| Thu 11 Feb 2010, 8:00 | | DRD - DRDGOLD Limited - Interim report to shareholders for the quarter and six |
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DRD
DRDD
DRD - DRDGOLD Limited - Interim report to shareholders for the quarter and six
months ended 31 December 2009
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE 000058723
Issuer code: DUSM
Nasdaq trading symbol: DROO
("DRDGOLD" or "the company")
INTERIM REPORT TO SHAREHOLDERS FOR THE QUARTER AND SIX MONTHS ENDED 31 DECEMBER
2009
GROUP RESULTS
KEY FEATURES FOR THE QUARTER
Gold production up 4%
Cash operating unit cost in Rands down 8%
Operating profit of R87.4 million
DRDGOLD agrees to sell 60% of Blyvoor
KEY RESULTS SUMMARY
GROUP Quarter Quarter % Quarter
Dec 09 Sep 09 Change Dec 08
Gold production oz 59 866 57 292 4 60 057
kg 1 862 1 782 4 1 868
Gold production sold oz 59 866 59 864 - 60 057
kg 1 862 1 862 - 1 868
Cash operating costs US$/oz 925 968 4 654
ZAR/kg 223 653 243 684 8 217 839
Gold price received US$/oz 1 106 950 16 769
ZAR/kg 268 302 239 098 12 255 213
Capital expenditure US$ million 4.2 8.2 49 9.2
ZAR million 30.9 64.2 52 91.8
6 months 6 months 6 months
to Dec 09 to Jun 09 to Dec 08
Gold production oz 117 158 116 772 130 918
kg 3 644 3 632 4 072
Gold production sold oz 119 730 114 231 130 918
Kg 3 724 3 553 4 072
Cash operating costs US$/oz 946 753 709
ZAR/kg 233 448 223 458 202 212
Gold price received US$/oz 1 028 908 821
ZAR/kg 253 700 269 429 234 150
Capital expenditure US$ million 12.4 20.1 18.3
ZAR million 95.1 183.1 162.0
STOCK ISSUED CAPITAL
380 985 641 ordinary no par value shares
5 000 000 cumulative preference shares
401 410 154 total ordinary no par value shares issued and committed
STOCK TRADED JSE NASDAQ
Avg. volume for the quarter per day (000) 1 022 2 924
% of issued stock traded (annualised) 70 200
Price - High R5.79 US$0.805
- Low R3.47 U$S0.445
- Close R5.01 U$S0.684
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 continuing 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 2009, which was filed with the United States Securities and Exchange
Commission on 27 November 2009 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
Crown Gold Recoveries (Pty) Limited ("Crown") recorded a fatal accident during
the quarter under review. Mr T.I Ndlangamandla, a fitter, was killed while
performing routine maintenance at the Knights Plant. Blyvooruitzicht Gold Mining
Company Limited ("Blyvoor") completed a full calendar year of operations without
a fatality but shortly before the release of this report, on 3 February 2010, Mr
R.M. Manhica died in a conveyance incident. We extend our deepest condolences to
their families, colleagues and friends.
With respect to other safety parameters, Group performance was once again mixed,
pointing to a need for continuing safety focus. Crown reported regressions in
its Dressing Station Injury Frequency Rate ("DSIFR"), its Lost Time Injury
Frequency Rate ("LTIFR") and its Reportable Injury Frequency Rate ("RIFR").
While Blyvoor`s LTIFR and RIFR improved, its DSIFR deteriorated markedly. East
Rand Proprietary Mines Limited ("ERPM") recorded no lost time injuries or
reportable injuries, and its DSIFR improved by 82%.
At Blyvoor, intensive safety cross-audits by mine overseers are yielding good
results and `hot spot` visits by representatives of management and unions are
continuing. Hazard assessment audits are a focus at Crown and ERPM. Work on the
Group-wide behaviour-based safety initiative, briefly suspended during the
Section 189A process at Blyvoor, has been resumed, and a number of mini safety
campaigns are running concurrently across all of the operations.
All drilling machines have now been muffled and all fans silenced at Blyvoor.
Installation of wet scrubbers at tips will begin on completion of the necessary
research.
A total of R9.2 million was spent by the Group on environmental management and
rehabilitation during the quarter.
