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Overview and Prospects

R&E continues to operate as an investment and exploration company in the gold mining sector, while the recovery of misappropriated assets remains a high priority.  Management accordingly continues to carefully balance between investing in litigation and preserving and growing current assets.

R&E currently holds prospecting rights directly and indirectly through subsidiary companies which it plans to develop further, if proven viable, in order to increase the value of its investments.

As at 30 June 2010, 36% of the assets of R&E (excluding the settlement receivable) constituted investments in the gold market through R&E’s investment in Gold Fields Limited and gold-related prospecting rights. R&E owns 85.21% of Free Development and Investment Corporation (FSD).  After the distribution arising from the settlement with JCI Limited and JCI Investment Finance (Pty) Limited, and the unbundling of the company’s holding of JCI shares, R&E has a net asset value of R7,01 per share.
R&E started the six months to 30 June 2010 with a cash balance of R295 million and ended the period with R323 million in cash and cash equivalents.

R&E’s strategic objectives are to:

  • Seek commercial opportunities and to successfully exploit them for the benefit of R&E and its shareholders
  • Utilise its assets to further develop other assets or acquire and invest in assets to grow the current portfolio;
  • Continue pursuing its claims against third parties; and
  • Realise value (insofar as is possible) from the existing prospecting rights portfolio.

Share Data

As at the date of re-listing on the JSE (4 June 2010), the total authorised ordinary share capital of the company comprised 105 000 000 ordinary shares with a par value of R0.01 (one cent) each, the issued ordinary share capital comprised of 74 813 128 ordinary shares with a par value of R0.01 (one cent) each and a total share premium account of R986.05 million.

Prospecting Rights

Executive Summary of Mineral Asset Valuation for:

Information on American Depository Receipts (ADRs)

As at the end of April 2010 approximately 11% of R&E ordinary shares were represented by American Depository Receipts (ADRs) through the Bank of New York Mellon (BNYM).
For more information on ADRs, please go to http://www.adrbnymellon.com/dr_edu_basics_and_benefits.jsp
For more information on BNYM, please go to
http://www.bnymellon.com
R&E entered into an ADR scheme, with BNYM as the depositary bank, in March 1997. The ADRs were traded on the Nasdaq Exchange (share code: Rangy), with one ADR representing one ordinary R&E share. R&E (or Rangy) was suspended from the Nasdaq Exchange on 21 September 2005 because the company did not file the necessary regulatory information. The company’s ADRs were then traded “over the counter” in the US until 24 March 2008 when the Securities and Exchange Commission (SEC) revoked the registration of R&E shares and ADRs. Thereafter the trading (sale or purchase) of any R&E share or ADR in the U.S. was prohibited.
The R&E board continued to explore a lifting of the SEC restriction that currently prohibits the trade of R&E ordinary shares or ADRs in the US. There is no intention to relist on the Nasdaq. Legal counsel for the BNYM and R&E unsuccessfully sought an exemption from SEC registration to allow a resumption of “over the counter” trading of ADRs.  

(Status of US trading market (8 July 2010) )
Some US holders of ADRs have indicated that they intend voluntarily to convert their ADRs into ordinary R&E shares, which would then be traded on the JSE via nominee accounts.  Such conversions can be effected through BNYM (Contact person are: Kim Schwarz, Vice President,  Depositary Receipts Division, ph.(212) 815-2852, mobile (347) 515-0068, fax (212) 571-3050 kimberly.schwarz@bnymellon.com OR Mary Gormley, Vice President, Tel: +44 207 964 4377, Mob: +44 7973 985 227 mgormley@bankofny.com)