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Exhibit 5
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DURBAN ROODEPOORT DEEP, LIMITED | ||||
![]() | (Incorporated in the Republic of South Africa) Registration No.1895/000926/06 ARBN 086 277616 JSE trading symbol: DUR ISIN Code: ZAE 000015079; Issuer code: DUSM NASDAQ trading symbol: DROOY | ![]() |
REPORT TO SHAREHOLDERS FOR THE 2nd QUARTER ENDED 31 DECEMBER 2002
54% jump in EPS to 12.3 US cents
Record monthly gold production at Blyvoor
US$ 66 million raised through convertible note issue
DRD acquires 14% of Emperor
Project Boost kicks off
| | Quarter Dec 2002 | Quarter Sep 2002 | 6 Months to Dec 2002 | ||||
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Gold production (attributable) | oz kg | 225 241 7 006 | 228 270 7 100 | 453 511 14 106 | ||||
Cash operating costs | US$/oz R/kg | 276 85 642 | 247 82 878 | 262 84 243 | ||||
Earnings (US GAAP) | US$ m R m | 22.5 224.4 | 14.6 149.9 | 37.1 374.3 | ||||
Gold price received | US$/oz R/kg | 321 99 587 | 315 105 586 | 318 102 641 | ||||
Capital expenditure | US$ m R m | 2.7 26.4 | 3.5 35.6 | 6.2 62.0 |
ISSUED CAPITAL | STOCK TRADED | JSE | NASDAQ | FRANKFURT | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
183 511 834 ordinary no par value shares | Ave. volume for the quarter per day (000) | 279 | 3 067 | 151 | |||||||
5 000 000 cumulative preference shares | % of issued stock traded (annualised) | 40 | % | 435 | % | 21 | % | ||||
Price | —High | R 45.00 | USD 4.54 | Euro 4.30 | |||||||
—Low | R 25.80 | USD 2.87 | Euro 3.05 | ||||||||
—Close | R 32.80 | USD 4.05 | Euro 4.03 |
Dear shareholder
From now on, your company will present its quarterly financial results in accordance with the United States Generally Accepted Accounting Practices (US GAAP). The reason being that in excess of 80% of its shareholders are US based; almost the entire recent convertible note issue was taken up by US investors; and this accounting convention requires in certain circumstances a higher level of disclosure than its South African equivalent. An abridged version of the financial statements prepared in accordance with South African Generally Accepted Accounting Practice (SA GAAP) is also enclosed.
Net profit attributable to shareholders increased by 54% to US$ 22.5 million in the quarter ended 31 December 2002 from US$ 14.6 million in the previous quarter. Our average gold price received increased by US$ 6 per ounce to US$ 321 per ounce. DRD, now unhedged, receives the full gold spot price for its production.
Our results were adversely affected by the 7% increase in the value of the rand relative to the US dollar during the quarter. As the majority of the company's cash operating costs are incurred in Rands, these also rose by 7% from US$ 53.3 million to US$ 56.8 million. Attributable gold production was marginally lower at 225 241 ounces.
On November 12, 2002, we raised US$ 66 million through the private placement of 6% Senior Convertible Notes due 2006, with clients of CIBC World Markets. These notes are convertible into ordinary shares of the company, or, under certain conditions, into ADR's, at a conversion price of US$ 3.75 per share.
Overall performance
Blyvoor's expansion programme continues to gather momentum as underground tonnages build up. Record gold production of 22 634 ounces (704 kilograms) was recorded in December. Harties experienced an underground fire and a seismic event in the 5 Shaft pillar. This restricted the amount of higher grade material entering the mill and slowed up the expansion of the Medium Grade areas at 6 Shaft. It has been necessary to address the cost base on the mine and this has been done by closing 7 Shaft gold plant and replacing contractors with our own employees. Available ore in the open pit has declined due to geological factors and this source is now expected to last only until April 2003.
At Tolukuma, stoping began on the newly discovered Tinnabar vein. This has helped supplement immediate reserves available for mining, but the need to access new areas has necessitated increased development rates. Consequently, there has been an adverse, short-term impact on costs. Results from the Kunda vein have been disappointing and the focus has now shifted to deeper drilling of the Miliahamba structure.
