South African gold miner Randgold and Exploration today, 26 March 2018, reported a total comprehensive loss of ZAR7 million for the year ended 31 December 2017, down from ZAR7.9 million the previous year, as a result of an increase in legal fees.
During the year income was derived primarily from third party recoveries of ZAR1.1 million (2016: ZAR6.4 million), the sale of prospecting rights realising a profit of ZAR9.1 million and interest of ZAR13.0 million (2016: ZAR13.7 million) earned on cash investments. The company spent ZAR6.7 million (2016: ZAR6.4 million) on personnel costs, ZAR22.4 million (2016: ZAR18.3 million) on legal and forensic fees, and other operational costs totalled ZAR2.1 million (2016: ZAR4.8 million).
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 ZAR2.13 at 31 December 2017.
R&E started the year under review with a cash and cash equivalent balance of ZAR170.0 million.
The group’s cash outflow of ZAR9.9 million was the net result of interest earned on cash, the disposal of prospecting rights and recoveries received, less cash utilised to fund its operations during the year. R&E remains in a healthy cash position with ZAR160.1 million in cash and cash equivalents at 31 December 2017.
The outlook for 2018 is largely dependent on the progress and outcome of current legal matters. Expenditure on litigation is expected to be at a similar level as 2017. Until the claims in which the company are engaged have been finalised, this pattern of expenditure is likely to prevail.