RANDGOLD RESOURCES LTD | CIK:0001175580 |

Filed: 3/29/2018

Entity registrant name: RANDGOLD RESOURCES LTD (CIK: 0001175580)

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ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory

10.	Investments and loans in subsidiaries and joint ventures

The joint venture agreements and structures for Kibali and Morila, together with the asset leasing joint ventures (KAS 1 Limited, RAL 1 Limited and RAL 2 Limited) provide the group with interests in the net assets of those companies, rather than interests in underlying assets and obligations. Accordingly, under IFRS 11, the group’s share of joint ventures has been accounted for using the equity method.

The following tables represent the group’s share of the assets and liabilities of the respective joint venture which are included in the consolidated balance sheet and statement of comprehensive income within the total investments in joint ventures, share of profits of equity accounted joint ventures and share of equity accounted joint ventures’ other comprehensive income.

Investment in joint ventures

The movements in total investments in joint ventures are as follows:

$000	Dec 31, 2017		Dec 31, 2016
Beginning of year
Investments in equity accounted joint ventures		1,414,211		1,427,316
Other investments in joint venture		34,423		45,940
Total investments in joint ventures		1,448,634		1,473,256
Funds invested in equity accounted joint ventures		30,898		-
Loans repaid by equity accounted joint ventures		(746)		(11,927)
Share of profits of equity accounted joint ventures		11,950		17,299
Dividends		-		(30,000)
Share of other comprehensive income of joint ventures		(17)		6
End of year
Investments in equity accounted joint ventures		1,440,610		1,414,211
Other investments in joint ventures		50,109		34,423
Total investments in joint ventures		1,490,719		1,448,634

Kibali (Jersey) Limited

Set out below is the summarized financial information for Kibali (Jersey) Limited which is accounted for using the equity method (amounts stated at 100% before intercompany eliminations).

$000	Dec 31, 2017		Dec 31, 2016
Summarized statement of financial position
Current
Cash and cash equivalents		3,288		18,865
Other current assets (excluding cash)		166,278		179,588
Total current assets		169,566		198,453
Financial liabilities (excluding trade payables)		(8,656)		(10,285)
Other current liabilities (including trade payables)		(105,565)		(133,113)
Total current liabilities		(114,221)		(143,398)
Non-current
Assets		2,833,946		2,805,020
Financial liabilities		(41,210)		(46,929)
Other liabilities		(23,244)		(32,259)
Total non-current liabilities		(64,454)		(79,188)
Net assets		2,824,837		2,780,887

$000	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015
Summarized statement of comprehensive income
Revenue		754,852		709,372		747,272
Depreciation and amortization		(264,415)		(210,925)		(192,509)
Interest income		4,147		4,735		4,818
Interest expense		(5,478)		(5,298)		(5,376)
Profit before tax		(40,349)		26,728		155,825
Income tax		54,333		22,962		(17,840)
Post-tax profit		13,984		49,690		137,985
Other comprehensive income—gain on available for sale financial asset		-		-		3,144

$000	Dec 31, 2017		Dec 31, 2016
Reconciliation of the group’s summarized financial information presented to the carrying amount of the group’s interest in the Kibali joint venture
Opening net assets January 1		2,780,887		2,791,184
Profit for the period		13,984		49,690
(Loss)/gain on available-for-sale financial asset		(34)		13
Other comprehensive income		(34)		13
Funds advanced		30,000		-
Dividends received		-		(60,000)
Closing net assets		2,824,837		2,780,887
Interest in joint venture at 50%		1,412,419		1,390,443
Mineral property at acquisition		23,549		26,154
Adjustment to reflect attributable interest		8,793		1,565
Carrying value		1,444,760		1,418,162

The segmental report in note 16 presents information based on the group’s effective 45% interest in the underlying Kibali gold mine as reported internally. As such, that differs to the 50% interest in the Kibali (Jersey) Limited group.

The group’s effective interest in Kibali is 45%. The group holds a 50% joint venture interest in Kibali (Jersey) Limited with AngloGold Ashanti. Joint control is provided through shareholdings and the joint venture agreement. Kibali (Jersey) Limited holds an effective 90% interest in Kibali Goldmines SA thereby giving the group an effective 45% interest in that mine. Refer to note 1 for details.

Kibali (Jersey) Limited has made loans indirectly to Kibali Goldmines SA totalling $2.7 billion at year end (December 31, 2016: $2.5 billion), to fund the development of the mine. The loans are eliminated on consolidation at the Kibali (Jersey) Limited level. Consequently, Kibali (Jersey) Limited will receive 100% of the cash flows from Kibali Goldmines SA, until the loans have been repaid. The loans carry interest at the rate of 8% per annum.

Note that the KAS 1 Limited asset leasing joint venture in which the group has an effective 25.01% interest is included within the Kibali joint venture as Kibali (Jersey) Limited is the joint venture partner with BYTP.

Morila

Set out below is the summarized financial information for Morila which is accounted for using the equity method (amounts stated at 100% before intercompany eliminations).

