| Thu 24 Feb 2005, 8:59 | | REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 |
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DRDGold Limited - Report To Shareholders For The Six Months Ended 31 December
2004 Of The 2005 Financial Year
DRDGOLD LIMITED
(Formerly Durban Roodepoort Deep, Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ARBN number 086 277 616
JSE trading symbol: DRD
ISIN Code: ZAE 000058723
Issuer code: DUSM
NASDAQ trading symbol: DROOY
ASX trading symbol: DRD
(`DRDGOLD`)
REPORT TO SHAREHOLDERS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004
OF THE 2005 FINANCIAL YEAR
GROUP RESULTS
KEY FEATURES
- Outstanding safety record.
- Porgera Joint Venture achieves 1 million ounces of production.
- Attributable offshore production increases to 37% of total attributable
production.
- ERPM extends life and receives assistance from the South African Government.
- Emperor stake increased to 45.33% and rights issue completed.
- Mining assets impaired at North West Operations.
KEY RESULTS SUMMARY
GROUP 6 months 6 months 6 months
to 31 Dec to 30 Jun to 31 Dec
2004 2004 2003
Attributable Gold production *
Australian operations oz 165 138 144 004 89 186
kg 5 138 4 479 2 774
South African operations oz 278 683 325 219 346 614
kg 8 668 10 115 10 781
Group oz 443 821 469 223 435 800
kg 13 806 14 594 13 555
Cash operating costs
Australasian operations
US$/oz 206 204 244
ZAR/kg 41 103 45 085 54 384
South African operations
US$/oz 472 405 384
ZAR/kg 94 505 86 848 87 893
Group US$/oz 372 336 352
ZAR/kg 74 339 72 565 80 173
Gold price received
(Group) US$/oz 420 401 381
ZAR/kg 83 941 87 240 86 298
Capital expenditure
(Group) US$ m 12.5 10.4 12.8
ZAR m 77.9 70.0 90.4
*Attributable - Including Emperor Mines Limited (45.33%) and Crown Gold
Recoveries (Pty) Limited (40%).
STOCK
ISSUED CAPITAL
255 316 895 ordinary no par value shares
5 000 000 cumulative preference shares
Total ordinary no par value shares issued and
committed: 283 103 158
STOCK TRADED JSE ASX NASDAQ FRANKFURT
Average volume for the
6 months per day(000) 152 13 3 098 101
% of issued stock traded
(annualised) 16 1 317 10
Price - High R15.80 A$3.72 US$2.66 Euro 2.13
- Low R8.00 A$1.88 US$1.44 Euro 1.06
- Close R8.20 A$1.88 US$1.54 Euro 1.06
NOTE REGARDING FINANCIAL INFORMATION
The condensed consolidated financial statements, Key Results Summary and
Overview are based on our interim financial statements for the six months ended
31 December 2004 prepared in accordance with South African Statements of
Generally Accepted Accounting Practice. The company will be releasing US GAAP
financial statements for the six months ended 31 December 2004 on or about 31
March 2005, which it will file with the US Securities and Exchange Commission on
Form 6-K.
FORWARD-LOOKING STATEMENTS
Some of the information in this report may contain projections or other forward-
looking statements regarding future events or other financial performance,
including forward-looking statements and information relating to DRDGOLD that
are based on the beliefs of management, as well as assumptions made by, and
information currently available to, management. When used in this report, the
words `estimate`, `project`, `believe`, `anticipate`, `intend`, `expect` and
similar expressions are intended to identify forward-looking statements. Such
statements reflect management`s current views with respect to future events and
are subject to risks, uncertainties and assumptions. These statements include
the company`s ability to continue as a going concern, its ability to
successfully restructure the South African operations and, in particular the
North West operations, its ability to significantly reduce its costs in South
Africa, its ability to fund its future commitments, including the restructure of
the North West operations.