Crown Gold Recoveries (Pty) Limited (40% DRD owned and managed)
Crown Gold Recoveries (CGR) is a Black Economic Empowerment company, which owns the Crown tailings retreatment operations and, with effect from 10 October 2002, acquired the contiguous East Rand Proprietary Mines Limited (ERPM) gold mine. The majority shareholder (60%) is Khumo Bathong Holdings.
CGR produced 48 934 ounces (1 522 kilograms) of gold for the quarter but the cost of production was adversely affected by the inclusion of ERPM, which experienced industrial action at the time of the takeover. Costs rose from US$ 210 per ounce last quarter to US$ 278 per ounce. ERPM has been right sized and restructured, and now operates with a workforce of 3 389 employees compared with 5 468 previously. ERPM has raised debt finance of US$12 million from the Industrial Development
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Corporation and has embarked on a capital upgrade programme which will entail investment of US$ 20 million, of which US$ 7 million (R 61 million) will be spent in the March 2003 quarter. This will include reclamation of the Cason Dump, which management estimates will generate an additional 40 000 ounces of gold per year.
Financial
The proceeds from the convertible note issue will be deployed into the Project Boost investments designed to lower costs and increase gold production and into other growth projects. Cash and cash equivalents were US$ 87 million at the end of the period with the current ratio at 200% compared with 93% the previous quarter. Long term loans, excluding the convertible notes reduced by US$ 4.1 million to US$ 10.2 million. Our interest-bearing debt to equity ratio has increased from 27% to 162% due to the convertible note issue, while our interest-bearing debt to capitalisation ratio increased to 10.0%. Fully diluted earnings per share increased by 48% to 11.8 US cents.
Since the quarter-end we have reduced the number of ounces committed to the Eskom gold-related agreement by a further 10% to 290 000 ounces. This is in addition to the calls bought previously. From January 2003 to October 2003 the Eskom position is 100% covered by call options bought. From November 2003 to September 2005, 13% of the positions have been closed out.
Outlook
On 16 December 2002, the company reached agreement to acquire 14% of the issued capital of Emperor Mines in Australia. We have stated that it is our intention to increase this shareholding to 19.9%. Emperor operates the Vatukoula gold mine on the island of Fiji. Gold production was 26 422 ounces for the quarter. Emperor has appointed DRD non-executive director David Baker and myself to its board of directors.
While the rise in the dollar price of gold is most gratifying, the volatility of the rand dollar exchange rate, which has amounted to 40% over the last 12 months has been most unwelcome. The devaluation induced imported cost inflation while the subsequent strength has placed margins under pressure again. Increased exchange rate volatility makes future mine planning uncertain.
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MARK WELLESLEY-WOOD | ||
Chairman and Chief Executive Officer | 30 January 2003 |
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Incorporating the results of all Durban Roodepoort Deep, Limited subsidiaries, including
Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines Limited, West
Witwatersrand Gold Holdings Limited, Crown Consolidated Gold Recoveries Limited
which has a forty per cent interest in Crown Gold Recoveries (Pty) Limited (CGR),
Hartebeestfontein Gold Mine a division of Buffelsfontein Gold Mines Limited,
DRD Australasia and Dome Resources NL
The financial statements below are converted to Generally Accepted Accounting Principles in the United States of America. The accounting policies are, in all material respects, consistent with the annual financial statements for the year ended 30 June 2002.