$000	Dec 31, 2017		Dec 31, 2016
Summarized statement of financial position
Current
Cash and cash equivalents		86		8,569
Other current assets (excluding cash)		54,126		49,804
Total current assets		54,212		58,373
Other current liabilities (including trade payables)		(20,787)		(53,484)
Total current liabilities		(20,787)		(53,484)
Non-current
Assets		14,851		15,493
Other liabilities		(41,562)		(25,315)
Total non-current liabilities		(41,562)		(25,315)
Net liabilities		(5,172)		(4,933)

$000	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015
Summarized statement of comprehensive income
Revenue		86,073		65,086		142,992
Depreciation and amortization		(16,480)		(9,464)		(23,337)
Interest income		18		14		2
Interest expense		(1,080)		(806)		(999)
Loss before tax		(239)		(16,256)		24,856
Income tax		-		(1,543)		(7,455)
Post-tax loss		(239)		(17,799)		17,401
Other comprehensive expense		-		-		-
Total comprehensive expense		(239)		(17,799)		17,401
Dividends received from joint venture		-		-		25,680

$000	Dec 31, 2017		Dec 31, 2016
Reconciliation of the summarized financial information presented to the carrying amount of the group’s interest in the Morila joint venture
Summarized financial information
Opening net (liabilities)/assets January 1		(4,933)		12,866
Loss for the period		(239)		(17,799)
Closing net liabilities		(5,172)		(4,933)
Interest in joint venture at 40%		(2,069)		(1,973)
Carrying value		(2,069)		(1,973)

Refer to note 1 for the nature of operations, country of incorporation and the ownership interest in Morila. Joint control exists through the joint venture agreement with AngloGold Ashanti.

RAL 1 Limited

Set out below is the summarized financial information for RAL 1 Limited which is accounted for using the equity method (amounts stated at 100% before intercompany eliminations).

$000	Dec 31, 2017		Dec 31, 2016
Summarized statement of financial position
Current
Cash and cash equivalents		8,820		649
Other current assets (excluding cash)		805		632
Total current assets		9,625		1,281

Other current liabilities (including trade payables)		(19,237)		(6,318)
Total current liabilities		(19,237)		(6,318)
Non-current
Assets		32,474		9,417
Financial liabilities		(21,351)		(3,517)

Total non-current liabilities		(21,351)		(3,517)
Net assets		1,511		863

$000	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015
Summarized statement of comprehensive income
Revenue		5,186		5,133		1,463
Depreciation and amortization		(3,647)		(4,211)		(779)
Interest income		554		544		1
Interest expense		(1,018)		(650)		(354)
Profit before tax		648		376		201
Income tax		-		-		-
Post-tax profit		648		376		201
Other comprehensive income		-		-		-
Total comprehensive income		648		376		201
Reconciliation of the summarized financial information presented to the carrying amount of the group’s interest in the RAL 1 joint venture
Opening net assets January 1		863		487		286
Profit for the period		648		376		201
Closing net assets		1,511		863		487
Interest in joint venture at 50.1%		757		432		244
Funding classified as long term debt by joint venture in ‘other investments in joint ventures’		21,970		2,335		4,146
Carrying value		22,727		2,767		4,390

RAL 1 Limited is an asset leasing joint venture in which the group has a 50.1% interest with BYTP being the joint venture partner. The joint venture operates in Mali and Côte d’Ivoire and is incorporated in Jersey.

Refer to note 19 for details of joint venture capital commitments.

RAL 2 Limited

Set out below is the summarized financial information for RAL 2 Limited which are accounted for using the equity method (amounts stated at 100% before intercompany eliminations). The group has a 50.1% interest with WAMFF Ltd being the joint venture partner.

$000	Dec 31, 2017		Dec 31, 2016
Summarized statement of financial position
Current
Cash and cash equivalents		1,692		1,122
Other current assets (excluding cash)		5,790		1,922
Total current assets		7,482		3,044

Other current liabilities (including trade payables)		(19,911)		(24,706)
Total current liabilities		(19,911)		(24,706)
Non-current
Assets		32,583		46,978
Financial liabilities		(18,737)		(24,262)
Total non-current liabilities		(17,737)		(24,262)
Net assets		1,417		1,054

$000	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015
Summarized statement of comprehensive income
Revenue		18,679		22,179		23,840
Depreciation and amortization		(14,395)		(16,638)		(17,290)
Interest expense		(2,080)		(2,237)		(3,718)
Profit before tax		363		442		455
Income tax		-		-		-
Post-tax profit		363		442		455
Other comprehensive income		-		-		-
Total comprehensive income		363		442		455
Reconciliation of the summarized financial information presented to the carrying amount of the group’s interest in the RAL 2 joint venture
Opening net assets January 1		1,054		612		157
Profit for the period		363		442		455
Closing net assets		1,417		1,054		612
Interest in joint venture at 50.1%		710		528		307
Funding classified as long term debt by joint venture in ‘other investments in joint ventures’		26,644		31,128		41,243
Carrying value		27,354		31,656		41,550

Refer to note 18 for details of joint venture capital commitments.

KGL Isiro SARL

KGL Isiro SARL is an exploration company in which the group has a 51% interest with Kilo Goldmines Ltd being the joint venture partner. The total exploration expenses incurred in 2017 amounted to $0.1 million (2016: $0.6 million), of which $0.075 million (2016: $0.3 million) is the group's share. The net loss and net assets are immaterial.