Wrap Text
Report to Shareholders for the six months ended December 2015
DRDGOLD Limited
(Incorporated in the Republic of South Africa)
Registration No. 1895/000926/06
JSE share code: DRD
ISIN: ZAE 000058723
Issuer code: DUSM
NYSE trading symbol: DRD
("DRDGOLD" or "the company" or "the Group")
REPORT TO SHAREHOLDERS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
KEY FEATURES
- Gold production down 1% to 72 436oz
- All-in sustaining costs down 8% to US$1 104/oz
- Operating profit up 1% to R165.9 million
- Headline earnings of 2.6cps, up from a headline loss of 0.3cps
REVIEW OF OPERATIONS
Six months to Six months to
Group 31 Dec 2015 31 Dec 2014 % change (*)
Gold production oz 72 436 73 015 (1)
kg 2 253 2 271 (1)
Gold sold oz 73 882 74 301 (1)
kg 2 298 2 311 (1)
Cash operating costs US$ per oz 982 1 048 (6)
R per kg 429 271 370 101 16
All-in sustaining costs US$ per oz 1 104 1 194 (8)
R per kg 481 878 421 497 14
Average gold price received US$ per oz 1 123 1 244 (10)
R per kg 491 993 439 418 12
Operating profit R million 165.9 164.1 1
Operating margin % 14.7 16.2 (9)
All-in sustaining costs margin % 2.1 4.1 (49)
Headline earnings/(loss) R million 10.9 (1.0) 1 190
R cents per share (cps) 2.6 (0.3) 967
(*)% change is rounded to the nearest percent and is based on the rounded amounts as presented which are
rounded to the nearest hundred thousand rand.
Rounding of figures may result in computational discrepancies.
SHAREHOLDER INFORMATION
Issued capital
430 883 767 ordinary no par value shares (30 June 2015: 430 883 767)
9 361 071 treasury shares held within the Group (30 June 2015: 6 155 559)
5 000 000 cumulative preference shares (30 June 2015: 5 000 000)
431 651 117 total ordinary no par value shares issued and committed
(30 June 2015: 431 651 117)
MARKET CAPITALISATION
As at 31 Dec 2015 (Rm) 1 124.6
As at 31 Dec 2015 (US$m) 68.9
As at 30 Jun 2015 (Rm) 1 008.3
As at 30 Jun 2015 (US$m) 79.7
STOCK TRADED JSE NYSE(1)
Average volume for the period per day ('000) 1 044 1 324
Price
- High R2.70 $0.187
- Low R1.49 $0.110
- Close R2.61 $0.160
(1) This data represents per share data and not ADS data – one ADS reflects 10
ordinary shares.
Dear shareholder
This commentary is my first since the board's decision in October
2015 to report our operating and financial results on a six-monthly
rather than on a quarterly basis. My commentary below, therefore,
compares our performance for the six months ended 31 December
2015 to the six months ended 31 December 2014.
Key priorities for us in the period under review were to get the
Van Dyk reclamation site to full capacity; to add five carbon in
leach (CIL) tanks to Ergo's lower grade CIL circuit to increase volume
capacity by 300 000t; to complete the conversion of that plant's
high grade leach circuit from carbon in pulp (CIP) to CIL; and to
establish a higher throughput profile in order to offset the lower
grade profile of the new Knights reclamation site.
These we managed to do, and despite lower gold production from
Knights due to unscheduled maintenance and inventory build-up
at both the low and high grade CIL circuits at Ergo following the
aforementioned commissioning and changeover, gold production
remained flat.
Reflecting on the performance of the Ergo plant, following completion
of the flotation fine-grind (FFG) circuit, the desired 0.03g/t drop in
residue grade is being achieved and, with the circuits in steady state,
production increased towards the latter half of the reporting period.
Our cash position remains favourable – we ended June 2015 with
R324 million in cash. During the reporting period we repaid the
last of the DMTS notes of R22.5 million, paid a cash dividend of
R42.2 million, invested R60.3 million in additions to property, plant
and equipment and bought back 3.2 million shares at just over
R2 per share. We finished the period with R254 million in cash and
cash equivalents with operations contributing cash flows before
working capital charges of R112 million. Our cash balance increased
by a further R29.5 million during the course of January after receipt
of the late VAT re-imbursement.
