Rand Refinery: Gold lost through accounting fault

Comment on this story

Rand Refinery, which has processed about a third of the world’s gold since 1920, found $113 million (R1.2 billion) less physical metal than it had booked in its accounts after adopting a new computer system. The refinery had 87 000 ounces of physical gold less than the amount present in its accounting records after “implementation difficulties” with the new system, it said on Friday. Rand Refinery’s shareholders, including AngloGold Ashanti, Sibanye Gold and Harmony Gold Mining, agreed to lend it R1.2bn to help make up the difference. Management consultant Accenture is helping sort out the issue. Gold miners send bullion at about 80 percent purity to the refinery, which then treats it and boosts this to close to 100 percent. The miners had received the prices they were expecting, leading them to conclude it was most likely an accounting problem rather than theft, said James Wellsted, Sibanye’s spokesman. AngloGold, Sibanye and Harmony made loss provisions of about $92m between them as a result of the lost ounces. Rand Refinery had been unable to finalise its results. – Bloomberg

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines