| Thu 10 Feb 2011, 7:06 | | DRD - DRDGOLD Limited - Interim report to shareholders for the quarter and |
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DRD
DRDD
DRD - DRDGOLD Limited - Interim report to shareholders for the quarter and
six months ended 31 December 2010
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE trading symbol: DRD
ISIN: ZAE 000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the Group")
INTERIM REPORT TO SHAREHOLDERS FOR THE QUARTER AND SIX MONTHS ENDED 31
DECEMBER 2010
GROUP RESULTS
KEY FEATURES FOR THE QUARTER
- Gold production up 6%
- Cash operating unit costs down 11%
- Operating profit up 118% to R151.5 million
- Cash operating margin from surface operations increases to 37%
- Headline earnings improve to R33.6 million from a previous quarter`s
loss of R3 million
- EBITDA up 214% to R111.5 million
KEY RESULTS SUMMARY
GROUP Quarter Quarter % Quarter
Dec 10 Sep 10 Change Dec 09
Gold production oz 69 446 65 267 6 59 866
kg 2 160 2 030 6 1 862
Gold production sold oz 69 446 69 607 - 59 866
kg 2 160 2 165 - 1 862
Cash operating costs US$/oz 1 030 1 084 (5) 925
ZAR/kg 229 560 256 498 (11) 223 653
Gold price received US$/oz 1 358 1 218 11 1 106
ZAR/kg 303 495 288 054 5 268 302
Capital expenditure US$ million 11.1 8.1 37 4.2
ZAR million 77.6 59.4 31 30.9
6 months to 6 months to 6 months to
31 Dec 10 30 Jun 10 31 Dec 09
Gold production oz 134 713 124 036 117 158
kg 4 190 3 858 3 644
Gold production sold oz 139 053 119 697 119 730
Kg 4 325 3 723 3 724
Cash operating costs US$/oz 1 056 958 946
ZAR/kg 242 611 232 794 233 448
Gold price received US$/oz 1 288 1 157 1 028
ZAR/kg 295 766 280 888 253 700
Capital expenditure US$ million 19.2 13.1 12.4
ZAR million 137.0 98.8 95.1
STOCK ISSUED CAPITAL
384 884 379 ordinary no par value shares
5 000 000 cumulative preference shares
408 044 827 total ordinary no par value shares issued and committed
STOCK TRADED JSE NASDAQ
Avg. volume for the quarter per day (000) 505 1 028
% of issued stock traded (annualised) 34 70
Price - High R3.82 US$0.565
- Low R3.04 U$S0.460
- Close R3.40 U$S0.487
FORWARD-LOOKING STATEMENTS
Many factors could cause the actual results, performance or achievements of
DRDGOLD 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 licenses 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 limitation, those described in the section
entitled `Risk Factors` included in the annual report for the fiscal year
ended 30 June 2010 which was filed with the United States Securities and
Exchange Commission on 29 October 2010 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. Any forward-looking statements included in this report
have not been reviewed and reported on by DRDGOLD`s auditors.
OVERVIEW
Dear shareholder
Safety, health and environment
Blyvooruitzicht Gold Mining Company ("Blyvoor") managed another quarter
without serious injuries or fatalities related to the fall of ground or
seismicity. Sadly though, in December, proto team captain Mr Hugh du Plooy
succumbed to suspected heat stroke during a reconnaissance exercise and
passed away in hospital a day later.
There were no fatalities or serious injuries at Crown Gold Recoveries (Pty)
Limited ("Crown") (including Ergo) during the quarter.
On the occupational health front, the dust-suppressing fogger installed
underground at Blyvoor has proved to be a tremendous success; consequently,
a second fogger has been installed and a third is currently being designed.
During the quarter Group operations spent some R16.4 million on
environmental management and rehabilitation.
Production
Total gold production increased by 6% to 69 446oz, reflecting continued
improvement at Blyvoor`s underground operation and steady performance at
both the Crown and Ergo surface retreatment operations. Some 65% of total
gold production was from surface retreatment.
