Wrap Text
Report to shareholders for the second quarter and six months ended 31 December 2013
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
Registration No.1895/000926/06
JSE share code: DRD
ISIN: ZAE 000058723
NYSE trading symbol: DRD
("DRDGOLD" or "the company")
REPORT TO SHAREHOLDERS
for the second quarter and six months ended 31 December 2013
GROUP RESULTS: KEY FEATURES (Q2 2014 V Q1 2014)
Cash operating costs down to $1 013 per oz
Flotation/fine-grind first gold produced
Gold production up 4% to 35 043oz
Operating profit up to R84.1 million
REVIEW OF OPERATIONS
Quarter Quarter % Quarter 6 months to 6 months to % 6 months to
Group Dec 2013 Sept 2013 change Dec 2012 31 Dec 2013 31 Dec 2012 change 30 Jun 2013
Gold production oz 35 043 33 597 4 39 031 68 640 74 846 (8) 71 535
kg 1 090 1 045 4 1 214 2 135 2 328 (8) 2 225
Gold sold oz 35 043 36 394 (4) 39 031 71 437 76 936 (7) 68 802
kg 1 090 1 132 (4) 1 214 2 222 2 393 (7) 2 140
Cash operating costs US$ per oz 1 013 1 164 (13) 1 017 1 087 1 081 1 1 108
ZAR per kg 330 585 373 433 (11) 284 425 351 557 294 397 19 327 885
All-in sustaining costs US$ per oz 1 150 1 362 (16) 1 208 1 254 1 302 (4) 1 275
ZAR per kg 375 246 436 954 (14) 337 672 405 450 354 480 14 377 171
Average gold price received US$ per oz 1 267 1 333 (5) 1 714 1 300 1 699 (23) 1 530
ZAR per kg 413 359 427 604 (3) 478 309 420 616 462 776 (9) 452 837
Operating profit ZAR million 84.1 72.0 17 238.7 156.1 412.4 (62) 266.9
Operating margin % 20 13 58 41 16 36 (55) 28
All-in sustaining costs margin % 9 (2) 521 29 4 23 (85) 17
EBITDA ZAR million 46.3 27.6 68 171.9 73.9 286.6 (74) 216.2
Headline earnings/(loss) ZAR million 0.9 (12.5) 107 93.0 (11.6) 170.2 (107) 89.0
ZAR cents per share – (3) 107 25 (3) 45 (107) 23
SHAREHOLDERS INFORMATION
Issued capital
385 383 767 ordinary no par value shares
6 155 559 treasury shares held within the group
5 000 000 cumulative preference shares
Total ordinary no par value shares issued and committed: 386 831 995
MARKET CAPITALISATION
As at 31 Dec 2013 (ZARm) 1 441.3 As at 30 Sept 2013 (ZARm) 2 254.5
As at 31 Dec 2013 (US$m) 142.2 As at 30 Sept 2013 (US$m) 220.4
STOCK TRADED Jse nYse*
Average volume for the
quarter per day ('000) 768 1 420
% of issued stock traded
(annualised) 52 96
Price - High R 5.85 $0.575
- Low R 3.10 $0.316
- Close R 3.74 $0.369
* This data represents per share data and not ADS data –
one ADS reflects 10 ordinary shares
DEAR SHAREHOLDER
Niël Pretorius – Chief executive officer
At our last quarterly presentation, we said that our aims for the near
term were to: restore production levels to where they were prior to the
September quarter; complete construction of the flotation/fine-grind
circuit ("FFG"); and achieve steady state production of this circuit.
I can report that production is back up, and that quarter-on-quarter unit
cash operating costs and all-in sustaining costs are both down. We also
completed construction of the FFG on 18 December 2013.
I am also pleased to report that, on 28 January 2014, three days after we
finally achieved full capacity through-put of all three flotation banks and
full-scale operation of the high-grade elution circuit, Ergo cast the first
22kg doré bar comprised entirely of gold flowing directly from the FFG
circuit – a significant milestone for us.
I deal in greater detail with where exactly we are in the drive for steady
state performance at the end of this letter.
Q2 2014 v Q1 2014
OPERATING REVIEW
Although there was a 4% decline in throughput to 5 856 000t compared
with the first quarter, the new circuit contributed marginally to a 9%
increase in the average yield to 0.186g/t. Gold production was thus 4%
higher at 35 043oz.
Higher gold production resulted in an 11% decrease in cash operating
unit costs to R330 585/kg. All-in sustaining costs were 14% lower at
R375 246/kg.
