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Durban Roodepoort Deep, Limited -report To Shareholders For The 2nd Quarter
Release Date: 29/01/2004 07:00:08 Code(s): DUR
DURBAN ROODEPOORT DEEP, LIMITED -REPORT TO SHAREHOLDERS FOR THE 2nd QUARTER
ENDED 31 DECEMBER 2003 OF THE 2004 FINANCIAL YEAR
DURBAN ROODEPOORT DEEP, LIMITED
(Incorporated in the Republic of South Africa
Registration No.1895/000926/06
ARBN 086 277616
JSE trading symbol: DUR
ISIN Code: ZAE 000015079
Issuer code: DUSM
NASDAQ trading symbol: DROOY
REPORT TO SHAREHOLDERS FOR THE 2nd QUARTER ENDED 31 DECEMBER 2003
OF THE 2004 FINANCIAL YEAR
Group Results(Unaudited)
HIGHLIGHTS
Cash operating margin back to 20%
Cash costs reduced by 13% to US$ 330 per ounce
Production increased by 20%
Blyvoor Slimes Dam project commissioned
Inclusion of 20% of Porgera Joint Venture results for the full quarter
Split roles of Chairman and CEO
Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
Gold production (attributable) oz 237 307 198 493 435 800
kg 7 381 6 174 13 555
Cash operating costs US$/oz 330 378 352
R/kg 71 766 90 520 80 173
Gold price received US$/oz 396 362 381
R/kg 86 032 86 625 86 298
Capital expenditure US$ m 8.1 4.7 12.8
R m 55.4 35.0 90.4
STOCK
ISSUED CAPITAL
221 326 608 ordinary no par value shares
5 000 000 cumulative preference shares
Total ordinary no par value shares issued and committed : 256 793 988
STOCK TRADED JSE ASX NASDAQ FRANKFURT
Avg. volume for the quarter per day (000) 140 6 4 527 151
% of issued stock traded (annualised) 16% 1% 534% 18%
Price - High R 21.60 A$ 4.49 USD 3.24 Euro 2.59
- Low R 14.50 A$ 3.30 USD 2.30 Euro 2.01
- Close R 20.60 A$ 4.25 USD 3.17 Euro 2.53
ADDRESS DETAILS
REGISTERED OFFICE : SHARE TRANSFER SECRETARIES :
45 Empire Road, Parktown, Ultra Registrars (Pty) Ltd,
South Africa PO Box 4844,
PO Box 390, Johannesburg 2000,
Maraisburg 1700, South Africa
South Africa
UNITED KINGDOM REGISTRARS : DEPOSITORY BANK :
St. James" Corporate Services Ltd, American Depository Receipts,
6 St. James" Place, The Bank of New York,
London ...Shareholders Relations Department,
SW IA INP 101 Barclay Street,
New York, NY 10296
FORWARD LOOKING STATEMENTS
Some of the information in this voluntary announcement, contain projections or
other forward looking statements regarding future events or other future
performance. We wish to caution you that these statements are only projections
and those actual events or results may differ materially due to such risks as
difficulties in being a marginal producer of gold, changes and reliability of
ore reserve estimates, gold price volatility, currency fluctuations and mining
risks. We undertake no obligation to publicly release results of any of these
forward looking statements, which may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unexpected results.
LETTER TO SHAREHOLDERS
Dear shareholder
Gold reached a 14-year high of US$ 417.25 on 31 December 2003, highlighting the
current pressures in the global economic system. Quarter on quarter, the Dollar
gold price received was 9% higher at US$ 396 per ounce, while the Rand gold
price was 1% lower (R 86 032 per kilogram) due to the continued effect of the
stronger South African currency. Gold production increased by 20% during the
quarter as a result of the successful acquisition of a 20% interest in the
Porgera Joint Venture in Papua New Guinea and a strong performance from other
operations, except for the North West Operations which experienced a decline in
production - this is in line with the objectives of the restructuring exercise
undertaken during the previous quarter.
