Notes to the consolidated financial statements
(continued)
FOR THE YEAR ENDED 31 DECEMBER 2005
54 Annual Report 2005 Randgold Resources
6 CHANGE IN ACCOUNTING POLICY (continued)
6.3 The weighted average exercise price is calculated taking into account the exercise price on each grant date.
Please refer to page
41 for details provided on share options, including the number and weighted average exercise
prices of share options outstanding at the beginning and end of each period, options granted, exercised and lapsed
during the period.
The company has amended the format of its income statement so that all expenditure is classified according to its
function. As a result, the amounts previously reported as “mine production costs”, “movement in production inventory
and ore stockpiles”, “transfer from/(to) deferred stripping”, “depreciation and amortisation” and “general and
administrative expenses” have been combined under the heading “mining and processing costs”. Comparatives for
the year ended 31 December 2004 have been amended to reflect this new format, and the individual components
within “mining and processing costs” are disclosed in note
27 to the financial statements.
Group
Group
Company
Company
31 Dec
31 Dec
31 Dec
31 Dec
US$000
Note
2005
2004
2005
2004
7 RECEIVABLES
Trade
10 761 4 057
-
38
Taxation debtor
19 999 12 356
-
-
Advances to contractors
12 169
893
-
-
Prepayments
4 637 5 348
663
-
Other
352 1 013
164 2 212
47 918 23 667
827 2 250
Advances to contractors comprise advances made to the main contractor at Loulo, MDM Ferroman (Pty) Ltd
(“MDM”). MDM was the contractor responsible for construction of the Loulo mine until the main construction contract
was taken back on 30 December 2005. Significant uncertainties exist relating to the value of securities supporting
these advances. More detail is given in note
26 to the financial statements.
The taxation debtor relates to indirect taxes owing to the group by the State of Mali.
Group
Group
Company
Company
31 Dec
31 Dec
31 Dec
31 Dec
US$000
Note
2005
2004
2005
2004
8 INVENTORIES AND ORE STOCKPILES
Consumable stores
12 681 6 091
-
-
Short term portion of ore stockpiles
21 994 803
-
-
Gold in process
2 236 2 868
-
-
36 911 9 762
-
-
Long term portion of ore stockpiles
27 868 12 054
-
-
64 779 21 816
-
-
Ore stockpiles have been split between long
and short term based on current life of
mine plan estimates.
9 PROPERTY, PLANT AND EQUIPMENT
Mine properties, mine development costs
and mine plant facilities and equipment.
Cost
At the beginning of year
151 639 174 304
321
321
Disposal of Syama
- (92 994)
-
-
Disposals
-
- (321)
-
Additions
84 692 70 329
-
-
236 331 151 639
-
321
Accumulated depreciation and
amortisation
At beginning of year
21 785 102 373
321
321
Disposal of Syama
- (89 326)
-
-
Disposals
-
(321)
Charge for the year
11 910 8 738
-
-
33 695 21 785
-
321
NET BOOK VALUE
202 636 129 854
-
-
LONG-LIVED ASSETS
Included in property, plant and equipment are long-lived assets which are amortised over the life of the mine and
comprise the metallurgical plant, tailings and raw water dams, power plant and mine infrastructure. The net book
value of these assets was US$198.4 million as at 31 December 2005 (2004: US$111.1 million).
SHORT-LIVED ASSETS
Included in property, plant and equipment are short-lived assets which are amortised over their useful lives and are
comprised of motor vehicles and other equipment. The net book value of these assets was US$4.2 million as at
31 December 2005 (2004: US$9.1 million).
