RANDGOLD RESOURCES LTD | CIK:0001175580 |

 

Operating segments have been identified on the basis of internal reports about components of the group that are regularly reviewed by the group’s chief operating decision maker. The operating segments included in internal reports are determined on the basis of their significance to the group. In particular, operating mines are reported as separate segments and exploration projects that have significant capitalized expenditure or other fixed assets are also reported separately. The Kibali and Morila joint ventures are included on a line by line basis, reflecting internal reporting. Other parts of the group, including the RAL 1 Limited and RAL 2 Limited joint ventures, are included within corporate and exploration. The group’s chief operating decision maker is considered by management to be the board of directors. An analysis of the group’s business segments, excluding intergroup transactions, is set out below. Major end customers are not identifiable because all gold is sold to an agent.

 

Country of operation		Mali									Côte d’Ivoire			DRC			Jersey
$000		Group’s 40% share of Morila			Loulo			Gounkoto			Tongon			Group’s effective 45% share of Kibali Jersey			Corporate and exploration			Inter company eliminations				Sub-total			Joint venture adjustments			Total
Year ended December 31, 2017
Total revenue			34,429			544,941			366,510			368,765			339,683			-							1,654,329			374,112			1,280,217
Mining and processing costs excluding depreciation			(24,722)			(198,834)			(139,598)			(186,508)			(195,554)			11,957				-			(733,259)			208,320			(524,939)
Depreciation and amortization			(6,592)			(106,255)			(10,506)			(65,304)			(123,679)			(835)				-			(313,171)			130,271			(182,900)
Mining and processing costs			(31,314)			(305,089)			(150,104)			(251,812)			(319,233)			11,122				-			(1,046,430)			338,591			(707,839)
Royalties			(2,064)			(32,616)			(21,991)			(11,055)			(14,361)			-				-			(82,087)			16,424			(65,663)
Exploration and corporate expenditure			-			(3,874)			(1,228)			(1,979)			(1,764)			(40,704)				-			(49,549)			1,764			(47,785)
Other (expenses)/income			(530)			(20,193)			(6,297)			(8,922)			(16,274)			22,364				-			(29,852)			36,915			7,063
Finance costs			(432)			(12,096)			(208)			(643)			(2,739)			6,327				11,407			1,616			(4,723)			(3,107)
Finance Income			7			25			4			1,066			2,074			16,607				(11,407)			8,376			(2,358)			6,018
Share of profits equity accounted joint ventures			-			-			-			-			-			-				-			-			11,950			11,950
Profit before income tax			96			171,098			186,686			95,420			(12,613)			15,716				-			456,404			24,450			480,854
Income tax expense			-			(51,399)			(55,744)			(27,721)			24,450			(10,943)				-			(121,357)			(24,450)			(145,807)
Net profit			96			119,699			130,942			67,699			11,837			4,773				-			335,047			-			335,047
Capital expenditure			(4,204)			(104,700)			(49,738)			(9,131)			(111,608)			(32,410)				-			(311,791)			115,812			(195,979)
Total assets			27,625			1,419,695			239,693			504,841			1,501,756			2,180,571				-			5,874,181			(1,570,712)			4,303,469
Total external liabilities			(24,940)			(111,979)			(48,883)			(78,835)			(83,159)			(49,125)				-			(396,920)			88,485			(308,435)
Year ended December 31, 2016
Total revenue			26,035			524,357			357,171			319,249			319,218			-							1,546,029			(345,252)			1,200,777
Mining and processing costs excluding depreciation			(21,744)			(200,489)			(146,574)			(187,839)			(172,709)			13,683				-			(715,673)			180,771			(534,902)
Depreciation and amortization			(3,785)			(105,236)			(23,513)			(45,704)			(102,718)			(11,335)							(292,292)			116,949			(175,343)
Mining and processing costs			(25,529)			(305,725)			(170,088)			(233,544)			(275,427)			2,348							(1,007,965)			297,720			(710,245)