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 we serve, 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 limitation, those described in the section entitled
`Risk Factors` included in our annual report for the fiscal year ended 30 June
2004, which we filed with the United States Securities and Exchange Commission
on 29 November, 2004 on Form 20-F, as amended by the Form 20-F/A filed on 3
December, 2004, and those detailed from time to time with the United States
Securities and Exchange Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date thereof. We do 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
South Africa`s Department of Minerals and Energy (DME) recently released figures
indicating that DRDGOLD recorded the lowest fatality rate amongst South African
gold producers in 2004. This reflects the Company`s continued emphasis on
programmes designed to achieve behavioral change relating to safety in the
workplace. Blyvooruitzicht Gold Mining Company Limited (Blyvoor) won the West
Rand Mine Manager`s Association safety competition for the seventh consecutive
year, while North West Operations recorded one million fatality free shifts for
the second time in the 2004 calendar year. Tolukuma Gold Mines Limited
(Tolukuma) in Papua New Guinea has recorded more than 500,000 fatality free
shifts and worked 825 days without a fatal injury. While these safety
achievements are notable, particularly in the difficult circumstances currently
prevailing in the South African gold mining sector, it is with deep regret that
we have to report two fatalities in the period under review - one each at
Blyvoor, and at East Rand Proprietary Mines Limited (ERPM).
Production
Attributable gold production for the six months ended 31 December 2004,
decreased by 5% compared to the six months ended 30 June 2004, in spite of a 15%
increase in attributable production from our Australasian operations. The
increased production from offshore was mainly due to good results from the
Porgera Joint Venture (PJV) and the inclusion of the 45.33% attributable
production from Emperor Mines Limited (Emperor) from 1 August 2004.
Australasian Operations
Production from the Australasian operations was 165,138 ounces, compared with
144,004 ounces for the previous period.
The 20% interest in the PJV remained the main source of income for the group.
Production increased marginally with cash operating costs reducing by 10% to
US$166 per ounce. Cash operating profit from the Company`s 20% interest was
US$26.3 million (R163.2 million) for the six months ended 31 December 2004.
Tonnes treated increased by 10% compared to the September quarter, while the
grade increased by 2%. In the 2004 calendar year, the PJV reached a land mark,
producing one million ounces of gold for the first time, a rare achievement in
the industry for which we have congratulated our JV partners. Exploration
drilling in the underground section at the PJV continues, with positive results
so far.
Tolukuma`s gold production for the period was 9% lower than the previous six
months. Cash operating profit was lower for the six months at US$4.1 million
(R25.4 million) due to lower production and higher costs. Average cash operating
costs for the six months ended 31 December 2004, rose to US$312 per ounce.
DRDGOLD`s attributable gold production from Emperor as from 1 August 2004, was
23 892 ounces (744 kilograms). Emperor`s cash operating unit costs were US$376
per ounce for the period under review.
South African Operations
Attributable production from the South African operations decreased by 14%,
mainly as a result of restructuring and rightsizing at Blyvoor, together with
various infrastructural constraints at the North West Operations that are
currently being addressed.
The 23% decrease in underground production at Blyvoor for the six months to 31
December 2004 compared to the six months ended 30 June 2004, is the result of
the operational review which started in the first quarter of the financial year.
This led to a revised mining plan and reduced mining activity at No`s 4 and 6
shafts in order to achieve production of more cost- effective ounces.
Efficiencies quarter-on-quarter at Blyvoor improved with grams per total
employees costed (g/tec) increasing by 41% to 143 g/tec, grade up 11% to 7.49
grams per ton and recoveries to 96.2%.
Gold production at the North West Operations decreased by 10% as a result of
rationalization of non-profitable mining areas. During the period under review,
the North plant was re-commissioned and fed with screened waste rock dump
material. Average cash operating unit costs for the period increased to US$459
per ounce (R91 814 per kilogram).
