| Fri 23 Apr 2010, 8:00 | | DRD - DRDGold Limited - Report to shareholders for the quarter and nine |
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DRD
DRDD
DRD - DRDGold Limited - Report to shareholders for the quarter and nine
months ended 31 March 2010
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: DROOY
("DRDGOLD" or "the Company" or "the Group")
REPORT TO SHAREHOLDERS FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2010
GROUP RESULTS
KEY FEATURES FOR THE QUARTER
* Gold production up 4%
* Cash operating unit costs in Rands down 1%
* Operating profit up 11% to R96.9 million
* Blyvoor provisional judicial management order lifted
KEY RESULTS SUMMARY
GROUP Quarter Quarter % Quarter
Mar 10 Dec 09 Change Mar 09
Gold production oz 62 404 59 866 4 58 997
kg 1 941 1 862 4 1 835
Gold production sold oz 62 404 59 866 4 58 997
kg 1 941 1 862 4 1 835
Cash operating costs US$/oz 913 925 1 653
ZAR/kg 221 400 223 653 1 211 666
Gold price received US$/oz 1 113 1 106 1 915
ZAR/kg 269 980 268 302 1 292 369
Capital expenditure US$ million 4.2 4.2 - 6.4
ZAR million 31.3 30.9 (1) 65.8
9 months 9 months
to Mar 10 to Mar 09
Gold production oz 179 562 189 915
kg 5 585 5 907
Gold production sold oz 182 134 189 915
Kg 5 665 5 907
Cash operating costs US$/oz 935 691
ZAR/kg 229 261 205 149
Gold price received US$/oz 1 057 850
ZAR/kg 259 278 252 235
Capital expenditure US$ million 16.6 24.7
ZAR million 126.4 227.8
STOCK ISSUED CAPITAL
381 012 491 ordinary no par value shares
5 000 000 cumulative preference shares
400 756 741 total ordinary no par value shares issued and committed
STOCK TRADED JSE NASDAQ
Avg. volume for the quarter per day (000) 758 2 610
% of issued stock traded (annualised) 52 179
Price - High R5.71 US$0.790
- Low R3.60 US$0.461
- Close R3.74 US$0.489
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
One fatality, at Blyvooruitzicht Gold Mining Company Limited ("Blyvoor"), was
recorded during the quarter. Mr Respeito Mandangalane Manhica, a rock driller,
died in a conveyance incident when he fell down the sub-shaft at No 5 Shaft
while entering the man-cage to return to surface at the end of his shift. We
extend our deepest condolences to his family, colleagues and friends. At the
time of his death, Blyvoor had recorded 1 945 029 fatality-free shifts, or 16
fatality-free months.
In respect of its Dressing Station Injury Frequency Rate, Blyvoor reported an
improvement for the quarter, but deteriorations in respect of both its
Reportable Injury Frequency Rate and Disabling Injury Frequency Rate. Crown Gold
Recoveries (Pty) Limited ("Crown") reported encouraging improvements in respect
of all safety parameters, and East Rand Proprietary Mines Limited ("ERPM") had
an almost `clear run` for the quarter, reporting just one dressing station
injury.
As a general observation, across the Group, safety audits and hazard assessments
are yielding good results. We expect to launch the group-wide Behaviour-based
Safety Initiative, together with the Mine Occupational Safety and Health Early
Morning Examination campaign, during June 2010.
A total of R7.9 million was spent on environmental rehabilitation at group
operations during the quarter.
Production
Total gold production was 4% higher at 62 404oz due to continued recovery at
Blyvoor`s underground operations and on-going production build-up at Ergo, about
which more is reported later in this overview. Total surface gold production was
6% lower at 40 992oz, due to lower production at Crown and ERPM, and comprised
66% of the quarter`s total gold production.
Financial
Total revenue for the quarter was 5% higher at R524.0 million, a consequence
mainly of higher gold production. The average Rand gold price received increased
by just 1% to R269 980/kg. Total cash operating unit costs were 1% lower at R221
400/kg reflecting higher gold production, and cash operating profit rose by 11%
to R96.9 million. Net profit was 92% higher at R12.3 million.
