Our opinion on the current state of RANGOLD(RNG)Rangold (RNG) is a mining exploration company with a strong asset base, which is now mostly in cash. This cash is being used to pursue legal claims and may also be applied to investment opportunities.
Since the death of Brett Kebble, the company has been actively pursuing legal claims against various entities. In early 2011, it paid a dividend of 90c following a British court order against Paul Main, who was forced to repay GBP4m. In July 2014, the company was able to pay out a dividend of 225c due to a R150m settlement with auditors PWC. There are still various legal matters outstanding, which could potentially result in further settlements of around R3bn.
In its results for the six months to 30th June 2024, the company reported an operating loss of R10,9m and a headline loss per share of 11,6c compared with a loss of 16,61c in the previous period. The company stated, "The majority of income recognised in the period under review was derived from interest earned on cash investments in unlisted securities and funds. R&E had a net asset value of R0.79 per share at 30 June 2024 (R0.90 per share at 31 December 2023). The decrease in net asset value was due to the loss incurred during the period."
In a trading statement for the year to 31st December 2024, the company estimated that it would make a headline loss of between 15,28c and 18,48c per share compared with a loss of 32c in the previous year. The company said, "The reason for the improvement in the current reporting period is mainly due to less legal expenditure incurred."
The share is thinly traded and has been drifting down on low volumes for many years. It is of little interest to private investors.