Total gold production sold was virtually unchanged at 69 446oz.
Financial
Revenue for the quarter was 5% higher at R655.6 million due to higher gold
production and a 5% improvement in the average Rand gold price received to
R303 495/kg. After accounting for total cash operating costs - 5% lower at
R495.8 million due to no higher winter tariff applied by power utility Eskom
during the quarter`s summer months - operating profit was 118% higher at
R151.5 million. After accounting for an increase in the deferred tax
provision of R34.3 million, a net profit of R41.7 million was recorded,
compared with a net loss of R8.3 million in the previous quarter.
Corporate activity
Subsequent to the end of the quarter under review, the DRDGOLD Group
announced a change in its structure, in order to better distinguish between
its surface retreatment and underground operations. The intention is to
develop two separate brands - Ergo (surface retreatment) and DRDGOLD
(underground) - and ultimately to create two separate investment
opportunities.
Detailed operational review
Blyvoor
Total gold production rose by 8% to 32 601oz, reflecting a 1% increase in
underground gold production to 24 563oz and a 32% increase in surface gold
production to 8 038oz.
Higher underground production resulted from a 6% increase in underground
yield to 4.13g/t, a consequence of continuing grade improvement at No 5
Shaft. Total underground throughput was 4% lower at 185 000t due to two
hoisting incidents at No 5 Shaft which resulted in the loss of 10 shifts.
Comparison of certain key parameters show the extent of recovery in the
mine`s underground operations since the major damage caused by seismicity
during the last quarter of the 2009 financial year:
-in December 2010 total face length mined was 2 167m compared with 1 930m in
December 2009 - a 12% improvement;
- in December 2010 recovered grade was 4.66g/t compared with 3.81g/t in
December 2009 - a 22% improvement;
- per capita output per in-stope employee for the December 2010 quarter was
17.6m compared with 13.2m for the December 2009 quarter - a 33% improvement;
- for calendar 2010, total underground gold production was 91 212oz compared
with 78 674 oz for calendar 2009 - a 16% improvement.
Higher gold production from surface sources in the quarter under review
reflected the impact of surface clean-up carried out in the course of the
mine`s rehabilitation programme. While slimes throughput was lower due to
heavy summer rainfall hampering reclamation operations, the higher grade
clean-up material, totalling 23 000t, helped to lift total surface
throughput by about 1% to 763 000t and the average surface yield by 32% to
0.33g/t.
Total cash operating costs were 11% lower at R255 208/kg, due to higher gold
production and relief from Eskom`s higher winter power tariff. Underground
cash operating costs were 7% lower at R300 914/kg and surface cash operating
costs 17% lower at R115 532/kg.
Operating profit increased from R3.4 million in the previous quarter to
R42.2 million, reflecting increased gold production, a higher Rand gold
price received and lower cash operating costs.
Capital expenditure was 13% higher at R21.6 million, and was directed mainly
towards on-going underground development.
Crown
Gold production increased by 5% to 25 239oz. This was due to a 10%
improvement in yield to 0.46g/t, reflecting higher grade reclamation from
the Cason Dump. Heavy summer rainfall impeded reclamation operations
overall, and consequently throughput was 3% lower at 1 716 000t.
Cash operating costs were 9% lower at R208 694/kg due to higher gold
production and a quarter free of Eskom`s higher winter power tariff.
A 59% increase in operating profit to R74.6 million resulted from higher
gold production, a higher average Rand gold price received and lower cash
operating costs.
Capital expenditure was 43% higher at R42.4 million reflecting continuing
progress with the installation of the Crown/Ergo pipeline. By the end of the
quarter under review, delivery of all piping required for the project had
been completed; some 7 000m of un-lined piping, from Ergo`s Brakpan plant
westward towards Crown, had been laid; and preparations for the retro-
fitting of the high-durability plastic lining for this section were well
advanced.
