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DRD
DRDD
DRD - Drdgold - Report To Shareholders For The Quarter And Nine Months Ended 31
March 2009
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the company")
REPORT TO SHAREHOLDERS FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2009
GROUP RESULTS
KEY FEATURES
- Operating profit up 38% to R129.9 million
- Cash operating costs down 5%
- Fatality free quarter
- Shareholders approve the acquisition of 50% interest in the Elsburg Gold
Mining Joint Venture from Mintails Limited
REVIEW OF OPERATIONS
GROUP Quarter Quarter % Quarter
Mar 09 Dec 08 Change Mar 08
Gold production
Continuing operations oz 58 997 60 057 (2) 70 378
kg 1 835 1 868 (2) 2 189
Discontinued operations oz - - - -
kg - - - -
Group oz 58 997 60 057 (2) 70 378
kg 1 835 1 868 (2) 2 189
Cash operating costs
Continuing operations US$/oz 653 654 - 667
ZAR/kg 211 666 217 839 3 162 806
Discontinued operations US$/oz - - - -
ZAR/kg - - - -
Group US$/oz 653 654 - 667
ZAR/kg 211 666 217 839 3 162 806
Gold price received US$/oz 915 769 19 943
ZAR/kg 292 369 255 213 15 228 836
Capital expenditure US$ million 6.4 9.2 30 4.7
ZAR million 65.8 91.8 28 35.6
9 months 9 months
31 Mar 09 31 Mar 08
Gold production
Continuing operations oz 189 915 236 794
kg 5 907 7 365
Discontinued operations oz - 13 427
kg - 417
Group oz 189 915 250 221
kg 5 907 7 782
Cash operating costs
Continuing operations US$/oz 691 647
ZAR/kg 205 149 148 863
Discontinued operations US$/oz - 1 098
ZAR/kg - 252 775
Group US$/oz 691 672
ZAR/kg 205 149 154 431
Gold price received US$/oz 850 796
ZAR/kg 252 235 182 993
Capital expenditure US$ million 24.7 16.5
ZAR million 227.8 117.4
STOCK ISSUED CAPITAL
377 535 374 ordinary no par value shares
5 000 000 cumulative preference shares
395 703 332 total ordinary no par value shares issued and committed
STOCK TRADED JSE NASDAQ *
Avg. volume for the quarter per day (000) 969 2 074
% of issued stock traded (annualised) 67 143
Price - High R9.55 U$$0.983
- Low R5.16 U$S0.490
- Close R7.82 U$S0.845
* This data represents per share data and not ADS data (one ADS represents ten
ordinary shares)
FORWARD LOOKING STATEMENTS
Many factors could cause the actual results, performance or achievements to be
materially different from any future results, performance or achievements that
may be expressed or implied by such forward-looking statements, including among
others, adverse changes or uncertainties in general economic conditions in the
markets DRDGOLD serves, a drop in the gold price, a sustained strengthening of
the Rand against the Dollar, regulatory developments adverse to DRDGOLD or
difficulties in maintaining necessary licences or other governmental approvals,
changes in DRDGOLD`s competitive position, changes in business strategy, any
major disruption in production at key facilities or adverse changes in foreign
exchange rates and various other factors.
These risks include, without limitations, those described in the section
entitled `Risk Factors` included in the annual report for the fiscal year ended
30 June 2008, which was filed with the United States Securities and Exchange
Commission on 12 December 2008 on Form 20-F. Shareholders should not place
undue reliance on these forward-looking statements, which speak only as of the
date thereof. DRDGOLD does not undertake any obligation to publicly update or
revise these forward-looking statements to reflect events or circumstances after
the date of this report or to the occurrence of unanticipated events.
OVERVIEW
Dear shareholder
Safety, health and environment
I am extremely pleased to be able to report that there were no fatalities at any
of our operations during the quarter under review. It must be acknowledged that
the suspension of underground mining at the East Rand Proprietary Mines Limited
("ERPM") - and thus the elimination of the risk inherent in deep-level mining
from at least that area - was a significant factor. However, this should not
detract from the fact that our continuing deep-level mining operation,
Blyvooruitzicht Gold Mining Company Limited ("Blyvoor"), was also fatality-free
in a quarter that was otherwise not without mishap.
On the evening of 17 January, the electrical sub-station at Blyvoor`s No 5 Shaft
was destroyed by a lightning strike while some 275 employees were working
underground. It is testimony to the mine`s policy and practice that all
underground employees be issued with self-rescuer packs and to the general
efficacy of its emergency procedures that all 275 were brought safely to
surface.
Predictably, ERPM - where only 169 people are currently employed - recorded
substantial rate improvement in respect of the other key safety indicators -
dressing station injuries, disabling injuries and reportable injuries.
Performance in respect of these at Blyvoor and Crown Gold Recoveries (Pty)
Limited ("Crown") were mixed however, pointing to the need for continuing effort
and focus to achieve sustainable improvement. While Blyvoor`s dressing station
rate improved by 2%, its lost time injury rate and reportable injury rate
deteriorated by 37% and 7% respectively. Crown recorded a 7% regression in its
dressing station injury rate, a 150% regression in its lost time injury rate,
and showed no improvement in its reportable injury rate.
Work towards implementation of a group-wide behaviour based safety initiative
continues, with piloting scheduled for implementation at Blyvoor`s No 6 Shaft
during April and May 2009. A number of operation- and issue-specific safety
campaigns are currently under way across the group.
In respect of occupational hygiene, risk assessment training for all full-time
health and safety representatives at Blyvoor and Crown has been conducted. At
Blyvoor an occupational hygiene baseline risk assessment for airborne pollutants
is under way and a similar assessment for noise exposure is scheduled to begin
during April 2009; installation of wet scrubbers is in progress; and 85% of all
rock drills and 93% of all fans have been silenced. Monitoring of airborne
pollutants and noise at the other group operations is ongoing.
Total expenditure on environmental issues during the quarter was some R10.5
million relating to slimes clean-up, vegetation of dumps, contributions to the
rehabilitation trust fund and site rehabilitation.
Production
Total gold production was 2% lower at 58 997 oz, mainly due to a drop of more
than 50% in gold production from ERPM, a consequence of the suspension of
underground mining during the December quarter. Gold production from Blyvoor was
3% lower, primarily due to lower surface production resulting from heavy summer
rainfall and pump and pipe failures. Crown staged an appreciable recovery from
the previous quarter, increasing gold production by 17% on the back of a better
average yield, driven by higher than expected recoveries from the Top Star site.
The quarter under review saw the first appreciable gold production from Ergo
Gold - 1 736 oz, or 50% of total production, being attributable to DRDGOLD.
Financial
Total revenue for the quarter was 13% higher at R536.5 million, reflecting a 15%
increase in the average Rand gold price received to R292 369/kg. After
accounting for cash operating costs - 5% lower at R388.4 million - and gold in
process of R18.2 million, operating profit was 38% higher at R129.9 million.
After deduction of depreciation of R23.5 million, an adjustment for
environmental rehabilitation of R7.8 million and retrenchment costs of R1.8
million, gross profit from operating activities was 243% higher at R116.0
million.
Administration expenses and general costs of R33.8 million and finance income of
R20.6 million, together with lesser deductions and income, resulted in profit
before tax of R95.0 million, an increase of 51% on the previous quarter.
Taxation was 74% higher at R51.5 million, leaving net profit 30% higher at R43.5
million.
Detailed operational review
Blyvoor
Total gold production was 3% lower at 32 248 oz, reflecting a 15% decline in
gold produced from surface sources to 9 710 oz. Total throughput was 9% lower at
945 000 t due mainly to lower surface throughput, while the total average yield
was slightly higher at 1.06 g/t, a consequence of improved underground yield.
Notwithstanding the loss of six production shifts at No 5 Shaft following a
lightning strike at the shaft`s electrical sub-station on 17 January 2009,
underground gold production was 2% higher at 22 538 oz. This resulted from a 5%
increase in average underground yield to 4.77 g/t, due mainly to the elimination
of old gold recovery at No 4 Shaft, which had been causing grade dilution.
Underground throughput was 2% lower at 147 000 t.
Lower surface gold production was a consequence mainly of a 10% decline in
surface throughput to 798 000 t, reflecting the negative impact of heavy
rainfall during January and February on slimes recovery and of pipe and pump
failures at the slimes recovery operation during March. A new pipeline from the
slimes operation transfer pump station to the plant is being installed and is
expected to be completed by the end of May 2009. The average surface yield for
the quarter was 5% lower at 0.38 g/t.
Total cash operating costs rose by 4% to R202 814/kg, reflecting lower gold
production. Underground cash operating costs were well contained to a 2%
decrease to R247 907/kg while surface cash operating costs increased by 17% to
R98 142/kg.
Cash operating profit was 44% higher at R90.0 million, due to the higher average
gold price received.
Capital expenditure was 9% lower at R26.6 million.
Production build-up on the Way Ahead Project continued apace with a rate of 807
mSquared per month achieved in March 2009 and 1 200 mSquared per month targeted
by the end of the June 2009 quarter.
Previously-reported supplier delays continued to impact negatively on the 15/29
Incline Project, with mining now expected to start during the September 2009
quarter.
Crown
Gold production was 17% higher at 20 705 oz, due mainly to a 14% increase in the
average yield to 0.41 g/t. The increase in average yield reflects the impact of
higher-grade material reporting from the Top Star site, where production ramp-up
continued apace during the quarter under review.
Throughput was 2% higher at 1 566 000 t. Going forward we will continue to limit
throughput from Crown and City Deep to 400 000 t per month. Crown`s tailings
deposition facilities are reaching the end of their capacity and are being
carefully monitored. If their condition deteriorates, volumes may be reduced
further. We are currently investigating the feasibility of coordinating the
phasing out of these facilities with the establishment of alternative deposition
capacity in the East Rand.
Cash operating costs were 11% lower at R169 651/kg, reflecting the increase in
gold production.
Cash operating profit was 118% higher at R79.3 million, a consequence both of
higher gold production and the higher average gold price received.
Capital expenditure was 20% lower at R10.2 million, reflecting completion of
capital development at Top Star. Deposition site maintenance continues as the
primary absorber of capital expenditure.
ERPM
Total gold production was 4 308 oz, down substantially from the previous
quarter`s 8 840 oz. This reflects ERPM`s shift to surface retreatment-only
operations, following the suspension of underground mining at the end of October
2008.
Gold throughput from underground clean-up activity was 23 000 t at an average
yield of 1.39 g/t, resulting in the production of 1 029 oz.
Surface gold production was 16% higher at 3 279 oz due to a 21% increase in
surface throughput to 341 000 t. This was a consequence of increased capacity
at Crown`s Knights Plant to treat material recovered from ERPM`s Cason Dump,
following clearance of Crown sites in the area. The average surface yield was
slightly lower at 0.30 g/t, reflecting continued recovery of material from the
lower-grade southern face of the Cason Dump.
Total cash operating costs were 33% higher at R427 396/kg, reflecting lower gold
production from underground. Surface cash operating costs were 3% higher at R254
627/kg.
The operating loss for the quarter under review was R17.7 million compared with
the previous quarter`s R17.7 million.
ErgoGold
Gold production attributable to DRDGOLD in the first full quarter of operation
was 1 736 oz (reflecting 50% of total production). This compares with the 64 oz
produced from start-up in December 2008. Attributable throughput was 755 000 t
at an average yield of 0.07 g/t. This is expected to improve to the targeted
0.16 g/t now that the elution plant at Ergo has been commissioned.
Cash operating costs were R341 833/kg and the attributable operating loss was
R3.5 million compared with the previous quarter`s R11.0 million.
Total capital expenditure was R30.8 million, compared with the previous
quarter`s R26.3 million.
Exploration and prospecting
Blyvoor
Underground diamond drilling improved to some 177 m of prospect drilling and 189
m of cover drilling during the quarter.
The annual ore resource and reserve estimation process has started, with
Datamine specialists involved in the initial stage of the process.
Ergo
Ergo Phase 2 drilling has been completed and the final resource estimation for
uranium, sulphur and gold is being compiled.
ERPM
All exploration activities have been suspended.
Looking ahead
We remain of the view that global economics will continue to be characterised by
considerable volatility for the foreseeable future, and that the full impact of
this macro-economic volatility has yet to filter through fully to the South
African economy. We favour the recently pronounced view of gold consultancy GFMS
that prospects for gold to trade upward to the US$1 100-1 200/oz range are good
but recent events such as the IMF gold sale and the strengthening of the Rand
serve to remind us that the market and the milieu in which we operate are
themselves not at all immune to volatility.
While there is considerable comfort to be drawn from a stronger gold price,
particularly if accompanied by Rand weakness, we know we cannot be complacent.
We will continue to tread our prescribed path of risk reduction, cost
containment, headline earnings per share accretion and capital expenditure
conservatism for the foreseeable future. Two previously-stated targets we have
yet to consolidate over a period of several quarters are:
- sustained production of 8 500 oz per month from underground at Blyvoor; and
- reduction of ERPM`s cash-burn to R2.5 million per quarter.
The recent conclusion of our acquisition of 100% of the Elsburg Joint Venture -
now known as ErgoGold - is part of our drive to ensure the future of our
business.
Other steps likely to flow from our current investigations are:
- Optimising synergies between Crown and Ergo;
- Securing additional tailings deposition capacity for Crown;
- Replacing the current dump truck ore haulage system at Blyvoor with an
entirely more cost-effective railway/conveyor configuration; and
- determining a sustainable means of managing - from ERPM - the rising water
level of the Central Witwatersrand Basin.
We expect to be able to report positively on these and other developments over
the next few quarters.
NOTE REGARDING FINANCIAL INFORMATION
The condensed consolidated financial statements below have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and IAS 34,
which is consistent with the accounting policies used in the audited annual
financial statements for the year ended 30 June 2008.
CONDENSED CONSOLIDATED Quarter Quarter Quarter
Statement of comprehensive Mar 09 Dec 08 Mar 08
Income R m R m R m
Unaudited Unaudited Unaudited
Continuing operations
Gold and silver revenue 536.5 476.8 498.6
Net operating costs (406.6) (382.5) (356.5)
Cash operating costs (388.4) (406.9) (356.4)
Movement in gold in process (18.2) 24.4 (0.1)
Operating profit 129.9 94.3 142.1
Depreciation (23.5) (17.1) (18.4)
Movement in provision for
environmental rehabilitation 7.8 (9.0) (4.7)
Retrenchment costs 1.8 (34.4) -
Gross profit from operating
Activities 116.0 33.8 119.0
Impairments (3.3) (4.8) -
Administration expenses and
general costs (33.8) (32.4) (21.3)
Share-based payments (2.0) (3.1) (0.3)
Care and maintenance costs (3.6) (3.1) (2.3)
Financial liabilities measured
at amortised cost 5.7 39.8 -
(Loss)/profit on sale of assets
and investments (0.3) 10.2 -
Finance income 20.6 25.7 27.5
Finance expenses and unwinding
of provisions (4.3) (3.1) (4.7)
Profit before taxation 95.0 63.0 117.9
Income tax (25.2) (8.6) (13.6)
Deferred tax (26.3) (21.0) -
Profit after taxation 43.5 33.4 104.3
Discontinued operations
Loss for the period
from discontinued operations - - (1.3)
Profit on sale of assets and investments - - 30.3
Impairment from discontinued operations - - (1.3)
Net profit for the period 43.5 33.4 132.0
Attributable to:
Ordinary shareholders of the company 34.1 54.7 104.4
Minority interest 9.4 (21.3) 27.6
43.5 33.4 132.0
Other comprehensive income
Foreign exchange translation 1.1 7.8 22.0
Total comprehensive income
for the period 44.6 41.2 154.0
Attributable to:
Ordinary shareholders of the company 35.2 62.5 126.4
Minority interest 9.4 (21.3) 27.6
44.6 41.2 154.0
Reconciliation of headline profit
