28th Aug 2008 07:00
|
Immediate Release |
28 August 2008 |
Central Rand Gold Limited ("CRG" or the "Company")
(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 2007/0192231/10)
ISIN: GG00B248M601
Share code on LSE: CRND
Share code on JSE: CRD
SUMMARISED INTERIM RESULTS FOR SIX MONTHS ENDED JUNE 30, 2008
Central Rand Gold Limited ("CRG" or "the Company"), the gold exploration and development company, is pleased to announce the financial results for the six months ended 30 June 2008.
Please refer to the Company's website, www.centralrandgold.com for the full Interim Report.
HIGHLIGHTS
Resource base upgraded in March by 1.8 million ounces to 35.7 million ounces; 22.4 million ounces indicated, 13.3 million ounces inferred
First three mining slots identified
Gekko trial mining plant expected to be commissioned in September, 2008
Positive results from underground bulk sampling
Cash balance of US$133 million at June 30, 2008
Commenting on the interim results Greg James, CEO of Central Rand Gold, stated:
"Since listing on the main boards of the London Stock Exchange and the JSE Limited in November 2007, Central Rand Gold has reached all of its milestones on time. Beyond the highly successful bulk sampling programme, which has demonstrated high gold grades in the disseminated pyrite ore, trial mining is scheduled to commence in October, 2008. This will generate cash flow and is a precursor to full mining due to commence in the first quarter of 2009."
Contact:
Greg James
+27 (0) 11 551 4000
Enquiries:
Buchanan Communications Limited +44 (0) 20 7466 5000
Bobby Morse/Robin Haddrill
Evolution Securities Limited +44 (0) 20 7071 4300
Simon Edwards/Chris Sim/Neil Elliot
Macquarie First South Corporate Finance + 27 11 583 2000
Amanda Markman/Thato Morojele
Jenni Newman Public Relations (Pty) Ltd + 27 11 772 1033
Jenni Newman +27 82 882 8888
Megann Outram +27 83 320 7577
Chief Executive's Review
CRG has made significant progress in the six months to June 30, 2008 and remains on track to transition from exploration to mining in early 2009.
New Order Mining Right
Following the submission of the Group's New Order mining right application in October 2007, the period under review saw all other essential documentation submitted to the South African Department of Minerals and Energy - this included the Environmental Management Programme, the Mining Work Programme and the Social and Labour Plan.
Board Changes
Michael McMahon was appointed as a non-executive director with effect from April 29, 2008. He has served on the Boards of several of leading South African precious metal producers, adding considerable mining experience and insight to the Board.
Johan du Toit was appointed Financial Director on June 12, 2008 with his appointment coming into effect from August 1, 2008. From 2004, Johan headed up the South African and European Financial Shared Services for BHP Billiton plc, delivering all aspects of financial management and reporting.
Exploration and Resources
In March 2008, the Group's gold resource base was upgraded to 35.7 million ounces; 22.4 million ounces indicated, 13.3 million ounces inferred. This compares to the previous resource base of 33.8 million ounces; 21.4 million ounces indicated, 12.4 million ounces inferred.
Considerable exploration activity took place during the period and has continued into the second half of the year resulting in ongoing drilling, assaying, and bulk sampling initiatives across the Group's prospecting areas. The first three mining slots - numbers 4 (Consolidated Main Reef ("CMR"), Kimberley Reef package), 8 and 9 (CMR, Main Reef package) - were identified for initial surface mining activity when the Group moves into its mining phase.
The first half of the year resulted in considerable progress being made across a number of important areas, placing the Group in an excellent position to move swiftly to full production once it receives its New Order mining right.
In the second half of the year, the major focus will be on trial mining, continued exploration and bulk sampling activities, and advancing towards the commencement of full scale mining during 2009.
Financial Highlights
The loss for the six months to June 30, 2008 amounted to US$16.7 million, equivalent to 7.17 cents per share. As at June 30, 2008, cash and cash equivalents totalled approximately US$133 million, decreasing by US$16 million from the $US149 million reported at December 31, 2007.