Crown expects to conclude reclamation of the Top Star dump in central
Johannesburg during the fourth quarter of the financial year, after which
its focus will shift to the 3A2 sand dump to the west of Johannesburg. This
dump contains some 11.2Mt of material with an average grade of 0.504g/t. Its
reclamation, over a period of about four years, is expected to yield
approximately 98 700oz.
Ergo
Gold production increased by 5% to 11 606oz, a 20% increase in yield to
0.12g/t off-setting a 6% decline in throughput to 3 077 000t. Higher yield
resulted from a temporary suspension of reclamation from the lower-grade L29
dump in order to smooth reclamation ramp-up from the Elsburg Tailings
Complex. Lower throughput resulted from the negative impact of high summer
rainfall on reclamation operations.
Cash operating unit costs were 11% lower due to higher gold production and
no Eskom power winter tariff during the quarter.
Cash operating profit was 82% higher at R34.7 million, reflecting higher
gold production, a higher Rand gold price received and lower cash operating
costs.
Capital expenditure, 6% higher at R9.1 million, was directed mainly towards
on-going rehabilitation work at the Brakpan tailings deposition site and the
restoration on the second carbon-in-leach ("CIL") circuit at the Brakpan
plant, which will increase the plant`s treatment capacity to 1.8Mtpm.
Exploration
Zimbabwe
In Zimbabwe, of the five holes drilled at Leny, assaying indicates that four
are mineralised. A significant result - 20g/t over 1m - was obtained from
one of these. Further analysis of results from the adjacent holes is under
way to determine if there is a trend, and to inform a decision regarding
further core drilling.
Trenching has exposed quartz veins that have been assayed at 25-33g/t. The
veins are being opened up to determine their extent and mining potential. To
treat the quartz material, we are investigating the addition of a milling
stage and CIL circuit to the scrubber plant, which was successfully
commissioned during the quarter to treat gold-bearing rubble.
At Ascot, 15km north-east of Leny, an additional 27 exploration blocks have
been acquired bringing the total to 31, covering more than 300ha. At
Beatrice, 30km east of Leny, 22 claims covering more than 200ha have been
secured. Magnetic and induced polarization surveys over both areas have been
scheduled.
Looking ahead
Barring any unforeseen circumstances, we expect the third quarter`s
operating and financial results to be in line with those of the quarter
under review.
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"), AC 500
Standards as issued by the Accounting Practices Board, Schedule 4 of the
Companies Act and the disclosure requirements of International Accounting
Standards 34, which is consistent with the accounting policies used in the
audited annual financial statements for the year ended 30 June 2010. The
financial information contained in this report has not been audited or
reviewed by the company`s external auditors unless otherwise stated.
CONDENSED CONSOLIDATED Quarter Quarter Quarter
Statement of comprehensive Dec 10 Sep 10 Dec 09
income Rm Rm Rm
Unaudited Unaudited Unaudited
Gold and silver revenue 655.6 623.6 499.6
Net operating costs (504.1) (554.2) (412.2)
Cash operating costs (495.8) (520.7) (416.5)
Movement in gold in process (8.3) (33.5) 4.3
Operating profit 151.5 69.4 87.4
Depreciation (35.7) (27.6) (45.2)
Movement in provision for
environmental rehabilitation (4.7) (4.8) 0.1
Retrenchment costs - (0.4) (18.1)
Gross profit from operating
activities 111.1 36.6 24.2
Administration expenses and
general costs (31.4) (32.5) (24.2)
Share-based payments (1.2) (0.6) (1.6)
Net loss on financial liabilities
measured at amortised cost (1.9) (12.6) -
(Loss)/profit on disposal of assets (2.7) 4.4 0.5