Net profit 34.1 54.7 104.4
Adjusted for:
Impairments 3.3 4.8 -
Impairment from discontinued operation - - 1.3
Profit on sale of discontinued
operations - - (30.3)
Loss/(profit) on sale of
assets and investments 0.3 (9.8) -
Minority share of headline
adjustments (0.1) 1.4 27.9
Headline profit 37.6 51.1 103.3
Headline profit per share-cents 10.0 13.6 27.5
Basic profit per share-cents 9.0 14.5 27.7
Diluted headline profit per
share-cents 10.0 13.6 27.5
Diluted basic profit per
Share cents 9.0 14.5 27.7
Calculated on the weighted average
ordinary shares issued of 376 884 611 376 598 733 376 228 788
CONDENSED CONSOLIDATED 9 months 9 months
Statement of comprehensive 31 Mar 09 31 Mar 08
Income R m R m
Unaudited Unaudited
Continuing operations
Gold and silver revenue 1 490.0 1 348.5
Net operating costs (1 208.6) (1 095.8)
Cash operating costs (1 211.8) (1 096.4)
Movement in gold in process 3.2 0.6
Operating profit 281.4 252.7
Depreciation (57.6) (58.0)
Movement in provision for
environmental rehabilitation (13.3) (14.2)
Retrenchment costs (33.5) (6.2)
Gross profit from operating activities 177.0 174.3
Impairments (55.7) -
Administration expenses and general costs (72.3) (61.8)
Share-based payments (6.2) (0.7)
Care and maintenance costs (9.5) (7.6)
Financial liabilities measured at amortised cost 52.8 (0.8)
Profit on sale of assets and investments 8.3 12.0
Finance income 79.2 40.6
Finance expenses and unwinding of provisions (10.1) (17.9)
Profit before taxation 163.5 138.1
Income tax (49.4) (17.1)
Deferred tax (46.0) -
Profit after taxation 68.1 121.0
Discontinued operations
Loss for the period from discontinued operations - (51.3)
Profit on sale of assets and investments - 1 156.6
Impairment from discontinued operations - (45.7)
Net profit for the period 68.1 1 180.6
Attributable to:
Ordinary shareholders of the company 91.9 954.7
Minority interest (23.8) 225.9
68.1 1 180.6
Other comprehensive income
Foreign exchange translation (10.6) 84.7
Total comprehensive income for the period 57.5 1 265.3
Attributable to:
Ordinary shareholders of the company 81.3 1 039.4
Minority interest (23.8) 225.9
57.5 1 265.3
Reconciliation of headline profit
Net profit 91.9 954.7
Adjusted for:
Impairments 55.7 -
Impairment from discontinued operation - 45.7
Profit on sale of discontinued operations - (1 156.6)
Profit on sale of assets and investments (8.3) (12.0)
Minority share of headline earnings adjustment (11.1) 236.8
Headline profit 128.2 68.6
Headline profit per share cents 34.0 18.3
Basic profit per share-cents 24.4 254.0
Diluted headline profit per share-cents 34.0 18.3
Diluted basic profit per share-cents 24.4 254.0
Calculated on the weighted average
ordinary shares issued of: 376 684 531 375 852 976
CONDENSED CONSOLIDATED As at As at As at
Statement of financial 31 Mar 09 31 Dec 08 31 Mar 08
position Rm Rm Rm
Unaudited Unaudited Unaudited
Assets
Property, plant and equipment 932.8 891.2 669.1
Non-current investments and
Other assets 65.4 65.4 57.7
Environmental rehabilitation
Trusts funds 125.6 120.1 86.6
Deferred tax 35.6 61.8 -
Current assets 989.9 944.9 1 050.6
Inventories 80.6 97.4 51.0
Trade and other receivables 348.6 223.5 245.4
Cash and cash equivalents 545.7 609.0 731.5
Assets classified as held for sale 15.0 15.0 22.7
