| Tue 19 Apr 2011, 8:00 | | DRD - DRDGold Limited - Report to shareholders for the quarter and nine months |
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DRD
DRDD
DRD - DRDGold Limited - Report to shareholders for the quarter and nine months
ended 31 March 2011
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 Group")
REPORT TO SHAREHOLDERS FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2011
GROUP RESULTS
KEY FEATURES FOR THE QUARTER
- Gold production down 3%, however up 13% for the nine months ended
31 March 2011
- Ergo`s gold production up 8%
- Operating profit of R145.1 million
- Operating margin from surface operations maintained at 37%
- Headline earnings per share up 44% to 12.5 cents
- Net cash generated by operations up 53% to R120.4 million
- EBITDA of R100.7 million
- Crown/Ergo pipeline project on schedule and within budget
KEY RESULTS SUMMARY
GROUP Quarter Quarter % Quarter
Mar 2011 Dec 2010 Change Mar 2010
Gold production oz 67 387 69 446 (3) 62 404
kg 2 096 2 160 (3) 1 941
Gold production sold oz 67 387 69 446 (3) 62 404
kg 2 096 2 160 (3) 1 941
Cash operating costs US$/oz 1 090 1 030 6 913
ZAR/kg 241 563 229 560 5 221 400
Gold price received US$/oz 1 411 1 358 4 1 113
ZAR/kg 312 913 303 495 3 269 980
Capital expenditure US$ million 12.3 11.1 11 4.2
ZAR million 85.2 77.6 10 31.3
9 months to 9 months to
31 Mar 2011 31 Mar 2010
Gold production oz 202 100 179 562
kg 6 286 5 585
Gold production sold oz 206 440 182 134
Kg 6 421 5 665
Cash operating costs US$/oz 1 067 935
ZAR/kg 242 262 229 261
Gold price received US$/oz 1 328 1 057
ZAR/kg 301 363 259 278
Capital expenditure US$ million 31.5 16.6
ZAR million 222.2 126.4
STOCK ISSUED CAPITAL
384 884 379 ordinary no par value shares
5 000 000 cumulative preference shares
407 825 157 total ordinary no par value shares issued and committed
STOCK TRADED JSE NASDAQ
Avg. volume for the quarter per day (000) 375 1 047
% of issued stock traded (annualised) 25 71
Price - High R3.55 US$0.530
- Low R2.88 US$0.440
- Close R3.40 US$0.530
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
The Blyvoor community and everyone at DRDGOLD were deeply saddened by a tragic
bus accident on 18 March. A Vaal Maseru coach bringing workers to the mine
crashed resulting in eight employee deaths and 26 injuries. The cause of the
accident is under police investigation.
Those who died were: Nontetho Florence Lande; Zweliwutile Tyokwana; Sibongile
Gwantsela; Antonio Filepe Mandlate; Kabelo Mabusetsa; Abram Moshahla Rasebolai;
Armando Mutamngue Pendazamite; and Lucas Alfonso. Our deepest condolences go to
their families, colleagues and friends.
Safety, health and environment
During the quarter, Blyvooruitzicht Gold Mining Company Limited ("Blyvoor")
achieved 5 000 000 Gravity Falls of Ground fatality-free shifts. In terms of
other safety indicators, performance across the Group was mixed. While Blyvoor
and Crown Gold Recoveries (Pty) Limited ("Crown") both reported improvements in
their Lost Time Injury frequency Rate and Reportable Injury Frequency Rate, both
recorded deterioration in their Dressing Injury Frequency Rate.
Safety audits and operation-specific safety campaigns continued throughout the
Group during the quarter. The Group-wide Behaviour Based Safety Initiative moved
ahead with an employee survey at Blyvoor that showed safety has a high priority
and that good relationships exist between employees and supervisors. Both are
very encouraging indicators as we continue the roll-out of this important
initiative.
In terms of occupational health, a second dust-suppressing fogger has been
installed underground at Blyvoor and a third is at the design stage. These
developments follow the considerable success of the first fogger installed
during 2010. These measures will continue to play a significant role in reducing
employee exposure to dust related respiratory diseases.
During the quarter, the Group spent R12.2 million on environmental management.
Production
Total gold production was 3% lower at 67 387oz. While Ergo recovered 8% more
ounces, gold production from Blyvoor and Crown was lower (see below).
Financial
Revenue was virtually unchanged at R655.9 million, a 3% increase in the average
Rand gold price received to R312 913/kg offsetting the impact of lower gold
production. A 2% increase in cash operating costs to R506.4 million, however,
resulted in a 4% decline in operating profit to R145.1 million. Deferred
taxation was substantially lower at R5.5million, leaving net profit 42% higher
at R59.1 million.
Detailed operational review
Blyvoor
Total gold production was 6% lower at 30 511oz, reflecting lower gold production
from underground sources and a return to normal levels of gold production from
surface sources, elevated in the previous quarter by a surface clean-up project.
Underground gold production declined by 6% to 23 149oz. While the average
underground yield was 1% higher at 4.19g/t, underground throughput was 7% lower
at 172 000t. Lower throughput was a consequence of:
- time taken to audit underground support and hanging wall conditions and to re-
establish underground environmental conditions to standard following the
Christmas shutdown;
- elevated levels of seismicity in the No 5 Shaft high grade areas during March,
which required that mining of some panels be suspended and crews be re-assigned
for safety reasons; and
- an operational shut-down for a day of mourning following the bus accident
involving Blyvoor employees on 18 March.
Surface gold production was 8% lower at 7 362oz. While surface throughput was 9%
higher at 828 000t, the average surface yield was 15 % lower at 0.28g/t.
Cash operating unit costs were 10% higher at R279 920/kg mainly due to lower
gold production. Underground cash operating unit costs rose by 9% to R327 200/kg
and surface cash operating unit costs by 14% to R131 266/kg.
The effect of lower gold production was not offset by the higher Rand gold price
received, and operating profit declined by 41% to R25.0 million.
Capital expenditure increased by 25% to R27.1 million. The increase was mainly
as a result of expenditure on the relocation of a compressor from East Rand
Proprietary Mines Limited ("ERPM") and its installation at Blyvoor.
Crown
Gold production was 3% lower at 24 370oz. This was the consequence of a 9%
decline in the average yield to 0.42g/t, reflecting the drawing to a close of
reclamation of material for retreatment from the Top Star dump. Throughput was
5% higher at 1 796 000t.
Cash operating unit costs were 5% higher at R219 185/kg due to lower gold
production, which also reduced operating profit by 4% to R71.6 million,
notwithstanding the higher Rand gold price received.
Capital expenditure, 16% lower at R35.6 million, was directed mainly towards
construction of the Crown/Ergo pipeline. More than 38km of steel piping for the
pipeline have been laid, some 6.5km of which have been retro fitted with high-
durability plastic lining.
Ergo
Gold production rose by 8% to 12 506oz, reflecting a 5% increase in throughput
to 3 227 000t. The average yield was unchanged at 0.12g/t.
Cash operating unit costs were 6% lower at R191 594/kg due to the increase in
gold production which, together with the higher average Rand gold price
received, led to a 40% increase in operating profit to R48.5 million.
Capital expenditure was R20.9 million compared with R9.1 million in the previous
quarter, reflecting on-going refurbishment of the second carbon-in-leach ("CIL")
circuit at Ergo`s Brakpan plant, and work to increase the capacity of the
Brakpan tailings deposition facility, all of which is on time and within budget.
Refurbishment of the second CIL circuit at the Brakpan plant is more than 70%
complete.
Zimbabwe
At Leny, a decision regarding a second-phase drilling programme will be taken
once information flowing from a soil geochem survey and structural geology study
- both scheduled for April - has been assessed. Opening up of the quartz veins
continued during the quarter and the quartz has been found to carry gold at an
average of 7.33g/t. Test work suggests that recovery of 92% can be achieved.