Finance income 10.9 5.3 6.1
Finance expenses (6.7) (3.6) (4.9)
Profit/(loss) before taxation 78.1 (3.0) 0.1
Income tax (2.1) (3.6) (7.7)
Deferred tax (34.3) (1.7) 14.0
Net profit/(loss)for the period 41.7 (8.3) 6.4
Attributable to:
Equity owners of the parent 31.6 0.3 5.4
Non-controlling interest 10.1 (8.6) 1.0
41.7 (8.3) 6.4
Other comprehensive income
Foreign exchange translation - - 0.1
Total comprehensive income/(loss)
for the period 41.7 (8.3) 6.5
Attributable to:
Equity owners of the parent 31.6 0.3 5.5
Non-controlling interest 10.1 (8.6) 1.0
41.7 (8.3) 6.5
Reconciliation of headline earnings/(loss)
Net profit 31.6 0.3 5.4
Adjusted for:
Loss/(profit)on disposal of assets 2.7 (4.4) (0.5)
Non-controlling share of
headline earnings adjustments (0.7) 1.1 0.5
Headline earnings/(loss) 33.6 (3.0) 5.4
Headline earnings/(loss)
per share-cents 8.7 (0.8) 1.4
Basic earnings per share-cents 8.2 0.1 1.4
Diluted headline earnings/(loss)
per share-cents 8.7 (0.8) 1.4
Diluted basic earnings per share-cents 8.2 0.1 1.4
Calculated on the weighted average
ordinary shares issued of 384 884 379 384 884 379 380 448 068
Adjusted headline earnings
per share - cents* 9.2 2.5 1.4
(Adjusted for the net (loss)/gain on financial liabilities measures at
amortised cost).
* From time to time DRDGOLD may publicly disclose certain "Non-GAAP"
financial measures in the course of its financial presentation release,
earnings conference calls and otherwise.
CONDENSED CONSOLIDATED 6 months to 6 months to 6 months to
Statement of comprehensive 31 Dec 10 30 Jun 10 31 Dec 09
income Rm Rm Rm
Unaudited Unaudited Unaudited
Gold and silver revenue 1 279.2 1 045.7 944.8
Net operating costs (1 058.3) (857.3) (861.6)
Cash operating costs (1 016.5) (898.1) (850.7)
Movement in gold in process (41.8) 40.8 (10.9)
Operating profit 220.9 188.4 83.2
Depreciation (63.3) (102.9) (87.9)
Movement in provision for
environmental rehabilitation (9.5) 96.3 (8.3)
Retrenchment costs (0.4) (0.8) (19.3)
Gross profit/(loss) from operating
activities 147.7 181.0 (32.3)
Impairments - (6.2) -
Administration expenses and
general costs (63.9) (46.1) (70.5)
Share-based payments (1.8) (1.8) (2.3)
Net (loss)/gain on financial liabilities
measured at amortised cost (14.5) 6.2 -
Profit on disposal of assets 1.7 12.0 1.7
Profit on disposal of subsidiaries
and joint venture - 158.2 -
Finance income 16.2 12.9 14.5
Finance expenses (10.3) (7.7) (8.0)
Profit/(loss) before taxation 75.1 308.5 (96.9)
Income tax (5.7) 4.2 (14.5)
Deferred tax (36.0) (52.5) 54.5
Net profit/(loss) for the period 33.4 260.2 (56.9)
Attributable to:
Equity owners of the parent 31.9 250.8 (43.0)
Non-controlling interest 1.5 9.4 (13.9)
33.4 260.2 (56.9)
Other comprehensive income
Foreign exchange translation - (156.8) 0.3
Mark-to-market of available for sale
investments - 5.2 -
Total comprehensive income/(loss)
for the period 33.4 108.6 (56.6)
Attributable to:
Equity owners of the parent 31.9 97.9 (42.7)
Non-controlling interest 1.5 10.7 (13.9)
33.4 108.6 (56.6)
Reconciliation of headline earnings/(loss)
Net profit/(loss) 31.9 250.8 (43.0)
Adjusted for:
Impairments - 6.2 -
Profit on disposal of subsidiary
and joint venture - (158.2) -
Profit on disposal of assets (1.7) (12.0) (1.7)
Non-controlling share of
headline earnings adjustments 0.4 6.3 0.5
Headline earnings/(loss) 30.6 93.1 (44.2)
Headline earnings/(loss)
per share-cents 8.0 24.4 (11.7)
Basic earnings/(loss)
per share-cents 8.3 65.8 (11.3)
Diluted headline earnings/(loss)
per share-cents 8.0 24.4 (11.7)
Diluted basic earnings/(loss)
per share-cents 8.3 65.8 (11.3)
Calculated on the weighted average
ordinary shares issued of: 384 884 379 381 380 977 379 234 390
Adjusted headline earnings/(loss)
per share - cents* 11.7 22.8 (11.7)
(Adjusted for the net (loss)/gain on financial liabilities measures at
amortised cost).