The restructure of the North West Operations and the acquisition of the 20%
interest in the Porgera Joint Venture resulted in unit cash operating costs
reducing by 13% (21% in Rand terms) from US$ 378 per ounce (R 90 520 per
kilogram) to US$ 330 per ounce (R 71 766 per kilogram). Cash operating profit
was US$ 14.1 million (R 94.7 million) due to the combined effect of an increase
in production and lower unit cash operating costs. This compares with a cash
operating loss of US$ 2.7 million (R 21.0 million) in the previous quarter and
represents a positive turnaround of US$ 16.8 million
(R 115.7 million) quarter on quarter.
South African Operations
The restructure of the North West Operation was our principle focus of the South
Africa operations during the quarter. Cash operating costs (in absolute terms)
reduced by 23% in Rand terms and production decreased by 11%. Unit cash
operating costs reduced by 6% in Dollar terms to US$ 399 per ounce and 14% in
Rand terms to R 86 738 per kilogram. The treatment of ore at the High Grade Gold
Plant has ceased and all underground ore is treated at the Low Grade Gold Plant
and South Plant. Quarter on quarter, the underground grade improved from 4.74
grams per tonne to 5.72 grams per tonne. In the December cost month, gold
production of 30 125 ounces
(937 kilograms) was on budget and the cash operating unit cost of
US$ 364 per ounce (R 76 393 per kilogram) was lower than the average for the
quarter under review.
Production at Blyvoor increased by 5% compared to the previous quarter. Cash
operating unit costs remained unchanged at US$ 346 per ounce and were down 9% to
R 75 273 per kilogram. The Slimes Dam project - funded from a portion of the
proceeds of the US$ 66 million senior convertible note issue in 2002 - was
commissioned at the end of the quarter. During the quarter under review, US$ 4.0
million (R 27.1 million) was spent on completing this capital project.
Overall, the South African operations produced 145 677 ounces
(previous quarter: 152 235 ounces). Average cash operating cost were
US$ 376 per ounce or R 81 697 per kilogram compared to the previous quarter of
US$ 392 per ounce or R 93 822 per kilogram respectively. This generated a cash
operating profit of US$ 2.3 million (R 15.4 million) compared to a loss in the
previous quarter of US$ 4.5 million (R 34.4 million).
Australasian Operations
Tolukuma has become DRD"s flagship for consistency and improvement. Over the
past ten consecutive months, Tolukuma has produced in excess of 7 000 ounces per
month at an average cash operating cost of US$ 263 per ounce. This quarter a
total of 21 767 ounces (previous quarter: 21 283 ounces) were produced. Cash
operating costs were reduced by 10% to US$ 253 per ounce from US$ 280 per ounce.
During the quarter US$ 1.4 million (R 9.5 million) was spent on mobile plant and
equipment, the Milaihamba project and a new drill rig.
The acquisition of 20% of the Porgera Joint Venture was completed with effective
from 1 October 2003 at an investment of US$ 75.9 million. This added 46 136
ounces to the company"s Australasian production portfolio for the quarter at a
cash operating cost of US$ 222 per ounce (R 48 226 per kilogram), with cash
operating profit of US$ 8.8 million (R 58.9 million). DRD"s attributable portion
of the Joint Venture"s capital expenditure was US$ 1.8 million (R 12.3 million)
for the quarter.
The Australasian operations accounted for 67 903 ounces of quarterly production
or just under one third of the company"s production. Average cash operating cost
were US$ 232 per ounce (R 50 460 per kilogram) and cash operating profit US$
11.8 million (R 79.3 million) for the quarter. Our stated strategy is to grow
the Australasian operations to 100 000 ounces of quarterly production at an
average cash operating cost below US$ 250 per ounce.
Crown/ERPM Joint Venture
DRD has a 40% interest in these entities, and manages and operates them on
behalf of the shareholders. Attributable production decreased marginally to 23
727 ounces (previous quarter: 24 975 ounces) at an average cash operating cost
of US$ 365 per ounce (R 79 486 per kilogram). Capital expenditure for the
quarter of US$ 4.1 million (R 27.8 million) - primarily funded from a loan by
the Industrial Development Corporation - was directed towards the Cason Dump
reclamation project and the Far East Vertical shaft new pumping facility.