At Ascot, magnetic and IP surveys have been completed. A geochemical soil survey
and selective trenching are currently being done.
Exploration at the John Bull/Eden Waters claims began during March with magnetic
and IP surveys.
Looking ahead
Operationally our focus will remain the construction of the Crown/Ergo pipeline
and Ergo plant upgrade. We will also in the coming months be decommissioning the
Topstar site and commencing reclamation from two other sites, while work on the
integration of the Crown Central and City Deep plants into Ergo, will also get
underway.
The board has approved a R37 million three year exploration project in relation
to the ERPM Extension 1 and 2 exploration tenements in order to further define
the estimated resource of 18 million ounces.
Further to our announcement in the previous quarter regarding the separation of
assets, the board has now concluded that Blyvoor no longer fits the core
strategic focus of the company. It has therefore resolved to sell the mine and
has appointed Royal Bank of Canada as well as Beijing Axis to advise on the
transaction.
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.
STATEMENT OF COMPREHENSIVE Quarter Quarter Quarter
INCOME Mar 2011 Dec 2010 Mar 2010
R m R m R m
Unaudited Unaudited Unaudited
Gold and silver revenue 655.9 655.6 524.0
Net operating costs (510.8) (504.1) (427.1)
Cash operating costs (506.4) (495.8) (429.7)
Movement in gold in process (4.4) (8.3) 2.6
Operating profit 145.1 151.5 96.9
Depreciation (32.7) (35.7) (45.2)
Movement in provision for
environmental rehabilitation (7.8) (4.7) (14.6)
Retrenchment costs (0.4) - (0.3)
Gross profit from operating
Activities 104.2 111.1 36.8
Administration expenses and
general costs (35.4) (31.4) (34.1)
Share-based payments (0.8) (1.2) (1.2)
Net loss on financial Liability
measured at amoritised cost (1.9) (1.9) -
(Loss)/profit on disposal of assets - (2.7) 11.1
Finance income 5.2 10.9 5.5
Finance expenses (6.5) (6.7) (0.5)
Profit before taxation 64.8 78.1 17.6
Income tax (0.2) (2.1) (8.2)
Deferred tax (note 1) (5.5) (34.3) 2.9
Net profit for the period 59.1 41.7 12.3
Attributable to:
Equity owners of the parent 48.1 31.6 9.9
Non-controlling interest 11.0 10.1 2.4
59.1 41.7 12.3
Other comprehensive income
Foreign exchange translation - - -
Total comprehensive income
for the period 59.1 41.7 12.3
Attributable to:
Equity owners of the parent 48.1 31.6 9.9
Non-controlling interest 11.0 10.1 2.4
59.1 41.7 12.3
Reconciliation of headline profit
Net profit 48.1 31.6 9.9
Adjusted for:
(Loss)/profit on disposal of assets - 2.7 (11.1)
Non-controlling share of
headline adjustments - (0.7) 2.8
Headline earnings (note 1) 48.1 33.6 1.6
Headline earnings per share-cents 12.5 8.7 0.4
Basic earnings per share-cents 12.5 8.2 2.6
Diluted headline earnings
per share-cents 12.5 8.7 0.4
Diluted basic earnings
per share-cents 12.5 8.2 2.6
Calculated on the weighted average
ordinary shares issued of 384 884 379 384 884 379 380 987 431
Adjusted headline earnings
per share - cents* 13.0 9.2 0.4
(Adjusted for the net loss 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.