We informed the market in August 2015 that we were not
distributing our entire free cash balance net of our customary cash
buffer. We had just started the change-over to CIL in the high grade
circuit. Inventory build-up had not quite settled and Knights was
in the process of closing out the Cason site and settling into the
new 4A6 dump. We also thought that the share price was low and
that conditions were favourable for a share buy-back. The settling
of the operating performance of the plants, the repayment of the
majority of the outstanding VAT claim and the strong, positive swing
in the gold price in January 2016 placed us in a very favourable cash
position at the time of writing this letter. Hence the board, in line
with what we set out to do, has declared an interim dividend, as
detailed below.
I now address in greater detail the operational and financial
performance of the business.
SIX MONTHS ENDED 31 DECEMBER
2015 VS SIX MONTHS ENDED
31 DECEMBER 2014
OPERATIONAL REVIEW
Gold production was 1% lower at 72 436oz, as a result of a reduction
in overall head grade as well as lost production due to unscheduled
maintenance at the Knights plant, the impact of both being largely
offset by an 11% increase in throughput to 12 835 000 metric tonnes.
These operational performance figures demonstrate how the impact
of the lower overall head grade was offset by the successful
integration of the high grade and low grade sections of the Ergo
plant. This follows the conversion of the high grade section to the CIL
process and the aforementioned increase in the treatment capacity
of the low grade section, despite some lag caused by inventory
build-up. Operational disruption as a result of summer rainfall was
negligible and power disruptions were few and mainly related to
storm conditions.
Gold sold was 1% lower at 73 882oz, in line with lower gold
production.
Cash operating costs were 16% higher at R429 271/kg. This was
attributed to a combination of factors, namely: the decrease in yield
requiring more material to be processed by the plant to produce the
same amount of gold, and lower production from Knights following
unscheduled maintenance; increases in wages averaging 9%; an
8% increase in the cost of power; and the higher cost of various
consumables such as water and reagents.
Notwithstanding the relentless march of inflation, driven by Rand
weakness, the overall cost increase of consumables was contained
to an average of below 5%. All-in sustaining costs (AISC) increased
by 14% to R481 878 per kilogram. The increase is mainly due to the
aforementioned 16% increase in cash operating costs per kilogram,
partially offset by a decrease in items such as gold in process and
environmental provisions.
FINANCIAL REVIEW
Revenue increased by 11% to R1 130.6 million, due mainly to a
12% increase in the average Rand gold price received to R491 993
per kilogram, buffering the impact of lower gold production.
After accounting for a 15% increase in total cash operating costs,
operating profit was 1% higher at R165.9 million.
The operating margin declined slightly from 16.2% to 14.7%, a result
of the 16% increase in the operating cost per kilogram discussed
above outpacing the 12% increase in gold price received per
kilogram. The AISC margin declined from 4.1% to 2.1%, a result of
the 14% increase in the AISC per kilogram as discussed above being
more than the 12% increase in the gold price received per kilogram.
Headline earnings were R10.9 million compared with a R1.0 million
headline loss, equivalent to 2.6 South African (SA) cents per share
(compared to a headline loss of 0.3 SA cents per share). The increase in
the headline earnings is due mainly to the decrease in the depreciation
charge as a result of the increase in the life of mine effective from
1 July 2015 as well as the decrease in retrenchment costs.
SUSTAINABLE DEVELOPMENT
The construction of a school administration block at the Palesa
Primary School in Meadowlands, Soweto at a cost of R1.5 million
was completed and handed over to the administrators of the school.
The construction of a school library at the Dromedaries Primary
School in Reiger Park is approaching completion at an estimated
final cost of R1 million.
Our total environmental expenditure for the six months under
review was R18.1 million.
Notwithstanding the severe drought conditions for much of the
reporting period, dust exceedances were contained to 23 out of a
total of 674 measurements (3.4%). This was attributable largely to
our ongoing vegetation programme. In the six-month period ended
31 December 2015, 12ha were vegetated on the western slope of
GMTS, which forms part of the Crown Tailings Complex.
Approximately six megalitres of treated sewage water a day are now
being delivered into our closed water circuit by our new Rondebult
water sewage plant. To further reduce our dependence on potable
water sources we continue to engage with local authorities to
increase our use of treated sewage water.
DIVIDEND
The DRDGOLD board has declared an interim dividend of 12 SA
cents per ordinary share for the six months ended 31 December
2015 as follows:
- the dividend has been declared out of income reserves;
- the local Dividends Tax rate is 15% (fifteen per cent);
- the gross local dividend amount is 12 SA cents per ordinary share
for shareholders exempt from the Dividends Tax;
- the net local dividend amount is 10.2 SA cents per ordinary share
for shareholders liable to pay the Dividends Tax;
- DRDGOLD currently has 430 883 767 ordinary shares in issue
(which includes 9 361 071 treasury shares); and
- DRDGOLD's income tax reference number is 9160/013/60/4.
In compliance with the requirements of Strate, given the company's
primary listing on the JSE Limited, the salient dates for payment of
the dividend are as follows:
- Last date to trade ordinary shares cum dividend: Friday 11 March 2016
- Ordinary shares trade ex-dividend: Monday 14 March 2016
- Record date: Friday 18 March 2016
- Payment date: Tuesday 22 March 2016
On payment date, dividends due to holders of certificated securities
on the SA share register will either be electronically transferred to the
shareholders' bank accounts or, in the absence of suitable mandates,
dividend cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited
to shareholders' accounts with the relevant CSDP or broker.
To comply with the further requirements of Strate, between Monday
14 March 2016 and Friday 18 March 2016, both days inclusive, no
transfers between SA and any other share register will be permitted
and no ordinary shares pertaining to the SA share register may be
dematerialised or rematerialised.
The currency conversion date for the Australian and United Kingdom
registers will be Tuesday 22 March 2016.
To holders of American Depositary Shares (ADS):
- Each ADS represents 10 ordinary shares:
- ADSs trade ex-dividend on NYSE: Wednesday 16 March 2016
- Record date: Friday 18 March 2016
- Approximate date of currency conversion: Thursday 24 March 2016
- Approximate payment date of dividend: Tuesday 29 March 2016
Assuming an exchange rate of R16/$1, the dividend payable on an
ADS is equivalent to 6.4 US cents for shareholders liable to pay the
dividend tax. However, the actual rate of payment will depend on
the exchange rate on the date for currency conversion.
CORPORATE ACTIVITY
The company secretary resigned with effect from 31 December 2015.
LOOKING AHEAD
The recent improvements in metallurgical efficiency have reduced
our operational risk with throughput risk now the most likely factor
to impact production. Therefore we will continue initiatives to
manage this risk through improvements to management systems
and planned maintenance.
We have a substantial gold resource that offers significant
opportunity at various headgrade and volume configurations. We are
studying the feasibility of these scenarios with a view to growing our
reserves and extending our operation's life of mine.
With the capital infrastructure needed to achieve our current life of
mine now established, and with production trending to a stable state,
we are favourably positioned to take advantage of the record high
Rand gold price. The interim dividend re-affirms our commitment to
distribute surplus cash to our shareholders.