Blyvoor`s provisional judicial management order lifted
Subsequent to the end of the quarter under review, we reported that our
application to the High Court for the lifting of the provisional judicial
management order in respect of Blyvoor had been granted. The quarter on quarter
operating and financial improvement at Blyvoor is amply reflected in the mine`s
operating and financial results for the quarter under review.
Detailed operational review
Blyvoor
Total gold production rose by 15% to 28 743oz, reflecting a 31% increase in
underground gold production to 21 412oz. Gold production from surface sources
was 16% lower at 7 331oz.
Increased underground gold production resulted from a 21% rise in underground
throughput to 166 000t and an 8% rise in underground yield to 4.01g/t. Higher
throughput and yield reflected continuing recovery from the negative impact of
seismic damage to high-grade working places underground during May 2009.
Lower surface gold production was a consequence of a 13% decline in yield to
0.33g/t, reflecting recovery of increasing volumes of lower-grade material from
the No 4 Dam. Surface throughput was virtually unchanged at 701 000t.
Total cash operating unit costs were 7% lower at R235 841/kg due both to higher
total gold production and the lower total cost of labour resulting from
restructuring in the first quarter. Underground cash operating unit costs were
18% lower at R281 818/kg reflecting higher gold production, while surface cash
operating unit costs rose by 27% to R101 539/kg due to lower gold production.
Cash operating profit increased by 146% to R31.0 million due to higher total
gold production.
Capital expenditure was unchanged at R17.4 million, reflecting continued strict
management of costs during the judicial management process.
At the Way Ahead Project, additional production crews are to be deployed in the
coming months. This is expected to deliver both increasing volume and improved
grade - a necessary offset against the Eskom increase which take effect this
month.
Crown
Gold production was 5% lower at 18 422oz due to a 6% decline in throughput to 1
312 000t. Lower throughput resulted from reclamation site clean-ups drawing to a
close; heavy rainfall; and pipeline realignments associated with the upgrading
of municipal and other infrastructure. Yield was 2% higher at 0.44g/t.
Lower gold production resulted in a 3% increase in cash operating unit costs to
R210 503/kg and a 12% decline in cash operating profit to R33.9 million.
Capital expenditure, unchanged at R3.4 million, was directed primarily towards
continuing maintenance of the Nasrec tailings deposition site.
ERPM
An 11% drop in throughput to 344 000t due primarily to pipe column failures
during March resulted in an 8% decline in gold production to 5 466oz. Yield was
2% higher at 0.49g/t.
Cash operating unit costs were 11% higher at R183 606/kg and cash operating
profit was 21% lower at R14.6 million due to lower gold production.
Ergo
Gold production increased by 3% to 9 773oz, reflecting an 11% improvement in
yield to 0.10g/t. Throughput rose by 1% to 3 150 000t.
Cash operating unit costs were 1% lower at R220 609/kg and cash operating profit
was 11% higher at R14.8 million, a consequence of higher gold production.
With Phase 1 capital infrastructure development drawing to a close, capital
expenditure dropped by 35% to R6.6 million.
Progress towards the Phase 1 volume target of 1.2Mtpm and the head grade target
of 0.32g/t continues. Completion of the commissioning of the second feeder
pipeline from the Elsburg Tailings Complex ("ETC") to the Brakpan plant brings
this well within reach, increasingly replacing material from the second-
generation L29 dump.
The pilot plant built to help decide the optimal blend of ETC and L29 material
continued to operate and proved useful during the quarter.
Exploration and prospecting
In Zimbabwe the Leny claims - where initial exploration work by DRDGOLD`s
Zimbabwean partner, Chizim Investments, on two veins in 2009 showed grades
varying from five to 25g/t - have been prioritised for further exploration.
Camden Geoserve has been contracted to conduct an initial, 28-week programme
that will include updating the sampling base of the known veins; geophysical
exploration using induced polarisation; and selective trenching and drilling.
Limited mining will take place during the exploration phase, with any recovered
gold helping to offset costs. Gravity extraction will be used, without milling
or reagents.