Cash utilised during the period reflects the investment in CRG's mining operations, exploration, bulk sampling, plant acquisition and the recruitment of high calibre mining teams prior to the commencement of full scale mining operations.
In line with expectation, cash utilisation will accelerate from the second half of the year as the Group progresses into its trial mining phase with the commencement of the decline development and purchasing of concentrator plants.
Trial Mining
A trial mining plant capable of processing 20 tons of ore per hour was acquired from Australia's Gekko Systems in May, 2008. The plant was shipped from Melbourne on July 31, 2008 and is expected to arrive and be commissioned in Johannesburg in September, 2008.
This plant, which will be located on the surface near slot 8 - the first slot to be utilised for underground access, will be operational during October and is expected to ramp-up to a processing rate of around 12,000 tons of ore per month. This translates into producing between c.675 ounces and c.1,500 ounces per month from surface and shallow underground material. Acquired at a cost of US$5.74 million, the plant comprises a comminution circuit, a gravity circuit and a flotation circuit.
Trial mining will confirm the Company's mining and metallurgical concepts and determine the final configuration of mining/processing requirements, leading to the commencement of full scale mining from surface deposits by the end of the first quarter of 2009.
Bulk Sampling
As part of CRG's exploration programme (surface mapping, diamond drilling, shaft re-access and resource conversion investigations), zones of mineralisation have been identified in the hanging wall of the Main Reef Leader and the South Reef on the CMR prospecting area, as well as in grits outside of the reef in the form of disseminated pyrite.
CRG has undertaken an extensive bulk sampling exercise to quantify these mineralised zones. Initial results from the bulk sampling programme are demonstrated in the table below:
|
Sample ID (WBS1) |
Values(g/t) |
Geology Comments |
|
R_4801 |
0.5 |
Gritty Quartzite. Sulphides. |
|
R_4802 |
0.68 |
Quartzite |
|
R_4803 |
28.3 |
MPC (South reef). Sulphides |
|
R_4804 |
0.68 |
Quartzite |
|
R_4805 |
78.8 |
Gritty Quartzite. Sulphides. Veining |
|
R_4806 |
7.48 |
Gritty Quartzite. Sulphides. Veining |
|
R_4807 |
2.54 |
Quartzite |
|
R_4808 |
0.56 |
Quartzite |
|
R_4809 |
12.9 |
MPC (South reef). Sulphides |
|
R_4810 |
1 731.0 |
Quartzite |
|
R_4811 |
11.5 |
Quartzite |
|
R_4812 |
82.7 |
MPC (South reef). Sulphides |
|
R_4813 |
25.7 |
Gritty Quartzite |
|
R_4814 |
19.4 |
South Reef. Sulphides |
|
R_4815 |
1.86 |
Gritty Quartzite |
The initial bulk sampling indicate that these zones have the potential to add to the mineable tonnage and resource estimates. This also suggests that mass mining in larger stopes may also be viable.
Bulk sampling is continuing and is currently focusing on a cross-cut from the Main Reef to the South Reef (on 5 level, East Shaft) and on 9 level (±190m below surface, East Shaft) and will commence in the near future on 5 level, New Unified Shaft (CMR, approximately 3500m to the west of East Shaft).
Broad Based Black Economic Empowerment
During the period, Central Rand Gold SA (Pty) Ltd ("CRGSA") continued to make significant progress in regard to Broad-Based Black Economic Empowerment and this process is continuing to advance in the second half of the financial year.
To date, no fewer than 84% of CRGSA's staff could be classified as Historically Disadvantaged South Africans. It is envisaged that as CRGSA moves into the production phase, communities within CRGSA's mining areas will become increasingly integrated into the employment profile and the ongoing procurement processes that will result from mining activities.
Minority Shareholding
Since the last report issued at the end of April 2008 there has been no resolution to the dispute relating to procedural breaches of the CRGSA shareholders agreement between the Company and the minority 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. The Group has tried to settle any disagreements amicably, but so far without success. The next step, if so required, is for the parties to refer the matter to arbitration pursuant to the dispute resolution mechanism under the shareholders agreement. The Group 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.
Principal Risks and uncertainties
The Group faces risks in the operation of its business. The Group's strategy takes into account known risks, but risks will exist of which we are currently unaware. There is discussion of the principal risks and uncertainties facing the Group on page 22 of the 2007 Annual Report, available from the Company's website, www.centralrandgold.com. Risks that have arisen over the the past six months include issues facing the world's banking and financial sectors that have potentially reduced the availability of capital and the willingness of banks to lend. Aside from this, there has been no significant change in the Company's risk environment.
|
CENTRAL RAND GOLD LIMITED |
||||||
|
Condensed Group Balance Sheet |
||||||
|
as at 30 June 2008 |
||||||
|
Audited |
||||||
|
30 June |
30 June |
31 December |
||||
|
2008 |
2007 |
2007 |
||||
|
Note |
US$ |
US$ |
US$ |
|||
|
NON CURRENT ASSETS |
||||||
|
Property, plant and equipment |
2 |
3,330,737 |
2,633,457 |
3,045,316 |
||
|
Prepayment |
2,201,946 |
- |
- |
|||
|
Loan receivable |
3 |
5,808,240 |
6,557,596 |
6,279,167 |
||
|
11,340,923 |
9,191,053 |
9,324,483 |
||||
|
CURRENT ASSETS |
||||||
|
Prepayments and other receivables |
1,264,623 |
1,362,739 |
1,139,639 |
|||
|
Cash and bank balances |
132,550,655 |
6,582,072 |
149,194,757 |
|||
|
Security deposits and guarantees |
2,864,734 |
1,442,855 |
2,072,757 |
|||
|
136,680,012 |
9,387,666 |
152,407,153 |
||||
|
TOTAL ASSETS |
148,020,935 |
18,578,719 |
161,731,636 |
|||
|
EQUITY AND LIABILITIES |
||||||
|
Share Capital |
4 |
5,023,696 |
32,167,075 |
5,017,375 |
||
|
Share Premium |
4 |
191,405,973 |
- |
191,405,973 |
||
|
Share-based Compensation Reserve |
23,174,143 |
- |
18,152,511 |
|||
|
Merger Reserve |
- |
1,785,155 |
- |
|||
|
Treasury Shares |
5 |
(35,079) |
- |
(31,120) |
||
|
Foreign Currency Translation Reserve |
(9,806,552) |
209,267 |
(9,311,702) |
|||
|
Accumulated Losses |
(70,271,315) |
(23,526,065) |
(52,711,338) |
|||
|
139,490,866 |
10,635,432 |
152,521,699 |
||||
|
Minority Interest |
- |
- |
- |
|||
|
TOTAL EQUITY |
139,490,866 |
10,635,432 |
152,521,699 |
|||
|
NON CURRENT LIABILITIES |
||||||
|
Borrowings |
73,561 |
81,085 |
105,271 |
|||
|
Operating lease liability |
41,826 |
- |
38,226 |
|||
|
115,387 |
81,085 |
143,497 |
||||
|
CURRENT LIABILITIES |
||||||
|
Trade and other payables |
2,227,400 |
1,282,648 |
2,534,315 |
|||
|
Loan payable |
5,808,240 |
6,557,596 |
6,279,167 |
|||
|
Provisions |
185,437 |
- |
125,212 |
|||
|
Taxation payable |
160,778 |
- |
92,066 |
|||
|
Borrowings |
32,827 |
21,958 |
35,680 |
|||
|
8,414,682 |
7,862,202 |
9,066,440 |
||||
|
TOTAL LIABILITES |
8,530,069 |
7,943,287 |
9,209,937 |
|||
|
TOTAL EQUITY AND LIABILITIES |
148,020,935 |
18,578,719 |
161,731,636 |
|
CENTRAL RAND GOLD LIMITED |
||||||
|
Condensed Group Income Statement |
||||||
|
for the 6 months ended 30 June 2008 |
||||||
|
Audited |
||||||
|
6 months |
6 months |
12 months |
||||
|
ended |
ended |
ended |
||||
|
30 June |
30 June |
31 December |
||||
|
2008 |
2007 |
2007 |
||||
|
Note |
US$ |
US$ |
US$ |
|||
|
Other income and gains |
8,991 |
149,525 |
414,588 |
|||
|
Employee benefits expense |
(2,688,072) |
(799,083) |
(4,048,968) |
|||
|
Directors' emoluments |
6 |
(5,688,631) |
(238,208) |
(10,083,856) |
||
|
Other share-based payments |
- |
(2,516,469) |
(10,957,934) |
|||
|
Depreciation |
(386,942) |
(224,976) |
(525,007) |
|||
|
Operating lease payments |
(383,994) |
(225,816) |
(621,952) |
|||
|
Exploration expenditure |
(8,692,130) |
(8,685,102) |
(14,627,369) |
|||
|
Other expenses |
(3,692,357) |
(1,961,430) |
(5,880,416) |
|||
|
Operating loss |
(21,523,135) |
(14,501,559) |
(46,330,913) |
|||
|
Interest received |
4,493,286 |
362,030 |
2,333,192 |
|||
|
Finance costs |
(461,359) |
(131,649) |
(494,776) |
|||
|
Loss before income tax |
(17,491,208) |
(14,271,178) |
(44,492,497) |
|||
|
Income tax expense |
(68,769) |
- |
(92,066) |
|||
|
Loss for the period |
(17,559,977) |
(14,271,178) |
(44,584,563) |
|||
|
Loss is attributable to: |
||||||
|
Minority shareholders |
- |
- |
(38) |
|||
|