| (US$ m) | (US$ m) | ||||||
---|---|---|---|---|---|---|---|---|
FINANCIAL RESULTS (Unaudited) | Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | |||||
Revenues | ||||||||
Product sales (Gold revenue) | 65.9 | 67.2 | 133.1 | |||||
Cost and expenses | (58.5 | ) | (54.2 | ) | (112.7 | ) | ||
Cash operating costs | (56.8 | ) | (53.3 | ) | (110.1 | ) | ||
Other cash expenses | (0.9 | ) | (0.8 | ) | (1.7 | ) | ||
Movement in gold in process | (0.5 | ) | 0.1 | (0.4 | ) | |||
Movement in rehabilitation provision | (0.3 | ) | (0.2 | ) | (0.5 | ) | ||
Other operating expenses | ||||||||
Depreciation and amortization | (2.5 | ) | (2.0 | ) | (4.5 | ) | ||
Management and consulting fees | (0.5 | ) | (0.5 | ) | (1.0 | ) | ||
Profit/(loss) on financial instruments | 27.6 | (3.0 | ) | 24.6 | ||||
Profit on sale of investments | 0.2 | 8.1 | 8.3 | |||||
Administration and general charges | (2.2 | ) | (1.5 | ) | (3.7 | ) | ||
Stock based compensation costs | (1.0 | ) | (0.9 | ) | (1.9 | ) | ||
Administration and general charges | (1.2 | ) | (0.6 | ) | (1.8 | ) | ||
Net operating income | 30.0 | 14.1 | 44.1 | |||||
Investment income | 2.3 | 1.1 | 3.4 | |||||
Other income | 0.5 | 0.6 | 1.1 | |||||
Finance cost | ||||||||
Interest expense | (1.0 | ) | (0.1 | ) | (1.1 | ) | ||
Profit before taxation | 31.8 | 15.7 | 47.5 | |||||
Income from associate | (0.3 | ) | 0.8 | 0.5 | ||||
Income and mining tax benefit/(charge) | 0.5 | (0.5 | ) | — | ||||
Deferred income and mining tax charge | (9.5 | ) | (1.4 | ) | (10.9 | ) | ||
Net profit applicable to stockholders | 22.5 | 14.6 | 37.1 | |||||
Basic earnings per share (cents) | 12.3 | 8.0 | 20.3 | |||||
Diluted earnings per share (cents) | 11.8 | 7.9 | 19.2 |
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CHANGES IN SHAREHOLDER'S EQUITY
| (US$ m) | (US$ m) | ||||||
---|---|---|---|---|---|---|---|---|
| Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | |||||
Shareholder's equity at the beginning of the period | 11.1 | (11.2 | ) | (11.2 | ) | |||
Share capital issued | 1.6 | 8.3 | 9.9 | |||||
—for cash | — | 6.7 | 6.7 | |||||
—for share options exercised | 0.6 | 0.7 | 1.3 | |||||
—for stock based compensation | 1.0 | 0.9 | 1.9 | |||||
Movement in retained income | 30.2 | 14.0 | 44.2 | |||||
—profit applicable to shareholders | 22.5 | 14.6 | 37.1 | |||||
—mark-to-market on investments | — | 0.1 | 0.1 | |||||
—currency adjustments and other | 7.7 | (0.7 | ) | 7.0 | ||||
Shareholder's equity at the end of the period | 42.9 | 11.1 | 42.9 | |||||
| (US$ m) | (US$ m) | |||||
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ABRIDGED (Unaudited) | Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | ||||
Cash flow from operating activities | (5.5 | ) | 15.8 | 10.3 | |||
Cash flow from investing activities | (2.4 | ) | (4.1 | ) | (6.5 | ) | |
Cash flow from financing activities | 64.0 | (8.8 | ) | 55.2 | |||
Net increase in cash and equivalents | 56.1 | 2.9 | 59.0 | ||||
Effect of exchange rate changes on cash | 6.3 | (0.5 | ) | 5.8 | |||
Cash and equivalents at beginning of period | 24.6 | 22.2 | 22.2 | ||||
Cash and equivalents at end of period | 87.0 | 24.6 | 87.0 | ||||
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| (US$ m) | ||||
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ABRIDGED (Unaudited) | Quarter Dec 2002 | Quarter Sep 2002 | |||
ASSETS | |||||
Current assets | 116.4 | 40.4 | |||
Cash and equivalents | 87.0 | 24.6 | |||
Receivables | 21.1 | 8.4 | |||
Inventories | 8.3 | 7.4 | |||
Mining assets | 78.7 | 65.0 | |||
Cost | 332.4 | 270.7 | |||
Accumulated depreciation & amortization | (253.7 | ) | (205.7 | ) | |
Other assets | 93.2 | 85.4 | |||