STATEMENT OF COMPREHENSIVE 9 months to 9 months to
INCOME 31 Mar 2011 31 Mar 2010
R m R m
Unaudited Unaudited
Gold and silver revenue 1 935.1 1 468.8
Net operating costs (1 569.1) (1 288.7)
Cash operating costs (1 522.9) (1 280.4)
Movement in gold in process (46.2) (8.3)
Operating profit 366.0 180.1
Depreciation (96.0) (133.1)
Movement in provision for
environmental rehabilitation (17.3) (22.9)
Retrenchment costs (0.8) (19.6)
Gross profit from operating activities 251.9 4.5
Administration expenses and general costs (99.3) (104.6)
Share-based payments (2.6) (3.5)
Net loss on financial liabilities measured
at amortised cost (16.4) -
Profit on disposal of assets 1.7 12.8
Finance income 21.4 20.0
Finance expenses (16.8) (8.5)
Profit/(loss) before taxation 139.9 (79.3)
Income tax (5.9) (22.7)
Deferred tax (note 1) (41.5) 57.4
Net profit/(loss) for the period 92.5 (44.6)
Attributable to:
Equity owners of the parent 80.0 (33.1)
Non-controlling interest 12.5 (11.5)
92.5 (44.6)
Other comprehensive income
Foreign exchange translation - 0.3
Total comprehensive income/(loss) for the period 92.5 (44.3)
Attributable to:
Equity owners of the parent 80.0 (32.8)
Non-controlling interest 12.5 (11.5)
92.5 (44.3)
Reconciliation of headline earnings/(loss)
Net profit/(loss) 80.0 (33.1)
Adjusted for:
Profit on disposal of assets (1.7) (12.8)
Non-controlling share of headline adjustments 0.4 3.3
Headline earnings/(loss) (note 1) 78.7 (42.6)
Headline earnings/(loss) per share-cents 20.4 (11.2)
Basic earnings/(loss) per share-cents 20.8 (8.7)
Diluted headline earnings/(loss) per share-cents 20.4 (11.2)
Diluted basic earnings/(loss) per share-cents 20.8 (8.7)
Calculated on the weighted average
ordinary shares issued of: 384 884 379 379 810 206
Adjusted headline earnings
per share - cents* 24.7 (11.2)
(Adjusted for the net loss 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.
STATEMENT OF FINANCIAL As at As at As at
POSITION 31 Mar 2011 31 Dec 2010 31 Mar 2010
Rm Rm Rm
Unaudited Unaudited Unaudited
Property, plant and equipment 1 992.6 1 939.0 1 730.7
Non-current investments and other
assets 24.8 24.8 43.0
Environmental rehabilitation
trusts funds 132.8 131.1 141.4
Deferred tax asset 80.8 118.0 200.3
Current assets 498.4 446.4 464.3
Inventories 95.5 101.2 98.0
Trade and other receivables 119.3 96.5 150.0
Cash and cash equivalents 268.6 233.7 201.3
Assets classified as held for sale 15.0 15.0 15.0
Total assets 2 729.4 2 659.3 2 579.7
Equity and Liabilities
Equity 1 725.1 1 665.5 1 539.7
Equity of the owners of the parent 1 613.3 1 564.7 1 448.7
Non-controlling interest 111.8 100.8 91.0
Loans and borrowings 73.8 71.9 65.1
Post retirement and other
employee benefits 14.1 13.8 43.4
Provision for environmental
Rehabilitation 449.8 438.4 440.4
Deferred tax liability 149.7 181.4 172.4
Current liabilities 316.9 288.3 318.7
Trade and other payables 238.1 209.8 268.7
Loans and borrowings 78.8 78.5 50.0
Total equity and liabilities 2 729.4 2 659.3 2 579.7
STATEMENT OF CHANGES IN EQUITY Quarter Quarter Quarter
Mar 2011 Dec 2010 Mar 2010
Rm Rm Rm
Unaudited Unaudited Unaudited
Balance at the beginning of
the period 1 665.5 1 622.6 1 525.9
Share capital issued (0.3) - 0.3
for share options exercised - - 0.2
for costs (0.3) - 0.1
Increase in share-based payment reserve 0.8 1.2 1.2
Net profit attributed to
owners of the parent 48.1 31.6 9.9
Net profit attributed to
non-controlling interest 11.0 10.1 2.4