Equity holders of the Parent |
(17,559,977) |
(14,271,178) |
(44,584,525) |
|||
|
(17,559,977) |
(14,271,178) |
(44,584,563) |
||||
|
Shares in issue |
246,919,650 |
168,666,648 |
246,599,650 |
|||
|
Weighted average number of ordinary shares in issue |
245,075,309 |
165,984,512 |
180,935,078 |
|||
|
Fully diluted weighted average number of ordinary shares in issue |
246,611,958 |
165,984,512 |
182,149,270 |
|||
|
Basic loss per share (cents) |
(7.17) |
(8.60) |
(24.64) |
|||
|
Headline loss per share (cents) |
(7.16) |
(8.60) |
(24.43) |
|||
|
Diluted loss per share (cents) |
(7.12) |
(8.60) |
(24.48) |
|||
|
Diluted headline earnings per share (cents) |
(7.12) |
(8.60) |
(24.27) |
|||
|
Reconciliation between loss attributable to the equity holders of the Group and the headline loss earnings attributable to the equity holders of the Group: |
||||||
|
Loss attributable to equity holders of the Group |
(17,559,977) |
(14,271,178) |
(44,584,525) |
|||
|
Loss on disposal of property, plant and equipment |
388 |
- |
375,259 |
|||
|
Headline loss attributable to equity holders of the Group |
(17,559,589) |
(14,271,178) |
(44,209,266) |
|||
|
CENTRAL RAND GOLD LIMITED |
|||||||
|
Condensed Group Statement of Changes in Equity |
|||||||
|
for the period ended 30 June 2008 |
|||||||
|
Attributable to equity holders of the Company |
|
||||||
|
Group |
Ordinary Share Capital |
Shares not yet issued |
Share Premium |
Merger Reserve |
Foreign Currency Translation Reserve |
||
|
US$ |
US$ |
US$ |
US$ |
US$ |
|||
|
Balance at 31 December 2006 |
- |
- |
- |
20,533,209 |
704,673 |
||
|
Shares issued by subsidiaries during the year |
- |
- |
- |
9,869,165 |
- |
||
|
Share based payments by subsidiary - consulting fees |
- |
- |
- |
2,606,250 |
- |
||
|
Corporate reorganisation |
- |
32,167,075 |
- |
(31,223,469) |
(943,605) |
||
|
Foreign currency adjustments |
- |
- |
- |
- |
448,199 |
||
|
Loss for the period |
- |
- |
- |
- |
- |
||
|
Balance at 30 June 2007 |
- |
32,167,075 |
- |
1,785,155 |
209,267 |
||
|
Balance at 31 December 2007 |
5,017,375 |
- |
191,405,973 |
- |
(9,311,702) |
||
|
Treasury shares issued |
6,321 |
- |
- |
- |
- |
||
|
Share based payments - employees and director's shares |
- |
- |
- |
- |
- |
||
|
Foreign currency adjustments |
- |
- |
- |
- |
(494,850) |
||
|
Loss for the period |
- |
- |
- |
- |
- |
||
|
Balance at 30 June 2008 |
5,023,696 |
- |
191,405,973 |
- |
(9,806,552) |
||
|
CENTRAL RAND GOLD LIMITED |
|||||||
|
Condensed Group Statement of Changes in Equity continued |
|||||||
|
for the period ended 30 June 2008 |
|||||||
|
|
|
|
|||||
|
Group |
Treasury Shares |
Accumulated Losses |
Total |
Minority interest |
Total |
||
|
US$ |
US$ |
US$ |
US$ |
US$ |
|||
|
Balance at 31 December 2006 |
- |
(10,667,195) |
10,570,687 |
- |
10,570,687 |
||
|
Shares issued by subsidiaries during the year |
- |
- |
9,869,165 |
- |
9,869,165 |
||
|
Share based payments by subsidiary - consulting fees |
- |
2,606,250 |
- |
2,606,250 |
|||
|
Corporate reorganisation |
- |
1,412,308 |
1,412,309 |
- |
1,412,309 |
||
|
Foreign currency adjustments |
- |
- |
448,199 |
- |
448,199 |
||
|
Loss for the period |
- |
(14,271,178) |
(14,271,178) |
- |
(14,271,178) |
||
|
Balance at 30 June 2007 |
- |
(23,526,065) |
10,635,432 |
- |
10,635,432 |
||
|
Balance at 31 December 2007 |
(31,120) |
(52,711,338) |
152,521,699 |
- |
152,521,699 |
||
|
Corporate reorganisation |
- |
- |
- |
- |
|||
|
Treasury shares issued |
(6,321) |
- |
- |
- |
- |
||
|
Share based payments - employees and director's shares |
2,362 |
- |
5,023,994 |
- |
5,023,994 |
||
|
Foreign currency adjustments |
- |
- |
(494,850) |
- |
(494,850) |
||
|
Loss for the period |
- |
(17,559,977) |
(17,559,977) |
- |
(17,559,977) |
||
|
Balance at 30 June 2008 |
(35,079) |
(70,271,315) |
139,490,866 |
- |
139,490,866 |
||
|
CENTRAL RAND GOLD LIMITED |
|||
|
Condensed Group Cash Flow Statement |
|||
|
for the 6 months ended 30 June 2008 |
|||
|
Audited |
|||
|
6 months |
6 months |
12 months |
|
|
ended |
ended |
ended |
|
|
30 June |
30 June |
31 December |
|
|
2008 |
2007 |
2007 |
|
|
US$ |
US$ |