Corporate activity
Subsequent to the end of the quarter, we reported that:
a) we would not conclude the transaction with Aurora Empowerment Systems
("Aurora"), in terms of which Aurora would acquire 60% of Blyvoor and
b) that Competition Commission approval had been received for our acquisition of
Mintails Limited`s 50% of Ergo Mining (Pty) Limited, allowing us to assume full
ownership of Ergo.
We extended to Aurora a period of exclusivity until the end of April 2010 to
make an alternative offer in respect of Blyvoor, during which time we will not
consider any alternative offers for Blyvoor without first offering it to Aurora
on similar terms.
Looking ahead
Now that we have acquired full ownership of Ergo is a major step for us in terms
of our shift towards gold recovery from surface retreatment, and provides the
platform for fully exploring and exploiting synergies between Crown and Ergo.
It is very satisfying to reflect on Blyvoor`s efforts over the four months
between December and March, and on continuing production build-up at Ergo.
Achieving a full restoration of Blyvoor`s underground recovery grades and
developing the Ergo Crown synergies are our main priorities for the months to
come.
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 and have
not been reviewed or reported on by the Company`s auditors.
STATEMENT OF COMPREHENSIVE Quarter Quarter Quarter
INCOME Mar 10 Dec 09 Mar 09
R m R m R m
Unaudited Unaudited Unaudited
Gold and silver revenue 524.0 499.6 536.5
Net operating costs (427.1) (412.2) (406.6)
Cash operating costs (429.7) (416.5) (388.4)
Movement in gold in process 2.6 4.3 (18.2)
Operating profit 96.9 87.4 129.9
Depreciation (45.2) (45.2) (23.5)
Movement in provision for
environmental rehabilitation (14.6) 0.1 7.8
Retrenchment costs (0.3) (18.1) 1.8
Gross profit from operating
activities 36.8 24.2 116.0
Impairments - - (3.3)
Administration expenses and
general costs (34.1) (24.2) (37.4)
Share-based payments (1.2) (1.6) (2.0)
Financial liabilities measured
at amortised cost - - 5.7
Profit/(loss) on sale of assets and
investments 11.1 0.5 (0.3)
Finance income 5.5 6.1 20.6
Finance expenses and unwinding
of provisions (0.5) (4.9) (4.3)
Profit before taxation 17.6 0.1 95.0
Income tax (8.2) (7.7) (25.2)
Deferred tax 2.9 14.0 (26.3)
Net profit for the period 12.3 6.4 43.5
Attributable to:
Equity owners of the parent 9.9 5.4 34.1
Non-controlling interest 2.4 1.0 9.4
12.3 6.4 43.5
Other comprehensive income
Foreign exchange translation - 0.1 1.1
Total comprehensive income
for the period 12.3 6.5 44.6
Attributable to:
Equity owners of the parent 9.9 5.5 35.2
Non-controlling interest 2.4 1.0 9.4
12.3 6.5 44.6
Reconciliation of headline profit
Net profit 9.9 5.4 34.1
Adjusted for:
Impairments - - 3.3
(Profit)/loss on sale of assets
and investments (11.1) (0.5) 0.3
Non-controlling share of
headline adjustments 2.8 0.5 (0.1)
Headline earnings 1.6 5.4 37.6
Headline earnings per share-cents 0.4 1.4 10.0
Basic earnings per share-cents 2.6 1.4 9.0