Total assets 2 149.3 2 083.4 1 864.0
Equity and Liabilities
Equity 1 335.7 1 285.4 1 248.6
Shareholders equity 1 298.3 1 257.4 1 187.3
Minority shareholders interest 37.4 28.0 61.3
Long-term liabilities 88.2 93.8 49.2
Post retirement and other
employee benefits 24.7 24.1 22.1
Provision for environmental
rehabilitation 401.1 405.7 296.9
Current liabilities 299.6 274.4 247.2
Trade and other payables 292.8 262.2 247.2
Short term liabilities 6.8 12.2 -
Total equity and liabilites 2 149.3 2 083.4 1 864.0
CONDENSED Quarter Quarter Quarter
Statement of changes in equity Mar 09 Dec 08 Mar 08
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 285.4 1 240.7 1 130.2
Share capital issued 3.7 0.4 1.3
for acquisition finance and cash - - -
for share options exercised 4.1 0.4 1.6
for costs (0.4) - (0.3)
Increase in share-based
payment reserve 2.0 3.1 0.3
Net profit attributed to
ordinary shareholders 34.1 54.7 104.4
Net profit/(loss) attributed to
minority shareholders 9.4 (21.3) 27.6)
Dividends declared - - -
Decrease in minorities - - (37.2)
Other comprehensive income 1.1 7.8 22.0
Balance as at the end of the
period 1 335.7 1 285.4 1 248.6
CONDENSED 9 months 9 months
Statement of changes in equity 31 Mar 09 31 Mar 08
Rm Rm
Unaudited Unaudited
Balance at the beginning of the period 1 305.5 143.5
Share capital issued 4.1 28.4
for acquisition finance and cash - 28.0
for share options exercised 4.5 1.6
for costs (0.4) (1.2)
Increase in share-based payment reserve 6.2 0.7
Net profit attributed to ordinary shareholders 91.9 954.7
Net (loss)/profit attributed to
minority shareholders (23.8) 225.9
Dividends declared (37.6) -
Decrease in minorities - (189.3)
Other comprehensive income (10.6) 84.7
Balance as at the end of the period 1 335.7 1 248.6
CONDENSED CONSOLIDATED Quarter Quarter Quarter
Statement of cash flows Mar 09 Dec 08 Mar 08
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash in/(out) flow
from operations 114.1 29.5 (7.1)
Net cash (out)/ in flow
from investing activities (88.0) (81.6) (36.0)
Net cash (out)/in flow from
financing activities (89.7) (149.5) 1.6
Decrease in cash and
cash equivalents (63.6) (201.6) (41.5)
Translation adjustment 0.3 1.6 23.8
Opening cash and cash equivalents 609.0 809.0 749.2
Closing cash and cash equivalents 545.7 609.0 731.5
Reconciliation of net
cash in/(out)flow from operations
Profit before taxation 95.0 63.0 117.9
Net operating loss from
discontinued operations - - (1.3)
95.0 63.0 116.6
Adjusted for:
Movement in gold process 18.2 (24.4) 0.1
Depreciation and impairments 26.8 21.9 18.4
Movement in provision for
Environmental rehabilitation (7.8) 9.0 4.7
Share-based payments 2.0 3.1 0.3
(Profit)on derivative financial
instruments (5.7) (39.8) -
Loss / (profit) on sale of assets
and investments 0.3 (10.2) -
Finance expenses and unwinding of
provisions 3.2 1.8 3.9
Growth in environmental trust funds (3.3) (3.3) (3.8)
Other non cash items 8.3 (1.8) (2.7)
Taxation paid (1.8) (24.9) -
Working capital changes (21.1) 35.1 (144.6)
Net cash in/(out)flow 114.1 29.5 (7.1)
CONDENSED CONSOLIDATED 9 months 9 months
Statement of cash flows 31 Mar 09 31 Mar 08
Rm Rm
Unaudited Unaudited
Net cash in/(out) flow from operations 168.9 (677.0)
Net cash (out)/in flow
from investing activities (216.0) 2 075.3