Production
Total gold production in the quarter was 4% higher at 59 866oz, reflecting
continued production build-up at ErgoGold and higher production from Crown and
the Blyvoor surface operation. Total surface gold production rose by 12% to 43
501oz, 73% of the quarter`s total gold production, while underground gold
production declined by 11% to 16 365oz.
Financial
Total revenue for the quarter rose by 12% to R499.6 million, a consequence of
improved gold production and a 12% increase in the average Rand gold price
received to R268 302/kg. After accounting for total cash operating costs - 4%
lower at R416.5 million, operating profit was R87.4 million compared with the
previous quarter`s R4.2 million loss. Net profit was R6.4 million compared with
the previous quarter`s net loss of R63.3 million.
Blyvoor judicial management
We decided to place Blyvoor under judicial management, because of a combination
of lower grades caused by seismic events knocking out a number of high grade
panels and the effect of the lower gold price on Blyvoor`s profitability. An
improvement in yield and the R80 million facility set up by Aurora Empowerment
Systems (Pty) Limited ("Aurora") (referred to below) may enable us to lift
Blyvoor from judicial management.
Detailed operational review
Blyvoor
Surface gold production for the quarter rose by 15% to 8 681oz but underground
gold production was 11% lower at 16 365oz, resulting in a 4% drop in total gold
production to 25 046oz.
Lower underground production was a consequence both of a 6% drop in underground
throughput to 137 000t and a 6% drop in underground average yield to 3.72g/t.
Lower throughput reflects the continued impact of the wage strike and of the
Section 189A restructuring process into October 2009. Yield continued to be
lower as the underground operations still recover from the seismic damage
incurred in June 2009.
Surface throughput was 13% lower at 702 000t, reflecting the continued impact of
suspended uneconomic rock dump recovery, electrical storms in October and
November causing disruption to slimes recovery and to suspension of the reef-
picking project during the strike. The average surface yield, however, was 31%
higher at 0.38g/t due mainly to increased recovery of higher-grade material from
the lower portions of the slimes dams.
Total cash operating costs were 13% lower at R197.1 million and total cash
operating unit costs 10% lower at R253 078/kg. This was mainly as a consequence
of the lower summer-month power tariff applicable and of lower employment costs
incurred following restructuring. While underground cash operating unit costs
were only slightly lower at R344 990/kg, surface cash operating unit costs were
36% down at R79 807/kg. A cash operating profit of R12.6 million was recorded
compared with the previous quarter`s R34.8 million loss, a consequence of lower
costs and a higher average Rand gold price received.
Capital expenditure was 30% lower at R17.5 million. This was due both to there
being no opening up and development during the strike and to strict management
of costs as part of the judicial management process.
Mining at the Way Ahead Project ("WAP") continued to average 1 400mSquared per
month and is on track to reach the targeted 2 500mSquared per month by the end
of the June 2010 quarter.
Crown
Gold production rose by 2% to 19 451oz, a 5% increase in the average yield to
0.43g/t compensating for a 3% decline in throughput to 1 393 000t. The higher
yield resulted from the continuing clean-up of various tailings footprints,
while the lower throughput was mainly the consequence of necessary plant
maintenance in the aftermath of the wage strike.
Total cash operating costs were 5% higher at R123.1 million and cash operating
unit costs 3% higher at R203 519/kg. This was due mainly to the 8% wage increase
effective from 1 October 2009. Cash operating profit was 23% higher at R38.6
million due to higher gold production and a higher Rand gold price received.
Capital expenditure was 32% lower at R3.4 million, reflecting completion of the
latest cycle of tailings deposition site maintenance.
ERPM
Gold production was 16% lower at 5 916oz due to a 21% decline in throughput, the
effect of which was not offset by a 7% increase in the average yield to 0.48g/t
resulting from the continued advance of the recovery process into the higher-
grade northern part of the Cason Dump.
While total cash operating costs were 11% lower at R30.5 million, cash operating
unit costs rose by 5% to R165 957/kg due mainly to lower gold production. Cash
operating profit was 26% lower at R18.6 million, also due to lower gold
production.
ErgoGold
Gold production rose by more than 80% to 9 453oz, reflecting a 34% build up in
throughput to 3 124 000t and a 29% improvement in the average yield to 0.09g/t.