Capital raising
During the quarter an option was issued to Investec Bank (Mauritius) Limited to
acquire 10.2 million new DRD ordinary shares at a 4.5% discount to the 10 day
weighted average share price. If exercised, part of the proceeds will be used to
close out 50% of the remaining 315 000 ounces Eskom "gold for electricity" swap.
Financial
The cash operating margin for the company has increased to 20% from a loss in
the previous quarter. This was achieved as a result of delivering on the stated
strategy and reducing the average cash operating unit cost to
US$ 330 per ounce (R 71 766 per kilogram) from US$ 378 per ounce
(R 90 520 per kilogram). Stockholders" equity has increased to US$ 85.6 million
(R 570.5 million) from US$ 53.8 million (R 376.9 million) in the previous
quarter with the ratio of interest-bearing debt to stockholders" equity down to
82% from 134% in the previous quarter. The company has a strong balance sheet to
fund further acquisitions.
Compliance
In line with corporate governance guidelines, the roles of Chairman and Chief
Executive Officer were split and a new position of Senior Independent Non-
Executive Director was created. Mark Wellesley-Wood remains as Executive
Chairman and will retain responsibility for operations and the strategic
direction of the company. Ian Murray, formerly Deputy CEO, has been appointed
CEO and will also retain responsibility for the financial function. Geoff
Campbell has been appointed Senior Independent Non-Executive Director.
Outlook
As reported previously, we have offered a direct interest of 5% in the Porgera
Joint Venture for a consideration of approximately US$ 23.4 million to the Enga
people of Papua New Guinea, through their investment vehicle Mineral Investment
Enga (MRE). The acceptance date of the offer has been extended to 2 February
2004 and the date for completion of the transaction to 30 April 2004.
DRD intends to further the use of gold in its traditional role as a form of
currency. This we believe will be achieved through our investment in
GoldMoney.com, a digital currency backed by gold.
With almost a third of the company"s production from low cost operations in
Australasia, attributable gold production of 237 307 ounces and an average cash
operating cost of US$ 330 per ounces (R 71 766 per kilogram) the margin has been
restored to the business.
DRD"s investment in eight operating gold mines and significant diversification
of earnings in various currencies, provides the platform to deliver consistent
results. Our stock market value of approximately US$ 750 million today, is
substantially higher than the US$ 80 million of three years ago. This
demonstrates our commitment to increasing shareholder value.
MARK WELLESLEY-WOOD IAN MURRAY
Executive Chairman Chief Executive Officer and Chief Financial Officer
29 January 2004
Incorporating the results of all Durban Roodepoort Deep, Limited subsidiaries,
including Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines
Limited, West Witwatersrand Gold Holdings Limited, Hartebeestfontein Gold Mine
(a division of Buffelsfontein Gold Mines Limited), Tolukuma Gold Mines Limited,
20% of the Porgera Joint Venture, and DRD Australasia on a consolidated basis.
The results of Crown Gold Recoveries (Pty) Ltd which include the East Rand
Proprietary Mines Limited are accounted for on the Equity basis.
The financial statements below are prepared on the historical cost basis and in
accordance with South African Statements of Generally Accepted Accounting
Practice (SA GAAP). The accounting policies are, in all material respects,
consistent with the annual financial statements for the year ended 30 June 2003.
