| Group | | Company |
| 2003 | 2004 | | | 2004 | 2003 |
| R'000 | R'000 | | | R'000 | R'000 |
| | A. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION
TO CASH GENERATED BY/(APPLIED TO) OPERATIONS | | |
| 374 180 | (242 072) | | (Loss)/profit before taxation | (721 768) | (1 004 722) |
| | | Adjusted for: | | |
| 12 806 | 23 837 | | Movement in provision for environmental rehabilitation | (209) | 2 770 |
| 105 675 | 204 590 | | Depreciation and amortisation | 11 264 | 11 415 |
| 38 484 | 41 325 | | Non-cash movement in provisions | 2 442 | 1 243 |
| 631 | - | | Amortisation of restraint of trade balance | - | 631 |
| 133 001 | 108 770 | | Asset impairment and diminution in investments | 698 274 | 1 010 784 |
| 15 929 | - | | Movement in fair value of listed investments | - | - |
| (15 663) | (52) | | Profit on sale of assets | - | (9 759) |
| 43 674 | - | | Share of results of associates | - | - |
| (89 333) | - | | Profit on sale of subsidiary | - | - |
| (99 649) | (17 854) | | Unrealised foreign exchange profits on translation | (63 477) | (98 195) |
| (1 376) | - | | Profit on sale of listed investment | 9 | - |
| 39 498 | 41 935 | | Finance costs | 42 197 | 32 040 |
| (377 268) | 8 362 | | Unrealised loss/(profit) on derivative instrument | (1 132) | 13 582 |
| (17 730) | (130 849) | | Investment income | (33 327) | (9 339) |
| 11 331 | (6 900) | | Movement in gold in process | - | - |
| 1 368 | 584 | | Provision for bad debts | 250 | 421 |
| 175 558 | 31 676 | | Operating profit/(loss) before working capital changes | (65 477) | (49 129) |
| (255 571) | (8 373) | | Working capital changes: | 9 113 | (112 776) |
| (175 478) | 44 638 | | Accounts receivable | 21 228 | (91 814) |
| 879 | 31 460 | | Inventories | (84) | (16) |
| (80 972) | (84 471) | | Accounts payable and accrued liabilities | (12 031) | (20 946) |
| | | | | | |
| (80 013) | 23 303 | | Cash generated by/(applied to) operations | (56 364) | (161 905) |
| | B. | CASH AND CASH EQUIVALENTS | | |
| | | Cash and cash equivalents comprise cash on hand, demand
deposits, metals on consignment and highly liquid investments with an original maturity of three months or less. | | |
| 331 820 | 140 894 | | Cash and cash equivalents | 7 536 | 235 423 |
| (29 110) | (11 473) | | Bank overdrafts | (2 820) | (21 281) |
| 302 710 | 129 421 | | | 4 716 | 214 142 |
|
|
C. |
CASHFLOW ON (ACQUISITION)/DISPOSAL OF
SUBSIDIARIES AND JOINT VENTURE NET OF CASH DISPOSED OF
Sale of Crown Gold Recoveries (Pty) Limited – 1 July 2002
On 1 July 2002 the Company sold 60% of its fully owned subsidiary company
Crown Gold Recoveries (Pty) Limited to Khumo Bathong Holdings (Pty) Limited
in a transaction consistent with our black economic empowerment strategy. In
the prior year, the results of this company had been consolidated into the
results of the Group. Effective 1 July 2002, our remaining 40% interest has
been treated as an investment in an associate and equity accounted |
|
|
| 136 337 |
|
|
Mining assets – net book value |
|
|
| 2 000 |
|
|
Non-current investment |
|
|
| 15 352 |
|
|
Inventories |
|
|
| 9 373 |
|
|
Accounts receivable |
|
|
| 24 795 |
|
|
Cash and cash equivalents |
|
|
| 4 695 |
|
|
Environmental rehabilitation trust fund |
|
|
| (20 988) |
|
|
Provision for environmental rehabilitation |
|
|
| (76 092) |
|
|
Long-term liabilities |
|
|
| (57 139) |
|
|
Accounts payable and provisions |
