R&E profit leaps to R792.8m

The exploration and mining investment company reported basic and diluted earnings per share of 1 103 cents for the six months to end June 2010, compared to just one cent per share for the same six months last year.

Trading in R&E's shares had been suspended due to a long-standing dispute with JCI, with which it has reached a R950m settlement that enabled the company's unbundling.

R&E has now fully implemented the JCI settlement and eligible shareholders participated in the distribution of Gold Fields and JCI shares in July.

The majority of the income recognised in the period under review was a result of two recoveries of R783.5m and R25.2m, which flowed from the settlement with JCI and the litigation settlement agreement, respectively.

Revenue was R12m from R9.9m previously.

Excluding the effects of the settlement, R&E is liquid with no interest-bearing debt.

The company's total assets consist primarily of cash and an investment in GFI shares.

R&E remains in a strong cash position at end June with R323m in cash and cash equivalents.

Operating activities (excluding the JCI settlement) generated cash inflow of R15.8m, primarily as a result of cash collected from outstanding settlement receivables, while investing activities yielded cash inflows of R85.5m primarily as a result of dividends received, proceeds from the disposal of recovered assets and the repayment of loans receivable from JCI.

After the settlement distribution and unbundling of the company's holding of JCI shares R&E has a net asset value per share of R7.01.

Looking ahead, the company said it was "seeking out new opportunities".