GROUP INCOME STATEMENTS - SA GAAP
FINANCIAL RESULTS (R m)
(Unaudited) Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
Gold revenue 571.5 467.5 1 039.0
Cash operating costs ( 476.8) ( 488.5) ( 965.3)
Cash operating profit/(loss) 94.7 ( 21.0) 73.7
Other expenses - net ( 23.5) ( 20.9) ( 44.4)
Business development ( 1.1) ( 1.5) ( 2.6)
Care and maintenance costs ( 2.2) ( 2.5) ( 4.7)
Cash profit/(loss) from operations 67.9 ( 45.9) 22.0
Retrenchment costs ( 5.3) ( 39.5) ( 44.8)
Investment income 11.4 11.7 23.1
Interest paid ( 13.0) ( 13.6) ( 26.6)
Net cash operating profit/(loss) 61.0 ( 87.3) ( 26.3)
Rehabilitation ( 2.9) ( 2.7) ( 5.6)
Depreciation ( 41.5) ( 27.0) ( 68.5)
Loss on derivative instruments ( 1.9) ( 4.6) ( 6.5)
Gold in process ( 6.6) ( 8.9) ( 15.5)
Profit/(loss) before taxation 8.1 ( 130.5) ( 122.4)
Loss from associate - - -
Taxation ( 4.6) - ( 4.6)
Deferred taxation benefit 5.0 84.0 89.0
Profit/(loss) after taxation 8.5 ( 46.5) ( 38.0)
Exceptional items - 0.7 0.7
Net profit/(loss) 8.5 ( 45.8) ( 37.3)
Headline earnings/(loss) per share-cents 3.9 ( 24.4) ( 18.5)
Basic earnings/(loss) per share-cents 4.0 ( 24.1) ( 18.1)
Calculated on the weighted average
ordinary shares issued of : 216 388 899 190 437 051 205 906 945
Diluted headline loss per share-cents ( 0.4) ( 24.4) ( 19.6)
Diluted basic loss per share-cents ( 0.4) ( 24.1) ( 19.3)
RECONCILIATION OF HEADLINE EARNINGS (R million)
Net profit/(loss) per income statement 8.5 ( 45.8) ( 37.3)
Less: Asset and investment impairment - ( 0.7) ( 0.7)
Headline earnings/(loss) 8.5 ( 46.5) ( 38.0)
GROUP BALANCE SHEETS - SA GAAP
ABRIDGED (R m)
(Unaudited) Quarter Quarter
Dec 2003 Sep 2003
Employment of Capital
Net mining assets 1 048.5 585.8
Investments 154.7 154.2
Environmental Trust funds 137.6 135.7
Deferred mining and income taxes 372.0 498.3
Other non-current assets 191.4 -
Current assets 384.6 756.9
Inventories 111.8 48.5
Trade and other receivables 127.4 96.8
Cash and equivalents 145.4 611.6
2 288.8 2 130.9
Capital employed
Shareholders" equity 1 092.6 891.2
Borrowings 331.6 394.2
Derivative instruments (Eskom) 230.1 250.8
Rehabilitation 214.1 186.5
Other non-current liabilities 71.5 74.0
Current liabilities 348.9 334.2
Trade and other payables 305.8 294.2
Current portion of borrowings 43.1 40.0
2 288.8 2 130.9
CHANGES IN SHAREHOLDERS" INTEREST - SA GAAP
(Unaudited) (R m)
Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
Shareholders" interest at the
beginning of the period 891.2 456.1 456.1
Share capital issued 161.0 483.4 644.4
for acquisition finance 162.1 482.9 645.0
for share options exercised
and costs ( 0.3) 0.7 0.4
for equity portion of
convertible note ( 0.8) ( 0.2) ( 1.0)
Movement in retained income 8.5 ( 45.8) ( 37.3)
Currency adjustments and other 31.9 ( 2.5) 29.4
Shareholders" interest at the end
of the period 1 092.6 891.2 1 092.6
GROUP CASH FLOW STATEMENTS - SA GAAP
ABRIDGED (R m)
(Unaudited) Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
Net cash in/(out) flow from operating
activities before working
capital changes 44.9 ( 88.5) ( 43.6)
Working capital changes ( 34.8) 40.6 5.8
Net cash (out)/in flow from
investing activities ( 565.7) 10.5 ( 555.2)
Net cash in flow from financing
activities 104.2 327.2 431.4
(Decrease)/increase in cash &
equivalents ( 451.4) 289.8 ( 161.6)
Translation adjustment ( 14.8) ( 10.0) ( 24.8)
Opening cash and equivalents 611.6 331.8 331.8
Closing cash and equivalents 145.4 611.6 145.4
Incorporating the results of all Durban Roodepoort Deep, Limited subsidiaries,
including Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines
Limited, West Witwatersrand Gold Holdings Limited, Hartebeestfontein Gold Mine
(a division of Buffelsfontein Gold Mines Limited), Tolukuma Gold Mines Limited,
20% of the Porgera Joint Venture, and DRD Australasia on a consolidated basis.