|
|
| (11) |
|
|
Taxation payable |
|
|
| 38 322 |
|
|
Total Net Book Value at date of sale |
|
|
| 22 993 |
|
|
60% thereof |
|
|
| (6 795) |
|
|
Fair value adjustment at group level –
mining assets |
|
|
| 16 198 |
|
|
|
|
|
| 105 531 |
|
|
Proceeds from the sale |
|
|
| 89 333 |
|
|
Profit on disposal of 60% Interest |
|
|
| 105 531 |
|
|
Proceeds from the sale of 60% |
|
|
| (24 795) |
|
|
Less cash and cash equivalents in
subsidiary sold |
|
|
| 80 736 |
|
|
Net cash flow on sale of subsidiary |
|
|
| | | | | |
| | | Acquisition
of Net-Gold Services Limited
With effect from 28 April 2004, the Group acquired 50.25% of the shares
of Net-Gold Services Limited. This entity brokers the payment of purchases
made by subscribers, through settlement in gold. Included in the acquisition
is a call and put option to exchange the Group's shareholding in Net-Gold
Services Limited for 523.26 shares in G.M. Network Limited (GoldMoney.com).
These options are valid up to 31 December 2007. | | |
| | | The fair value of the assets acquired was as follows: | | |
| 6 680 | | Inventories | | |
| 281 | | Accounts receivable | | |
| 8 901 | | Cash and cash equivalents | | |
| (4 230) | | Accounts payable and provisions | | |
| 11 632 | | Total fair value at time of acquisition | | |
| 5 845 | | 50.25% thereof | | |
| 7 071 | | Goodwill arising on acquisition | | |
| 12 916 | | Consideration | | |
| (8 901) | | Less cash and cash equivalents of acquired entity | | |
| 4 015 | | Net consideration | | |
| 4 015 | | Settled by way of cash and cash equivalents | | |
| | | | | |
| | | Acquisition of Porgera Joint Venture
With effect from 14 October 2003 the Group acquired the shares in Orogen Minerals (Porgera) Limited, or OMP, and Mineral
Resources Porgera Limited, or MRP. The transaction was affected through the amalgamation of OMP, MRP and the Company's
wholly-owned subsidiary, Dome Resources (PNG) Limited subsequently renamed DRD (Porgera) Limited. This resulted
in the Company acquiring a 20% interest in the Porgera Joint Venture in Papua New Guinea. | | |
| 448 605 | | Mining assets - net book value | | |
| 195 619 | | Non-current inventory | | |
| 66 818 | | Inventories | | |
| 21 344 | | Accounts receivable | | |
| 8 571 | | Cash and cash equivalents | | |
| 13 194 | | Taxation receivable | | |
| (25 888) | | Provision for environmental rehabilitation | | |
| (46 810) | | Accounts payable and provisions | | |
| (139 189) | | Deferred mining and income tax | | |
| 542 264 | | Total fair value at time of acquisition | | |
| (8 571) | | Less cash and cash equivalents of acquired entity | | |
| 533 693 | | Net consideration | | |
| 106 768 | | Settled by way of shares issued | | |
| 426 925 | | Settled by way of cash and cash equivalents | | |
| | | Acquisition of Fortis Limited
With effect from 21 May 2004, the Group acquired the shares in Fortis Limited, a company which provides worker compensation
insurance to the Tolukuma Mine, in Papua New Guinea | | |
| 4 470 | | Cash and cash equivalents | | |
| 4 470 | | Total net book value at time of acquisition | | |
| (4 470) | | Less cash and cash equivalents of acquired entity | | |
| - | | | | |
| | | Total net cash flow on acquisition of subsidiary | | |
| | | and joint venture | | |
| 4 015 | | Net-Gold Services Limited | | |
| 426 925 | | Porgera Joint Venture | | |
| - | | Fortis Limited | | |
| 430 940 | | | | |