DRDGOLD`s attributable share of production from Crown Gold Recoveries (Pty)
Limited (CGR) was down 5% for the period under review compared to the previous
six months ended 30 June 2004. Following representations from ERPM to the DME
for a monthly pumping subsidy of R1.6 million, R6 million has been received -
being back-payment of R1 million a month from April 2004 to September 2004 -
together with written confirmation that an additional R5 million will be paid at
a rate of R1 million a month until the end of February 2005. ERPM is eligible
to re-apply for further assistance, which the Company has already done and a
response is awaited from the DME.
Impairment
The strong Rand environment in which we are operating has caused us to review
the carrying value of our South African assets.
The ongoing poor performance of the North West Operations in the low Rand
environment has necessitated a full impairment of the mining assets amounting to
R214 million resulting in our net loss increasing to R370.1 million for the six
months ended 31 December 2004.
In view of the significant improvement in efficiencies and productivity at
Blyvoor as a result of the changed mining plan, management is of the view that
there is no need to impair the carrying value of the Blyvoor assets at this
time. The position will be reviewed at the end of future financial reporting
periods.
Financial
Cash operating unit costs in Rand terms increased by 2% for the six months ended
31 December 2004, compared to the six months ended 30 June 2004, but the
strengthening of the Rand against the US Dollar resulted in an 11% increase in
cash operating unit costs in US Dollar terms.
The Group reported a cash operating profit of R107.2 million for the six months
ended 31 December 2004, compared to a cash operating profit of R192.1 million
for the previous six months. Headline loss for the six months was R159.1
million.
Board changes
The Board of DRDGOLD Limited has announced the appointment of Dr Paseka Ncholo
as Non-Executive Chairman. Dr Ncholo`s appointment is in line with a
recommendation contained in the second report of the King Committee on Corporate
Governance (King 2) that a company should engage the services of a non-executive
chairman.
Dr Ncholo was appointed a non-executive director of DRDGOLD in March 2002. He is
a director of CGR and a non-executive director of Mvelaphanda Resources Limited.
Prior to becoming chairman of Khumo Bathong Holdings (Pty) Limited and ERPM in
1999, Dr Ncholo was Director General of the South African Department of Public
Services and Administration. He was awarded his doctorate in law in 1992 and
admitted as an advocate of the High Court of South Africa in 1994.
DRDGOLD`s Executive Chairman, Mark Wellesley-Wood, is to re-assume the role of
Chief Executive Officer from Ian Murray, who remains an executive director of
DRDGOLD with responsibility for corporate development. It is regrettable that
Doug Campbell, appointed as Chief Financial Officer and as an executive director
of the Company on 17 January 2005, decided to resign for personal reasons.
Corporate developments
Broadly speaking, the Company`s offshore operations are performing very
satisfactorily, but its South African operations continue to be impacted
negatively by the strength of the South African Rand; in this, of course, we are
not alone - the whole of the South African gold mining sector is being adversely
affected. The mature profile of our South African operations, however, means
that we are amongst those whose situation is most acute. Task teams have been
appointed to examine the particular circumstances of the South African
operations and to identify and report on options for their sustainability into
the future, all in the context of the Company`s broader international growth
strategy going forward.
DRDGOLD has short listed two companies as preferred bidders for the Company`s
uranium assets. An announcement regarding the possible sale of these assets
will be made in due course.
JCI/CAM was ordered by the High Court of South Africa to pay DRDGOLD an amount
of R35.7 million in respect of share warehousing fees plus interest and legal
costs. JCI/CAM brought an application for leave to appeal this award. Their
application was dismissed with costs by the High Court, and they have since
petitioned the Supreme Court of Appeal for leave to appeal. The petition is
currently pending.
Going concern
We incurred significant losses during the six months and continue to incur
losses at the South African operations. In order to reduce these losses, the
North West Operations are in the process of being restructured and investors
will be advised of the final outcome.
As at 31 December 2004, we had cash and cash equivalents of R143 million (30
June 2004: R141 million), and a negative working capital (defined as current
assets less current liabilities) of R65 million (30 June 2004: negative working
capital of R21 million).