Total cash operating costs rose by 20% to R65.6 million but cash operating unit
costs were 33% lower at R223 224/kg, reflecting the increase in gold production.
A cash operating profit of R13.3 million was recorded compared with the previous
quarter`s R10.6 million loss, a consequence of higher gold production, lower
costs and a higher Rand gold price received.
Capital expenditure was 70% lower at R10.1 million as construction of Phase 1
infrastructure approaches completion.
The pilot plant constructed to help determine the optimal blend of material from
the Elsburg Tailings Complex ("ETC") and the L29 dump performed well during the
quarter. Analysis of the pilot plant`s performance, together with additional
flexibility resulting from additional booster pumps on the first ETC line and
the commissioning of the second ETC line by the end of the March 2010 quarter,
is expected to accelerate progress towards Phase 1`s targeted steady state of
1.2Mt a month with a head grade of 0.32g/t. Improved yield should result as a
consequence of an increase in volumes from Elsburg.
Exploration and prospecting
Blyvoor
Underground diamond drilling totalled 603.1m, with prospect holes drilled at 41-
18, 33-m32, 38-21 and 15-56. Cover holes were drilled at 38-27, 38-21 and 41-18.
The prospect hole at 33-m32 intersected Main Reef and assayed at 784cmg/t. The
other prospect holes are ongoing. Reconnaissance visits were made to the Carbon
Leader areas at No 5 Shaft. Normal stope face sampling and geological mapping is
ongoing.
Crown and Ergo
The Top Star boundary with Park Central township was drilled for the planning of
the embankments and also to understand the extent of the slime that will form
part of the embankments along the top road. All other drilling was directed at
short- and medium-term grade control.
Corporate activity
It has been a busy quarter in terms of corporate activity, our primary
objectives being to ease Blyvoor`s immediate financial stress and to strengthen
our balance sheet so we can continue to advance our strategic shift towards
recovery of gold from lower-risk, lower-cost, higher-margin surface retreatment
and to contemplate cautious, well-considered growth when the time and
opportunities are right.
As previously reported, we reached agreement with Aurora for Aurora to acquire
60% of Blyvoor for R296 million, and to provide an R80 million loan facility to
Blyvoor.
Agreement was also reached for Aurora to acquire the ERPM plant for R20 million.
Aurora has paid R5 million toward the purchase consideration and will allow
DRDGOLD to conduct a feasibility study on the extensive Grootvlei and Marievale
tailings dams near Ergo, after which DRDGOLD may elect to either receive the
balance of the purchase price in cash or establish a 10 year exclusive option to
treat the aforementioned tailings dams.
Also, agreement was reached with Mintails for the DRDGOLD Group to acquire
Mintails` 50% in Ergo Mining (Pty) Limited ("the Ergo Joint Venture") for R82
million, giving us full access to Ergo`s Brakpan plant and thus capacity to
double throughput for gold recovery, as well as full exposure to future uranium
and sulphuric acid potential.
Looking ahead
The Rand`s strong trending continued during the quarter and is showing little
sign of softening against the major currencies. For the near term our focus
will therefore remain much of the same - reducing our risk exposure, controlling
costs and managing margins.
A primary focus will be Ergo: commissioning the second feeder line from ETC and
continuing our push for steady state at the Brakpan plant; and now, with the
acquisition of the balance of the Ergo Joint Venture, developing the synergies
between Crown and Ergo. We will also continue to contribute towards stabilising
Blyvoor`s underground operation, while retaining an option on its attractive
surface retreatment potential.
With an eye to future growth, we are looking to make an initial, modest
investment to establish - in collaboration with a local partner - a prospecting
project in Zimbabwe`s considerable greenstone gold mining belt. We will keep
shareholders informed of our first, cautious steps in this regard.
Niel Pretorius
Chief Executive Officer
NOTE REGARDING FINANCIAL INFORMATION
The condensed consolidated financial statements below have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and the
requirements of IAS 34, which is consistent with the accounting policies used in
the audited annual financial statements for the year ended 30 June 2009.