The results of Crown Gold Recoveries (Pty) Ltd which include the East Rand
Proprietary Mines Limited are accounted for on the Equity basis.
The financial statements below are prepared in accordance to Generally Accepted
Accounting Principles in the United States of America (US GAAP). The accounting
policies are, in all material respects, consistent with the annual financial
statements for the year ended 30 June 2003.
GROUP INCOME STATEMENTS - US GAAP
The US GAAP financial information for the September 2003 has been restated as
the result of certain audit adjustments for the fiscal year ended June 30, 2003.
FINANCIAL RESULTS (R m)
(Unaudited) Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
* Restated
Revenues
Product sales (Gold revenue) 571.5 467.5 1 039.0
Cost and expenses ( 502.9) ( 509.1) (1 012.0)
Production costs ( 493.4) ( 497.5) ( 990.9)
Movement in gold in process ( 6.6) ( 8.9) ( 15.5)
Movement in rehabilitation
provision ( 2.9) ( 2.7) ( 5.6)
Other operating expenses
Depreciation and amortization ( 39.0) ( 72.7) ( 111.7)
Impairment of assets - 0.7 0.7
Employment termination costs ( 5.3) ( 39.5) ( 44.8)
Management and consulting fees ( 3.4) ( 3.4) ( 6.8)
(Loss)/profit on derivative
instruments 10.2 ( 29.7) ( 19.5)
Administration and general
charges ( 23.2) ( 14.8) ( 38.0)
Stock based compensation
costs ( 4.0) ( 3.6) ( 7.6)
Administration and general
charges ( 19.2) ( 11.2) ( 30.4)
Net operating income/(loss) 7.9 ( 201.0) ( 193.1)
Non-operating income
Interest and dividends 11.4 11.7 23.1
Other income 3.4 6.2 9.6
Finance cost
Interest expense ( 22.1) ( 17.2) ( 39.3)
Profit/(loss) before taxation
and other items 0.6 ( 200.3) ( 199.7)
Income and mining tax expense ( 4.6) - ( 4.6)
Deferred taxation
(expense)/benefit ( 3.1) 38.2 35.1
Net loss applicable to
stockholders ( 7.1) ( 162.1) ( 169.2)
Basic loss per share (cents) ( 3.3) ( 85.1) ( 82.2)
Diluted loss per share (cents) ( 3.3) ( 85.1) ( 82.2)
US/SA GAAP RECONCILIATION
(R m)
Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
* Restated
Net loss determined under
US GAAP ( 7.1) ( 162.1) ( 169.2)
Adjusted for:
Financial instruments 4.9 ( 5.2) ( 0.3)
Depreciation of mineral
rights and assets ( 2.8) 45.3 42.5
Accounting for business
combinations 0.3 0.4 0.7
Stock based compensation
costs 4.0 3.6 7.6
Fair value adjustment
on investments 1.1 26.4 27.5
Deferred taxation on
adjustments 8.1 45.8 53.9
Effect of US GAAP adjustments 15.6 116.3 131.9
Net profit/(loss) determined under
SA GAAP 8.5 ( 45.8) ( 37.3)
GROUP BALANCE SHEETS - US GAAP
ABRIDGED (R m)
(Unaudited) Quarter Quarter
Dec 2003 Sep 2003
* Restated
ASSETS
Current assets 384.6 756.9
Cash and cash equivalents 145.4 611.6
Receivables 127.4 96.8
Inventories 111.8 48.5
Mining assets 1 048.7 583.5
Cost 3 064.0 1 676.6
Accumulated depreciation & amortization (2 015.3) (1 093.1)
Other assets 483.8 366.8
Deferred income and mining tax - 76.8
Non-current assets 483.8 290.0
Total assets 1 917.1 1 707.2
LIABILITIES & STOCKHOLDERS" EQUITY
Current liabilities 420.4 408.1
Bank overdraft 22.3 2.6
Accounts payable and accrued liabilities 355.0 365.5
Short-term portion of long-term loans 43.1 40.0
Long-term loans 23.4 39.8
Convertible loan note 400.3 445.1
