To demonstrate that there is material upside to the base case outlined in the report from inclusion of vamping, sweepings, mineralisation outside the Main Reef zone, extraction of some Main Reef Leader pillars and mining outside the chosen pay shoots - none of which are included in the base case and all of which would positively impact the return from the investment in the current infrastructure, the cash cost and total cost per ounce; 

To confirm the potential for significant improvements in metallurgical recoveries and resulting reduction in underground pay-limits;

To utilise the knowledge gained from trial mining to firm up and develop feasibility studies for additional mining targets in the CRG tenement areas; and

To raise additional funds (debt and/or equity) to develop mines on the additional targets based on the feasibility studies to be undertaken - the magnitude and method of which should be communicated within the first half of 2010.

JOHAN du TOIT

CENTRAL RAND GOLD LIMITED
Condensed Group Statement of Financial Position
as at 30 June 2009
		30 June	31 December	30 June
		2009	2008	2008
	Notes	US$ '000	US$ '000	US$ '000
		(Unaudited)	(Audited)	(Unaudited)
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	5	30 712	10 458	3 331
Intangible assets	6	1 251	-	-
Prepayments		-	-	2 202
Loans receivable	7	6 626	5 205	5 808
		38 589	15 663	11 341
CURRENT ASSETS
Inventory	8	4 142	732	-
Prepayments and other receivables		5 176	5 332	1 264
Security deposits and guarantees		6 686	6 095	2 865
Cash and bank balances		46 449	69 601	132 551
		62 453	81 760	136 680
TOTAL ASSETS		101 042	97 423	148 021
EQUITY AND LIABILITIES
Share capital		5 023	5 023	5 023
Share premium		191 406	191 406	191 406
Share-based compensation reserve		26 644	26 429	23 174
Treasury shares	9	(2)	(4)	(35)
Foreign currency translation reserve		(30 290)	(42 900)	(9 807)
Accumulated losses		(106 859)	(92 490)	(70 271)
		85 922	87 464	139 490
Minority interest		-	-	-
TOTAL EQUITY		85 922	87 464	139 490
NON CURRENT LIABILITIES
Environmental rehabilitation and other provisions	10	39	244	-
Borrowings		35	46	74
Operating lease liability		41	41	42
		115	331	116
CURRENT LIABILITIES
Trade and other payables		6 413	3 758	2 227
Loan payable		6 626	5 205	5 808
Environmental rehabilitation and other provisions	10	1 206	324	186
Taxation payable		709	310	161
Operating lease liability		13	2	-
Borrowings		38	29	33
		15 005	9 628	8 415
TOTAL LIABILITIES		15 120	9 959	8 531
TOTAL EQUITY AND LIABILITIES		101 042	97 423	148 021
The condensed interim financial statements were approved by the Board on 24 August 2009 and were signed on its behalf by:
S.J. du Toit	A.J.M Walton
Johannesburg
24 August 2009
The notes are an integral part of these financial statements.

CENTRAL RAND GOLD LIMITED
Condensed Group Income Statement
for the 6 months ended 30 June 2009
		6 months	12 months	6 months
		ended	ended	ended
		30 June	31 December	30 June
		2009	2008	2008
	Notes	US$ '000	US$ '000	US$ '000
		(Unaudited)	(Audited)	(Unaudited)
Other income and gains		6 085	252	9
Employee benefits expense		(5 027)	(7 809)	(2 688)
Directors' emoluments	11	(925)	(9 830)	(5 689)
Depreciation		(911)	(1 210)	(387)
Operating lease payments		(689)	(809)	(384)
Exploration expenditure	12	(12 137)	(20 310)	(8 692)
Other expenses		(2 680)	(6 043)	(3 692)
Operating loss		(16 284)	(45 759)	(21 523)
Interest received		2 458	7 051	4 493
Finance costs		(329)	(853)	(461)
Loss before income tax		(14 155)	(39 561)	(17 491)
Income tax	13	(399)	(218)	(69)
Loss for the period		(14 554)	(39 779)	(17 560)
Loss is attributable to:
Minority shareholders		-	-	-
Equity holders of the Parent		(14 554)	(39 779)	(17 560)
		(14 554)	(39 779)	(17 560)
Shares in issue		246 919 650	246 919 650	246 919 650
Weighted average number of ordinary shares in issue		246 919 650	245 387 150	245 075 309
Fully diluted weighted average number of ordinary shares in issue		246 919 650	245 387 150	246 611 958
Basic loss per share (cents)		(5.89)	(16.21)	(7.17)
Headline loss per share (cents)		(5.62)	(16.21)	(7.16)
Diluted loss per share (cents)		(5.89)	(16.21)	(7.12)
Diluted headline loss per share (cents)		(5.62)	(16.21)	(7.12)
Reconciliation between loss attributable to the equity holders of the Group and the headline loss attributable to the equity holders of the Group:
Loss attributable to equity holders of the Group		(14 554)	(39 779)	(17 560)
Provision for restructuring		472	-	-
Loss on disposal of property, plant and equipment		217	1	-
Headline loss attributable to equity holders of the Group		(13 865)	(39 778)	(17 560)
The notes are an integral part of these financial statements.