Niël Pretorius
Chief Executive Officer
16 February 2016
CONDENSED CONSOLIDATED INTERIM
Statement of Profit or Loss and Other Comprehensive Income
Six months to Six months to
31 Dec 2015 31 Dec 2014
Rm Rm
Notes Unaudited Unaudited
Revenue 1 130.6 1 015.5
Cost of sales 2 (1 066.6) (966.9)
Gross profit from operating activities 64.0 48.6
Impairments – (9.4)
Administration expenses and general costs (29.3) (20.4)
Results from operating activities 34.7 18.8
Finance income 16.1 11.9
Finance expenses (23.7) (25.7)
Profit before tax 27.1 5.0
Income tax (9.0) (7.8)
Profit/(loss) for the period 18.1 (2.8)
Attributable to:
Equity owners of the parent 18.1 (2.3)
Non-controlling interest – (0.5)
Profit/(loss) for the period 18.1 (2.8)
Other comprehensive income
Items that are or may be reclassified to profit or loss, net of tax
Fair value adjustment of available-for-sale investments 8.4 –
Total comprehensive income for the period 26.5 (2.8)
Attributable to:
Equity owners of the parent 26.5 (2.3)
Non-controlling interest – (0.5)
Total comprehensive income for the period 26.5 (2.8)
Reconciliation of headline earnings/(loss)
Profit/(loss) for the period 18.1 (2.3)
Adjusted for:
Impairments – 9.4
Profit on disposal of property, plant and equipment (9.0) (10.8)
Non-controlling interest in headline earnings adjustment – 2.8
Income tax thereon 1.8 (0.1)
Headline earnings/(loss) 10.9 (1.0)
Earnings/(loss) per share (1) 4.3 (0.6)
Headline earnings/(loss) per share (1) 2.6 (0.3)
Diluted earnings/(loss) per share (1) 4.3 (0.6)
Diluted headline earnings/(loss) per share (1) 2.6 (0.3)
Calculated on the weighted average ordinary shares issued of: 423 455 750 379 228 208
(1) All per share financial information is presented in South African cents per share (cps) and is rounded to the
nearest decimal point based on the results as presented which are rounded to the nearest hundred thousand Rand.
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
CONDENSED CONSOLIDATED INTERIM
Statement of financial position
As at 31 Dec 2015 As at 30 Jun 2015
Rm Rm
Notes Unaudited Audited
Assets
Non-current assets 1 876.0 1 894.1
Property, plant and equipment 1 665.3 1 698.8
Non-current Investments and other assets 210.1 194.1
Deferred tax asset 0.6 1.2
Current assets 584.4 609.0
Inventories 173.5 168.7
Trade and other receivables 7 135.8 93.3
Current tax asset 11.7 13.2
Cash and cash equivalents 3 253.8 324.4
Assets held-for-sale 6 9.6 9.4
Total assets 2 460.4 2 503.1
Equity and liabilities
Equity 1 507.7 1 529.9
Non-current liabilities 682.9 669.5
Provision for environmental rehabilitation 499.0 493.3
Post-retirement and other employee benefits 10.4 9.2
Deferred tax liability 155.5 147.8
Finance lease obligation 18.0 19.2
Current liabilities 269.8 303.7
Trade and other payables 247.8 258.4
Post-retirement and other employee benefits 1.7 2.6
Loans and borrowings 4 – 23.1
Finance lease obligation 2.2 2.0
Liabilities held-for-sale 6 18.1 17.6
Total liabilities 952.7 973.2
Total equity and liabilities 2 460.4 2 503.1
CONDENSED CONSOLIDATED INTERIM
Statement of changes in equity
Six months to Six months to
31 Dec 2015 31 Dec 2014
Rm Rm
Unaudited Unaudited
Balance at the beginning of the period 1 529.9 1 481.2
Total comprehensive income
Profit/(loss) for the period 18.1 (2.8)
Fair-value adjustment on available-for-sale investments 8.4 –
Transactions with the owners of the parent
Dividends on ordinary share capital (42.2) (7.6)
Treasury shares acquired (6.5) –
Share-based payments – 0.2
Balance as at the end of the period 1 507.7 1 471.0
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
CONDENSED CONSOLIDATED INTERIM
Statement of cash flows
Six months to Six months to
31 Dec 2015 31 Dec 2014
Rm Rm
Notes Unaudited Unaudited
Net cash inflow from operations 68.7 137.5
