Group
Group
Company
Company
31 Dec
31 Dec
31 Dec
31 Dec
US$000
2005
2004
2005
2004
Randgold Resources Annual Report 2005 55
9 PROPERTY, PLANT AND EQUIPMENT (continued)
UNDEVELOPED PROPERTY
Included in property, plant and equipment are
undeveloped property costs of US$9.7 million
(2004: US$9.7 million).
Refer to note
15 for assets collateralised and under
finance lease. Borrowing costs capitalised as part
of additions were US$3.2 million (2004: US$0.8 million)
10 DEFERRED STRIPPING COSTS
Opening balance
14 884 10 885
-
-
(Utilised)/additions during the period
(11 197) 3 999
-
-
3 687 14 884
-
-
Short term portion
(1 127) (6 370)
-
-
Non-current portion
2 560 8 514
-
-
The deferred stripping balances at the end of 2005 and 2004 pertain to the Morila mine. In terms of the life of mine
plan, pre-stripping is performed in the earlier years. This results in the cost associated with waste stripped at a rate
higher than the expected pit life average stripping ratio, being deferred to future years. These costs are being
released in the period where the actual stripping ratio decreases to below such expected pit life ratio. The expected
pit life average stripping ratios used to calculate the deferred stripping for Morila were 4.93 in 2005 and 4.36 in 2004.
These stripping ratios were calculated taking into account the actual strip ratios achieved of 2.49 and 3.98 for 2005
and 2004 respectively.
Group
Group
Company
Company
31 Dec
31 Dec
31 Dec
31 Dec
US$000
2005
2004
2005
2004
11 INVESTMENTS AND LOANS IN SUBSIDIARIES
AND JOINT VENTURES
Investment in Somilo
-
- 5 745 5 745
Investment in Morila
-
-
271 271
6 016 6 016
Loan - Morila
-
-
30 64
Loan - Somilo
-
- 112 738 42 780
Loan - Seven Bridges
-
-
144 478
112 912 43 322
-
- 118 928 49 338
During 2004, the group sold its share in Somisy to
Resolute Mining. The company received net proceeds
of US$8.6 million which included the repayment of
amounts previously advanced to Somisy. Refer to
The group’s interest in the Morila joint venture
was as follows:
Non-current assets
44 378 62 748
Current assets
76 704 42 113
Total assets
121 082 104 861
Long term liabilities
9 631 10 812
Current liabilities
14 033 8 415
Total liabilities
23 664 19 227
US$000
Note
2005
2004
12 DEFERRED TAXATION
Deferred tax is calculated on temporary differences under
the liability method using a tax rate of 35% (2004: 35%).
The movement on deferred taxation is as follows:
At the beginning of the year
-
-
Income statement charge
-
At the end of the year
1 208
-
Deferred taxation assets and liabilities comprise of the following:
Deferred stripping
1 227
-
Deferred taxation liability
1 227
-
Depreciation in excess of tax allowances
(19)
-
Deferred taxation asset
(19)
-
Net deferred taxation liability
1 208
-
US$0.8 million is expected to be recovered in more than 12 months.