STATEMENT OF COMPREHENSIVE Quarter Quarter Quarter
INCOME Dec 09 Sep 09 Dec 08
R m R m R m
Unaudited Unaudited Unaudited
Gold and silver revenue 499.6 445.2 476.8
Net operating costs (412.2) (449.4) (382.5)
Cash operating costs (416.5) (434.2) (406.9)
Movement in gold in process 4.3 (15.2) 24.4
Operating profit/(loss) 87.4 (4.2) 94.3
Depreciation (45.2) (42.7) (17.1)
Movement in provision for
environmental rehabilitation 0.1 (8.4) (9.0)
Retrenchment costs (18.1) (1.2) (34.4)
Gross profit/(loss) from operating
activities 24.2 (56.5) 33.8
Impairments - - (4.8)
Administration expenses and
general costs (24.2) (46.3) (35.5)
Share-based payments (1.6) (0.7) (3.1)
Financial liabilities measured
at amortised cost - - 39.8
Profit on sale of assets and
investments 0.5 1.2 10.2
Finance income 6.1 8.4 25.7
Finance expenses and unwinding
of provisions (4.9) (3.1) (3.1)
Profit/(loss) before taxation 0.1 (97.0) 63.0
Income tax (7.7) (6.8) (8.6)
Deferred tax 14.0 40.5 (21.0)
Net profit/(loss)for the period 6.4 (63.3) 33.4
Attributable to:
Equity owners of the parent 5.4 (48.4) 54.7
Non-controlling interest 1.0 (14.9) (21.3)
6.4 (63.3) 33.4
Other comprehensive income
Foreign exchange translation 0.1 0.2 7.8
Total comprehensive income/(loss)
for the period 6.5 (63.1) 41.2
Attributable to:
Equity owners of the parent 5.5 (48.2) 62.5
Non-controlling interest 1.0 (14.9) (21.3)
6.5 (63.1) 41.2
Reconciliation of headline profit/(loss)
Net profit/(loss) 5.4 (48.4) 54.7
Adjusted for:
Impairments - - 4.8
Profit on sale of assets and
investments (0.5) (1.2) (9.8)
Non-controlling share of
headline adjustments 0.5 - 1.4
Headline earnings/(loss) 5.4 (49.6) 51.1
Headline earnings/(loss)
per share-cents 1.4 (13.1) 13.6
Basic earnings/(loss)
per share-cents 1.4 (12.8) 14.5
Diluted headline earnings/(loss)
per share-cents 1.4 (13.1) 13.6
Diluted basic earnings/(loss)
per share-cents 1.4 (12.8) 14.5
Calculated on the weighted average
ordinary shares issued of 380 448 068 378 020 712 376 598 733
STATEMENT OF COMPREHENSIVE 6 months 6 months 6 months
INCOME to Dec 09 to Jun 09 to Dec 08
R m R m R m
Unaudited Unaudited Unaudited
Gold and silver revenue 944.8 957.2 953.5
Net operating costs (861.6) (826.0) (802.0)
Cash operating costs (850.7) (811.6) (823.4)
Movement in gold in process (10.9) (14.4) 21.4
Operating profit 83.2 131.2 151.5
Depreciation (87.9) (65.1) (34.1)
Movement in provision for
environmental rehabilitation (8.3) 1.6 (21.1)
Retrenchment costs (19.3) 0.4 (35.3)
Gross (loss)/profit from operating
activities (32.3) 68.1 61.0
Impairments - (22.7) (52.4)
Administration expenses and
general costs (70.5) (93.9) (44.4)
Share-based payments (2.3) (3.7) (4.2)
Financial liabilities measured
at amortised cost - (3.1) 47.1
Recognition of goodwill on purchase
of subsidiary - 53.0 -
Profit/(loss) on sale of assets
and investments 1.7 (0.3) 8.6
Finance income 14.5 23.9 58.6
Finance expenses and unwinding
of provisions (8.0) (7.5) (5.8)
(Loss)/profit before taxation (96.9) 13.8 68.5