Derivative instruments (Eskom) 230.1 250.8
Deferred income and mining tax 58.3 -
Provision-environmental rehabilitation 214.1 186.5
Stockholders" equity 570.5 376.9
Authorised
300 000 000 ordinary no par value shares
5 000 000 cumulative preference shares
Issued
221 326 608 ordinary no par value shares
5 000 000 cumulative preference shares
Stated capital and share premium 2 846.3 2 684.5
Additional paid in capital 94.3 90.3
Cumulative preference shares 0.5 0.5
Accumulated loss (2 424.1) (2 417.0)
Other comprehensive (loss)/income 53.5 18.6
Total liabilities & stockholders" equity 1 917.1 1 707.2
CHANGES IN STOCKHOLDERS" EQUITY - US GAAP
(Unaudited) (R m)
Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
* Restated
Stockholders" equity at the
beginning of the 376.9 39.1 39.1
period as restated
Share capital issued 165.8 487.2 653.0
- for acquisition finance 162.1 482.9 645.0
- for share options exercised
& issue expenses ( 0.3) 0.7 0.4
- for stock based compensation 4.0 3.6 7.6
Movement in retained income 27.8 ( 149.4) ( 121.6)
- loss applicable to
stockholders ( 7.1) ( 162.1) ( 169.2)
- mark-to-market on investments 1.1 26.4 27.5
- foreign currency adjustments
and other 33.8 ( 13.7) 20.1
Stockholders" equity at the
end of the period 570.5 376.9 570.5
GROUP INCOME STATEMENTS - US GAAP
* The US GAAP financial information for the September 2003 has been restated
as the result of certain audit adjustments for the fiscal year ended
June 30, 2003.
FINANCIAL RESULTS (US$ m)
(Unaudited) Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
* Restated
Revenues
Product sales (Gold revenue) 84.7 62.8 147.5
Cost and expenses ( 74.5) ( 68.4) ( 142.9)
Production costs ( 73.0) ( 66.8) ( 139.8)
Movement in gold in process ( 1.1) ( 1.2) ( 2.3)
Movement in rehabilitation
provision ( 0.4) ( 0.4) ( 0.8)
Other operating expenses
Depreciation and amortization ( 5.7) ( 9.7) ( 15.4)
Impairment of assets - 0.1 0.1
Employment termination costs ( 0.8) ( 5.4) ( 6.2)
Management and consulting fees ( 0.5) ( 0.5) ( 1.0)
(Loss)/profit on derivative
instruments ( 0.2) ( 2.8) ( 3.0)
Administration and general charges( 2.3) ( 3.1) ( 5.4)
Stock based compensation costs ( 0.6) ( 0.5) ( 1.1)
Administration and general
charges ( 1.7) ( 2.6) ( 4.3)
Net operating income/(loss) 0.7 ( 27.0) ( 26.3)
Non-operating income
Interest and dividends 1.7 1.6 3.3
Other income 0.5 0.8 1.3
Finance cost
Interest expense ( 3.3) ( 2.3) ( 5.6)
Profit/(loss) before taxation and
other items ( 0.4) ( 26.9) ( 27.3)
Income and mining tax expense ( 0.7) - ( 0.7)
Deferred taxation
(expense)/benefit ( 0.3) 5.1 4.8
Net loss applicable to
stockholders ( 1.4) ( 21.8) ( 23.2)
Basic loss per share (cents) ( 0.7) ( 11.5) ( 11.3)
Diluted loss per share (cents) ( 0.7) ( 11.5) ( 11.3)
GROUP CASH FLOW STATEMENTS
ABRIDGED (US$ m)
(Unaudited) Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
* Restated
Net cash generated/(utilized)
from operating activities 6.6 ( 11.9) ( 5.3)
Working capital changes ( 5.1) 5.5 0.4
Net cash (used in)/realized from
investing activities ( 83.6) 1.4 ( 82.2)
Net cash generated from
financing activities 15.4 44.0 59.4
Net (decrease)/increase in
cash & equivalents ( 66.7) 39.0 ( 27.7)