Net cash outflow from financing activities (241.8) (1 037.9)
(Decrease)/increase in cash
and cash equivalents (288.9) 360.4
Translation adjustment (11.5) 233.4
Opening cash and cash equivalents 846.1 137.7
Closing cash and cash equivalents 545.7 731.5
Reconciliation of net cash in/(out) flow from operations
Profit before tax 163.5 138.1
Net operating loss from discontinued operations - (51.3)
163.5 86.8
Adjusted for:
Movement in gold process (3.2) (0.6)
Depreciation and impairments 113.3 58.0
Movement in provision for
environmental rehabilitation 13.3 14.2
Share-based payments 6.2 0.7
(Profit)/loss on derivative financial
instruments (52.8) 0.8
Profit on sale of assets and investments (8.3) (12.0)
Finance expenses and unwinding of provisions 6.6 11.7
Growth in environmental trust funds (10.1) (10.8)
Other non cash items 4.2 (10.2)
Taxation paid (26.7) (22.9)
Working capital changes (37.1) (792.7)
Net cash in/(out)flow from operations 168.9 (677.0)
KEY OPERATING AND FINANCIAL RESULTS (Unaudited)
CONTINUING OPERATIONS Blyvoor Crown ERPM ErgoGold* Total
Ore milled (`000t)
Underground Mar 09 Qtr 147 - 23 - 170
Dec 08 Qtr 150 - 36 - 186
YTD Mar 09 451 - 123 - 574
Surface Mar 09 Qtr 798 1 566 341 755 3 460
Dec 08 Qtr 889 1 531 282 16 2 718
YTD Mar 09 2 571 5 163 1 002 771 9 507
Total Mar 09 Qtr 945 1 566 364 755 3 630
Dec 08 Qtr 1 039 1 531 318 16 2 904
YTD Mar 09 3 022 5 163 1 125 771 10 081
Yield (g/t)
Underground Mar 09 Qtr 4.77 - 1.39 - 4.31
Dec 08 Qtr 4.56 - 5.19 - 4.68
YTD Mar 09 4.66 - 4.54 - 4.63
Surface Mar 09 Qtr 0.38 0.41 0.30 0.07 0.32
Dec 08 Qtr 0.40 0.36 0.31 0.13 0.37
YTD Mar 09 0.36 0.38 0.31 0.07 0.34
Total Mar 09 Qtr 1.06 0.41 0.37 0.07 0.51
Dec 08 Qtr 1.00 0.36 0.86 0.13 0.64
YTD Mar 09 1.01 0.38 0.77 0.07 0.59
Gold Produced (oz)
Underground Mar 09 Qtr 22 538 - 1 029 - 23 567
Dec 08 Qtr 21 991 - 6 011 - 28 002
YTD Mar 09 67 549 - 17 939 - 85 488
Surface Mar 09 Qtr 9 710 20 705 3 279 1 736 35 430
Dec 08 Qtr 11 414 17 747 2 829 64 32 054
YTD Mar 09 30 158 62 437 10 031 1 800 104 426
Total Mar 09 Qtr 32 248 20 705 4 308 1 736 58 997
Dec 08 Qtr 33 405 17 747 8 840 64 60 056
YTD Mar 09 97 707 62 437 27 970 1 800 189 914
Gold Produced (kg)
Underground Mar 09 Qtr 701 - 32 - 733
Dec 08 Qtr 684 - 187 - 871
YTD Mar 09 2 101 - 558 - 2 659
Surface Mar 09 Qtr 302 644 102 54 1 102
Dec 08 Qtr 355 552 88 2 997
YTD Mar 09 938 1 942 312 56 3 248
Total Mar 09 Qtr 1 003 644 134 54 1 835
Dec 08 Qtr 1 039 552 275 2 1 868
YTD Mar 09 3 039 1 942 870 56 5 907
Cash operating costs (US$ per oz)
Underground Mar 09 Qtr 770 - 3 058 - 852
Dec 08 Qtr 765 - 1 111 - 817
YTD Mar 09 825 - 1 193 - 889
Surface Mar 09 Qtr 303 529 795 1 067 521
Dec 08 Qtr 251 575 775 22 594 512
YTD Mar 09 328 548 807 1 833 529
Total Mar 09 Qtr 630 529 1 336 1 067 653
Dec 08 Qtr 590 575 1 003 22 594 654
YTD Mar 09 671 548 1 054 1 833 691
Cash operating costs (ZAR per kg)
Underground Mar 09 Qtr 247 907 - 978 094 - 279 784
Dec 08 Qtr 252 617 - 354 011 - 274 386
YTD Mar 09 244 677 - 336 206 - 263 885
Surface Mar 09 Qtr 98 142 169 651 254 627 341 833 166 357
Dec 08 Qtr 84 020 189 848 248 307 5730 000 168 439
YTD Mar 09 97 199 162 494 235 545 534 268 157 064
Total Mar 09 Qtr 202 814 169 651 427 396 341 833 211 666
Dec 08 Qtr 195 012 189 848 320 185 5730 000 217 839
