Wrap Text
Operating update for the quarter ended 31 March 2019
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ISIN: ZAE000058723
JSE share code: DRD
NYSE trading symbol: DRD
(“DRDGOLD” or the “Company”)
OPERATING UPDATE FOR THE QUARTER ENDED 31 MARCH 2019
The operating update of the Company for the quarter ended 31 March 2019 is as follows:
31-Mar-19 31-Dec-18 % change
Production
Gold produced (1) kg 1,279 1,111 15%
oz 41,120 35,732 15%
Gold sold (2) kg 1,250 1,137 10%
oz 40,189 36,556 10%
Ore milled Metric (000't) 6,373 5,755 11%
Yield Metric (g/t) 0.201 0.193 4%
(1) Gold produced includes 149kg (4,790oz) from the Far West Gold Recoveries (“FWGR”) project
that was capitalised in accordance with International Financial Reporting Standards ("IFRS").
(2) Gold sold includes 131kg (4,212oz) from the FWGR project that was capitalised in accordance
with IFRS.
Price and costs
Average gold price received R per kg 588,025 564,218 4%
US$ per oz 1,306 1,227 6%
Adjusted EBITDA * Rm 58.3 29.2 100%
US$m 4.1 2.0 105%
Cash operating costs R/t 100 101 -1%
US$/t 7 7 -
Cash operating costs R per kg 509,205 510,245 -
US$ per oz 1,131 1,110 2%
All-in sustaining costs ** R per kg 547,274 560,512 -2%
US$ per oz 1,215 1,219 -
All-in cost ** R per kg 563,539 732,394 -23%
US$ per oz 1,251 1,593 -21%
Capital expenditure
Sustaining Rm 3.0 9.8 -69%
US$m 0.2 0.7 -71%
Non-sustaining/growth Rm 11.5 188.4 -94%
US$m 0.8 13.2 -94%
Average R/US$ exchange rate 14.01 14.30 -2%
Rounding of figures may result in computational discrepancies
* The adjusted earnings before interest, taxes, depreciation and amortisation ("EBITDA") is based on the definitions in
DRDGOLD´s revolving credit facility agreements. Adjusted EBITDA is not an IFRS measure and is provided for illustrative
purposes only and because of its nature, it may not fairly present the Company´s results of operations.
** All-in cost definitions based on the guidance note on non-GAAP Metrics issued by the World Gold Council on 27 June
2013.
Gold production increased by 15% quarter on quarter primarily due to an 11% increase in tonnage throughput
as the FWGR project ramps up towards the planned throughput of 500 000tpm from Phase 1. Final
commissioning of Phase 1 is expected to be completed before the end of the current financial year.
Overall yield increased by 4% compared to the previous quarter due to higher grade material being processed
at FWGR, as well as improved yield at Ergo Mining Proprietary Limited.
The increase in adjusted EBITDA for the quarter was mainly due to the 4% increase in gold price received
coupled with stable cash operating unit costs compared to the previous quarter – in terms of both per ton of
material processed and per kilogram of gold sold.
The adjusted EBITDA for the quarter does not reflect the revenues and production costs of the FWGR project.
These are included in the capital expenditure of the project until final commissioning is completed.
All-in costs per kilogram include growth capital expenditure incurred. All-in costs per kilogram for the quarter
were lower due to the growth capital expenditure related to the FWGR project being largely incurred as at 31
December 2018.
Cash and cash equivalents decreased from R 209.4 million as at 31 December 2018 to R 169.0 million as at
31 March 2019 while external borrowings decreased from R 173.3 million as at 31 December 2018 to R 17.0
million as at 31 March 2019.
The information contained in this announcement does not constitute an earnings forecast. The financial
information provided is the responsibility of the directors of DRDGOLD, and such information has not been
reviewed or reported on by the Company’s auditors.
Johannesburg
7 May 2019
Sponsor
One Capital
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