Cash generated by offshore assets may not be adequate to cover future
commitments with respect to this restructuring. We expect to finance our
commitments from existing cash resources, the sale of assets and funding
facilities we have in place or are seeking to negotiate.
It is management`s belief that existing cash resources, net cash generated from
offshore operations and additional funding will be sufficient to meet our
anticipated commitments. In making this statement, management has assumed that
there will be a significant decrease in costs at its South African operations
due to continued restructuring and that management will be successful in
negotiating additional working capital facilities to be used for restructuring
and general working capital purposes. Accordingly, the condensed consolidated
financial statements have been prepared on the basis of accounting policies
applicable to a going concern.
Our estimated working capital and commitments, as well as our sources of
liquidity, will be adversely affected if:
- there is any adverse variation in the price of gold or foreign currency
exchange rates in relation to the US Dollar, particularly with respect to the
Rand;
- we are delayed in reducing costs at our South African operations or our
planned cost reductions are less than anticipated;
- our offshore operations fail to generate net cash flows consistent with
current levels;
- we default on our current borrowing facilities and we are therefore required
to accelerate the repayment of funds; or
- negotiations with funders to secure a debt facility over DRD Isle of Man
assets to restructure the North West operations are unsuccessful.
If such circumstances arise this might result in us having insufficient cash
resources to meet our current obligations in the normal course of business,
which may have an adverse impact on our financial ability to continue operating
as a going concern.
Way forward
Our Blyvoor and Cason Dump surface retreatment projects have both been
successfully commissioned and at the North West operations, the North Plant is
currently treating approximately 100,000 tonnes per month of rock dump material.
We intend to build further on these lower-costs sources of gold.
While efficiencies have improved dramatically, these are insufficient to
compensate for the low Rand gold prices. Costs in the South African operations
require further attention and in particular at the North West operations, where
labour now represents 58% of total costs. We are currently engaged in
discussions with unions and associations on how best to address the situation.
Our efforts to internationalise further in order to diversify our asset base
were largely unsuccessful in the period under review, other than subscribing
US$6.9 million to the Emperor rights issue in order to maintain our shareholding
of 45.33%. We intend to continue to build on our position in the Pacific Rim
where we have established positions in three significant epithermal ore bodies.
Dr Paseka Ncholo Mark Wellesley-Wood
Non-Executive Chairman Chief Executive Officer
24 February 2005
The condensed consolidated financial statements below are prepared in accordance
with South African Statements of Generally Accepted Accounting Practice (SA
GAAP). The accounting policies are, in all material respects, consistent with
those used to prepare the annual financial statements for the year ended 30 June
2004.
CONSOLIDATED
Income statements 6 months to 6 Months to 6 months to
(ZAR Million) 31 Dec 2004 30 Jun 2004 31 Dec 2003
(Reviewed) (Reviewed) (Reviewed)
Gold and silver revenue 976.7 1 142.5 1 039.0
Cash operating costs (869.5) (950.4) (965.3)
Cash operating profit 107.2 192.1 73.7
Corporate administration
and other expenses (81.5) (70.4) (44.4)
Business development (9.5) (3.5) (2.6)
Exploration costs (4.9) - -
Care and maintenance costs (6.1) (3.6) (4.7)
Cash profit from operations 5.2 114.6 22.0
Retrenchment costs (21.8) (10.1) (44.8)
Investment income 14.5 18.6 23.1
Interest paid (18.5) (15.3) (26.6)
Net operating (loss)/profit (20.6) 107.8 (26.3)
Rehabilitation (1.6) (18.2) (5.6)
Depreciation (72.3) (136.1) (68.5)
Profit/(loss) on financial
instruments 1.7 13.2 (6.5)
Movement in gold in process 1.1 22.4 (15.5)
Loss from associates (20.7) - -
Loss before taxation (112.4) (10.9) (122.4)