Deferred income and mining taxes | 66.9 | 64.1 | |||
Non-current assets | 26.3 | 21.3 | |||
Total assets | 288.3 | 190.8 | |||
LIABILITIES & STOCKHOLDERS' EQUITY | |||||
Current liabilities | 58.1 | 43.4 | |||
Bank overdraft | — | 0.1 | |||
Accounts payable and accrued liabilities | 42.7 | 34.3 | |||
Short term portion of long term loans | 15.0 | 8.1 | |||
Income and mining taxes | 0.4 | 0.9 | |||
Long term loans | 10.2 | 14.3 | |||
Convertible loan note | 63.4 | — | |||
Deferred income and mining taxes | 31.5 | 26.1 | |||
Deferred financial liability | 61.9 | 79.3 | |||
Provision-environmental rehabilitation | 20.3 | 16.6 | |||
Stockholders' equity | 42.9 | 11.1 | |||
Authorised | |||||
300,000,000 ordinary no par value shares | |||||
5,000,000 cumulative preference shares | |||||
Issued | |||||
183,511,834 ordinary no par value shares | |||||
5,000,000 cumulative preference shares | |||||
Stated capital | 359.6 | 359.0 | |||
Additional paid in capital | 35.3 | 34.3 | |||
Cumulative preference shares | 0.1 | 0.1 | |||
Accumulated loss | (304.9 | ) | (327.4 | ) | |
Other comprehensive income | (47.2 | ) | (54.9 | ) | |
Total liabilities & stockholders' equity | 288.3 | 190.8 | |||
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CURRENCY | | | | |||
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Balance Sheet: | 31-Dec-02 | US$1 = | R 8.6585 | |||
Income Statement: | Oct-02 | US$1 = | R 10.3601 | |||
Nov-02 | US$1 = | R 9.6908 | ||||
Dec-02 | US$1 = | R 8.9749 |
The following summary provides information in respect of the Durban Roodepoort Deep (1996) Option Scheme as at 31 December 2002:
Number of options granted: | 5 373 581 | |||
Number of options currently exercisable: | 1 173 208 |
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Incorporating the results of all Durban Roodepoort Deep, Limited subsidiaries, including Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines Limited, West Witwatersrand Gold Holdings Limited, Crown Consolidated Gold Recoveries Limited which has a forty per cent interest in Crown Gold Recoveries (Pty) Limited (CGR), Hartebeestfontein Gold Mine a division of Buffelsfontein Gold Mines Limited, DRD Australasia and Dome Resources NL
The financial statements below are converted to Generally Accepted Accounting Principles in the United States of America. The accounting policies are, in all material respects, consistent with the annual financial statements for the year ended 30 June 2002.
GROUP INCOME STATEMENTS
| (R m) | (R m) | ||||||
---|---|---|---|---|---|---|---|---|
FINANCIAL RESULTS (Unaudited) | Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | |||||
Revenues | ||||||||
Product sales (Gold revenue) | 637.0 | 700.7 | 1 337.7 | |||||
Cost and expenses | (565.4 | ) | (564.8 | ) | (1 130.2 | ) | ||
Cash operating costs | (549.2 | ) | (555.0 | ) | (1 104.2 | ) | ||
Other cash expenses | (9.5 | ) | (8.0 | ) | (17.5 | ) | ||
Movement in gold in process | (4.1 | ) | 0.7 | (3.4 | ) | |||
Movement in rehabilitation provision | (2.6 | ) | (2.5 | ) | (5.1 | ) | ||
Other operating expenses | ||||||||
Depreciation and amortization | (22.5 | ) | (21.6 | ) | (44.1 | ) | ||
Employment termination costs | — | (0.3 | ) | (0.3 | ) | |||
Management and consulting fees | (4.9 | ) | (4.8 | ) | (9.7 | ) | ||
Profit/(loss) on financial instruments | 274.9 | (34.7 | ) | 240.2 | ||||
Profit on sale of investments | 2.3 | 86.4 | 88.7 | |||||
Administration and general charges | (21.5 | ) | (15.6 | ) | (37.1 | ) | ||
Stock based compensation costs | (9.7 | ) | (9.6 | ) | (19.3 | ) | ||
Administration and general charges | (11.8 | ) | (6.0 | ) | (17.8 | ) | ||
