Our opinion on the current state of RNGRangold (RNG) operates as a mining exploration company with a substantial asset base, primarily consisting of cash reserves. The company has been actively pursuing legal claims and seeking investment opportunities with its asset base.
Following the death of Brett Kebble, Rangold has focused on pursuing various legal claims against entities it believes owe it compensation. Over the years, the company has achieved some success in these legal battles, resulting in significant settlements. For instance, in early 2011, Rangold paid a dividend of 90 cents per share due to a British court order against Paul Main, compelling repayment of GBP 4 million. Similarly, in July 2014, the company distributed a dividend of 225 cents per share following a R150 million settlement with auditors PwC.
Despite these successes, Rangold still has several legal matters pending, which could potentially result in further settlements totaling around R3 billion.
In its financial results for the year ending December 31, 2023, Rangold reported a headline loss of 32 cents per share, compared to a loss of 23.11 cents per share in the previous period.
It's worth noting that Rangold's shares are thinly traded, and the stock has been drifting down on low volumes for many years. This illiquidity and downward drift may pose challenges for investors considering investing in Rangold.
In conclusion, Rangold operates as a mining exploration company with a focus on pursuing legal claims and exploring investment opportunities. While the company has achieved some success in legal battles, its financial performance and illiquid shares may deter potential investors. Therefore, investing in Rangold warrants careful consideration and assessment of its risk factors.
