Randgold Resources Annual Report 2005 57
15 LONG TERM LIABILITIES (continued)
15.3 Loulo project finance loan (continued)
project has been achieved, which is expected before 31 December 2007. The loan bears interest at LIBOR
plus 1.75% pre-completion of the Loulo capital programme, or at any time when Randgold Resources
continues to be a guarantor of the facility. Post completion until the fourth anniversary of signing facility
documentation, the interest rate is LIBOR plus 2.10% and thereafter 2.25%. The weighted average interest
rate for the year amounted to 5.14%. Under the terms of this loan, the company is required to enter into
certain gold price forward sales. 365 000 ounces of gold have been sold forward over the financial years
2005 to 2009, at an average forward price of US$432 per ounce. The facilities are margin free.
Various debt covenants apply to the loan, including:
Limitations on material asset disposals and acquisitions;
Restrictions with regards to the repayment of intercompany debt or dividend payments by Somilo;
Maintain insurance with reputable insurance companies;
Establish a Debt Service Reserve Account with the minimum credit balance on all dates equal to the
aggregate principal amount of and interest accruing on the loan and the aggregate amount of premium
accruing in connection with the Political Risk Insurance during the six month period commencing on such
date;
Certain financial ratios need to be adhered to throughout the loan agreement.
15.4 Loulo CAT finance lease
The Caterpillar finance facility relates to fifteen 3512B HD generator sets and ancillary equipment purchased
from JA Delmas and financed by a loan from Caterpillar Finance for Loulo. The lease is payable quarterly
over 42 months commencing on 1 August 2005, and bears interest at a fixed rate of 6.03% per annum. The
company together with Randgold Resources (Somilo) Limited jointly guaranteed the repayment of this lease.
The average lease payments of US$0.5 million are payable in instalments over the term of the lease.
Group
Group
31 Dec
31 Dec
US$000
2005
2004
15.5 Maturities
The borrowings mature over the following periods:
Not later than 1 year
22 991 1 156
Later than 1 year and not later than 5 years
49 304 39 434
Later than 5 years
234 1 284
72 529 41 874
15.6 Finance lease liabilities - minimum lease payments
Balance of leases outstanding
12 519 6 832
Future finance charges on leases
(3 435) (4 305)
Present value of finance lease liabilities
9 084 2 527
16 LOANS FROM MINORITY SHAREHOLDERS IN SUBSIDIARIES
Group
Group
Company
Company
31 Dec
31 Dec
31 Dec
31 Dec
US$000
Note
2005
2004
2005
2004
SOMILO
Government of Mali - principal amount
551 632
-
-
Deferred interest
1 932 1 943
-
-
Loans
2 483 2 575
-
-
Accumulated profit/(losses)
1 395 (954)
-
-
16.1 Somilo
The government of Mali loan to Somilo is uncollateralised and bears interest at the base rate of the Central
Bank of West African States plus 2%. The accrual of interest ceased in the last quarter of the year per mutual
agreement between the shareholders. The loan is repayable from cash flows of the Loulo mine after
repayment of all other loans. As at 31 December 2004, the losses of Somilo were attributed to the minority
shareholders as their loans are not repayable until there is “net available cash”. In the event of a liquidation
of Somilo the shareholders loans and deferred interest are not guaranteed.