Taxation (36.6) (46.4) (4.6)
Deferred taxation (10.1) (512.3) 89.0
Loss after taxation (159.1) (569.6) (38.0)
Exceptional items (211.0) (109.5) 0.7
Minority interest - - -
Net loss (370.1) (679.1) (37.3)
Headline loss per share
- cents (64.4) (252.7) (18.5)
Basic loss per share
- cents (149.9) (301.2) (18.1)
Calculated on a weighted
average ordinary shares
in issue of: 246 924 284 225 438 347 205 906 945
Diluted headline loss
per share - cents (64.4) (252.7) (19.6)
Diluted basic loss per
share - cents (149.9) (301.2) (19.3)
CONDENSED CONSOLIDATED
As at As at As at
Balance Sheets 31 Dec 2004 30 Jun 2004 31 Dec 2003
(ZAR Million) (Reviewed) (Audited) (Reviewed)
Assets
Net mining assets 707.4 956.1 1 048.5
Investments 213.8 92.4 154.7
Environmental trust funds 144.4 143.3 137.6
Deferred mining and income
taxes - - 372.0
Other non-current assets 186.2 200.8 191.4
Current assets 331.4 359.0 384.6
Inventories 93.6 103.5 111.8
Trade and other receivables 94.7 114.6 127.4
Cash and cash equivalents 143.1 140.9 145.4
1 583.2 1 751.6 2 288.8
Equity and liabilities
Shareholders equity 428.1 564.1 1 092.6
Minority shareholders
interest 5.8 5.8 -
Long-term borrowings 300.6 309.0 331.6
Derivative instruments 9.7 31.8 230.1
Rehabilitation 242.6 245.4 214.1
Deferred mining and income
taxes 127.9 132.4 -
Provisions 72.3 82.9 71.5
Current liabilities 396.2 380.2 348.9
Trade and other payables 328.7 321.7 305.8
Derivative instruments - net 15.3 - -
Current portion of long-term
borrowings 52.2 58.5 43.1
1 583.2 1 751.6 2 288.8
CONDENSED CONSOLIDATED
Changes in shareholders` 6 months to 6 Months to 6 months to
Interest 31 Dec 2004 30 Jun 2004 31 Dec 2003
(ZAR Million) (Reviewed) (Reviewed) (Reviewed)
Shareholders` interest
at the beginning of
the period 564.1 1 092.6 456.1
Share capital issued 270.3 239.2 644.4
for acquisition finance
and cash 281.9 237.4 645.0
for share options
exercised 0.5 5.8 2.9
for costs (12.1) (4.0) (2.5)
for equity portion of
convertible note - - (1.0)
Movement in retained
income (370.1) (679.1) (37.3)
Currency adjustments and
other movements (36.2) (88.6) 29.4
Shareholders` interest at
the end of the period 428.1 564.1 1 092.6
Reconciliation of
headline loss
Net loss (370.1) (679.1) (37.3)
Adjust for:
Impairment of assets and
investments 214.0 109.5 (0.7)
Profit on sale of
investments (3.0) - -
Headline loss (159.1) (569.6) (38.0)
CONDENSED CONSOLIDATED
Cash Flow Statements 6 months to 6 Months to 6 months to
(ZAR million) 31 Dec 2004 30 Jun 2004 31 Dec 2003
(Reviewed) (Reviewed) (Reviewed)
Net cash (out)/in flow from
operations (72.6) 44.1 (43.6)
Working capital changes 8.6 (14.2) 5.8
Net cash outflow from
investing activities (220.9) (105.6) (555.2)
Net cash in flow from
financing activities 303.0 46.3 431.4
Increase/(decrease) in
cash and cash equivalents 18.1 (29.4) (161.6)
Translation adjustment (15.9) 24.9 (24.8)
Opening cash and
cash equivalents 140.9 145.4 331.8
Closing cash and
cash equivalents 143.1 140.9 145.4
Reconciliation of net cash
(out)/in flow from operations
Net operating(loss)/profit (20.6) 107.8 (26.3)
Adjusted for:
Interest provision
on convertible bond 13.6 14.5 15.3
Amortisation of
convertible cost 3.8 3.7 4.2
Financial instruments (5.2) (4.5) (6.3)
Unrealised foreign
exchange gain (12.6) (32.0) (8.1)
Growth in environmental
trust funds (1.0) (3.7) (3.9)
Profit on sale of assets
and other non cash items 3.0 4.6 10.7
Interest paid (12.3) (19.7) (27.7)
Taxation paid (41.3) (26.6) (1.5)
Net cash (out)/in flow
from operations (72.6) 44.1 (43.6)
REVIEW REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF DRDGOLD LIMITED
KPMG has, without qualifying their review opinion, drawn attention to the
section in the overview headed `Going Concern` which indicates that the group
incurred significant losses for the six months to 31 December 2004 and continued
to incur losses thereafter, and that at 31 December 2004, the group`s current
liabilities exceeded its current assets. These conditions, along with other
matters as set forth in the overview, indicate the existence of a material
uncertainty which may cast significant doubt about the group having sufficient
cash resources to meet its current obligations in the normal course of business,
which may have an adverse impact on the group`s ability to continue operating as
a going concern.