Diluted headline earnings
per share-cents 0.4 1.4 10.0
Diluted basic earnings
per share-cents 2.6 1.4 9.0
Calculated on the weighted average
ordinary shares issued of 380 987 431 380 448 068 376 884 611
STATEMENT OF COMPREHENSIVE 9 months 9 months
INCOME to Mar 10 to Mar 09
R m R m
Unaudited Unaudited
Gold and silver revenue 1 468.8 1 490.0
Net operating costs (1 288.7) (1 208.6)
Cash operating costs (1 280.4) (1 211.8)
Movement in gold in process (8.3) 3.2
Operating profit 180.1 281.4
Depreciation (133.1) (57.6)
Movement in provision for
environmental rehabilitation (22.9) (13.3)
Retrenchment costs (19.6) (33.5)
Gross profit from operating activities 4.5 177.0
Impairments - (55.7)
Administration expenses and general costs (104.6) (81.8)
Share-based payments (3.5) (6.2)
Financial liabilities measured at amortised cost - 52.8
Profit on sale of assets and investments 12.8 8.3
Finance income 20.0 79.2
Finance expenses and unwinding of provisions (8.5) (10.1)
(Loss)/profit before taxation (79.3) 163.5
Income tax (22.7) (49.4)
Deferred tax 57.4 (46.0)
Net (loss)/profit for the period (44.6) 68.1
Attributable to:
Equity owners of the parent (33.1) 91.9
Non-controlling interest (11.5) (23.8)
(44.6) 68.1
Other comprehensive income
Foreign exchange translation 0.3 (10.6)
Total comprehensive (loss)/income for the period (44.3) 57.5
Attributable to:
Equity owners of the parent (32.8) 81.3
Non-controlling interest (11.5) (23.8)
(44.3) 57.5
Reconciliation of headline (loss)/earnings
Net (loss)/profit (33.1) 91.9
Adjusted for:
Impairments - 55.7
Profit on sale of assets and investments (12.8) (8.3)
Non-controlling share of headline adjustments 3.3 (11.1)
Headline (loss)/earnings (42.6) 128.2
Headline (loss)/earnings per share-cents (11.2) 34.0
Basic (loss)/earning per share-cents (8.7) 24.4
Diluted headline (loss)/earning per share-cents (11.2) 34.0
Diluted basic (loss)/earnings per share-cents (8.7) 24.4
Calculated on the weighted average
ordinary shares issued of: 379 810 206 376 684 531
STATEMENT OF FINANCIAL As at As at As at
POSITION 31 Mar 10 31 Dec 09 31 Mar 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Property, plant and equipment 1 730.7 1 744.7 932.8
Non-current investments and other assets 43.0 43.0 65.4
Environmental rehabilitation trusts funds 141.4 138.2 125.6
Deferred tax asset 200.3 200.5 35.6
Current assets 464.3 401.9 989.9
Inventories 98.0 98.4 80.6
Trade and other receivables 150.0 125.7 348.6
Cash and cash equivalents 201.3 162.8 545.7
Assets classified as held for sale 15.0 15.0 15.0
Total assets 2 579.7 2 528.3 2 149.3
Equity and Liabilities
Equity 1 539.7 1 525.9 1 335.7
Equity of the owners of the parent 1 448.7 1 437.3 1 298.3
Non-controlling interest 91.0 88.6 37.4
Loans and borrowings 65.1 65.1 88.2
Post retirement and other employee benefits 43.4 46.3 24.7
Provision for environmental rehabilitation 440.4 426.5 401.1
Deferred tax liability 172.4 175.5 -
Current liabilities 318.8 289.0 299.6
Trade and other payables 268.7 289.0 292.8
Loans and borrowings 50.0 - 6.8