CENTRAL RAND GOLD LIMITED
Condensed Group Statement of Comprehensive Income
for the 6 months ended 30 June 2009
		6 months	12 months	6 months
		ended	ended	ended
		30 June	31 December	30 June
		2009	2008	2008
		US$ '000	US$ '000	US$ '000
		(Unaudited)	(Audited)	(Unaudited)
Loss for the period		(14 554)	(39 779)	(17 560)
Other comprehensive income:
Exchange differences on translating foreign operations		12 610	(33 588)	(495)
Income tax relating to components of other comprehensive income		-	-	-
Other comprehensive income for the period, net of tax		12 610	(33 588)	(495)
Total comprehensive income for the period		(1 944)	(73 367)	(18 055)
Total comprehensive income is attributable to:
Minority shareholders		-	-	-
Equity holders of the Parent		(1 944)	(73 367)	(18 055)
		(1 944)	(73 367)	(18 055)
The notes are an integral part of these financial statements.

CENTRAL RAND GOLD LIMITED
Condensed Group Statement of Changes in Equity
for the period ended 30 June 2009
		Attributable to equity holders of the Parent Company
	Notes	Ordinary Share Capital	Share Premium	Foreign Currency Translation Reserve	Share-Based Compensation Reserve	Treasury Shares
		US$ '000	US$ '000	US$ '000	US$ '000	US$ '000
Balance at 31 December 2007		5 017	191 406	(9 312)	18 152	(31)
Total comprehensive income for the period ended 30 June 2008
Profit or loss		-	-	-	-	-
Other comprehensive income
Foreign currency adjustments		-	-	(495)	-	-
Transactions with owners, recorded directly in equity
Employee Share Option Scheme:
Treasury shares issued		6	-	-	-	(6)
Share-based payments: Employees and director's shares		-	-	-	5 022	2
Balance at 30 June 2008		5 023	191 406	(9 807)	23 174	(35)
Balance at 31 December 2008		5 023	191 406	(42 900)	26 429	(4)
Total comprehensive income for the period ended 30 June 2009
Profit or loss		-	-	-	-	-
Other comprehensive income
Foreign currency adjustments		-	-	12 610	-	-
Transactions with owners, recorded directly in equity
Employee Share Option Scheme:
Transfer of forfeited share options		-	-	-	(185)	-
Share-based payments: Employees and director's shares	16	-	-	-	400	2
Balance at 30 June 2009		5 023	191 406	(30 290)	26 644	(2)
The notes are an integral part of these financial statements.

CENTRAL RAND GOLD LIMITED
Condensed Group Statement of Changes in Equity
for the period ended 30 June 2009 continued
	Notes	Accumulated Losses	Total	Minority Interest	Total
		US$ '000	US$ '000	US$ '000	US$ '000
Balance at 31 December 2007		(52 711)	152 521	-	152 521
Total comprehensive income for the period ended 30 June 2008
Profit or loss		(17 560)	(17 560)	-	(17 560)
Other comprehensive income
Foreign currency adjustments		-	(495)	-	(495)
Transactions with owners, recorded directly in equity
Employee Share Option Scheme:
Treasury shares issued		-	-	-	-
Share-based payments: Employees and director's shares		-	5 024	-	5 024
Balance at 30 June 2008		(70 271)	139 490	-	139 490
Balance at 31 December 2008		(92 490)	87 464	-	87 464
Total comprehensive income for the period ended 30 June 2009
Profit or loss		(14 554)	(14 554)	-	(14 554)
Other comprehensive income
Foreign currency adjustments		-	12 610	-	12 610
Transactions with owners, recorded directly in equity
Employee Share Option Scheme:
Transfer of forfeited share options		185	-	-	-
Share-based payments: Employees and director's shares	16	-	402	-	402
Balance at 30 June 2009		(106 859)	85 922	-	85 922