KPMG`s modified review report on the condensed consolidated SA GAAP financial
statements contained in this announcement of interim results is available for
inspection at the Company`s registered office.
KEY OPERATING AND FINANCIAL RESULTS (Unreviewed)
AUSTRALASIAN OPERATIONS
Porgera 6 months to 6 months to 6 months to
(20% Share of 31 Dec 2004 30 Jun 2004 31 Dec 2003
Joint Venture)
Ore milled t`000 606 646 295
Yield g/t 5.27 4.88 4.86
Gold produced oz 102 579 101 339 46 136
kg 3 191 3 152 1 435
Cash operating costs
US$/oz 166 184 222
ZAR/kg 33 110 41 319 48 226
ZAR/tonne 174 202 235
Cash operating profit
US$ million 26.3 22.9 8.8
ZAR million 163.2 159.6 58.9
Capital expenditure
US$ million 6.9 2.3 1.8
ZAR million 42.9 16.0 12.3
Tolukuma 6 months to 6 months to 6 months to
31 Dec 2004 30 Jun 2004 31 Dec 2003
Ore milled t`000 107 102 94
Yield g/t 11.24 13.01 14.24
Gold produced oz 38 667 42 665 43 050
kg 1 203 1 327 1 339
Cash operating costs
US$/oz 312 253 266
ZAR/kg 62 306 54 028 60 984
ZAR/tonne 701 703 869
Cash operating profit
US$ million 4.1 6.1 4.8
ZAR million 25.4 41.4 33.8
Capital expenditure
US$ million 2.3 4.0 2.0
ZAR million 14.4 27.1 14.2
Emperor(45.33% attributable)
5 months to
31 Dec 2004
Ore milled t`000 105
Yield g/t 7.09
Gold produced oz 23 892
kg 744
Cash operating costs
US$/oz 376
ZAR/kg 75 208
ZAR/tonne 543
SOUTH AFRICAN OPERATIONS
Blyvooruitzicht 6 months to 6 months to 6 months to
31 Dec 2004 30 Jun 2004 31 Dec 2003
Ore milled
Underground t`000 309 416 415
Surface t`000 1 345 1 469 818
Total t`000 1 654 1 885 1 233
Yield
Underground g/t 7.06 6.84 8.00
Surface g/t 0.24 0.35 0.70
Total g/t 1.52 1.78 3.15
Gold produced
Underground oz 70 088 91 501 106 710
kg 2 180 2 846 3 319
Surface oz 10 481 16 525 18 358
kg 326 514 571
Total oz 80 569 108 026 125 068
kg 2 506 3 360 3 890
Cash operating costs
Underground US$/oz 525 440 341
ZAR/kg 104 884 94 996 77 817
ZAR/tonne 740 650 622
Surface US$/oz 321 380 375
ZAR/kg 64 190 82 175 85 217
ZAR/tonne 16 29 59
Total US$/oz 498 431 346
ZAR/kg 99 590 93 035 78 904
ZAR/tonne 151 166 249
Cash operating (loss)/profit
US$ million (6.6) (3.6) 3.9
ZAR million (41.2) (24.0) 26.7
Capital expenditure (net)
US$ million (0.1) 2.0 6.8
ZAR million (0.4) 13.0 47.4
North West (Hartebeestfontein
and Buffelsfontein mines)
6 months to 6 months to 6 months to
31 Dec 2004 30 Jun 2004 31 Dec 2003
Ore milled
Underground t`000 740 799 866
Surface t`000 542 56 1 344