Capital expenditure at Ergo Mining (Proprietary) Limited ("Ergo") rose
by 6% to R55.6 million due to costs incurred to bring on line the FFG
circuit’s third thickener.
FINANCIAL REVIEW
Revenue was 7% lower at R450.6 million due both to a decline of 4%
in gold sold to 35 043oz and of 3% in the average gold price received
to R413 359/kg. However, after accounting for net operating costs
– 11% lower at R366.5 million – operating profit was 17% higher at
R84.1 million.
The operating margin improved from 13% to 20% and the all-in
sustaining costs margin from -2% to 9%.
Earnings before interest, taxes, depreciation and amortisation ("EBITDA")
increased by 68% to R46.3 million. Headline earnings were R0.9 million
(0 South African cents) compared with the previous quarter’s headline
loss of R12.5 million (3 South African cents).
Six months to 31 December 2013 v six months to 31 December 2012
OPERATING REVIEW
Gold production for the first six months of FY2014 was down 8% to
68 640oz compared with the first six months of FY2013 due to an 11%
decline in the average yield to 0.179g/t. Throughput was 2% higher at
11 954 000t.
Cash operating unit costs rose by 19% to R351 557/kg and all-in
sustaining costs by 14%, from R405 450/kg.
Capital expenditure at Ergo was 42% lower at R107.8 million, as we
neared the end of construction of the FFG circuit.
FINANCIAL REVIEW
Revenue was down 16% from R1 107.4 million, reflecting both a 7% decline
in gold sold to 71 437oz and in the average rand gold price received of 9%
to R420 616/kg. After accounting for net operating costs – 12% higher at
R778.5 million – operating profit was 62% lower at R156.1 million.
The operating margin weakened to 16% from 36% and the all-in
sustaining costs margin from 23% to 4%.
EBITDA declined by 74% to R73.9 million and headline loss of
R11.6 million (3 South African cents per share) was recorded, compared
with headline earnings of R170.2 million (45 South African cents per share).
Applying our established guideline of distributing approximately 30% of
free cash flow, there is no room for considering a distribution at this time.
The board has therefore decided not to declare an interim dividend.
COMMISSIONING OF FFG
We are very pleased with the performance of the high-grade FFG circuit;
it is achieving a recovery efficiency that is consistent with feasibility
study assumptions. The fact of the matter, however, is that it took us
longer and cost us more to build it than what we planned.
To a large extent, this was due to the fact that it became clear during
early commissioning that we had to bring a third thickener online if we
were to maintain adequate volume throughput of the float circuit.
Now, with each component of the new circuit up and running, our objective
over the next few months will be to further synchronise the operation of
all the components of our plant. A simple leach and elution process now
has an added four layers. These components all interact and need to be co-
ordinated to achieve and maintain steady state. We are confident that this
is within reach and we will provide regular updates on progress.
APPOINTMENT OF CHIEF FINANCIAL OFFICER
With effect from 1 January 2014, Francois van der Westhuizen assumed
the role of Chief Financial Officer of DRDGold succeeding Craig Barnes,
who relocated to Australia as previously announced. The board is grateful
to Craig for the contribution he made during his tenure.
LOOKING AHEAD
The lower than planned gold production this year, due to the late
commissioning of the FFG and the fact that we are only now easing
into steady state, means that for the near term our approach to costs
and capital expenditure will remain conservative in order to preserve
an adequate cash buffer. By and large the measures required to achieve
steady state are operational and within our control though. That will
continue to be our main priority.