CENTRAL RAND GOLD LIMITED
Condensed Group Cash Flow Statement
for the 6 months ended 30 June 2009
		6 months	12 months	6 months
		ended	ended	ended
		30 June	31 December	30 June
		2009	2008	2008
		US$ '000	US$ '000	US$ '000
		(Unaudited)	(Audited)	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES	Notes
Loss before tax		(14 155)	(39 561)	(17 491)
Adjusted for :				-
Depreciation		911	1 210	387
Employment benefit expenditure (Share-based payments)		638	8 769	4 700
Loss on disposal of fixed assets		217	1	-
Net gain on foreign exchange		(6 085)	(165)	(1 297)
Increase in operating lease liability		3	18	4
Interest received		(2 458)	(6 225)	(4 493)
Finance costs		329	27	461
Changes in working capital				-
(Increase)/decrease in receivables		2 266	(5 144)	(125)
Increase in provisions		485	660	60
Increase in inventory		(2 813)	(852)	-
Increase/(decrease) in trade and other payables		1 303	2 107	(307)
Cash flows absorbed by operations		(19 359)	(39 155)	(18 101)
Interest received		2 458	6 225	4 493
Finance costs		(329)	(27)	(461)
Net cash used in operating activities		(17 230)	(32 957)	(14 069)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant & equipment	5	(18 193)	(10 856)	(1 087)
Proceeds from disposal of property, plant and equipment		-	18	-
Increase in non-current prepayment		-	-	(2 202)
Purchases of subsidiaries	6	(917)	-	-
Net cash used in investing activities		(19 110)	(10 838)	(3 289)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings		(15)	(30)	(35)
Decrease/(increase) in security deposits		516	(5 347)	(792)
Proceeds from issuance of shares		-	2	2
Net cash from/(used in) financing activities		501	(5 375)	(825)
Net decrease in cash and cash equivalents		(35 839)	(49 170)	(18 183)
Cash and cash equivalents at beginning of period		69 601	149 195	149 195
Effects of exchange rate movement on cash balances		12 687	(30 424)	1 539
Cash and cash equivalents at end of period		46 449	69 601	132 551
The notes are an integral part of these financial statements.