Cash flows from operations 61.5 133.9
Interest received 9.6 7.2
Interest paid (2.8) (4.3)
Tax received 0.4 0.7
Net cash outflow from investing activities (67.1) (23.2)
Additions to property, plant and equipment (60.3) (29.3)
Environmental rehabilitation payments (6.1) (8.5)
Other (0.7) 14.6
Net cash outflow from financing activities (72.2) (80.9)
Loans and other borrowings (23.5) (73.3)
Treasury shares acquired (6.5) –
Dividends paid to owners of the parent (42.2) (7.6)
(Decrease)/increase in cash and cash equivalents (70.6) 33.4
Opening cash and cash equivalents 324.4 208.9
Closing cash and cash equivalents 253.8 242.3
Reconciliation of cash flows from operations
Profit before tax 27.1 5.0
Adjusted for:
Depreciation and impairment 2 83.8 98.3
Movement in gold in process (2.4) 10.9
Movement in provision for environmental rehabilitation 0.9 4.0
Profit on disposal of property, plant and equipment (9.0) (10.8)
Share-based payments 4.0 0.4
Finance income (16.1) (11.9)
Finance expenses 23.7 25.7
Other non-cash items – (2.4)
Working capital changes (50.5) 14.7
Change in trade and other receivables 7 (34.1) 16.5
Change in inventories (2.4) (0.8)
Change in trade and other payables (14.0) (1.0)
Cash flows from operations 61.5 133.9
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
Notes to the condensed consolidated
interim financial statements
1. BASIS OF PREPARATION
The condensed consolidated interim financial statements are
prepared in accordance with the requirements of the JSE Limited
Listings Requirements for interim reports and the requirements of
the Companies Act of South Africa. The Listings Requirements require
interim reports to be prepared in accordance with the framework
concepts and the measurement and recognition requirements of
International Financial Reporting Standards (IFRS) and the SAICA
Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Pronouncements as issued by Financial
Reporting Standards Council and to also, as a minimum, contain
the information required by IAS 34 Interim Financial Reporting.
The accounting policies applied in the preparation of the condensed
consolidated interim financial statements are in terms of IFRS and
are consistent with those applied in the previous consolidated
annual financial statements.
The condensed consolidated interim financial statements of
DRDGOLD Limited for the six months ended 31 December 2015
have not been reviewed by an independent auditor.
These condensed consolidated interim financial statements for the
six months ended 31 December 2015 have been prepared under
the supervision of DRDGOLD's Chief Financial Officer, Mr AJ Davel
CA(SA). The condensed consolidated interim financial statements
were authorised for issue by the directors on 12 February 2016.
In line with the change in the reporting cycle from quarterly
to bi-annual reporting, management reconsidered the level of
aggregation of financial information to improve alignment with the
bi-annual reporting cycle.
2. CHANGE IN ESTIMATE
The total units of production planned to be mined by Ergo increased
effective on 1 July 2015 under its amended life of mine plan.
As a result, the depreciation recognised for the six months ended
31 December 2015 under the amended life of mine was R17 million
lower in comparison with the previously effective life of mine.
3. CASH AND CASH EQUIVALENTS
Included in cash and cash equivalents is restricted cash of
R14.7 million (30 June 2015: R13.9 million) in the form of guarantees
and R28.9 million (30 June 2015: R11.4 million) relating to cash
held in escrow relating to the electricity dispute with Ekurhuleni
Metropolitan Municipality discussed under Note 5.
4. LOANS AND BORROWINGS
The remaining unsecured notes outstanding as at 30 June 2015
amounting to R22.5 million were redeemed on 3 July 2015.