* From time to time DRDGOLD may publicly disclose certain "Non-GAAP"
financial measures in the course of its financial presentation release,
earnings conference calls and otherwise.
CONDENSED CONSOLIDATED As at As at As at As at
Statement of financial 31 Dec 10 30 Sep 10 30 Jun 10 31 Dec 09
position Rm Rm Rm Rm
Unaudited Unaudited Audited Unaudited
Property, plant and equipment 1 939.0 1 896.0 1 863.2 1 744.7
Non-current investments and
other assets 24.8 24.8 48.1 43.0
Environmental rehabilitation
trusts funds 131.1 129.3 126.1 138.2
Deferred tax asset 118.0 137.6 140.7 200.5
Current assets 446.4 396.2 402.1 401.9
Inventories 101.2 126.7 132.6 98.4
Trade and other receivables 96.5 107.9 66.3 125.7
Cash and cash equivalents 233.7 146.6 188.2 162.8
Assets classified as held
for sale 15.0 15.0 15.0 15.0
Total assets 2 659.3 2 583.9 2 580.2 2 528.3
Equity and Liabilities
Equity 1 665.5 1 622.6 1 649.9 1 525.9
Equity of the owners of
the parent 1 564.7 1 531.9 1 550.6 1 437.3
Non-controlling interest 100.8 90.7 99.3 88.6
Loans and borrowings - note 1 71.9 39.8 59.0 65.1
Post retirement and other
employee benefits 13.8 13.6 13.4 46.3
Provision for environmental
rehabilitation 438.4 429.5 420.6 426.5
Deferred tax liability 181.4 166.7 168.1 175.5
Current liabilities 288.3 311.7 269.2 289.0
Trade and other payables 209.8 311.7 269.2 289.0
Loans and borrowings - note 1 78.5 - - -
Total equity and liabilities 2 659.3 2 583.9 2 580.2 2 528.3
CONDENSED CONSOLIDATED Quarter Quarter Quarter
Statement of changes in equity Dec 10 Sep 10 Dec 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 622.6 1 649.9 1 502.5
Share capital issued - (0.4) 15.3
for acquisition finance and cash - - 15.5
for share options exercised - - 0.5
for costs - (0.4) (0.7)
Increase in share-based
payment reserve 1.2 0.6 1.6
Net profit attributed to
owners of the parent 31.6 0.3 5.4
Net profit/(loss) attributed to
non-controlling interest 10.1 (8.6) 1.0
Dividends paid on ordinary
share capital - (19.2) -
Other comprehensive income - - 0.1
Balance as at the end of the
period 1 665.5 1 622.6 1 525.9
CONDENSED CONSOLIDATED 6 months to 6 months to 6 months to
Statement of changes in equity 31 Dec 10 30 Jun 10 31 Dec 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 649.9 1 525.9 1 584.0
Share capital issued (0.4) 13.6 15.2
for acquisition finance and cash - 14.3 15.5
for share options exercised - 0.2 0.9
for costs (0.4) (0.9) (1.2)
Increase in share-based
payment reserve 1.8 1.8 2.3
Net profit/(loss) attributed to
owners of the parent 31.9 250.8 (43.0)
Net profit/(loss) attributed to
non-controlling interest 1.5 9.4 (13.9)
Dividends paid on ordinary
share capital (19.2) - (19.0)
Other comprehensive income - (151.6) 0.3
Balance as at the end of the
period 1 665.5 1 649.9 1 525.9
CONDENSED CONSOLIDATED Quarter Quarter Quarter
Statement of cash flows Dec 10 Sep 10 Dec 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash in/(out)flow