US$ |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|||
|
Loss before tax |
(17,491,208) |
(14,271,178) |
(44,492,497) |
|
Adjusted for : |
|||
|
Depreciation |
386,942 |
224,976 |
525,007 |
|
Employment benefit expenditure (Share based payments) |
4,700,410 |
2,516,469 |
20,708,141 |
|
Loss on disposal of fixed assets |
388 |
- |
375,259 |
|
Net loss/(gain) on foreign exchange |
(1,297,011) |
744,278 |
(315,618) |
|
Other income received |
- |
- |
(4,027) |
|
Interest received |
(4,493,286) |
(362,030) |
(2,333,192) |
|
Finance costs |
461,359 |
131,649 |
494,776 |
|
Changes in working capital |
|||
|
Increase in receivables |
(124,985) |
(468,776) |
(245,676) |
|
Increase in provisions |
60,225 |
- |
125,212 |
|
Increase/(decrease) in trade and other payables |
(306,972) |
1,023,523 |
2,275,188 |
|
Cash flows absorbed by operations |
(18,104,138) |
(10,461,089) |
(22,887,427) |
|
Other income received |
- |
- |
4,027 |
|
Interest received |
4,493,286 |
362,030 |
2,333,192 |
|
Finance costs |
(461,359) |
(131,649) |
(494,776) |
|
Net cash used in operating activities |
(14,072,211) |
(10,230,708) |
(21,044,984) |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|||
|
Purchases of property, plant & equipment |
(1,087,344) |
(890,276) |
(1,901,596) |
|
Proceeds from disposal of property, plant and equipment |
388 |
- |
131,594 |
|
Increase in operating lease liability |
3,601 |
- |
38,226 |
|
Increase in non-current prepayment |
(2,201,946) |
- |
- |
|
Net cash used in investing activities |
(3,285,301) |
(890,276) |
(1,731,776) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|||
|
Proceeds and repayments of borrowings |
(34,564) |
103,043 |
140,952 |
|
Increase in security deposits |
(791,977) |
(1,164,946) |
(1,794,849) |
|
Proceeds from issuance of shares |
2,362 |
10,902,552 |
172,431,236 |
|
Net cash used in financing activities |
(824,179) |
9,840,649 |
170,777,339 |
|
Net (decrease)/increase in cash and cash equivalents |
(18,181,691) |
(1,280,335) |
148,000,579 |
|
Cash and cash equivalents at beginning of period |
149,194,757 |
7,529,622 |
7,529,622 |
|
Effects of exchange rate movement on cash balances |
1,537,589 |
332,785 |
(6,335,444) |
|
Cash and cash equivalents at end of period |
132,550,655 |
6,582,072 |
149,194,757 |
|
CENTRAL RAND GOLD LIMITED |
|||||
|
Notes to the Condensed Interim Group Financial Statements |
|||||
|
1. Basis of presentation and general information |
|||||
|
General information |
|||||
|
Central Rand Gold Limited is a Guernsey incorporated company and it is also registered in South Africa as an external company. One of its subsidiaries, Central Rand Gold (Netherlands Antilles) N.V, was incorporated in the Netherlands Antilles. CRG's operating subsidiary is Central Rand Gold South Africa (Proprietary) Limited and is registered in South Africa. CRG has a primary listing on the London Stock Exchange ("LSE") and a secondary listing on JSE Limited ("JSE"). |
|||||
|
Legally, CRG complies with the company laws of its place of incorporation being Guernsey and the company laws of the place of its external registration being South Africa. By virtue of its LSE listing, CRG experiences the impact of UK company laws and because one of its subsidiaries, Central Rand Gold (Netherlands Antilles) N.V , is incorporated in the Netherlands Antilles, the Group is also impacted by the company laws of the Netherlands Antilles. |
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This condensed consolidated interim financial information was approved for issue on 27 August 2008. |
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Accounting policies |
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The Annual Financial Statements of Central Rand Gold Limited for the year ended 31 December 2007 were prepared in accordance with International Financial Reporting Standards ("IFRS"). |
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The condensed set of Financial Statements included in this half-yearly financial report has been prepared using accounting policies consistent with IFRS and in accordance with IAS 34 'Interim Financial Reporting'. |
