Notes to the consolidated financial statements
(continued)
FOR THE YEAR ENDED 31 DECEMBER 2005
58 Annual Report 2005 Randgold Resources
17 FINANCIAL LIABILITIES
Forward gold sales
43 090 15 668
-
-
Less: non-current portion
(34 151) (15 448)
-
-
Current portion
8 939 220
-
-
17.1 The financial liabilities relate to the Loulo forward gold sales which qualify for hedge accounting. These
derivative instruments are further detailed in note
20.
18 EMPLOYMENT COST
The group contributes to several defined contribution provident funds. The provident funds are funded on the “money
accumulative basis” with the members’ and company contributions having been fixed in the constitutions of the
funds. All the group’s employees other than those directly employed by West African subsidiary companies, are
entitled to be covered by the abovementioned retirement benefit plans. Retirement benefits for employees employed
by West African subsidiary companies, are provided by the state social security system to which the company and
employees contribute a fixed percentage of payroll costs each month. Fund contributions by the group for the years
ended 31 December 2005 and 31 December 2004 amounted to US$0.2 and US$0.2 million respectively.
Total staff cost including the above was US$7.9 million (2004: US$3.6 million). This includes the total charge for
share-based payments relating to directors and employees, which amounted to US$2.2 million (2004: US$1.3 million).
19 SEGMENT INFORMATION
The group’s mining and exploration activities are conducted in West and East Africa. An analysis of the group’s
business segments, excluding intergroup transactions, is set out below. Syama was on care and maintenance from
December 2001, until its sale to Resolute in April 2004. The group undertakes exploration activities in East and West
Africa which are included in the corporate and exploration segment.
Group’s
Corporate
40% share
and
of Morila
explor-
US$000
Mine Loulo ation Total
A) YEAR ENDED 31 DECEMBER 2005
PROFIT AND LOSS
Gold sales
120 814 30
688 - 151
502
Mining and processing costs
excluding depreciation
(48 852) (9
258) - (58
110)
Depreciation and amortisation
(7 206) (4
704) - (11
910)
Mining and processing costs
(56 058) (13
962) - (70
020)
Transport and refining costs
(288) (72) - (360)
Royalties
(8 398) (1
875) - (10
273)
Exploration and corporate expenditure
(442) (2 193) (21 414) (24 049)
Gain on forward gold sales
- 45 - 45
Net other expenses, gains and losses
(740) - (832) (1
572)
Unwind of discount on provisions
for environmental rehabilitation
(254) - - (254)
Interest expense
(1 180) (681) - (1
861)
Interest received
174 - 1
890 2 064
Profit before income tax
53 628 11 950 (20 356) 45 222
Income tax expense
(4 335) - - (4
335)
Net profit
49 293 11 950 (20 356) 40 887
CAPITAL EXPENDITURE
(1 742) (82
950) - (84
692)
TOTAL ASSETS
121 082 206 412 143 978 471 472
TOTAL EXTERNAL LIABILITIES
23 664 130 280 3 913 157 857
DIVIDENDS (PAID)/RECEIVED
(35 880) - 35
880 -
NET CASH FLOWS GENERATED
BY/(UTILISED IN) OPERATIONS
33 712 9 510 (13 486) 29 736
NET CASH FLOWS UTILISED IN
INVESTING ACTIVITIES
(1 742) (82
751) - (84
493)
NET CASH (UTILISED IN)/GENERATED
FROM FINANCING ACTIVITIES
(1 156) 24 877 105 248 128 969
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENTS
30 814 (48 364) 91 762 74 212
Group
Group
Company
Company
31 Dec
31 Dec
31 Dec
31 Dec
US$000
2005
2004
2005
2004