Total equity and liabilities 2 579.7 2 528.3 2 149.3
SATEMENT OF CHANGES IN EQUITY Quarter Quarter Quarter
Mar 10 Dec 09 Mar 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 525.9 1 502.5 1 285.4
Share capital issued 0.3 15.3 3.7
for acquisition finance and cash - 15.5 -
for share options exercised 0.2 0.5 4.1
for costs 0.1 (0.7) (0.4)
Increase in share-based payment reserve 1.2 1.6 2.0
Net profit attributed to
owners of the parent 9.9 5.4 34.1
Net profit attributed to
non-controlling interest 2.4 1.0 9.4
Other comprehensive income - 0.1 1.1
Balance as at the end of the
period 1 539.7 1 525.9 1 335.7
STATEMENT OF CHANGES IN EQUITY 9 months 9 months
Mar 10 Mar 09
Rm Rm
Unaudited Unaudited
Balance at the beginning of
the period 1 584.0 1 305.5
Share capital issued 15.5 4.1
for acquisition finance and cash 15.5 -
for share options exercised 1.1 4.5
for costs (1.1) (0.4)
Increase in share-based payment reserve 3.5 6.2
Net (loss)/profit attributed to
owners of the parent (33.1) 91.9
Net loss attributed to non-controlling interest (11.5) (23.8)
Dividends declared (19.0) (37.6)
Other comprehensive income 0.3 (10.6)
Balance as at the end of the period 1 539.7 1 335.7
STATEMENT OF CASH FLOWS Quarter Quarter Quarter
Mar 10 Dec 09 Mar 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash inflow/(out)
from operations 8.3 (7.2) 114.1
Net cash outflow from
investing activities (20.2) (30.9) (88.0)
Net cash inflow/(out) from
financing activities 50.1 (33.0) (89.7)
Decrease in cash and
cash equivalents 38.2 (71.1) (63.6)
Translation adjustment 0.3 (0.4) 0.3
Opening cash and cash equivalents 162.8 234.3 609.0
Closing cash and cash equivalents 201.3 162.8 545.7
Reconciliation of net cash
in/(out)flow from operations
Profit before taxation 17.6 0.1 95.0
Adjusted for:
Movement in gold process (2.6) (4.3) 18.2
Depreciation and impairments 45.2 45.2 26.8
Movement in provision for
environmental rehabilitation 14.6 (0.1) (7.8)
Share-based payments 1.2 1.6 2.0
Profit on financial liabilities
measured at amortised cost - - (5.7)
(Profit)/loss on sale of assets
and investments (11.1) (0.5) 0.3
Finance expenses and unwinding of
provisions 0.4 3.1 3.2
Growth in environmental trust funds (2.4) (2.3) (3.3)
Other non cash items (4.8) 0.5 8.3
Taxation paid - (12.1) (1.8)
Working capital changes (49.8) (38.4) (21.1)
Net cash inflow/(out) 8.3 (7.2) 114.1
STATEMENT OF CASH FLOWS 9 months 9 months
Mar 10 Mar 09
Rm Rm
Unaudited Unaudited
Net cash (out)/inflow from operations (100.5) 168.9
Net cash outflow from investing activities (115.3) (216.0)
Net cash in/(out)flow from financing activities 63.0 (241.8)
Decrease in cash and cash equivalents (152.8) (288.9)
Translation adjustment 0.5 (11.5)
Opening cash and cash equivalents 353.6 846.1
Closing cash and cash equivalents 201.3 545.7
Reconciliation of net cash (out)/inflow from operations
(Loss)/profit before tax (79.3) 163.5
Adjusted for:
Movement in gold process 8.3 (3.2)
Depreciation and impairments 133.1 113.3
Movement in provision for