Income tax (14.5) (22.0) (24.2)
Deferred tax 54.5 94.3 (19.7)
Net (loss)/profit for the period (56.9) 86.1 24.6
Attributable to:
Equity owners of the parent (43.0) 71.3 57.8
Non-controlling interest (13.9) 14.8 (33.2)
(56.9) 86.1 24.6
Other comprehensive income
Foreign exchange translation 0.3 11.1 (11.7)
Purchase of subsidiaries and other - 192.9 -
Mark-to-market of available for sale
investments - (1.1) -
Total comprehensive (loss)/income
for the period (56.6) 289.0 12.9
Attributable to:
Equity owners of the parent (42.7) 214.5 46.1
Non-controlling interest (13.9) 74.5 (33.2)
(56.6) 289.0 12.9
Reconciliation of headline (loss)/profit
Net (loss)/profit (43.0) 71.3 57.8
Adjusted for:
Impairments - 22.7 52.4
Goodwill on purchase of subsidiary - (53.0) -
(Profit)/loss on sale of assets and
investments (1.7) 0.3 (8.6)
Non-controlling share of
headline adjustments 0.5 (4.5) (11.0)
Headline (loss)/earnings (44.2) 36.8 90.6
Headline (loss)/earnings
per share-cents (11.7) 9.8 24.1
Basic (loss)/earning
per share-cents (11.3) 18.9 15.3
Diluted headline (loss)/earning
per share-cents (11.7) 9.8 24.1
Diluted basic (loss)/earnings
per share-cents (11.3) 18.9 15.3
Calculated on the weighted average
ordinary shares issued of: 379 234 390 376 990 295 376 586 057
STATEMENT OF FINANCIAL As at As at As at As at
POSITION 31 Dec 09 30 Sep 09 30 Jun 09 31 Dec 08
Rm Rm Rm Rm
Unaudited Unaudited Audited Unaudited
Property, plant and equipment 1 744.7 1 759.1 1 737.5 891.2
Non-current investments and
other assets 43.0 43.0 43.0 64.8
Environmental rehabilitation
trusts funds 138.2 134.2 129.7 120.7
Deferred tax asset 200.5 184.9 165.1 61.8
Current assets 401.9 458.8 550.5 944.9
Inventories 98.4 90.1 93.9 97.4
Trade and other receivables 125.7 119.4 88.0 223.5
Cash and cash equivalents 162.8 234.3 353.6 609.0
Assets classified as held
for sale 15.0 15.0 15.0 15.0
Total assets 2 528.3 2 580.0 2 625.8 2 083.4
Equity and Liabilities
Equity 1 525.9 1 502.5 1 584.0 1 285.4
Equity of the owners of
the parent 1 437.3 1 414.9 1 481.5 1 257.4
Non-controlling interest 88.6 87.6 102.5 28.0
Loans and borrowings 65.1 65.1 65.1 93.8
Post retirement and other
employee benefits 46.3 45.0 43.6 24.1
Provision for environmental
rehabilitation 426.5 423.4 412.5 405.7
Deferred tax liability 175.5 173.7 194.6 -
Current liabilities 289.0 370.3 326.0 274.4
Trade and other payables 289.0 322.3 323.9 262.2
Loans and borrowings - 48.0 2.1 12.2
Total equity and liabilities 2 528.3 2 580.0 2 625.8 2 083.4
SATEMENT OF CHANGES IN EQUITY Quarter Quarter Quarter
Dec 09 Sep 09 Dec 08
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 502.5 1 584.0 1 240.7
Share capital issued 15.3 (0.1) 0.4
for acquisition finance and cash 15.5 - -
for share options exercised 0.5 0.4 0.4
for costs (0.7) (0.5) -
Increase in share-based
payment reserve 1.6 0.7 3.1
Net profit/(loss) attributed to
owners of the parent 5.4 (48.4) 54.7
Net profit/(loss) attributed to
non-controlling interest 1.0 (14.9) (21.3)