from operations 78.6 21.9 (7.2)
Net cash outflow from
investing activities (80.3) (55.0) (30.9)
Net cash in/(out)flow from
financing activities 88.8 (8.5) (33.0)
Increase/(decrease) in cash and
cash equivalents 87.1 (41.6) (71.1)
Translation adjustment - - (0.4)
Opening cash and cash equivalents 146.6 188.2 234.3
Closing cash and cash equivalents 233.7 146.6 162.8
Reconciliation of net cash in/(out)flow from operations
Profit/(loss) before taxation 78.1 (3.0) 0.1
Adjusted for:
Movement in gold in process 8.3 33.5 (4.3)
Depreciation and impairments 35.7 27.6 45.2
Movement in provision for
environmental rehabilitation 4.7 4.8 (0.1)
Share-based payments 1.2 0.6 1.6
Loss on financial liabilities
measured at amortised cost 1.9 12.6 -
Loss/(profit) on disposal of assets 2.7 (4.4) (0.5)
Finance expenses and unwinding of
provisions 3.0 3.0 3.1
Growth in environmental trust funds (1.9) (2.0) (2.3)
Other non cash items 0.3 (1.4) 0.5
Taxation paid (5.8) - (12.1)
Working capital changes (49.6) (49.4) (38.4)
Net cash in/(out)flow from
operations 78.6 21.9 (7.2)
CONDENSED CONSOLIDATED 6 months to 6 months to 6 months to
Statement of cash flows 31 Dec 10 30 Jun 10 31 Dec 09
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash in/(out)flow
from operations 100.5 162.4 (108.8)
Net cash outflow from
investing activities (135.3) (131.3) (95.1)
Net cash in/(out)flow from
financing activities 80.3 (5.1) 12.9
Increase/(decrease) in cash and
cash equivalents 45.5 26.0 (191.0)
Translation adjustment - (0.6) 0.2
Opening cash and cash equivalents 188.2 162.8 353.6
Closing cash and cash equivalents 233.7 188.2 162.8
Reconciliation of net cash in/(out)flow from operations
Profit/(loss) before tax 75.1 308.5 (96.9)
Adjusted for:
Movement in gold in process 41.8 (40.8) 10.9
Depreciation and impairments 63.3 109.1 87.9
Movement in provision for
environmental rehabilitation 9.5 (96.3) 8.3
Share-based payments 1.8 1.8 2.3
Loss/(gain)on financial liabilities
measured at amortised cost 14.5 (6.2) -
Profit on disposal of assets (1.7) (12.0) (1.7)
Profit on disposal of subsidiaries
and joint venture - (158.2) -
Finance expenses and unwinding of
provisions 6.0 5.2 5.6
Growth in environmental trust funds (3.9) (4.8) (4.7)
Other non cash items (1.1) (30.8) 5.5
Taxation paid (5.8) (0.5) (12.1)
Working capital changes (99.0) 87.4 (113.9)
Net cash in/(out)flow
from operations 100.5 162.4 (108.8)
NOTE TO THE FINANCIAL STATEMENTS
1. Loans and borrowings
Included in loans and borrowings is a R500 million Domestic Medium Term Note
Programme ("DMTN Programme") under which DRDGOLD may from time to time issue
notes. R108 million was issued on 1 October 2010, consisting of R78 million
and R30 million respectively, under the DMTN Programme and the different
notes issued mature 12 and 24 months from the date of issue and bear
interest at the three month Johannesburg Inter-bank Acceptance Rate plus a
margin ranging from 4% to 5% per annum. The DMTN Programme is unsecured.