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The accounting policies applied in the Interim Financial Statements are the same as those applied in the most recent Annual Financial Statements for the year ended 31 December 2007. |
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Foreign currency rates |
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The US Dollar rates of exchange applicable to the periods are as follows: |
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2008 |
2007 |
2007 |
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Six months to 30 June |
Six months to 30 June |
Year ended 31 December |
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Closing Average |
Closing Average |
Closing Average |
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South African Rand |
0.13 0.13 |
0.14 0.14 |
0.15 0.14 |
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British Pound |
2.00 1.98 |
2.00 1.97 |
2.00 2.03 |
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2. Property, plant and equipment |
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During the period the Group spent $1,087,344 on the renovations of the Head Office to increase office capacity, on mining modelling software and on equipment to continue with the shaft re-access programme. |
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3. Loan receivable |
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Puno Gold Investments (Proprietary) Limited |
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Since the last report for the year ended 31 December 2007 there has been no resolution to the dispute relating to procedural breaches of the Central Rand Gold South Africa (Proprietary) Limited (CRGSA) shareholders agreement between CRGSA and our BEE partner, 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. The Group has tried to settle any disagreements amicably, but so far without success. The next step, if so required, is for the parties to refer the matter to arbitration pursuant to the dispute resolution mechanism under the shareholders agreement. The Group 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 29,541,700 (US $4,278,795) |
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between 30 June 2007 and 31 December 2007 and ZAR 33,251,171 (US $4,229,549) between 1 January 2008 and 30 June 2008. |
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The loan payable to Puno Gold Investments (Proprietary) Limited contains the same allocations referred to above. |
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4. Share capital and share premium |
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During the period under review 320 000 shares were issued to the Employee Share Trust at par value. |
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5. Treasury shares |
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During the period the Company issued 320,000 treasury shares at a value of £0.01 per share to the Employee Share Trust. 100 000 shares to Mr M McMahon and 20 000 shares to Mr K Kunene have vested before 30 June 2008. The balance of the 200 000 shares for Mr M McMahon vest as follows: 100 000 will vest on 29 April 2009 and 100 000 on 29 April 2010. No other shares were issued from the Employee Share Trust. |
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6. Directors' emoluments |
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A director of the Group, Mr S Ramokgopa, resigned during the period. His cash termination benefits amounted to $204,243. Mr. S Ramokgopa retains his share options granted to him on 31 October 2007. 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 $1,231,627. |
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7. Commitments |
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Group |
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June |
December |
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2008 |
2007 |
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US$ |
US$ |
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a) Purchase of shares in companies |
