Group’s
Corporate
40% share
and
of Morila
explor-
US$000
Mine Syama Loulo ation
Total
Randgold Resources Annual Report 2005 59
19 SEGMENT INFORMATION (continued)
B) YEAR ENDED 31 DECEMBER 2004
PROFIT AND LOSS
Gold sales
73 330 - - - 73
330
Mining and processing costs
excluding depreciation
(31 766) - - - (31
766)
Depreciation and amortisation
(8 738) - - - (8
738)
Mining and processing costs
(40 504) - - - (40
504)
Transport and refinery costs
(233) - - - (233)
Royalties
(5 304) - - - (5
304)
Exploration
and corporate expenditure
(571) - -
(16 279) (16 850)
Gain on financial instruments
- - -
2 232 2
232
Net other expenses,
gains and losses
(1 179) (658) -
1 656 (181)
Unwind of discount on provisions
for environmental rehabilitation
(177) - -
- (177)
Interest expense
(1 569) - -
(54) (1 623)
Interest received
17 - -
1 016 1
033
Profit on sale of Syama
- - -
7 070 7
070
Income/(loss) before tax and
minority interest
23 810 (658) - (4
359) 18 793
Tax and minority interest
- - - - -
Net income/(loss)
23 810 (658) - (4
359) 18 793
CAPITAL EXPENDITURE
(1 766) - (68
443) (120) (70
329)
TOTAL ASSETS
104 861 - 77
117 86 483 268 461
TOTAL EXTERNAL LIABILITIES
19 227 - 55
015 1 429 75
671
DIVIDENDS (PAID)/RECEIVED
(2 800) - - 2
800 -
-
NET CASH FLOWS GENERATED
BY/(UTILISED IN) OPERATIONS
16 270 (658) - (11
321) 4 291
NET CASH FLOWS GENERATED
BY/(UTILISED IN) INVESTING
ACTIVITIES
2 116 - (67
552) 8 451 (56
985)
NET CASH (UTILISED IN)/GENERATED
FROM FINANCING ACTIVITIES
(20 805) - 35
000 11 264 25 459
NET (DECREASE)/INCREASE
IN CASH AND
CASH EQUIVALENTS (2
419) (658) (32 552) 8
394 (27 235)
20 FAIR VALUE AND RISKS OF FINANCIAL INSTRUMENTS
The group’s financial
instruments are set out in note 21. In the normal
course of its operations, the group is exposed
to commodity price, currency, interest, liquidity and credit risk. In managing some of these risks, the group enters
into derivative financial instruments. All derivative financial instruments are initially recognised at fair value and
subsequently measured at their fair value on the balance sheet.
20.1 Concentration of credit risk
The group’s derivative financial instruments and cash balances do not give rise to a concentration of credit
risk because it deals with a variety of major financial institutions. Its receivables and loans are regularly
monitored and assessed. Receivables are impaired when it is probable that amounts outstanding are not
recoverable. Gold bullion, the group’s principal product, is produced in Mali. The gold produced is sold to
reputable gold refineries. Because of the international market for gold the group believes that no
concentration of credit risk exists with respect to the selected refineries to which the gold is sold. Included
in receivables is US$20.0 million (2004: US$12.4 million) relating to indirect taxes owing to Morila and Loulo
by the State of Mali, which is denominated in FCFA. Receivables also include advances to a contractor
totalling US$12.2 million (see note
26).