5. CONTINGENT LIABILITY: EKURHULENI METROPOLITAN
MUNICIPALITY ELECTRICITY DISPUTE
In December 2014, an application (in the South Gauteng High
Court) was filed and served on inter alia the Ekurhuleni Metropolitan
Municipality (Municipality) and Eskom Holdings SOC Limited
(Eskom) in terms of which Ergo Mining Proprietary Limited (Ergo)
contends, amongst other things, that the Municipality does not
"supply" electricity to Ergo from a "supply main" as contemplated in
the Municipality's Electricity By-Laws of 2002. The Municipality is not
licensed to supply electricity to Ergo in terms of the Municipality's
Temporary Distribution Licence. The Municipality is not entitled
to render tax invoices to Ergo for the supply and consumption of
electricity from the substation. The Municipality is furthermore not
competent to add a surcharge or premium of approximately 40%
(forty percent) of the rate at which Eskom ordinarily charges Ergo
on its Megaflex rate. Ergo is not indebted to the Municipality for
the supply and consumption of electricity and is not obliged to
tender payment for any amounts claimed in the invoices rendered
by the Municipality in excess of its actual consumption therefore
as determined by Eskom on a monthly basis. The Municipality is
indebted to Ergo in the amount of approximately R43 million in
respect of the surcharges and premiums that were erroneously paid
to the Municipality in the bona fide and reasonable belief that the
Municipality was competent to supply electricity to it.
Subsequent to December 2014, up to 31 December 2015, the
Municipality has invoiced Ergo for approximately R34.3 million in
surcharges of which R28.9 million has been paid into an attorney's
trust account at 31 December 2015 pending the final determination
of the dispute. A court date has been set for March 2016.
6. ASSETS AND LIABILITIES HELD FOR SALE
All regulatory approvals required for this disposal have now been
obtained, with the exception of the approval required under
Section 11 of the Mineral and Petroleum Resource Development
Act. Management has taken timely action and expects that this last
outstanding regulatory approval will be obtained in due course.
DRDGOLD has received a request from the purchaser to restructure
payment terms. Management will engage with the purchaser in due
course to consider the restructure of payment terms in support of
the timely conclusion of the disposal.
7. SUBSEQUENT EVENTS
A VAT refund of R29.5 million, contrary to the ordinary VAT cycle,
included in Trade and other receivables, was received in January 2016.
8. OPERATING SEGMENTS
The following summary describes the operations in the Group's
reportable operating segment:
- Ergo is a surface retreatment operation and treats old slime and
sand dumps to the south of Johannesburg's central business
district as well as the East and Central Rand goldfields. The
operation comprises four plants. Ergo and Knights continue to
operate as metallurgical plants but Crown and City Deep have
been converted to pump/milling stations.
- Corporate office and other reconciling items are taken into
consideration in the strategic decision-making process of the chief
operating decision-maker (CODM) and are therefore included in
the disclosure here, even though they do not earn revenue. They
do not represent a separate segment.
The reportable segments, as described below, are the Group's strategic divisions. The strategic divisions reflect different
operational locations reported on separately to the executive committee (CODM). The Group's revenue stream consists of the
sale of gold bullion.
Six months to 31 Dec 2015 Six months to 31 Dec 2014
Corporate Corporate
office office
and other and other
reconciling reconciling
Ergo items Total Ergo items Total
R'000 R'000 R'000 R'000 R'000 R'000
Revenue 1 130.6 – 1 130.6 1 015.5 – 1 015.5
Cash operating costs (967.1) – (967.1) (840.5) – (840.5)
Movement in gold in process 2.4 – 2.4 (10.9) – (10.9)
Operating profit 165.9 – 165.9 164.1 – 164.1
Administration expenses and general
costs (2.4) (36.2) (38.6) (1.6) (29.6) (31.2)
Finance income 0.8 8.2 9.0 0.6 5.5 6.1
Finance expenses (2.1) – (2.1) (1.9) (4.4) (6.3)
Retrenchment costs – – – (2.3) (4.0) (6.3)
Income tax (1) (0.6) – (0.6) (0.6) (3.3) (3.9)
Working profit/(loss) before capital
expenditure 161.6 (28.0) 133.6 158.3 (35.8) 122.5
Additions to property, plant and
equipment (60.5) – (60.5) (50.9) (0.1) (51.0)
Additions to listed investments – (1.3) (1.3) – – –
Working profit/(loss) after capital
expenditure and additions 101.1 (29.3) 71.8 107.4 (35.9) 71.5
(1)Income tax excludes deferred tax.
