Creating National Economic Value
All our host countries are also joint owners of our mines, and have at least a 10% stake in the mine operating in their country. This means that, as well as taxes and royalties, we also make significant contributions to their treasuries through dividends once the capital investment is repaid. Our host countries are also EITI compliant and we are committed to full disclosure of all payments made to government.
As shown in the economic value statement table, Randgold generated total economic value for its host countries of $1 135 million, including nearly $300 million in payments to governments for taxes, duties and dividends.
Alongside contributions to government treasuries, we also make significant direct investments and contributions for the development and maintenance of local infrastructure and facilities. Key infrastructure established in recent years includes roads, power facilities, and border crossings.
On top of these contributions, our local first procurement prioritisation policy, means we utilise our supply chain and procurement to multiply our positive impact on local, regional and national economies. Our long term ambition is to help develop diverse and thriving economies that are sustainable beyond the life of the mine.
Total Taxes and Dividends to Host Countries
Democratic Republic of Congo^1
Economic Value Statement
|For the year ended 31 December ($000)||2017||2016||2015|
|ECONOMIC VALUE GENERATED|
|Gold sales3||1 654 329||1 546 029||1 394 889|
|Finance income3||6 018||1 553||4 222|
|Sundry Income (net)3||–||–||2 042|
|Government portion of Morila1||–||–||2 564|
|Total economic value generated||1 660 347||1 547 582||1 403 717|
|ECONOMIC VALUE DISTRIBUTED OR TO BE DISTRIBUTED|
|Operating costs2||555 794||557 060||620 962|
|Finance costs3||3 107||3 193||1 229|
|Employee salaries, wages and other benefits before taxes||105 780||100 572||77 588|
|Dividend payments to providers of capital||94 046||61 705||55 744|
|Payments to governments (including corporate taxes, custom duties, dividends)||299 825||248 809||182 602|
|Exploration and corporate expenditure3||49 549||43 010||48 885|
|Sundry net expenses||22 771||21 765||–|
|Community investment4||4 242||4 404||5 486|
|Total economic value distributed or to be distributed||1 135 114||1 040 518||992 496|
|Economic value retained and reinvested||525 233||507 064||411 221|
The information in this economic value statement is extracted from the financial statements, underlying accounting records and other financial data. This non-GAAP information is, however, intended to summarise the overall contribution of the group to its stakeholders and is not intended to replace or provide an alternative to the audited IFRS financial statements.
1 This amount represents 50% of the dividends paid to the State of Mali, and is also included in ‘Payments to governments’. The State of Mali’s attributable portion of the Morila operation is not included in the Randgold financial statements.
2 Total cash costs excluding royalties, salaries, employment taxes and custom duties.
3 Refer to page F-36 of the financial statements for further information on this figure.
4 Total spend on community development, including advantageous infrastructure development and philanthropy. This figure represents Randgold’s total equity stake in community investment.