Dividends declared - (19.0) -
Other comprehensive income 0.1 0.2 7.8
Balance as at the end of the
period 1 525.9 1 502.5 1 285.4
STATEMENT OF CHANGES IN EQUITY 6 months 6 months 6 months
Dec 09 Jun 09 Dec 08
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 584.0 1 285.4 1 305.5
Share capital issued 15.2 5.9 0.4
for acquisition finance and cash 15.5 - -
for share options exercised 0.9 6.3 0.4
for costs (1.2) (0.4) -
Increase in share-based
payment reserve 2.3 3.7 4.2
Net (loss)/profit attributed to
owners of the parent (43.0) 71.3 57.8
Net (loss)/profit attributed to
non-controlling interest (13.9) 14.8 (33.2)
Dividends declared (19.0) - (37.6)
Increase in non-controlling interest - 59.7 -
Other comprehensive income 0.3 143.2 (11.7)
Balance as at the end of the
period 1 525.9 1 584.0 1 285.4
STATEMENT OF CASH FLOWS Quarter Quarter Quarter
Dec 09 Sep 09 Dec 08
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash (out)/inflow
from operations (7.2) (101.6) 29.5
Net cash outflow from
investing activities (30.9) (64.2) (81.6)
Net cash (out)/inflow from
financing activities (33.0) 45.9 (149.5)
Decrease in cash and
cash equivalents (71.1) (119.9) (201.6)
Translation adjustment (0.4) 0.6 1.6
Opening cash and cash equivalents 234.3 353.6 809.0
Closing cash and cash equivalents 162.8 234.3 609.0
Reconciliation of net cash
in/(out)flow from operations
Profit/(loss) before taxation 0.1 (97.0) 63.0
Adjusted for:
Movement in gold process (4.3) 15.2 (24.4)
Depreciation and impairments 45.2 42.7 21.9
Movement in provision for
environmental rehabilitation (0.1) 8.4 9.0
Share-based payments 1.6 0.7 3.1
(Profit)/loss on derivative financial
instruments - - (39.8)
(Profit)/loss on sale of assets
and investments (0.5) (1.2) (10.2)
Finance expenses and unwinding of
provisions 3.1 2.5 (1.8)
Growth in environmental trust funds (2.3) (2.4) (3.3)
Other non cash items 0.5 5.0 1.8
Taxation paid (12.1) - (24.9)
Working capital changes (38.4) (75.5) 35.1
Net cash (out)/inflow (7.2) (101.6) 29.5
STATEMENT OF CASH FLOWS 6 months 6 months 6 months
Dec 09 Jun 09 Dec 08
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash (out)/inflow
from operations (108.8) 153.6 54.8
Net cash outflow from
investing activities (95.1) (465.3) (128.0)
Net cash in/(out)flow from
financing activities 12.9 66.3 (152.1)
Decrease in cash and
cash equivalents (191.0) (245.4) (225.3)
Translation adjustment 0.2 (10.0) (11.8)
Opening cash and cash equivalents 353.6 609.0 846.1
Closing cash and cash equivalents 162.8 353.6 609.0
Reconciliation of net cash (out)/inflow from operations
(Loss)/profit before tax (96.9) 13.8 68.5
Adjusted for:
Movement in gold process 10.9 14.4 (21.4)
Depreciation and impairments 87.9 87.8 86.5
Movement in provision for
environmental rehabilitation 8.3 (1.6) 21.1
Share-based payments 2.3 3.7 4.2
Loss/(profit)on derivative financial
instruments - 3.1 (47.1)
(Profit)/loss on sale of assets
and investments (1.7) 0.3 (8.6)
Recognition of goodwill on purchase
Of subsidiary - (53.0) -