environmental rehabilitation 22.9 13.3
Share-based payments 3.5 6.2
Profit on financial liabilities
measured at amortised cost - (52.8)
Profit on sale of assets and investments (12.8) (8.3)
Finance expenses and unwinding of provisions 6.0 6.6
Growth in environmental trust funds (7.1) (10.1)
Other non cash items 0.7 4.2
Taxation paid (12.1) (26.7)
Working capital changes (163.3) (37.1)
Net cash (out)/inflow from operations (100.5) 168.9
KEY OPERATING AND FINANCIAL RESULTS (Unaudited)
Metric Blyvoor Crown ERPM Ergo* Total
Ore milled (`000t)
Underground Mar 10 Qtr 166 - - - 166
Dec 09 Qtr 137 - - - 137
Mar 10 Ytd 448 - - - 448
Surface Mar 10 Qtr 701 1 312 344 3 150 5 507
Dec 09 Qtr 702 1 393 386 3 124 5 605
Mar 10 Ytd 2 213 4 145 1 217 8 598 16 173
Total Mar 10 Qtr 867 1 312 344 3 150 5 673
Dec 09 Qtr 839 1 393 386 3 124 5 742
Mar 10 Ytd 2 661 4 145 1 217 8 598 16 621
Yield (g/t)
Underground Mar 10 Qtr 4.01 - - - 4.01
Dec 09 Qtr 3.72 - - - 3.72
Mar 10 Ytd 3.90 - - - 3.90
Surface Mar 10 Qtr 0.33 0.44 0.49 0.10 0.23
Dec 09 Qtr 0.38 0.43 0.48 0.09 0.24
Mar 10 Ytd 0.33 0.43 0.47 0.09 0.24
Total Mar 10 Qtr 1.03 0.44 0.49 0.10 0.34
Dec 09 Qtr 0.93 0.43 0.48 0.09 0.32
Mar 10 Ytd 0.93 0.43 0.47 0.09 0.34
Gold Produced (kgs)
Underground Mar 10 Qtr 666 - - - 666
Dec 09 Qtr 509 - - - 509
Mar 10 Ytd 1 748 - - - 1 748
Surface Mar 10 Qtr 228 573 170 304 1 275
Dec 09 Qtr 270 605 184 294 1 353
Mar 10 Ytd 733 1 771 572 761 3 837
Total Mar 10 Qtr 894 573 170 304 1 941
Dec 09 Qtr 779 605 184 294 1 862
Mar 10 Ytd 2 481 1 771 572 761 5 585
Cash operating costs (ZAR per kg)
Underground Mar 10 Qtr 281 818 - - - 281 818
Dec 09 Qtr 344 990 - - - 344 990
Mar 10 Ytd 321 275 - - - 321 275
Surface Mar 10 Qtr 101 539 210 503 183 606 220 609 189 841
Dec 09 Qtr 79 807 203 519 165 957 223 224 178 005
Mar 10 Ytd 101 067 204 044 168 117 246 029 187 343
Total Mar 10 Qtr 235 841 210 503 183 606 220 609 221 400
Dec 09 Qtr 253 078 203 519 165 957 223 224 223 653
Mar 10 Ytd 256 215 204 044 168 117 246 029 229 261
Cash operating costs (ZAR per tonne)
Underground Mar 10 Qtr 1 131 - - - 1 131
Dec 09 Qtr 1 282 - - - 1 282
Mar 10 Ytd 1 254 - - - 1 254
Surface Mar 10 Qtr 33 92 91 21 44
Dec 09 Qtr 31 88 79 21 43
Mar 10 Ytd 33 87 79 22 44
Total Mar 10 Qtr 243 92 91 21 76
Dec 09 Qtr 235 88 79 21 73
Mar 10 Ytd 239 87 79 22 77
Gold and silver revenue (ZAR million)
Mar 10 Qtr 241.8 154.5 45.7 82.0 524.0
Dec 09 Qtr 209.7 161.7 49.1 79.1 499.6
Mar 10 Ytd 644.4 465.3 154.2 204.9 1 468.8
Cash operating profit/(loss)(ZAR million)
Mar 10 Qtr 31.0 33.9 14.6 14.8 94.3
Dec 09 Qtr 12.6 38.6 18.6 13.3 83.1
Mar 10 Ytd 8.8 103.9 58.2 17.5 188.4
Capital expenditure (ZAR million)
Mar 10 Qtr 17.4 3.4 0.9 6.6 28.3
Dec 09 Qtr 17.5 3.4 - 10.1 31.0
Mar 10 Ytd 60.0 11.8 0.9 50.8 123.5
Imperial Blyvoor Crown ERPM Ergo* Total
Gold Produced (oz)
Underground Mar 10 Qtr 21 412 - - - 21 412
Dec 09 Qtr 16 365 - - - 16 365
Mar 10 Ytd 56 199 - - - 56 199
Surface Mar 10 Qtr 7 331 18 422 5 466 9 773 40 992
Dec 09 Qtr 8 681 19 451 5 916 9 453 43 501