Net operating income | 299.9 | 145.3 | 445.2 | |||||
Investment income | 21.3 | 12.6 | 33.9 | |||||
Other income | 4.7 | 5.6 | 10.3 | |||||
Finance cost | ||||||||
Interest expense | (9.2 | ) | (1.5 | ) | (10.7 | ) | ||
Profit before taxation | 316.7 | 162.0 | 478.7 | |||||
Income from associate | (2.5 | ) | 8.0 | 5.5 | ||||
Income and mining tax benefit/(charge) | 5.0 | (5.2 | ) | (0.2 | ) | |||
Deferred income and mining tax charge | (94.8 | ) | (14.9 | ) | (109.7 | ) | ||
Net profit applicable to stockholders | 224.4 | 149.9 | 374.3 | |||||
Basic earnings per share (cents) | 122.5 | 82.2 | 204.9 | |||||
Diluted earnings per share (cents) | 117.4 | 80.4 | 193.9 |
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CHANGES IN SHAREHOLDER'S EQUITY
| (R m) | (R m) | ||||||
---|---|---|---|---|---|---|---|---|
| Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | |||||
Shareholder's equity at the beginning of the period | 116.8 | (118.1 | ) | (118.1 | ) | |||
Share capital issued | 15.5 | 84.3 | 99.8 | |||||
—for cash | — | 68.0 | 68.0 | |||||
—for share options exercised | 5.8 | 6.7 | 12.5 | |||||
—for stock based compensation | 9.7 | 9.6 | 19.3 | |||||
Movement in retained income | 239.5 | 150.6 | 390.1 | |||||
—profit applicable to shareholders | 224.4 | 149.9 | 374.3 | |||||
—mark-to-market on investments | 0.2 | 0.6 | 0.8 | |||||
—currency adjustments and other | 14.9 | 0.1 | 15.0 | |||||
Shareholder's equity at the end of period | 371.8 | 116.8 | 371.8 | |||||
GROUP CASH FLOW STATEMENTS
| (R m) | (R m) | |||||
---|---|---|---|---|---|---|---|
ABRIDGED (Unaudited) | Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | ||||
Cash flow from operating activities | (53.2 | ) | 165.1 | 111.9 | |||
Cash flow from investing activities | (23.7 | ) | (42.3 | ) | (66.0 | ) | |
Cash flow from financing activities | 619.5 | (91.3 | ) | 528.2 | |||
Net increase in cash and equivalents | 542.6 | 31.5 | 574.1 | ||||
Effect of exchange rate changes on cash | (48.9 | ) | (2.6 | ) | (51.5 | ) | |
Cash and equivalents at beginning of period | 259.3 | 230.4 | 230.4 | ||||
Cash and equivalents at end of period | 753.0 | 259.3 | 753.0 | ||||
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GROUP BALANCE SHEETS
| (R m) | ||||
---|---|---|---|---|---|
ABRIDGED (Unaudited) | Quarter Dec 2002 | Quarter Sep 2002 | |||
ASSETS | |||||
Current assets | 1 007.4 | 426.3 | |||
Cash and equivalents | 753.0 | 259.3 | |||
Receivables | 182.4 | 88.4 | |||
Inventories | 72.0 | 78.6 | |||
Mining assets | 683.2 | 686.1 | |||
Cost | 2 878.6 | 2 858.8 | |||
Accumulated depreciation & amortization | (2 195.4 | ) | (2 172.7 | ) | |
Other assets | 806.6 | 902.4 | |||
Deferred income and mining taxes | 579.2 | 677.0 | |||
Non-current assets | 227.4 | 225.4 | |||
Total assets | 2 497.2 | 2 014.8 | |||
LIABILITIES & STOCKHOLDERS' EQUITY | |||||
Current liabilities | 503.4 | 458.2 | |||
Bank overdraft | — | 0.6 | |||
Accounts payable and accrued liabilities | 369.9 | 363.0 | |||
Short term portion of long term loans | 130.2 | 85.5 | |||
Income and mining taxes | 3.3 | 9.1 | |||
Long term loans | 88.2 | 151.5 | |||
Convertible loan note | 549.2 | — | |||
Deferred income and mining taxes | 272.7 | 275.2 | |||
Deferred financial liability | 535.8 | 838.3 | |||
Provision-environmental rehabilitation | 176.1 | 174.8 | |||
Stockholders' equity | 371.8 | 116.8 | |||
Authorised | |||||
300 000 000 ordinary no par value shares | |||||
5 000 000 cumulative preference shares | |||||
Issued | |||||
183 511 834 ordinary no par value shares | |||||
5 000 000 cumulative preference shares | |||||
Stated capital | 2 194.7 | 2 188.9 | |||