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Purchase price of Ferreira Estate and Investment Company Limited (''FEIC'') |
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1,000,000 |
1,000,000 |
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b) Various contractual amounts payable |
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Group |
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June |
December |
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2008 |
2007 |
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US$ |
US$ |
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Payment for the purchase of a pilot plant from Gekko Systems (Proprietary) Limited |
3,483,769 |
- |
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Fees payable to Maersk Logistics SA (Proprietary) Limited for transport of the pilot plant |
62,260 |
- |
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Fees payable to iProp Limited for prospecting |
- |
500,000 |
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Fees payable to Gravelotte Mines Limited to exercise the option to purchase the prospecting right |
250,000 |
- |
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Option fees payable to Gravelotte Mines Limited |
- |
100,000 |
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3,796,029 |
600,000 |
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8. Segment reporting |
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The Group operates predominately in one business and geographical segment being the acquisition of mineral rights and data gathering on the Central Rand Goldfield of South Africa and related commercial activities. Accordingly, no analysis of segment revenue, results or net assets has been presented. |
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9. Share based payments |
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Grant of options in the company |
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During the period further share options were granted to selected employees. The options granted are summarized below. |
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Vesting |
Strike Price |
Allocation |
Number of share options granted |
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555,556 on the first anniversary of admission being 8 November 2008, 555,556 on the second anniversary of admission and the balance on the third anniversary of admission. |
Exercise price escalates in accordance with the vesting tranches. One third at Placing Price of £1.25, one third at 150% of Placing Price and one third at 200% of Placing Price. |
Selected staff |
1,666,667 |
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Grant of shares in the company |
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During the period under review the Company granted the following shares to Directors and Senior Manager of the Group. |
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Purchase |
Number of |
Purchase |
Release |
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Name |
date |
shares |
price |
period |
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Directors |
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Mr M McMahon |
27 June 2008 |
300,000 |
£ 0.01 |
100,000 on grant date, 100,000 on 1st anniversary of the appointment date and the remainder on the 2nd anniversary of the appointment date. |
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Senior management |
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Mr K Kunene |
9 May 2008 |
20,000 |
£ 0.01 |
20,000 on grant date. |
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10. Related parties |
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Except for the grant of shares in the Company disclosed in Note 9 - Share-based payments, and the resignation of a director disclosed in Note 6 - Directors Emoluments, no other disclosable related party transactions occurred in the period. |
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Related Shares:
Central Rand Gold