The condensed consolidated interim financial statements are prepared in accordance with the recognition and measurement principles of International
Financial Reporting Standards ("IFRS") and presented in accordance with the minimum content, including disclosures, prescribed by IAS 34 Interim
Financial Reporting applied to interim reporting and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Reporting Pronouncements as issued by the Financial Reporting Standards Council. The accounting policies adopted are in line with IFRS and are consistent
with those applied in the annual financial statements for the year ended 30 June 2013.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Quarter Quarter Quarter 6 months to 6 months to 6 months to
Dec 2013 Sep 2013 Dec 2012 31 Dec 2013 31 Dec 2012 30 Jun 2013
Rm Rm Rm Rm Rm Rm
Restated
Notes Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Gold and silver revenue 450.6 484.0 580.6 934.6 1 107.4 969.1
Net operating costs (366.5) (412.0) (341.9) (778.5) (695.0) (702.2)
Cash operating costs (360.4) (390.2) (345.3) (750.6) (685.4) (729.5)
Movement in gold in process (6.1) (21.8) 3.4 (27.9) (9.6) 27.3
Operating profit 84.1 72.0 238.7 156.1 412.4 266.9
Depreciation (36.8) (36.4) (33.9) (73.2) (68.1) (75.7)
Movement in provision for environmental rehabilitation (1.6) (4.0) (16.2) (5.6) (26.2) 10.9
Environmental rehabilitation costs (10.8) (10.7) (12.5) (21.5) (29.7) (15.7)
Retrenchment costs – (2.4) (0.6) (2.4) (0.6) –
Care-and-maintenance costs (3.6) (5.1) (6.7) (8.7) (15.4) (4.8)
Other operating expenses (2.5) 1.9 (2.7) (0.6) (9.0) (14.3)
Gross profit from operating activities 28.8 15.3 166.1 44.1 263.4 167.3
Impairments 1 (4.5) (0.8) – (5.3) – (187.9)
Share of losses of equity accounted investments 2 – – – – – (50.1)
Corporate and administration expenses (19.3) (23.3) (26.6) (42.6) (45.6) (40.9)
Share-based payments – (0.8) (1.6) (0.8) (1.9) (2.6)
Profit on disposal of assets – – 0.1 – 2.6 16.7
Net finance (expense)/income (5.4) (6.0) 5.0 (11.4) 34.6 (10.6)
(Loss)/profit before taxation (0.4) (15.6) 143.0 (16.0) 253.1 (108.1)
Taxation (5.5) (4.6) (19.0) (10.1) (35.8) (9.1)
Net (loss)/profit after taxation (5.9) (20.2) 124.0 (26.1) 217.3 (117.2)
Attributable to:
Equity owners of the parent (3.6) (13.3) 93.0 (16.9) 171.6 (112.4)
Non-controlling interest (2.3) (6.9) 31.0 (9.2) 45.7 (4.8)
(5.9) (20.2) 124.0 (26.1) 217.3 (117.2)
Other comprehensive income
Foreign exchange translation and other (0.3) 0.5 0.5 0.2 5.4 3.4
Net gain on an available-for-sale financial asset – – – – 0.3 –
Reclassification of fair-value adjustment on available-
for-sale investments to profit or loss – – – – – 101.3
Mark-to-market of available-for-sale investments – – 3.6 – (32.7) (34.0)
Total comprehensive income for the period (6.2) (19.7) 128.1 (25.9) 190.3 (46.5)
Attributable to:
Equity owners of the parent (3.9) (12.8) 97.1 (16.7) 144.6 (42.7)
Non-controlling interest (2.3) (6.9) 31.0 (9.2) 45.7 (3.8)
(6.2) (19.7) 128.1 (25.9) 190.3 (46.5)
Reconciliation of headline earnings
Net (loss)/profit (3.6) (13.3) 93.0 (16.9) 171.6 (112.4)
Adjusted for:
– Impairments 4.5 0.8 – 5.3 – 187.9
– Share of losses of equity accounted investments – – – – – 50.1
– Profit on disposal of assets – – (0.1) – (2.6) (16.7)
– Non-controlling interest in headline earnings
adjustment – – 0.1 – 0.7 (12.9)
– Taxation thereon – – – – 0.5 (7.0)
Headline earnings/(loss) 0.9 (12.5) 93.0 (11.6) 170.2 89.0
Headline earnings/(loss) per share-cents – (3) 25 (3) 45 23
Basic earnings/(loss) per share-cents – (4) 25 (4) 45 (29)
Diluted headline earnings/(loss) per share-cents – (3) 25 (3) 45 23
Diluted basic (loss)/earnings per share-cents (1) (3) 25 (4) 45 (29)
Calculated on the weighted average ordinary shares
issued of: 379 203 751 379 178 208 379 178 208 379 190 980 379 178 208 379 178 208
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at As at
31 Dec 2013 30 Sep 2013 31 Dec 2012 30 Jun 2013
Rm Rm Rm Rm
Restated Restated Restated
Notes Unaudited Unaudited Unaudited Unaudited
Assets
Non-current assets 2 107.8 2 087.5 2 106.1 2 066.6
Property, plant and equipment 1 796.6 1 775.7 1 726.2 1 756.3
Investment in joint arrangements 2 0.3 0.3 42.2 0.3
Non-current investments and other assets 125.1 129.2 141.7 130.1