Mar 10 Ytd 23 568 56 938 18 391 24 466 123 363
Total Mar 10 Qtr 28 743 18 422 5 466 9 773 62 404
Dec 09 Qtr 25 046 19 451 5 916 9 453 59 866
Mar 10 Ytd 79 767 56 938 18 391 24 466 179 562
Cash operating costs (US$ per oz)
Underground Mar 10 Qtr 1 163 - - - 1 163
Dec 09 Qtr 1 429 - - - 1 429
Mar 10 Ytd 1 310 - - - 1 310
Surface Mar 10 Qtr 419 868 758 909 783
Dec 09 Qtr 332 840 686 919 735
Mar 10 Ytd 412 832 685 1 003 764
Total Mar 10 Qtr 973 868 758 909 913
Dec 09 Qtr 1 049 840 686 919 925
Mar 10 Ytd 1 045 832 685 1 003 935
Gold and silver revenue (US$ million)
Mar 10 Qtr 32.0 20.5 6.1 10.9 69.5
Dec 09 Qtr 27.8 21.5 6.5 10.4 66.2
Mar 10 Ytd 84.5 61.0 20.2 26.9 192.6
Cash operating profit/(loss)(US$ million)
Mar 10 Qtr 4.1 4.5 2.0 1.9 12.5
Dec 09 Qtr 1.5 5.1 2.4 1.8 10.8
Mar 10 Ytd 1.2 13.6 7.6 2.3 24.7
Capital expenditure (US$ million)
Mar 10 Qtr 2.4 0.5 0.1 0.9 3.9
Dec 09 Qtr 2.3 0.5 - 1.4 4.2
Mar 10 Ytd 7.9 1.6 0.1 6.7 16.3
CASH OPERATING COSTS RECONCILIATION
(R`000 unless otherwise stated)
Blyvoor Crown ERPM Ergo* Total
Total cash costs
Mar 10 Qtr 204 910 125 366 47 554 67 580 445 410
Dec 09 Qtr 208 677 136 346 49 837 69 124 463 984
Mar 10 Ytd 652 072 390 907 166 557 198 875 1408 411
Movement in gold in process
Mar 10 Qtr (1 691) 2 045 (10) 2 238 2 582
Dec 09 Qtr 7 515 (1 754) (132) (1 303) 4 326
Mar 10 Ytd 2 873 (255) (6 788) (4 111) (8 281)
Less: Production taxes, rehabilitation and other
Mar 10 Qtr (11 980) 2 389 11 397 2 591 4 397
Dec 09 Qtr 2 484 7 059 10 922 1 894 22 359
Mar 10 Ytd (6 922) 16 079 45 784 6 775 61 716
Less: Retrenchment costs
Mar 10 Qtr 25 - 302 - 327
Dec 09 Qtr 11 221 - 3 592 - 14 813
Mar 10 Ytd 11 693 - 3 894 - 15 587
Less: Corporate and general administration costs
Mar 10 Qtr 4 332 4 404 4 632 162 13 530
Dec 09 Qtr 5 339 4 404 4 655 299 14 697
Mar 10 Ytd 14 504 13 211 13 928 761 42 404
Cash operating costs
Mar 10 Qtr 210 842 120 618 31 213 67 065 429 738
Dec 09 Qtr 197 148 123 129 30 536 65 628 416 441
Mar 10 Ytd 635 670 361 362 96 163 187 228 1280 423
Gold produced - kgs
Mar 10 Qtr 894 573 170 304 1 941
Dec 09 Qtr 779 605 184 294 1 862
Mar 10 Ytd 2 481 1 771 572 761 5 585
Total cash operating costs - R/kg
Mar 10 Qtr 235 841 210 503 183 606 220 609 221 400
Dec 09 Qtr 253 078 203 519 165 957 223 224 223 653
Mar 10 Ytd 256 215 204 044 168 117 246 029 229 261
Total cash operating costs - US$/oz
Mar 10 Qtr 973 868 758 909 913
Dec 09 Qtr 1 049 840 686 919 925
Mar 10 Ytd 1 045 832 685 1 003 935
*Ergo represents DRDGOLD`s 100% share in ErgoGold (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.
The technical information included in this report has been reviewed by Mr Ryno
Botha (SAIMM) - Mineral Resource Manager and a full-time employee of the
Company. He has approved this information in writing before the publication of
this report.
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.
23 April 2010
Sponsor
One Capital
Date: 23/04/2010 08:00:02 Produced by the JSE SENS Department.
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