KEY OPERATING AND FINANCIAL RESULTS (Unaudited)
OPERATIONS Blyvoor Crown Ergo Total
(Metric)
Ore milled (`000t)
Underground Dec 10 Qtr 185 - - 185
Sep 10 Qtr 193 - - 193
Dec 10 Ytd 378 - - 378
Surface Dec 10 Qtr 763 1 716 3 077 5 556
Sep 10 Qtr 759 1 774 3 285 5 818
Dec 10 Ytd 1 522 3 490 6 362 11 374
Total Dec 10 Qtr 948 1 716 3 077 5 741
Sep 10 Qtr 952 1 774 3 285 6 011
Dec 10 Ytd 1 900 3 490 6 362 11 752
Yield (g/t)
Underground Dec 10 Qtr 4.13 - - 4.13
Sep 10 Qtr 3.90 - - 3.90
Dec 10 Ytd 4.01 - - 4.01
Surface Dec 10 Qtr 0.33 0.46 0.12 0.25
Sep 10 Qtr 0.25 0.42 0.10 0.22
Dec 10 Ytd 0.29 0.44 0.11 0.24
Total Dec 10 Qtr 1.07 0.46 0.12 0.38
Sep 10 Qtr 0.99 0.42 0.10 0.34
Dec 10 Ytd 1.03 0.44 0.11 0.36
Gold Produced (kgs)
Underground Dec 10 Qtr 764 - - 764
Sep 10 Qtr 753 - - 753
Dec 10 Ytd 1 517 - - 1 517
Surface Dec 10 Qtr 250 785 361 1 396
Sep 10 Qtr 189 745 343 1 277
Dec 10 Ytd 439 1 530 704 2 673
Total Dec 10 Qtr 1 014 785 361 2 160
Sep 10 Qtr 942 745 343 2 030
Dec 10 Ytd 1 956 1 530 704 4 190
Cash operating costs (ZAR per kg)
Underground Dec 10 Qtr 300 914 - - 300 914
Sep 10 Qtr 324 898 - - 324 898
Dec 10 Ytd 312 819 - - 312 819
Surface Dec 10 Qtr 115 532 208 694 202 892 190 510
Sep 10 Qtr 139 339 229 740 229 015 216 165
Dec 10 Ytd 125 781 218 942 215 619 202 767
Total Dec 10 Qtr 255 208 208 694 202 892 229 560
Sep 10 Qtr 287 668 229 740 229 015 256 498
Dec 10 Ytd 270 840 218 942 215 619 242 611
Cash operating costs (ZAR per tonne)
Underground Dec 10 Qtr 1 243 - - 1 243
Sep 10 Qtr 1 268 - - 1 268
Dec 10 Ytd 1 255 - - 1 255
Surface Dec 10 Qtr 38 95 24 48
Sep 10 Qtr 35 96 24 47
Dec 10 Ytd 36 96 24 48
Total Dec 10 Qtr 273 95 24 86
Sep 10 Qtr 285 96 24 87
Dec 10 Ytd 279 96 24 87
Gold and silver revenue (ZAR million)
Dec 10 Qtr 307.4 238.4 109.8 655.6
Sep 10 Qtr 297.0 218.1 108.5 623.6
Dec 10 Ytd 604.4 456.5 218.3 1 279.2
Operating profit (ZAR million)
Dec 10 Qtr 42.2 74.6 34.7 151.5
Sep 10 Qtr 3.4 46.9 19.1 69.4
Dec 10 Ytd 45.6 121.5 53.8 220.9
Capital expenditure (ZAR million)
Dec 10 Qtr 21.6 42.4 9.1 73.1
Sep 10 Qtr 19.1 29.6 8.6 57.3
Dec 10 Ytd 40.7 72.0 17.7 130.4
OPERATIONS Blyvoor Crown Ergo Total
(Imperial)
Gold Produced (oz)
Underground Dec 10 Qtr 24 563 - - 24 563
Sep 10 Qtr 24 210 - - 24 210
Dec 10 Ytd 48 773 - - 48 773
Surface Dec 10 Qtr 8 038 25 239 11 606 44 883
Sep 10 Qtr 6 077 23 952 11 028 41 057
Dec 10 Ytd 14 115 49 191 22 634 85 940
Total Dec 10 Qtr 32 601 25 239 11 606 69 446
Sep 10 Qtr 30 287 23 952 11 028 65 267
Dec 10 Ytd 62 888 49 191 22 634 134 713
Cash operating costs (US$ per oz)
