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ABRIDGED GROUP RESULTS FOR THE SECOND QUARTER ENDED 31 DECEMBER 1998 DURBAN ROODEPOORT DEEP, LIMITED
(INCORPORATING THE RESULTS OF ALL DURBAN ROODEPOORT DEEP SUBSIDIARIES, INCLUDING BLYVOORUITZICHT GOLD MINING COMPANY LIMITED, BUFFELSFONTEIN GOLD MINES LIMITED, WEST WITWATERSRAND GOLD HOLDINGS LIMITED AND CROWN CONSOLIDATED GOLD RECOVERIES LIMITED). - CASH PROFIT UP 34 PERCENT TO R18.1 MILLION - GOLD PRODUCTION UP 17 PERCENT TO 4.9 TONS - CASH COSTS OF R50 400 /KG
- CROWN ACQUISITION SUCCESSFULLY INTEGRATED WITH EXISTING OPERATIONS - INCREASED CAPITAL EXPENDITURE TO SUSTAIN GROWTH
6 MONTHS TO
OPERATING RESULTS *31/12/98 30/09/98 31/12/98 TOTAL OPERATIONS
GOLD PRICE - R/KG 53 691 54 233 53 935
ORE MILLED - T'000 4 464 2 131 6 595
GOLD PRODUCED - KG 4 922 4 212 9 135
YIELD - G/T 1.10 1.98 1.39
CASH OPERATING COST - R/KG 50 397 50 751 50 555
CASH OPERATING PROFIT - R/KG 3 294 3 482 3 380 CASH OPERATING COST -
R/T MILLED 55.57 100.31 70.02 CASH OPERATING PROFIT -
R/T MILLED 3.63 6.88 4.68 UNDERGROUND OPERATIONS
ORE MILLED - T'000 443 506 949
GOLD PRODUCED - KG 2 427 2 611 5 038
YIELD - G/T 5.48 5.16 5.31
CASH OPERATING COST - R/KG 58 010 58 703 58 369
CASH OPERATING LOSS - R/KG (4 319) (4 470) (4 434)
GOLD PRICE - R/T MILLED 294.15 279.84 286.33 CASH OPERATING COST -
R/T MILLED 317.81 302.91 309.87 CASH OPERATING LOSS -
R/T MILLED (23.66) (23.07) (23.54) SAND OPERATIONS
TONNAGE TREATED - T'000 3 591 1 188 4 779
GOLD PRODUCED - KG 1 921 1 066 2 987
YIELD - G/T 0.53 0.90 0.63
CASH OPERATING COST - R/KG 44 066 33 088 40 148
CASH OPERATING PROFIT - R/KG 9 625 21 145 13 787
GOLD PRICE - R/T TREATED 28.72 48.66 33.71 CASH OPERATING COST -
R/T TREATED 23.57 29.69 25.09 CASH OPERATING PROFIT -
R/T TREATED 5.15 18.97 8.62 OPENCAST OPERATIONS
TONNAGE TREATED - T'000 430 437 867
GOLD PRODUCED - KG 575 535 1 110
YIELD - G/T 1.34 1.22 1.28
CASH OPERATING COST - R/KG 39 411 47 136 43 134
CASH OPERATING PROFIT - R/KG 14 280 7 097 10 801
GOLD PRICE -R/T TREATED 71.75 66.39 69.05 CASH OPERATING COST -
R/T TREATED 52.66 57.71 55.22 CASH OPERATING PROFIT -
R/T TREATED 19.09 8.68 13.83
6 MONTHS
TO
FINANCIAL RESULTS (R000) 31/12/98 30/09/98 31/12/98
GOLD SALES 264 267 228 428 492 695
CASH OPERATING COST 248 057 213 762 461 819
CASH OPERATING PROFIT 16 210 14 666 30 876
RETRENCHMENT COSTS - (3 332) (3 332)
SUNDRY REVENUE - NET 2 283 2 287 4 570
CASH PROFIT BEFORE TAXATION 18 493 13 621 32 114
SA NORMAL TAXATION 386 67 453
CASH PROFIT 18 107 13 554 31 661 CAPITAL EXPENDITURE - NET OF
RECOUPMENTS AND FINANCING 10 581 4 181 14 762