YTD Mar 09 199 157 162 494 300 107 534 268 205 149
Cash operating costs (ZAR per tonne))
Underground Mar 09 Qtr 1 182 - 1 361 - 1 206
Dec 08 Qtr 1 152 - 1 839 - 1 285
YTD Mar 09 1 140 - 1 525 - 1 222
Surface Mar 09 Qtr 37 70 76 24 53
Dec 08 Qtr 34 68 77 716 62
YTD Mar 09 35 61 73 39 54
Total Mar 09 Qtr 215 70 157 24 107
Dec 08 Qtr 195 68 277 716 140
YTD Mar 09 200 61 232 39 120
Cash operating profit (US$ million)
Mar 09 Qtr 9.4 8.2 (1.8) (0.3) 15.5
Dec 08 Qtr 6.8 3.1 (1.8) (1.4) 6.7
YTD Mar 09 18.3 19.0 (5.7) (1.7) 29.9
Cash operating profit (ZAR million)
Mar 09 Qtr 90.0 79.3 (17.7) (3.5) 148.1
Dec 08 Qtr 62.3 36.3 (17.7) (11.0) 69.9
YTD Mar 09 169.0 175.6 (51.9) (14.5) 278.2
Cash expenditure (US$ million)
Mar 09 Qtr 2.6 1.0 (0.2) 3.1 6.5
Dec 08 Qtr 3.1 1.2 2.4 2.9 9.6
YTD Mar 09 7.9 3.8 2.8 10.6 25.1
Capital expenditure (ZAR million)
Mar 09 Qtr 26.6 10.2 (1.8) 30.8 65.8
Dec 08 Qtr 29.2 12.8 23.4 26.3 91.7
YTD Mar 09 73.2 35.2 25.9 93.4 227.7
CASH OPERATING COSTS RECONCILIATION
CONTINUING OPERATIONS (R000 unless otherwise stated)
Total cash costs
Mar 09 Qtr 224 494 119 729 63 105 23 866 429 194
Dec 08 Qtr 190 908 113 822 131 060 3 911 439 701
YTD Mar 09 626 204 342 681 315 958 27 777 1312 620
Movement in gold in process
Mar 09 Qtr (12 416) (2 040) (1 019) (2 698) (18 173)
Dec 08 Qtr 20 701 (91) (4 348) 8 144 24 406
YTD Mar 09 2 040 (888) (3 376) 5 446 3 222
Less: Production taxes, rehabilitation and other
Mar 09 Qtr 2 675 4 684 2 257 2 449 12 065
Dec 08 Qtr 4 287 5 185 3 507 521 13 500
YTD Mar 09 10 124 14 980 8 799 2 970 36 873
Less: Retrenchment costs
Mar 09 Qtr - - (1 289) - (1 289)
Dec 08 Qtr - - 31 111 - 31 111
YTD Mar 09 - - 30 680 - 30 680
Less: Corporate and general administration costs
Mar 09 Qtr 3 981 3 750 3 847 260 11 838
Dec 08 Qtr 4 705 3 750 4 043 74 12 572
YTD Mar 09 12 881 11 250 12 010 334 36 475
Cash operating costs
Mar 09 Qtr 203 422 109 255 57 271 18 459 388 407
Dec 08 Qtr 202 617 104 796 88 051 11 460 406 924
YTD Mar 09 605 239 315 563 261 093 29 919 1211 814
Gold produced (kg)
Mar 09 Qtr 1 003 644 134 54 1 835
Dec 08 Qtr 1 039 552 275 2 1 868
YTD Mar 09 3 039 1 942 870 56 5 907
Total cash operating costs - R/kg
Mar 09 Qtr 202 814 169 651 427 396 341 833 211 666
Dec 08 Qtr 195 012 189 848 320 185 5730 000 217 839
YTD Mar 09 199 157 162 494 300 107 534 268 205 149
Total cash operating costs - US$/oz
Mar 09 Qtr 630 529 1 336 1 067 653
Dec 08 Qtr 590 575 1 003 22 594 654
YTD Mar 09 671 548 1 054 1 833 691
*Ergo Gold represents DRDGOLD`s 50% share of the Elsburg and Ergo Joint
Ventures.
DIRECTORS - (*British)(**American)
Executive:
DJ (Niel) Pretorius (Chief Executive Officer)
CC Barnes (Chief Financial Officer)
Non-executives:
J Turk **
Independent non-executives:
GC Campbell*(Non-Executive Chairman); RP Hume; EA Jeneker
Company Secretary:
TJ Gwebu
INVESTOR RELATIONS
For further information, contact Niel Pretorius at:
Tel: (+27-11) 219-8700, Fax: (+27-11) 476-2637,
website: http://www.drdgold.com
Ebsco House 4, 299 Pendoring Avenue,
Blackheath, Randburg, South Africa.
PO Box 390,
Maraisburg, 1700,
South Africa.
Randburg
24 April 2009
Sponsor
QuestCo Sponsors (Pty) Limited
Date: 24/04/2009 08:00:01 Produced by the JSE SENS Department.
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