CENTRAL RAND GOLD GROUP
Notes to the Condensed Interim Group Financial Statements
1. Basis of preparation
This condensed consolidated interim financial information for the six months ended 30 June 2009 has been prepared in accordance with IAS 34, 'Interim financial reporting'. The interim results for the six months ended 30 June 2009 are unaudited. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008, which have been prepared in accordance with International Financial Reporting Standards ('IFRS'). The financial information set out in this document in respect of the year ended 31 December 2008 does not constitute the Group's statutory accounts for the year ended 31 December 2008.
2. Accounting policies
Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those annual financial statements.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009.
IAS 1 (revised), 'Presentation of financial statements'. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement.
Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income).
The Group has elected to present two statements: an income statement and a statement of comprehensive income. The interim financial statements have been prepared under the revised disclosure requirements.
IFRS 8, 'Operating segments'. IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Board of Directors that makes strategic decisions.
Management has determined that the Group operates primarily in one business and geographical segment, being the exploration and mining of gold and other related minerals on the Central Rand Goldfield of South Africa. Accordingly, no analysis of segment revenue, results or net assets has been presented.
IFRS 2, 'Share-based payment'. IFRS 2 provides guidance on whether share-based transactions involving treasury shares or involving group entities (for example, options over a parent's shares) should be accounted for as equity-settled or cash settled share-based payment transactions in the stand alone accounts of the parent and group companies.
The change does not have a material effect on the interim financial statements.
The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2009, but are not currently relevant for the Group.
IAS 23 (amendment), 'Borrowing costs'.
IAS 32 (amendment), 'Financial instruments: Presentation'.
IFRIC 13, 'Customer loyalty programmes'.
IFRIC 15, 'Agreements for the construction of real estate'.
IFRIC 16, 'Hedges of a net investment in a foreign operation'.
IAS 39 (amendment), 'Financial instruments: Recognition and measurement'.
The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial year beginning 1 January 2009 and have not been early adopted:
IFRS 3 (revised), 'Business combinations' and consequential amendments to IAS 27, 'Consolidated and separate financial statements', IAS 28, 'Investments in associates' and IAS 31, 'Interests in joint ventures', effective prospectively to business combinations for which the acquisition date is on or before the beginning of the first annual reporting period beginning on or after 1 July 2009.
IFRIC 17, 'Distributions of non-cash assets to owners', effective for annual periods beginning on or after 1 July 2009. This is not currently applicable to the Group, as it has not made any non-cash distributions.
IFRIC 18, 'Transfers of assets from customers', effective for transfers of assets received on or after 1 July 2009. This is not relevant to the Group, as it has not received any assets from customers.
The following accounting policies are applicable to new transactions and events during the period:
Intangible assets
Acquisition of assets
Frequently, the acquisition of mining licences is effected through a non-operating corporate structure. As these structures do not represent a business, it is considered that the transactions do not meet the definition of a business combination. Accordingly the transaction is accounted for as the acquisition of an asset. The net assets acquired are recognised at cost. Where the Group has full control but does not own 100% of the assets, then a minority interest is recognised at an equivalent amount based on the Group's cost, the assets continue to be carried at cost and changes in those values are recognised in equity.
Inventories
Inventories are valued at the lower of cost and net realisable value after appropriate allowances for redundant and slow moving items. Cost is determined on the following bases: • gold in process is valued at the average total production cost at the relevant stage of production; • gold doré / bullion is valued on an average total production cost method; • ore stockpiles are valued at the average moving cost of mining and stockpiling the ore. Stockpiles are classified as a noncurrent asset where the stockpile exceeds current processing capacity; and • mine operating supplies are valued at average cost A portion of the related depreciation, depletion and amortisation charge is included in the cost of inventory.
3. Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
During the six months ended 30 June 2009 management reassessed its estimates in respect of:
- the recoverable amount of inventories (see note 8)
- provisions (see note 10)
4. Financial Risk Management
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated annual financial statements as at and for the year ended 31 December 2008.
Foreign currency rates
The US Dollar rates of exchange applicable to the year are as follows:
			2009		2008		2008
			Six months to 30 June		Six months to 30 June		Year ended 31 December
			Closing Average		Closing Average		Closing Average
South African Rand			0.13 0.11		0.13 0.13		0.11 0.12
British Pound			1.65 1.49		2.00 1.98		1.45 1.86
5. Property, plant and equipment
During the period the Group spent US$16,982,694 (six months ended 30 June 2008: US$0) on processing plants and mining equipment. Assets with a net book amount of US$216,510 (six months ended 30 June 2008: US$0) were disposed of during the year. The foreign exchange effect on the movements in property, plant and equipment amounts to US$4,606,677.
6. Intangible assets
During the reporting period, the Group purchased the issued share capital of Ferreira Estate and Investment Company ("FEIC"), the registered holder of the Prospecting and Mining rights over the Consolidated Main Reef, Crown Mines and Langlaagte mining areas. The purchase price included an amount of US$ 1,251,243 for the purchase of these Prospecting and Mining rights.
7. Loans receivable
Puno Gold Investments (Proprietary) Limited ("Puno")
Since the last report for the year ended 31 December 2008 there has been no resolution to the dispute relating to alleged procedural breaches of the CRGSA Shareholders Agreement between Central Rand Gold SA (Proprietary) Limited and its current Black Economic Empowerment ("BEE") shareholder, Puno Gold Investments (Proprietary) Limited. The dispute surrounds the allocation of intercompany loans which fund the budget and work programme and the incurring of, and level of, certain costs. In order to prevent protracted litigation, the parties have agreed to refer the matter to arbitration pursuant to the dispute resolution mechanism under the shareholders agreement. The Group still believes that ultimately their position will prevail. The Directors are still of the opinion that this will not have any material consequences in respect of the consolidated accounts of the Group. Notwithstanding this position, the Group have pending the outcome of any dispute allocated 100% of the intercompany balances directly through from the Company to CRGSA. This additional 26% of intercompany debt excluding interest amounts to ZAR 85,120,418 (US$9,345,371) between 1 January and 30 June 2009 (ZAR 114,139,770 (US$12,099,957) between 1 January and 31 December 2008).
The loan payable to Puno Gold Investments (Proprietary) Limited contains the same allocations referred to above.
							Group
							June		December
							2009		2008
							US$ '000		US$ '000
8. Inventory
Exploration consumables							1 701		731
Ore stockpiles							2 438		-
Stationery on hand							3		1
Total inventory							4 142		732
The amount of the write-down of ore stockpiles to net realisable value, and recognised as an expense is US$1,075,429 (2008: US$0). This expense is included in exploration expenditure.
9. Treasury shares
During the year ended 31 December 2008, the Company issued 300,000 shares to Mr M McMahon. 100,000 vested on 19 June 2008, 100,000 vested on 29 April 2009 and 100,000 will vest on 29 April 2010. No further shares were issued from the Employee Share Trust.
10. Environmental rehabilitation and other provisions
A provision of US$547,562 has been recognised for restructuring. The costs are expected to be incurred during the current financial year.
11. Directors' Emoluments
A director of the Group, Mr M Sullivan, resigned during the period. Mike Sullivan was granted 2,465,996 share options on 31 October 2007. One third of the options vest per annum, with full vesting on the third anniversary of the grant date. The options expire on the fourth anniversary of the date of grant. The first and second tranche of share options were not forfeited and the vesting remains unchanged. The final portion of the options granted were forfeited. The total number of share options that were forfeited are 821,999. Due to his resignation the future share options were recognised on the date of his resignation. The value of the accelerated share-based payments for these share options is GBP69,709 (US$104,108). The value of the share options that were forfeited as a result of his resignation is GBP212,397 (US$317,204). The value of the forfeited share options that were previously recognised was reversed in the period. The value of this reversal is GBP81,199 (US$121,267).
12. Exploration expenditure
Included in exploration expenditure are the costs and revenues incidental to the trial mining operations of the Company. CRGSA sold 122.87 ounces of gold recovered from the metallurgical concentrator plant during the six months ended 30 June 2009. The revenue attributable to this sale is US$115,345. The remaining gold bearing concentrate recovered from the plant in the trial mining operations has been stockpiled for the extraction of gold by chemical process.
13. Income taxes
Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the year to 31 December 2009 is 2.82% (2008: 0.55%). The increase is mainly due to an increase in the intercompany loans from the Company to Central Rand Gold (Netherlands Antilles) N.V. ("CRGNV") and the disallowed interest on these loans.
14. Commitments
a) Various contractual fees payable
							Group
							June		December
							2009		2008
							US$ '000		US$ '000
Capital committed for the purchase of processing plants							5 869		6 295
Fees payable to iProp Limited for prospecting							-		500
Option fees payable to Gravelotte Mines Limited							-		100
							5 869		6 895
15. Segment reporting
The group operates predominately in one business and geographical segment, being the exploration and mining of gold and other related minerals on the Central Rand Goldfield of South Africa. Accordingly, no analysis of segment revenue, results or net assets has been presented.
16. Share-based payments
Grant of options in the Company
During the period further share options were granted to selected employees. The options granted are summarized below.
Vesting	Strike price				Allocation				Number of share options granted
600,000 on 31 October 2009, 600,000 on 31 October 2010 and 600,000 on 31 October 2011.	Exercise price escalates in accordance with the vesting tranches. One third at price of £0.50, one third at £1.00 and one third at £1.50.				Mr S.J. du Toit				1 800 000
A director of the Group, Mr M Sullivan, resigned during the period. Please refer to Note 11 - Directors emoluments above for further information.
17. Related parties
Except for the grant of share options in the Company disclosed in Note 16 - Share-based payments and the resignation of a director disclosed in Note 11- Directors Emoluments, no other disclosable related party transactions occurred in the period.
18. Events occurring after balance sheet date
On 19 August 2009, the Company was issued with its first Resource to Reserve conversion report compiled by Snowden Mining Industry Consultants. The JORC Probable Reserve of 270,900 ounces of gold (2.06 million tonnes at 4.1g/t) is from within the Main Reef on the Consolidated Main Reef tenement in two well defined channels at depths of between 70m and 500m and 70m and 750m below surface over approximately 2km of strike. Details of this are covered in a separate Reserve Statement . The impact of this is not yet recognised in these interim financial statements.

ENDIR QELBLKVBFBBL

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Related Shares:

Central Rand Gold