Effect of exchange rate
changes on cash 3.1 2.1 5.2
Cash and equivalents at
beginning of period 85.5 44.4 44.4
Cash and equivalents at end
of period 21.9 85.5 21.9
GROUP BALANCE SHEETS - US GAAP
ABRIDGED (US$ m)
(Unaudited) Quarter Quarter
Dec 2003 Sep 2003
* Restated
ASSETS
Current assets 57.9 105.8
Cash and cash equivalents 21.9 85.5
Receivables 19.2 13.5
Inventories 16.8 6.8
Mining assets 157.6 81.6
Cost 460.6 234.4
Accumulated depreciation & amortization (303.0) ( 152.8)
Other assets 72.7 51.2
Deferred income and mining tax - 10.7
Non-current assets 72.7 40.5
Total assets 288.2 238.6
LIABILITIES & STOCKHOLDERS" EQUITY
Current liabilities 63.3 57.1
Bank overdraft 3.4 0.4
Accounts payable and accrued liabilities 53.4 51.1
Short-term portion of long-term loans 6.5 5.6
Long-term loans 3.5 5.6
Convertible loan note 60.2 60.9
Derivative instruments (Eskom) 34.6 35.1
Deferred income and mining tax 8.8 -
Provision-environmental rehabilitation 32.2 26.1
Stockholders" equity 85.6 53.8
Authorised
300 000 000 ordinary no par value shares
5 000 000 cumulative preference shares
Issued
221 326 608 ordinary no par value shares
5 000 000 cumulative preference shares
Stated capital and share premium 448.3 424.3
Additional paid in capital 38.8 38.2
Cumulative preference shares 0.1 0.1
Accumulated loss ( 363.6) ( 362.2)
Other comprehensive (loss)/income ( 38.0) ( 46.6)
Total liabilities & stockholders" equity 288.2 238.6
CHANGES IN STOCKHOLDERS" EQUITY - US GAAP
(Unaudited) (US$ m)
Quarter Quarter 6 months to
Dec 2003 Sep 2003 Dec 2003
* Restated
Stockholders" equity at the
beginning of the 53.8 5.2 5.2
period as restated
Share capital issued 24.6 64.5 89.1
- for acquisition finance 24.0 63.8 87.8
- for share options
exercised & issue expenses - 0.2 0.2
- for stock based compensation 0.6 0.5 1.1
Movement in retained income 7.2 ( 15.9) ( 8.7)
- loss applicable to
stockholders ( 1.4) ( 21.8) ( 23.2)
- mark-to-market on
investments 0.2 3.6 3.8
- foreign currency adjustments
and other 8.4 2.3 10.7
Stockholders" equity at the end
of the period 85.6 53.8 85.6
CONVERSION FACTORS
Balance Sheet : 31 Dec 03 US$1 = R 6.6518
Income Statement average: Quarter Dec 03
Oct-03 US$ 1 = R 6.9892
Nov-03 US$ 1 = R 6.7366
Dec-03 US$ 1 = R 6.5620
Quarter US$ 1 = R 6.7629
Quarter Sep 03
Jul-03 US$ 1 = R 7.5654
Aug-03 US$ 1 = R 7.4048
Sep-03 US$ 1 = R 7.3472
Quarter US$ 1 = R 7.4402
SHARE OPTION SCHEME
The following summary provides information in respect of the Durban
Roodepoort Deep (1996) Share Option Scheme as
at 31/12/2003: % of issued
No. of options Capital
In issue : 7 667 380 3.5
Options currently vested : 2 428 180 1.1
DIRECTORS - (*British)(**Australian)
Executives :
MM Wellesley-Wood (Executive Chairman)*
IL Murray (Chief Executive Officer and Chief Financial Officer)
Non-executives :
MP Ncholo ; RP Hume ; GC Campbell* ; DC Baker** ; D Blackmur**
Alternates :
A Lubbe ; D van der Mescht
Group Company Secretary : AI Townsend
INVESTOR RELATIONS
For further information, contact Ilja Graulich at :
Tel: (+27-11) 381-7800, Fax: (+27-11) 482-4641,
e-mail: graulich@drd.co.za,
web site: http://www.durbans.com
45 Empire Road,
Parktown, South Africa.
P O Box 390,
Maraisburg 1700,
South Africa.