Plant clean-up t`000 22 38 55
Total t`000 1 304 893 2 265
Yield
Underground g/t 5.70 6.02 5.17
Surface g/t 0.82 2.16 0.43
Plant clean-up g/t 3.45 8.61 5.87
Total g/t 3.63 5.89 2.37
Gold produced
Underground oz 135 516 154 613 144 068
kg 4 215 4 809 4 481
Surface oz 14 307 3 891 18 391
kg 445 121 572
Plant clean-up oz 2 443 10 513 10 385
kg 76 327 323
Total oz 152 266 169 017 172 844
kg 4 736 5 257 5 376
Cash operating costs
Underground US$/oz 476 411 442
ZAR/kg 95 104 88 169 101 196
ZAR/tonne 542 531 524
Surface (incl.plant clean-up)
US$/oz 326 138 262
ZAR/kg 65 200 26 273 60 361
ZAR/tonne 60 125 39
Total US$/oz 459 388 412
ZAR/kg 91 814 82 894 94 398
ZAR/tonne 333 488 224
Cash operating (loss)/profit
US$ million (6.5) 1.7 (6.1)
ZAR million (40.2) 15.1 (45.7)
Capital expenditure
US$ million 3.4 2.1 2.2
ZAR million 21.0 13.8 16.0
Crown (40% attributable)*
6 months to 6 months to 6 months to
31 Dec 2004 30 Jun 2004 31 Dec 2003
Ore milled t`000 1 807 1 975 2 036
Yield g/t 0.41 0.40 0.41
Gold produced oz 23 895 25 232 26 750
kg 743 785 832
Cash operating costs
US$/oz 379 351 336
ZAR/kg 75 805 75 518 76 390
ZAR/tonne 31 30 31
ERPM (40% attributable)*
6 months to 6 months to 6 months to
31 Dec 2004 30 Jun 2004 31 Dec 2003
Ore milled
Underground t`000 82 114 117
Surface t`000 362 86 -
Total t`000 444 200 117
Yield
Underground g/t 6.92 6.07 5.85
Surface g/t 0.33 0.24 -
Total g/t 1.54 3.57 5.85
Gold produced
Underground oz 18 159 22 248 21 952
kg 565 692 683
Surface oz 3 794 696 -
kg 118 21 -
Total oz 21 953 22 944 21 952
kg 683 713 683
Cash operating costs
US$/oz 412 366 368
ZAR/kg 82 382 78 789 84 422
ZAR/tonne 127 281 494
Share option scheme
The following summary provides information in respect of the Durban Roodepoort
Deep (1996) Share Option Scheme as at 31 December 2004:
Number of % of issued
Options capital
In issue 10 186 263 3.99
Options currently vested 4 527 654 1.77
DIRECTORS - (*British)(**Australian)(***American)
Executives:
MM Wellesley-Wood (Chief Executive Officer)*
IL Murray
Non-executives:
MP Ncholo (Non-Executive Chairman)
J Turk***
Independent non-executives:
RP Hume
GC Campbell*
D Blackmur**
Alternate:
A Lubbe
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: ilja.graulich@za.drdgold.com,
website: http://www.drdgold.com
45 Empire Road,
Parktown,
South Africa.
PO Box 390,
Maraisburg, 1700,
South Africa.
Date: 24/02/2005 08:00:45 AM
Produced by the JSE SENS Department