Finance expenses and unwinding of
provisions 5.6 6.4 (3.4)
Growth in environmental trust funds (4.7) (6.1) (6.8)
Other non cash items 5.5 46.8 2.7
Taxation paid (12.1) (22.0) (24.9)
Working capital changes (113.9) 60.0 (16.0)
Net cash (out)/inflow
from operations (108.8) 153.6 54.8
KEY OPERATING AND FINANCIAL RESULTS (Unaudited)
Metric Blyvoor Crown ERPM ErgoGold* Total
Ore milled (`000t)
Underground Dec 09 Qtr 137 - - - 137
Sep 09 Qtr 145 - - - 145
Dec 09 Ytd 282 - - - 282
Surface Dec 09 Qtr 702 1 393 386 3 124 5 605
Sep 09 Qtr 810 1 440 487 2 324 5 061
Dec 09 Ytd 1 512 2 833 873 5 448 10 666
Total Dec 09 Qtr 839 1 393 386 3 124 5 742
Sep 09 Qtr 955 1 440 487 2 324 5 206
Dec 09 Ytd 1 794 2 833 873 5 448 10 948
Yield (g/t)
Underground Dec 09 Qtr 3.72 - - - 3.72
Sep 09 Qtr 3.95 - - - 3.95
Dec 09 Ytd 3.84 - - - 3.84
Surface Dec 09 Qtr 0.38 0.43 0.48 0.09 0.24
Sep 09 Qtr 0.29 0.41 0.45 0.07 0.24
Dec 09 Ytd 0.33 0.42 0.46 0.08 0.24
Total Dec 09 Qtr 0.93 0.43 0.48 0.09 0.32
Sep 09 Qtr 0.85 0.41 0.45 0.07 0.34
Dec 09 Ytd 0.88 0.42 0.46 0.08 0.33
Gold Produced (kgs)
Underground Dec 09 Qtr 509 - - - 509
Sep 09 Qtr 573 - - - 573
Dec 09 Ytd 1 082 - - - 1 082
Surface Dec 09 Qtr 270 605 184 294 1 353
Sep 09 Qtr 235 593 218 163 1 209
Dec 09 Ytd 505 1 198 402 457 2 562
Total Dec 09 Qtr 779 605 184 294 1 862
Sep 09 Qtr 808 593 218 163 1 782
Dec 09 Ytd 1 587 1 198 402 457 3 644
Cash operating costs (ZAR per kg)
Underground Dec 09 Qtr 344 990 - - - 344 990
Sep 09 Qtr 346 068 - - - 346 068
Dec 09 Ytd 345 561 - - - 345 561
Surface Dec 09 Qtr 79 807 203 519 165 957 223 224 178 005
Sep 09 Qtr 125 034 198 339 157 862 334 571 195 159
Dec 09 Ytd 100 853 200 955 161 567 262 939 186 100
Total Dec 09 Qtr 253 078 203 519 165 957 223 224 223 653
Sep 09 Qtr 281 782 198 339 157 862 334 571 243 684
Dec 09 Ytd 267 693 200 955 161 567 262 939 233 448
Cash operating costs (ZAR per tonne)
Underground Dec 09 Qtr 1 282 - - - 1 282
Sep 09 Qtr 1 368 - - - 1 368
Dec 09 Ytd 1 326 - - - 1 326
Surface Dec 09 Qtr 31 88 79 21 43
Sep 09 Qtr 36 82 71 23 47
Dec 09 Ytd 34 85 74 22 45
Total Dec 09 Qtr 235 88 79 21 73
Sep 09 Qtr 238 82 71 23 83
Dec 09 Ytd 237 85 74 22 78
Gold and silver revenue (ZAR million)
Dec 09 Qtr 209.7 161.7 49.1 79.1 499.6
Sep 09 Qtr 192.9 149.1 59.4 43.8 445.2
Dec 09 Ytd 402.6 310.8 108.5 122.9 944.8
Cash operating profit/(loss)(ZAR million)
Dec 09 Qtr 12.6 38.6 18.6 13.3 83.1
Sep 09 Qtr (34.8) 31.4 25.0 (10.6) 11.0
Dec 09 Ytd (22.2) 70.0 43.6 2.7 94.1
Capital expenditure (ZAR million)
Dec 09 Qtr 17.5 3.4 - 10.1 31.0
Sep 09 Qtr 25.1 5.0 - 34.1 64.2
Dec 09 Ytd 42.6 8.4 - 44.2 95.2
Imperial Blyvoor Crown ERPM ErgoGold* Total
Gold Produced (oz)
Underground Dec 09 Qtr 16 365 - - - 16 365
Sep 09 Qtr 18 422 - - - 18 422
Dec 09 Ytd 34 787 - - - 34 787
Surface Dec 09 Qtr 8 681 19 451 5 916 9 453 43 501
Sep 09 Qtr 7 556 19 065 7 009 5 240 38 870
Dec 09 Ytd 16 237 38 516 12 925 14 693 82 371
Total Dec 09 Qtr 25 046 19 451 5 916 9 453 59 866
Sep 09 Qtr 25 978 19 065 7 009 5 240 57 292