Balance as at the end of the
period 1 725.1 1 665.5 1 539.7
STATEMENT OF CHANGES IN EQUITY 9 months to 9 months to
31 Mar 2011 31 Mar 2010
Rm Rm
Unaudited Unaudited
Balance at the beginning of
the period 1 649.9 1 584.0
Share capital issued (0.7) 15.5
for acquisition finance and cash - 15.5
for share options exercised - 1.1
for costs (0.7) (1.1)
Increase in share-based payment reserve 2.6 3.5
Net profit/(loss) attributed to owners of the parent 80.0 (33.1)
Net profit/(loss) attributed to
non-controlling interest 12.5 (11.5)
Dividends paid on ordinary share capital (19.2) (19.0)
Other comprehensive income - 0.3
Balance as at the end of the period 1 725.1 1 539.7
STATEMENT OF CASH FLOWS Quarter Quarter Quarter
Mar 2011 Dec 2010 Mar 2010
Rm Rm Rm
Unaudited Unaudited Unaudited
Net cash inflow from operations 120.4 78.6 8.3
Net cash outflow from
investing activities (85.2) (80.3) (20.2)
Net cash (out)/inflow from
financing activities (0.3) 88.8 50.1
Increase in cash and
cash equivalents 34.9 87.1 38.2
Translation adjustment - - 0.3
Opening cash and cash equivalents 233.7 146.6 162.8
Closing cash and cash equivalents 268.6 233.7 201.3
Reconciliation of net cash inflow from operations
Profit before taxation 64.8 78.1 17.6
Adjusted for:
Movement in gold process 4.4 8.3 (2.6)
Depreciation and impairments 32.7 35.7 45.2
Movement in provision for
environmental rehabilitation 7.8 4.7 14.6
Share-based payments 0.8 1.2 1.2
Loss on financial liabilities
measured at amortised cost 1.9 1.9 -
Loss/(profit) on disposal of assets - 2.7 (11.1)
Finance expenses and unwinding of
provisions 2.6 3.0 0.4
Growth in environmental trust funds (1.7) (1.9) (2.4)
Other non cash items (1.3) 0.3 (4.8)
Taxation paid - (5.8) -
Working capital changes 8.4 (49.6) (49.8)
Net cash inflow 120.4 78.6 8.3
STATEMENT OF CASH FLOWS 9 months to 9 months to
31 Mar 2011 31 Mar 2010
Rm Rm
Unaudited Unaudited
Net cash in/(out)flow from operations 220.9 (100.5)
Net cash outflow from investing activities (220.5) (115.3)
Net cash inflow from financing activities 80.0 63.0
Increase/(decrease) in cash and cash equivalents 80.4 (152.8)
Translation adjustment - 0.5
Opening cash and cash equivalents 188.2 353.6
Closing cash and cash equivalents 268.6 201.3
Reconciliation of net cash in/(out)flow from operations
Profit/(loss) before tax 139.9 (79.3)
Adjusted for:
Movement in gold process 46.2 8.3
Depreciation and impairments 96.0 133.1
Movement in provision for
environmental rehabilitation 17.3 22.9
Share-based payments 2.6 3.5
Loss on financial liabilities measured at
amortised cost 16.4 -
Profit on disposal of assets (1.7) (12.8)
Finance expenses and unwinding of provisions 8.6 6.0
Growth in environmental trust funds (5.6) (7.1)
Other non cash items (2.4) 0.7
Taxation paid (5.8) (12.1)
Working capital changes (90.6) (163.7)
Net cash in/(out)flow from operations 220.9 (100.5)
NOTE TO THE FINANCIAL STATEMENTS
Note 1 - Deferred tax
During the quarter under review the company measured its deferred tax assets and
liabilities at the expected average effective rate over the expected life-of-
mine plans, rather than the maximum rate prescribed in the gold mining tax
formula. The reason for the change is to align ourselves with the rest of the
gold mining industry in South Africa. This change in estimate resulted in a
lower deferred tax charge. The effect on headline earnings is 3.7 cents per
share.