Royalties			(1,544)			(31,384)			(21,430)			(9,562)			(14,839)			-							(78,760)			16,383			(62,377)
Exploration and corporate expenditure			-			(2,435)			(1,026)			(1,221)			(1,809)			(36,520)							(43,010)			1,809			(41,202)
Other (expenses)/income			(5,151)			(16,750)			(23,004)			(4,204)			(13,872)			32,151							(30,830)			30,823			(7)
Finance costs			(317)			(14,693)			(149)			(486)			(3,282)			6,355				14,108			1,536			(4,729)			(3,193)
Finance income			6			24			3			20			3,985			15,960				(14,108)			5,889			(4,336)			1,553
Share of profits of equity accounted joint ventures			-			-			-			-			-			-				-			-			17,299			17,299
Profit before income tax			(6,501)			153,393			141,478			70,252			13,974			20,294				-			392,889			9,716			402,605
Income tax expense			(617)			(46,072)			(42,444)			(17,563)			10,333			(2,306)							(98,668)			(9,716)			(108,384)
Net profit			(7,118)			107,321			99,034			52,689			24,307			17,988				-			294,221			-			294,221
Capital expenditure			(444)			(144,363)			(3,800)			(15,446)			(56,222)			(7,174)				-			(227,449)			(56,666)			(170,783)
Total assets			29,546			1,399,837			204,375			536,014			1,501,737			1,931,345				-			5,602,854			(1,561,896)			4,040,958
Total external liabilities			(31,520)			(128,557)			(38,842)			(69,878)			(111,293)			(64,501)				-			(444,591)			158,355			(286,236)
Year ended December 31, 2015
Total revenue			57,197			406,643			317,524			277,253			336,272			-				-			1,394,889			(393,469)			1,001,420
Mining and processing costs excluding depreciation			(31,583)			(236,439)			(145,952)			(193,504)			(161,191)			12,677				-			(755,992)			180,097			(575,895)
Depreciation and amortization			(9,335)			(98,761)			(6,705)			(44,362)			(87,275)			(10,141)							(256,579)			105,677			(150,902)
Mining and processing costs			(40,918)			(335,200)			(152,657)			(237,866)			(248,466)			2,536				-			(1,012,571)			285,774			(726,797)
Royalties			(1,419)			(24,329)			(19,052)			(8,292)			(13,588)			-				-			(66,680)			15,007			(51,673)
Exploration and corporate expenditure			-			(2,079)			(1,064)			(1,206)			(3,390)			(41,146)				-			(48,885)			3,818			(45,067)
Other (expenses)/income			(4,520)			(9,727)			(12,533)			(2,487)			(1,290)			32,599				-			2,042			7,849			9,891
Finance costs			(399)			(13,428)			(171)			(1,734)			4,839			(3,544)				13,208			(1,229)			(3,182)			(4,411)
Finance income			1			17			3			10			4,108			13,291				(13,208)			4,222			(4,110)			112
Share of profits of equity accounted joint ventures			-			-			-			-			-			-				-			-			77,303			77,303
Profit before income tax			9,942			21,897			132,050			25,678			78,485			3,736				-			271,788			(11,010)			260,778
Income tax expense			(2,982)			(4,013)			(39,615)			(4,342)			(8,028)			(33)				-			(59,013)			11,010			(48,003)
Net profit			6,960			17,884			92,435			21,336			70,457			3,703				-			212,775			-			212,775
Capital expenditure			(2,924)			(192,271)			(3,087)			(18,573)			(123,728)			(4,107)				-			(344,690)			128,652			(216,038)
Total assets			37,370			1,409,986			196,388			472,724			1,517,381			1,620,700				-			5,254,549			(1,517,229)			3,737,320
Total external liabilities			(32,124)			(126,380)			(33,850)			(43,514)			(121,790)			(52,051)				-			(409,709)			167,459			(242,250)

 

The segmental information in respect of the group’s joint ventures is presented using the proportionate consolidation method for a joint venture to reflect the way information is reported to the board. The joint ventures are accounted for using the equity method of accounting under IFRS as a result of holding rights to the net assets of the arrangements as a whole rather than rights to the assets, and obligations for the liabilities, relating to the arrangement.