[miningmx.com] — RANDGOLD & Exploration, once the unofficial piggy
bank of the late Brett Kebble, is promising to provide shareholders with some
welcome distraction.
Since relisting two years ago (4 June 2010), the company has spent much more
time on its past, hoovering up legal claims dating from the Kebble era, than it has
tending to its future. That, however, is to change somewhat.
Flak-catcher extraordinaire, Brian Gibson (the guy who corralled the media
throughout the protracted forensic audit of Randgold’s and JCI’s accounts), says an
announcement is imminent from Randgold, which will go some way to putting to use
R400m in cash hitherto reserved for its lawyers.
Well, not all the cash: Randgold is still fighting a return of monies on two fronts that
will incur legal costs – these are cases against auditing firm PwC, and Gold Fields.
Incidentally, when it relisted, Randgold stated it had some R500m in cash following a
R950m settlement with “sister company’ JCI. Presumably, the R100m decrease in
cash between now and then was for corporate expenses, such as salaries and office
costs, as well as legal fees.
One supposes shareholders such as Allan Gray and Investec, which comprise 55% of
the share register, support the pursuit of “lost’ or “borrowed’ funds belonging to
Randgold – but a glance at the company’s share price shows how little chasing down
the money has converted into value.
Randgold’s market value has barely changed over the years: it was R2.26/share
earlier this week compared to R2.50/share in 2010.
“I would ask you to exercise some patience; we should have an announcement in a
week or two,’ Gibson says of Randgold’s deal-making potential.
Randgold CEO, Marais Steyn, was away on business and could not comment.
The deal does not relate to mineral rights – the only other asset outside the cash
worthy of mention in Randgold’s stable. These can’t really be developed
independently and are only useful if they are sold to neighbouring property holders,
says Gibson.
It’s not quite a victory for Randgold – it recovered $2m from Main with another $2m
yet to be paid into Randgold’s account – because these monies can only ever be
partial recoveries.
According to a Mail & Guardian article published in 2006, Main ended up
with some 200,000 shares in Randgold both before and after Kebble’s death, stock
worth a reputed R100m.
Nonetheless, it’s another claim ticked off following the funds retrieved from Brett
Kebble’s estate from Roger Kebble, and then other “bits and pieces’ including
agreements to cooperate with Randgold in return for immunity from charges, says
Gibson.
– Finweek