KEY OPERATING AND FINANCIAL RESULTS (Unaudited)
OPERATIONS Blyvoor Crown Ergo Total
(Metric)
Ore milled (`000t)
Underground Mar 11 Qtr 172 - - 172
Dec 10 Qtr 185 - - 185
Mar 11 Ytd 550 - - 550
Surface Mar 11 Qtr 828 1 796 3 227 5 851
Dec 10 Qtr 763 1 716 3 077 5 556
Mar 11 Ytd 2 350 5 286 9 589 17 225
Total Mar 11 Qtr 1 000 1 796 3 227 6 023
Dec 10 Qtr 948 1 716 3 077 5 741
Mar 11 Ytd 2 900 5 286 9 589 17 775
Yield (g/t)
Underground Mar 11 Qtr 4.19 - - 4.19
Dec 10 Qtr 4.13 - - 4.13
Mar 11 Ytd 4.07 - - 4.07
Surface Mar 11 Qtr 0.28 0.42 0.12 0.24
Dec 10 Qtr 0.33 0.46 0.12 0.25
Mar 11 Ytd 0.28 0.43 0.11 0.24
Total Mar 11 Qtr 0.95 0.42 0.12 0.35
Dec 10 Qtr 1.07 0.46 0.12 0.38
Mar 11 Ytd 1.00 0.43 0.11 0.35
Gold Produced (kgs)
Underground Mar 11 Qtr 720 - - 720
Dec 10 Qtr 764 - - 764
Mar 11 Ytd 2 237 - - 2 237
Surface Mar 11 Qtr 229 758 389 1 376
Dec 10 Qtr 250 785 361 1 396
Mar 11 Ytd 668 2 288 1 093 4 049
Total Mar 11 Qtr 949 758 389 2 096
Dec 10 Qtr 1 014 785 361 2 160
Mar 11 Ytd 2 905 2 288 1 093 6 286
Cash operating costs (ZAR per kg)
Underground Mar 11 Qtr 327 200 - - 327 200
Dec 10 Qtr 300 914 - - 300 914
Mar 11 Ytd 317 447 - - 317 447
Surface Mar 11 Qtr 131 266 219 185 191 594 196 753
Dec 10 Qtr 115 532 208 694 202 892 190 510
Mar 11 Ytd 127 662 219 022 207 069 200 723
Total Mar 11 Qtr 279 920 219 185 191 594 241 563
Dec 10 Qtr 255 208 208 694 202 892 229 560
Mar 11 Ytd 273 807 219 022 207 069 242 262
Cash operating costs (ZAR per tonne)
Underground Mar 11 Qtr 1 370 - - 1 370
Dec 10 Qtr 1 243 - - 1 243
Mar 11 Ytd 1 291 - - 1 291
Surface Mar 11 Qtr 36 93 23 46
Dec 10 Qtr 38 95 24 48
Mar 11 Ytd 36 95 24 47
Total Mar 11 Qtr 266 93 23 84
Dec 10 Qtr 273 95 24 86
Mar 11 Ytd 274 95 24 86
Gold and silver revenue (ZAR million)
Mar 11 Qtr 295.9 237.6 122.4 655.9
Dec 10 Qtr 307.4 238.4 109.8 655.6
Mar 11 Ytd 900.3 694.1 340.7 1 935.1
Operating profit (ZAR million)
Mar 11 Qtr 25.0 71.6 48.5 145.1
Dec 10 Qtr 42.2 74.6 34.7 151.5
Mar 11 Ytd 70.6 193.1 102.3 366.0
Capital expenditure (ZAR million)
Mar 11 Qtr 27.1 35.6 20.9 83.6
Dec 10 Qtr 21.6 42.4 9.1 73.1
Mar 11 Ytd 67.8 107.6 38.6 214.0
OPERATIONS Blyvoor Crown Ergo Total
(Imperial)
Gold Produced (oz)
Underground Mar 11 Qtr 23 149 - - 23 149
Dec 10 Qtr 24 563 - - 24 563
Mar 11 Ytd 71 922 - - 71 922
Surface Mar 11 Qtr 7 362 24 370 12 506 44 238
Dec 10 Qtr 8 038 25 239 11 606 44 883