Dec 09 Ytd 51 024 38 516 12 925 14 693 117 158
Cash operating costs (US$ per oz)
Underground Dec 09 Qtr 1 429 - - - 1 429
Sep 09 Qtr 1 375 - - - 1 375
Dec 09 Ytd 1 401 - - - 1 401
Surface Dec 09 Qtr 332 840 686 919 735
Sep 09 Qtr 497 788 627 1 330 776
Dec 09 Ytd 409 814 654 1 066 754
Total Dec 09 Qtr 1 049 840 686 919 925
Sep 09 Qtr 1 120 788 627 1 330 968
Dec 09 Ytd 1 085 814 654 1 066 946
Gold and silver revenue (US$ million)
Dec 09 Qtr 27.8 21.5 6.5 10.4 66.2
Sep 09 Qtr 24.7 19.0 7.6 5.6 56.9
Dec 09 Ytd 52.5 40.5 14.1 16.0 123.1
Cash operating profit/(loss)(US$ million)
Dec 09 Qtr 1.5 5.1 2.4 1.8 10.8
Sep 09 Qtr (4.4) 4.0 3.2 (1.4) 1.4
Dec 09 Ytd (2.9) 9.1 5.6 0.4 12.2
Capital expenditure (US$ million)
Dec 09 Qtr 2.3 0.5 - 1.4 4.2
Sep 09 Qtr 3.2 0.6 - 4.4 8.2
Dec 09 Ytd 5.5 1.1 - 5.8 12.4
CASH OPERATING COSTS RECONCILIATION
(R`000 unless otherwise stated)
Blyvoor Crown ERPM ErgoGold* Total
Total cash costs
Dec 09 Qtr 208 677 136 346 49 837 67 124 463 984
Sep 09 Qtr 238 485 129 195 69 166 62 171 499 017
Dec 09 Ytd 447 162 265 541 119 003 131 295 963 001
Movement in gold in process
Dec 09 Qtr 7 515 (1 754) (132) (1 303) 4 326
Sep 09 Qtr (2 951) (546) (6 646) (5 046) (15 189)
Dec 09 Ytd 4 564 (2 300) (6 778) (6 349) (10 863)
Less: Production taxes, rehabilitation and other
Dec 09 Qtr 2 484 7 059 10 922 1 894 22 359
Sep 09 Qtr 2 574 6 631 23 465 2 290 34 960
Dec 09 Ytd 5 058 13 690 34 387 4 184 57 319
Less: Retrenchment costs
Dec 09 Qtr 11 221 - 3 592 - 14 813
Sep 09 Qtr 447 - - - 447
Dec 09 Ytd 11 668 - 3 592 - 15 260
Less: Corporate and general administration costs
Dec 09 Qtr 5 339 4 404 4 655 299 14 697
Sep 09 Qtr 4 833 4 403 4 641 300 14 177
Dec 09 Ytd 10 172 8 807 9 296 599 28 874
Cash operating costs
Dec 09 Qtr 197 148 123 129 30 536 65 628 416 441
Sep 09 Qtr 227 680 117 615 34 414 54 535 434 244
Dec 09 Ytd 424 828 240 744 64 950 120 163 850 685
Gold produced
Dec 09 Qtr 779 605 184 294 1 862
Sep 09 Qtr 808 593 218 163 1 782
Dec 09 Ytd 1 587 1 198 402 457 3 644
Total cash operating costs - R/kg
Dec 09 Qtr 253 078 203 519 165 957 223 224 223 653
Sep 09 Qtr 281 782 198 339 157 862 334 571 243 684
Dec 09 Ytd 267 693 200 955 161 567 262 939 233 448
Total cash operating costs - US$/oz
Dec 09 Qtr 1 049 840 686 919 925
Sep 09 Qtr 1 120 788 627 1 330 968
Dec 09 Ytd 1 085 814 654 1 066 946
*ErgoGold represents DRDGOLD`s 100% share in the Elsburg Joint Venture and 50%
in the Ergo Joint Venture.
There has been no material change to the technical information relating to,
inter alia, the Group`s reserves and resources, legal title to its mining and
prospecting rights and legal proceedings relating to its mining and exploration
activities as disclosed in the company`s annual report of 30 June 2009 and
subsequent public announcements.
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.
11 February 2010
Sponsor
QuestCo Sponsors (Pty) Limited
Date: 11/02/2010 08:00:03 Produced by the JSE SENS Department.
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