Environmental rehabilitation trust funds and investments 184.6 180.8 182.0 177.0
Deferred tax asset 1.2 1.5 14.0 2.9
Current assets 451.0 587.4 664.0 604.3
Inventories 122.3 124.9 104.1 138.8
Trade and other receivables 129.3 131.7 162.2 88.8
Cash and cash equivalents 3 199.4 330.8 397.7 376.7
Total assets 2 558.8 2 674.9 2 770.1 2 670.9
Equity and liabilities
Equity 1 566.5 1 575.7 1 755.2 1 648.3
Equity of the owners of the parent 1 354.4 1 361.3 1 482.8 1 427.0
Non-controlling interest 212.1 214.4 272.4 221.3
Non-current liabilities 731.1 725.2 778.1 777.0
Loans and borrowings 4 75.5 75.5 146.3 143.3
Post-retirement and other employee benefits 8.8 9.1 6.1 8.7
Provision for environmental rehabilitation 540.4 537.3 527.1 524.3
Deferred tax liability 106.4 103.3 98.6 100.7
Current liabilities 261.2 374.0 236.8 245.6
Trade and other payables 188.8 281.6 214.7 221.3
Loans and borrowings 4 72.4 92.4 22.1 24.3
Total equity and liabilities 2 558.8 2 674.9 2 770.1 2 670.9
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Quarter Quarter Quarter 6 months to 6 months to 6 months to
Dec 2013 Sept 2013 Dec 2012 31 Dec 2013 31 Dec 2012 30 Jun 2013
Rm Rm Rm Rm Rm Rm
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Balance at the beginning of the period 1 575.7 1 648.3 1 657.6 1 648.3 1 633.9 1 755.2
Share capital issued (0.4) – 0.3 (0.4) – (0.2)
– for costs (0.4) – 0.3 (0.4) – (0.2)
Increase in share-based payment reserve 0.1 0.2 0.3 0.3 0.6 0.6
Net (loss)/profit attributable to equity owners of the parent (3.6) (13.3) 93.0 (16.9) 171.6 (112.4)
Net (loss)/profit attributable to non-controlling interest (2.3) (6.9) 31.0 (9.2) 45.7 (4.8)
Dividends paid on ordinary share capital – (53.1) 0.6 (53.1) (37.9) (53.1)
Dividends paid to non-controlling interest – – (7.6) – (7.6) (8.1)
Treasury shares recognised/acquired – – – – – 0.3
Fair-value adjustment on available-for-sale investments – – 3.6 – (32.7) (34.0)
Reclassification of fair-value adjustment on available-for-sale
investments to profit or loss – – – – – 101.3
Share Option Scheme buy-out (2.7) – (24.1) (2.7) (24.1) –
Other comprehensive income (0.3) 0.5 0.5 0.2 5.7 3.5
Balance at the end of the period 1 566.5 1 575.7 1 755.2 1 566.5 1 755.2 1 648.3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Quarter Quarter Quarter 6 months to 6 months to 6 months to
Dec 2013 Sep 2013 Dec 2012 31 Dec 2013 31 Dec 2012 30 Jun 2013
Rm Rm Rm Rm Rm Rm
Restated Restated Restated Restated
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Net cash inflow from operations 10.9 11.2 213.1 22.1 245.1 257.2
Net cash outflow from investing activities (66.0) (57.1) (126.5) (123.1) (211.8) (217.6)
Net cash in/(out)flow from financing activities (76.3) – (98.1) (76.3) 66.6 (60.9)
Loans and other (20.5) – (53.8) (20.5) 110.9 (2.1)
Treasury shares/share options acquired (2.7) – – (2.7) – –
Dividends paid to owners of the parent (53.1) – (38.5) (53.1) (38.5) (52.5)
Dividends paid to non-controlling interest holders – – (5.8) – (5.8) (6.3)
(Decrease)/increase in cash and cash equivalents (131.4) (45.9) (11.5) (177.3) 99.9 (21.3)
Foreign exchange movement – – (0.7) – (0.7) (0.4)
Opening cash and cash equivalents 330.8 376.7 409.9 376.7 298.5 398.4
Closing cash and cash equivalents 199.4 330.8 397.7 199.4 397.7 376.7
Reconciliation of net cash inflow from operations
(Loss)/profit before taxation (0.4) (15.6) 143.0 (16.0) 253.1 (108.1)
Adjusted for:
Movement in gold in process 6.1 21.8 (3.4) 27.9 9.6 (27.3)
Depreciation and impairment 41.3 37.2 33.9 78.5 68.1 313.7
Movement in provision for environmental rehabilitation 1.6 4.0 16.2 5.6 26.2 (10.9)
Share-based payments – 0.8 1.6 0.8 1.9 2.6
Profit on disposal of assets – – (0.1) – (2.6) (16.7)
Finance expense and unwinding of provisions 9.1 9.2 0.3 18.3 1.4 32.1
Growth in environmental trust funds (1.1) (1.1) (1.3) (2.2) (2.8) (2.8)
Other non-cash items (4.8) 1.1 (3.4) (3.7) (5.3) 8.4
Taxation paid (2.0) – 3.0 (2.0) 10.0 (5.8)
Working capital changes (38.9) (46.2) 23.3 (85.1) (114.5) 72.0
Net cash inflow from operations 10.9 11.2 213.1 22.1 245.1 257.2
NOTES TO THE FINANCIAL STATEMENTS
1. Impairments
The Group recorded an impairment of R4.5 million against the investment in Village Main Reef Limited.