* INCLUDES THE RESULTS OF CROWN WITH EFFECT FROM 1 OCTOBER 1998 ABRIDGED CONSOLIDATED BALANCE SHEET (R000)
31/12/98 30/09/98 CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY # 716 735 661 031 EMPLOYMENT OF CAPITAL NET MINING ASSETS AFTER
DEPRECIATION 808 559 695 825
OTHER LONG TERM ASSETS 24 202 104 183
LONG TERM LIABILITIES (183 316) (140 038) NET CURRENT ASSETS/ (LIABILITIES) 67 290 1 061
716 735 661 031
# SHAREHOLDERS' EQUITY IS ADJUSTED FOR NON-CASH ITEMS, BEING I.A.S. ENTRIES AND PROVISIONS, AMOUNTING TO R51 MILLION (PREVIOUS QUARTER: R11.7 MILLION) AND SHARES ISSUED OF R88.6 MILLION. DEVELOPMENT RESULTS
ADVANCE SAMPLED CHANNEL CHANNEL METRES/TONNES METRES WIDTH CM G/T CM.G/T DURBAN DEEP AND RAND LEASES TOTAL REEF METRES
DEVELOPED 1 251 93 9.1 1 443 TOTAL METRES DEVELOPED 1 855 TOTAL OPENING-UP METRES 158 WEST WITS SECTION TOTAL REEF METRES
DEVELOPED 208 176 158 4.9 766 TOTAL METRES DEVELOPED 480 OPENCAST STRIPPING TONS (EXCL. STOCKPILE) 845 649 BLYVOORUITZICHT AND DOORNFONTEIN TOTAL REEF METRES
DEVELOPED 113 108 12 147.6 1 720 TOTAL METRES DEVELOPED 885 TOTAL CAPITAL METRES DEVELOPED 263 BUFFELSFONTEIN TOTAL REEF METRES
DEVELOPED 3 6 44 43.4 3 585 TOTAL METRES DEVELOPED 901 TOTAL OPENING-UP METRES 11 158 COMMENTS
THE RESULTS FOR THE QUARTER MARKED THE INCORPORATION OF CROWN CONSOLIDATED GOLD RECOVERIES LIMITED ("CROWN"). FITTINGLY THIS WAS CAPPED BY THE GROUP'S ACHIEVEMENT OF A 34 PERCENT INCREASE IN CASH PROFIT TO R18.1 MILLION. TOTAL GOLD PRODUCTION FOR THE QUARTER WAS 4 922KG COMPARED TO THE 4 212KG OF THE PREVIOUS QUARTER, RESULTING IN A 17 PERCENT IMPROVEMENT. CASH GENERATED AFTER CAPITAL EXPENDITURE AMOUNTED TO R7.5 MILLION (R9.4 MILLION).
CASH COSTS DECREASED MARGINALLY TO R50 397 /KG. THE RESTRUCTURING OF
UNDERGROUND OPERATIONS AT BUFFELSFONTEIN RETURNED A SMALL PROFIT WHILE THE RESULTS OF RESTRUCTURING UNDERGROUND OPERATIONS AT DURBAN DEEP WILL BE EVIDENT IN THE NEXT QUARTER.
THE QUARTER SAW AN INCREASE IN NET CAPITAL EXPENDITURE TO R10.6 MILLION (R4.2 MILLION). THE KNIGHTS GOLD PLANT WAS RE-COMMISSIONED IN NOVEMBER 1998 AND INCREASED CAPITAL WAS EXPENDED ON THE THICKENED TAILINGS PLANT AT CROWN MINES, THE ADVANCED STRIPPING AND PLANT UPGRADE AT WEST WITWATERSRAND, AND UNDERGROUND DEVELOPMENT AND PLANT UPGRADE AT BLYVOORUITZICHT. ALL OF THIS UNDERSCORES THE GROUP'S COMMITMENT TO FUTURE GROWTH. PROSPECTS
THE NEXT QUARTER SHOULD SEE AN INCREASE IN CASH FLOW AND PROFITABILITY BY IMPROVING GOLD PRODUCTION AND LOWER COSTS. GOLD PRODUCTION IS FORECAST AT 5.2 TONS AND HEDGING SHOULD PROVIDE AN ADDED PRICE BENEFIT AS PREVIOUS LOWER PRICE CONTRACTS HAVE BEEN COMPLETED.