Underground Dec 10 Qtr 1 351 - - 1 351
Sep 10 Qtr 1 373 - - 1 373
Dec 10 Ytd 1 362 - - 1 362
Surface Dec 10 Qtr 516 937 911 855
Sep 10 Qtr 589 972 968 914
Dec 10 Ytd 548 954 939 883
Total Dec 10 Qtr 1 145 937 911 1 030
Sep 10 Qtr 1 216 972 968 1 084
Dec 10 Ytd 1 179 954 939 1 056
Gold and silver revenue (US$ million)
Dec 10 Qtr 44.2 34.4 15.8 94.4
Sep 10 Qtr 40.4 29.7 14.8 84.9
Dec 10 Ytd 84.6 64.1 30.6 179.3
Operating profit (US$ million)
Dec 10 Qtr 5.9 10.7 4.9 21.5
Sep 10 Qtr 0.5 6.4 2.6 9.5
Dec 10 Ytd 6.4 17.1 7.5 31.0
Capital expenditure (US$ million)
Dec 10 Qtr 3.1 6.2 1.3 10.6
Sep 10 Qtr 2.6 4.0 1.2 7.8
Dec 10 Ytd 5.7 10.2 2.5 18.4
CASH OPERATING COSTS RECONCILIATION
(R`000 unless otherwise stated)
OPERATIONS Blyvoor Crown Ergo Total
Total cash costs
Dec 10 Qtr 272 136 173 879 78 244 524 259
Sep 10 Qtr 300 597 180 960 89 815 571 372
Dec 10 Ytd 572 733 354 839 168 059 1095 631
Movement in gold in process
Dec 10 Qtr (6 472) (79) (1 776) (8 327)
Sep 10 Qtr (22 560) (14) (10 898) (33 472)
Dec 10 Ytd (29 032) (93) (12 674) (41 799)
Less: Production taxes, rehabilitation and other
Dec 10 Qtr 2 313 5 859 2 559 10 731
Sep 10 Qtr 2 272 5 673 (95) 7 850
Dec 10 Ytd 4 585 11 532 2 464 18 581
Less: Retrenchment costs
Dec 10 Qtr - - - -
Sep 10 Qtr - - - -
Dec 10 Ytd - - - -
Less: Corporate and general administration costs
Dec 10 Qtr 4 570 4 116 665 9 351
Sep 10 Qtr 4 782 4 117 460 9 359
Dec 10 Ytd 9 352 8 233 1 125 18 710
Cash operating costs
Dec 10 Qtr 258 781 163 825 73 244 495 850
Sep 10 Qtr 270 983 171 156 78 552 520 691
Dec 10 Ytd 529 764 334 981 151 796 1016 541
Gold produced
Dec 10 Qtr 1 014 785 361 2 160
Sep 10 Qtr 942 745 343 2 030
Dec 10 Ytd 1 956 1 530 704 4 190
Total cash operating costs - R/kg
Dec 10 Qtr 255 208 208 694 202 892 229 560
Sep 10 Qtr 287 668 229 740 229 015 256 498
Dec 10 Ytd 270 840 218 942 215 619 242 611
Total cash operating costs - US$/oz
Dec 10 Qtr 1 145 937 911 1 030
Sep 10 Qtr 1 216 972 968 1 084
Dec 10 Ytd 1 179 954 939 1 056
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 2010 and subsequent public announcements.
The technical information referred to 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)(0)11 470 2600, Fax: (+27) (0)11 470 2618,
website: http://www.drdgold.com
Quadrum Office Park, Building 1, 50 Constantia Boulevard,
Constantia Kloof Ext 28, South Africa.
PO Box 390,
Maraisburg, 1700,
South Africa.
Roodepoort
10 February 2011
JSE LIMITED SPONSOR
One Capital
Date: 10/02/2011 07:06:02 Produced by the JSE SENS Department.
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