Reconciliation of profit/(loss)
for the period
Working profit/(loss) before capital
expenditure 161.6 (28.0) 133.6 158.3 (35.8) 122.5
– Depreciation (83.7) – (83.7) (88.2) (0.7) (88.9)
– Movement in provision for
environmental rehabilitation (1.1) 0.2 (0.9) (3.2) (0.8) (4.0)
– Impairments – – – – (9.4) (9.4)
– Growth in environmental rehabilitation
trust funds and reimbursive right 5.0 2.1 7.1 4.2 1.6 5.8
– Profit on disposal of property, plant
and equipment 9.0 – 9.0 – 10.8 10.8
– Unwinding of provision for
environmental rehabilitation (20.7) (0.8) (21.5) (18.6) (0.8) (19.4)
– Ongoing rehabilitation expenditure (11.6) (0.4) (12.0) (9.3) – (9.3)
– Other operating income/(costs)
including care and maintenance costs 0.5 (5.7) (5.2) – (7.0) (7.0)
– Deferred tax (7.7) (0.6) (8.3) (4.0) 0.1 (3.9)
Profit/(loss) for the period 51.3 (33.2) 18.1 39.2 (42.0) (2.8)
Operational performance
Ore milled
Metric (000't) 12 835 11 591
Imperial (000't) 14 148 12 775
Yield
Metric (g/t) 0.176 0.196
Imperial (oz/t) 0.005 0.006
Gold produced
Metric (kg) 2 253 2 271
Imperial (oz) 72 436 73 015
Cash operating costs
(R/t) 75 73
(US$/t) 5 6
Six months to 31 Dec 2015 Six months to 31 Dec 2014
Corporate Corporate
office office
and other and other
reconciling reconciling
Ergo items Total Ergo items Total
R'000 R'000 R'000 R'000 R'000 R'000
Reconciliation of all-in sustaining cost
Cash operating costs (967.1) (840.5)
Movement in gold in process 2.4 (10.9)
Administration expenses and general
costs (38.6) (31.2)
Other operating income/(costs)
excluding care and maintenance costs 0.5 –
Movement in provision for
environmental rehabilitation (0.9) (4.0)
Unwinding of provision for
environmental rehabilitation (21.5) (19.4)
Capital expenditure (sustaining) (60.5) (51.0)
All-in sustaining costs (1 085.7) (957.0)
Retrenchment costs – (6.3)
Care and maintenance costs (5.7) (7.0)
Ongoing rehabilitation expenditure (12.0) (9.3)
Capital expenditure (non-sustaining) – 2.8
All in costs (1 103.4) (976.8)
Cash operating costs R per kg 429 271 370 101
Cash operating costs US$ per oz 982 1 048
All-in sustaining costs R per kg 481 878 421 497
All-in sustaining costs US$ per oz 1 104 1 194
All-in cost R per kg 489 721 430 166
All-in cost US$ per oz 1 122 1 218
* 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 2015 and subsequent public announcements. The technical information referred to in this report has been reviewed
by Gary Viljoen (PLATO), an independent contractor of DRDGOLD. He approved this information in writing before the publication of the 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 2015, which we filed with the United States Securities and Exchange Commission on 30 October 2015 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 has not been reviewed and reported on by DRDGOLD's auditors.
RESULTS
The condensed consolidated interim financial statements of DRDGOLD for the six months ended 31 December 2015 are available on the
DRDGOLD website as well as at the Company's Registered Office.
DIRECTORS (*British) (**American)
Executives: DJ Pretorius (Chief Executive Officer), AJ Davel (Chief Financial Officer)
Independent non-executives: GC Campbell* (Non-Executive Chairman), EA Jeneker,
J Turk **, JA Holtzhausen
Company Secretary: TJ Gwebu – resigned effective 31 December 2015
Sponsor: One Capital
FOR FURTHER INFORMATION,
CONTACT NIËL PRETORIUS AT:
Tel: (+27) (0) 11 470 2600
Fax: (+27) (0) 11 470 2618
Website: http://www.drdgold.com
Off Crownwood Road, Crown Mines 2092
PO Box 390, Maraisburg, 1700, South Africa
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