2. Changes in accounting policies
The Group has adopted the new standard IFRS 11 – Joint Arrangements. The Group previously applied proportionate consolidation
for investment in joint arrangements and would from 1 July 2013 apply equity accounting.
The comparative periods presented have been restated. The results for 30 June 2013 and the financial position at the date have been
audited, but the restatement of the results and balances affected by IFRS 11 have not been audited.
Reconciliation of the effect of the change in accounting standard:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Quarter Quarter 6 months to 6 months to 6 months to
Sept 2013 Dec 2012 31 Dec 2013 31 Dec 2012 30 Jun 2013
Rm Rm Rm Rm Rm
Unaudited Unaudited Unaudited Unaudited Unaudited
Impairments
As previously reported – – – – (238.0)
IFRS 11 adjustment – – – – 50.1
Restated – – – – (187.9)
Share of losses of equity accounted investments
As previously reported – – – – –
IFRS 11 adjustment – – – – (50.1)
Restated – – – – (50.1)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
Sept 2013 31 Dec 2012 30 Jun 2013
Rm Rm Rm
Unaudited Unaudited Unaudited
Property, plant and equipment
As previously reported 1 775.7 1 767.9 1 756.3
IFRS 11 adjustment – (41.7) –
Restated 1 775.7 1 726.2 1 756.3
Investment in joint arrangement
As previously reported – – –
IFRS 11 adjustment 0.3 42.2 0.3
Restated 0.3 42.2 0.3
Trade and other receivables
As previously reported 131.7 162.3 88.8
IFRS 11 adjustment – (0.1) –
Restated 131.7 162.2 88.8
Cash and cash equivalents
As previously reported 331.3 398.4 377.2
IFRS 11 adjustment (0.5) (0.7) (0.5)
Restated 330.8 397.7 376.7
Trade and other payables
As previously reported 281.8 215.0 221.5
IFRS 11 adjustment (0.2) (0.3) (0.2)
Restated 281.6 214.7 221.3
3. Cash and cash equivalents
Included in cash and cash equivalents is restricted cash of R18.6 million.
4. Loans and borrowings
Included in loans and borrowings is a Domestic Medium Term Note Programme ("DMTN Programme") under which DRDGOLD can
issue notes from time to time. DRDGOLD raised a total of R165 million under the DMTN Programme in July and September 2012.
The different unsecured notes issued mature 12 (R20.0 million), 24 (R69.5 million) and 36 (R75.5 million) months from the date of
issue and bear interest at the three month Johannesburg Inter-bank Acceptance Rate (JIBAR) rate (currently 5.125%) plus a margin
ranging from 4% to 5% per annum. During the quarter, DRDGOLD repaid the amount of R20 million.