Mar 11 Ytd 21 477 73 561 35 140 130 178
Total Mar 11 Qtr 30 511 24 370 12 506 67 387
Dec 10 Qtr 32 601 25 239 11 606 69 446
Mar 11 Ytd 93 399 73 561 35 140 202 100
Cash operating costs (US$ per oz)
Underground Mar 11 Qtr 1 476 - - 1 476
Dec 10 Qtr 1 351 - - 1 351
Mar 11 Ytd 1 399 - - 1 399
Surface Mar 11 Qtr 591 975 865 888
Dec 10 Qtr 516 937 911 855
Mar 11 Ytd 563 961 912 884
Total Mar 11 Qtr 1 263 975 865 1 090
Dec 10 Qtr 1 145 937 911 1 030
Mar 11 Ytd 1 206 961 912 1 067
Gold and silver revenue (US$ million)
Mar 11 Qtr 42.9 33.9 17.7 94.5
Dec 10 Qtr 44.2 34.4 15.8 94.4
Mar 11 Ytd 127.5 98.0 48.3 273.8
Operating profit (US$ million)
Mar 11 Qtr 3.6 10.3 7.0 20.9
Dec 10 Qtr 5.9 10.7 4.9 21.5
Mar 11 Ytd 10.0 27.4 14.5 51.9
Capital expenditure (US$ million)
Mar 11 Qtr 3.9 5.1 3.0 12.0
Dec 10 Qtr 3.1 6.2 1.3 10.6
Mar 11 Ytd 9.6 15.3 5.5 30.4
CASH OPERATING COSTS RECONCILIATION
(R`000 unless otherwise stated)
OPERATIONS Blyvoor Crown Ergo Total
Total cash costs
Mar 11 Qtr 277 929 177 286 76 217 531 432
Dec 10 Qtr 272 136 173 879 78 244 524 259
Mar 11 Ytd 850 662 532 125 244 276 1627 063
Movement in gold in process
Mar 11 Qtr (5 198) 218 580 (4 400)
Dec 10 Qtr (6 472) (79) (1 776) (8 327)
Mar 11 Ytd (34 230) 125 (12 094) (46 199)
Less: Production taxes, rehabilitation and other
Mar 11 Qtr 2 517 7 246 1 640 11 403
Dec 10 Qtr 2 313 5 859 2 559 10 731
Mar 11 Ytd 7 102 18 778 4 104 29 984
Less: Corporate and general administration costs
Mar 11 Qtr 4 570 4 116 627 9 313
Dec 10 Qtr 4 570 4 116 665 9 351
Mar 11 Ytd 13 922 12 349 1 752 28 023
Cash operating costs
Mar 11 Qtr 265 644 166 142 74 530 506 316
Dec 10 Qtr 258 781 163 825 73 244 495 850
Mar 11 Ytd 795 408 501 123 226 326 1522 857
Gold produced
Mar 11 Qtr 949 758 389 2 096
Dec 10 Qtr 1 014 785 361 2 160
Mar 11 Ytd 2 905 2 288 1 093 6 286
Total cash operating costs - R/kg
Mar 11 Qtr 279 920 219 185 191 594 241 563
Dec 10 Qtr 255 208 208 694 202 892 229 560
Mar 11 Ytd 273 807 219 022 207 069 242 262
Total cash operating costs - US$/oz
Mar 11 Qtr 1 263 975 865 1 090
Dec 10 Qtr 1 145 937 911 1 030
Mar 11 Ytd 1 206 961 912 1 067
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 part-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
19 April 2011
JSE LIMITED SPONSOR
One Capital
Date: 19/04/2011 08:00:01 Produced by the JSE SENS Department.
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