CAPITAL EXPENDITURE IS FORECAST AT R25 MILLION IN ORDER TO COMPLETE AND BRING TO ACCOUNT A NUMBER OF GROWTH ORIENTATED PROJECTS. FURTHER GROWTH WILL FOCUS ON THE ACQUISITION OF ALTERNATIVE TARGETS. WHILE NEGOTIATIONS TO ACQUIRE EMPEROR GOLD MINE IN FIJI HAVE BEEN DELAYED, THE GROUP REMAINS INTERESTED IN AUSTRALASIA. FOR AND ON BEHALF OF THE BOARD
RAR KEBBLE, CHAIRMAN MJ PRINSLOO, CEO 21 JANUARY 1999
FOR FURTHER INFORMATION OR FOR A FULL COPY OF THESE RESULTS CONTACT MARYNA ELOFF AT HEAD OFFICE:
TELEPHONE (27 11) 482-4968, TELEFAX (27 11) 482-4641,
45 EMPIRE RD, PARKTOWN. PO BOX 82291, SOUTHDALE 2135,SOUTH AFRICA E-MAIL: ELOFFM@DRD.CO.ZA WEB SITE: HTTP//WWW.DRD.CO.ZA
CASH PROFIT BOOSTED BY 34% AS DRD BRINGS NEW PROJECTS TO ACCOUNT
JOHANNESBURG, 21 JANUARY - IN SPITE OF A LOWER GOLD PRICE RECEIVED, DURBAN ROODEPOORT DEEP IMPROVED ITS CASH PROFIT BY 34% TO R18.1 MILLION IN THE DECEMBER QUARTER. PRODUCTION INCREASED BY 17% TO 4 922 KG AS NEW PROJECTS WERE BROUGHT TO ACCOUNT ON THE BACK OF THE GROUP'S RECENT RESTRUCTURING.
THESE INCLUDED THE SUCCESSFUL INCORPORATION OF CROWN CONSOLIDATED GOLD RECOVERIES, ACQUIRED DURING THE PREVIOUS QUARTER. CROWN'S MOTHBALLED KNIGHTS PLANT WAS RECOMMISSIONED IN NOVEMBER AND ITS CROWN AND CITY DEEP PLANTS INCREASED GOLD PRODUCTION FOR THE QUARTER.
NET CAPITAL EXPENDITURE INCREASED TO R10.6 MILLION (SEPTEMBER: R4.2 MILLION). THIS INCLUDED THE FURTHER DEVELOPMENT OF CROWN'S THICKENED TAILINGS PLANT, THE RECOMMISSIONING OF THE KNIGHTS PLANT, THE ADVANCED STRIPPING AND PLANT UPGRADE AT WEST WITS, AND THE UNDERGROUND DEVELOPMENT AND PLANT UPGRADE AT BLYVOORUITZICHT.
BUFFELSFONTEIN RETURNED A SMALL PROFIT AFTER THE RESTRUCTURING OF ITS
UNDERGROUND OPERATIONS, AND THE COMPANY SAID THE BENEFITS OF THE UNDERGROUND RESTRUCTURING AT DURBAN DEEP WOULD MATERIALISE IN THE NEXT QUARTER. CASH COSTS DECREASED MARGINALLY TO R50 397/KG.
CEO MIKE PRINSLOO SAID NINE PROJECTS HAD BEEN COMPLETED IN THE DECEMBER QUARTER AND A FURTHER SIX WERE CURRENTLY IN THE PIPELINE. "THIS SHOWS THE EXTENT TO WHICH DRD IS DEVELOPING ITS CURRENT GOLD RESOURCES AND INVESTING IN THE FUTURE TO ENHANCE SHAREHOLDER VALUE AND STRENGTHEN ITS POSITION IN THE GOLD MINING INDUSTRY," PRINSLOO SAID.
PRINSLOO NOTED THAT DRD'S GROWTH STRATEGY WAS BASED ON THE EXPANSION OF ITS EXISTING RESOURCE BASE, WHICH HAS UNTAPPED POTENTIAL, AS WELL AS THE
ACQUISITION OF ATTRACTIVE TARGETS. WHILE THE GROUP'S NEGOTIATIONS TO TAKE OVER THE FIJIAN GOLD MINER EMPEROR HAVE BEEN DELAYED, IT REMAINED INTERESTED IN THE AUSTRALASIAN REGION.
PRE-FEASIBILITY WORK ON ARGONAUT, DRD'S 40-MILLION-OUNCE DEEP-LEVEL DEPOSIT UNDERNEATH JOHANNESBURG, IS CONTINUING WITH INVESTIGATIONS INTO A 3D SEISMIC SURVEY AND IDENTIFICATION OF DRILL HOLE SITES.
ISSUED FOR DURBAN ROODEPOORT DEEP, LIMITED BY DU PLESSIS ASSOCIATES. TEL : +27 11 728 4701