ERGO KEY OPERATING AND FINANCIAL RESULTS (unaudited)
Ore milled (’000t) (metric) (imperial) Dec 2013 Qtr 5 856 6 454
Sep 2013 Qtr 6 098 6 721
Dec 2013 Ytd 11 954 13 175
Yield (g/t) (oz/t) (metric) (imperial) Dec 2013 Qtr 0.186 0.005
Sep 2013 Qtr 0.171 0.005
Dec 2013 Ytd 0.179 0.005
Gold produced (kg) (oz) (metric) (imperial) Dec 2013 Qtr 1 090 35 043
Sep 2013 Qtr 1 045 33 597
Dec 2013 Ytd 2 135 68 640
Cash operating costs (ZAR/kg) (US$/oz) Dec 2013 Qtr 330 585 1 013
Sep 2013 Qtr 373 433 1 164
Dec 2013 Ytd 351 557 1 087
Cash operating costs (ZAR/t) (US$/t) Dec 2013 Qtr 62 6
Sep 2013 Qtr 64 6
Dec 2013 Ytd 63 6
Gold and silver revenue (ZAR million) (US$ million) Dec 2013 Qtr 450.6 44.4
Sep 2013 Qtr 484.0 48.5
Dec 2013 Ytd 934.6 92.9
Operating profit (ZAR million) (US$ million) Dec 2013 Qtr 84.1 8.3
Sep 2013 Qtr 72.0 7.2
Dec 2013 Ytd 156.1 15.5
Loss before taxation (ZAR million)(US$ million) * Dec 2013 Qtr (5.6) (0.5)
Sep 2013 Qtr (23.9) (2.4)
Dec 2013 Ytd (29.5) (2.9)
Capital expenditure (ZAR millions) (US$ million) Dec 2013 Qtr 55.5 5.5
Sep 2013 Qtr 52.3 5.2
Dec 2013 Ytd 107.8 10.7
* Note - The difference between the profit before tax on the statement of profit or loss and other comprehensive income relates to corporate head office and all other.
ALL-IN SUSTAINING COSTS RECONCILIATION (unaudited)
R million unless otherwise stated
Net operating costs Dec 2013 Qtr 366.5
Sep 2013 Qtr 412.0
Dec 2013 Ytd 778.5
Corporate, administration and other expenses Dec 2013 Qtr 21.8
Sep 2013 Qtr 22.2
Dec 2013 Ytd 44.0
Rehabilitation and remediation (accretion and amortisation) Dec 2013 Qtr 10.7
Sep 2013 Qtr 13.2
Dec 2013 Ytd 23.9
Capital expenditure (sustaining) Dec 2013 Qtr 10.1
Sep 2013 Qtr 9.2
Dec 2013 Ytd 19.3
All-in sustaining costs* Dec 2013 Qtr 409.1
Sep 2013 Qtr 456.6
Dec 2013 Ytd 865.7
Retrenchment costs Dec 2013 Qtr –
Sep 2013 Qtr 2.4
Dec 2013 Ytd 2.4
Rehabilitation and remediation (not related to current operations) Dec 2013 Qtr 10.8
Sep 2013 Qtr 10.7
Dec 2013 Ytd 21.5
Care-and-maintenance costs Dec 2013 Qtr 3.6
Sep 2013 Qtr 5.1
Dec 2013 Ytd 8.7
Capital expenditure (non-sustaining) Dec 2013 Qtr 48.1
Sep 2013 Qtr 43.8
Dec 2013 Ytd 91.9
All-in costs* Dec 2013 Qtr 471.6
Sep 2013 Qtr 518.6
Dec 2013 Ytd 990.2
All-in sustaining costs (R/kg) Dec 2013 Qtr 375 246
Sep 2013 Qtr 436 954
Dec 2013 Ytd 405 450
All-in sustaining costs (US$/oz) Dec 2013 Qtr 1 150
Sep 2013 Qtr 1 362
Dec 2013 Ytd 1 254
All-in costs (R/kg) Dec 2013 Qtr 432 576
Sep 2013 Qtr 496 320
Dec 2013 Ytd 463 776
All-in costs (US$/oz) Dec 2013 Qtr 1 325
Sep 2013 Qtr 1 547
Dec 2013 Ytd 1 434
* All-in cost definitions based on the guidance note on non-GAAP Metrics issued by the World Gold Council on 27 June 2013.
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 reports of 30 June 2013
and subsequent public announcements.
The technical information referred to in this report has been reviewed by Vivian Labuschagne (PLATO), mineral and resource manager, a full time
employee of the company. He approved this information in writing before the publication of this report.
FORWARD LOOKING STATEMENTS
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 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 our annual report for the fiscal year ended
30 June 2013, which we filed with the United States Securities and Exchange Commission on 25 October 2013 on Form 20-F. 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.
Any forward-looking statement included in this report have not been reviewed and reported on by DRDGOLD’s auditors.
DIRECTORS (*British)(**American)
Executives: DJ Pretorius (Chief executive officer)
FD van der Westhuizen (Chief financial officer)
Independent non-executives: GC Campbell* (Non-executive chairman)
RP Hume, EA Jeneker, J Turk**
Company secretary: TJ Gwebu
FOR FURTHER INFORMATION. CONTACT NIËL PRETORIUS AT:
Tel:(+27) (0) 11 470 2600 - Fax: (+27) (0) 11 470 2618
Website: http://www.drdgold.com - Quadrum Office Park - Building 1
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