Additional paid in capital | 67.0 | 57.3 | |||
Cumulative preference shares | 0.5 | 0.5 | |||
Accumulated loss | (1 937.7 | ) | (2 162.1 | ) | |
Other comprehensive income | 47.3 | 32.2 | |||
Total liabilities & stockholders' equity | 2 497.2 | 2 014.8 |
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US/SA GAAP RECONCILIATION
| (R m) | | ||||
---|---|---|---|---|---|---|
Reconcilliation of net profit to SA GAAP | Quarter Dec 2002 | Quarter Sep 2002 | ||||
Net profit determined under US GAAP | 224.4 | 149.9 | ||||
Adjusted for: | ||||||
Financial instruments | (322.3 | ) | 8.1 | |||
Accounting for business combinations | 0.3 | 0.4 | ||||
Stock based compensation costs | 9.7 | 9.6 | ||||
Other | 0.4 | (3.8 | ) | |||
Deferred taxation on adjustments | 90.7 | (2.3 | ) | |||
Effect of US GAAP adjustments | (221.2 | ) | 12.0 | |||
Net profit determined under SA GAAP | 3.2 | 161.9 | ||||
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Incorporating the results of all Durban Roodepoort Deep, Limited subsidiaries, including Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines Limited, West Witwatersrand Gold Holdings Limited, Crown Consolidated Gold Recoveries Limited which has a forty per cent interest in Crown Gold Recoveries (Pty) Limited (CGR), Hartebeestfontein Gold Mine a division of Buffelsfontein Gold Mines Limited, DRD Australasia and Dome Resources NL
The financial statements below are prepared on the historical cost basis and in accordance with South African Statements of Generally Accepted Accounting Practice. The accounting policies are, in all material respects, consistent with the annual financial statements for the year ended 30 June 2002.
ABRIDGED GROUP INCOME STATEMENTS
| (R m) | (R m) | ||||
---|---|---|---|---|---|---|
FINANCIAL RESULTS | Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | |||
| (Unaudited) | |||||
Cash operating profit | 39.1 | 118.0 | 157.1 | |||
Cash profit from operations | 17.8 | 104.8 | 122.6 | |||
Net cash operating profit | 27.6 | 123.6 | 151.2 | |||
Headline (loss)/profit | (1.9 | ) | 82.1 | 80.2 | ||
Net profit | 3.2 | 161.9 | 165.1 | |||
Headline (loss)/earnings per share—cents | (1.2 | ) | 45.1 | 43.9 | ||
Basic earnings per share—cents | 1.8 | 88.8 | 90.6 | |||
Calculated on the weighted average ordinary shares issued | 183 177 297 | 182 236 525 | 182 706 911 | |||
Diluted earnings per share—cents | 1.7 | 86.9 | 87.0 |
CHANGES IN SHAREHOLDER'S EQUITY
| (R m) | (R m) | |||||
---|---|---|---|---|---|---|---|
| Quarter Dec 2002 | Quarter Sep 2002 | 6 months to Dec 2002 | ||||
| (Unaudited) | ||||||
Shareholder's interest at the beginning of the period | 674.6 | 438.0 | 438.0 | ||||
Share capital issued | 162.6 | 74.7 | 237.3 | ||||
—for cash | — | 68.0 | 68.0 | ||||
—for share options exercised | 5.8 | 6.7 | 12.5 | ||||
—for equity portion of convertible note | 156.8 | — | 156.8 | ||||
Movement in retained income | 18.2 | 161.9 | 180.1 | ||||
Shareholder's interest at the end of the period | 855.4 | 674.6 | 855.4 | ||||
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| (R m) | |||
---|---|---|---|---|
| Quarter Dec 2002 | Quarter Sep 2002 | ||
| (Unaudited) | |||
Employment of Capital | ||||
Net mining assets | 653.8 | 656.2 | ||
Cash and equivalents | 753.0 | 259.3 | ||
Other non-current assets | 227.4 | 225.4 | ||
Deferred mining and income taxes | 214.7 | 221.8 | ||
Current assets | 254.4 | 167.0 | ||
2 103.3 | 1 529.7 | |||
Capital employed | ||||
Shareholders' equity | 855.4 | 674.6 | ||
Borrowings | 500.3 | 151.5 | ||
Rehabilitation | 176.1 | 174.8 | ||
Deferred mining and income taxes | 68.2 | 70.6 | ||
Other non-current liabilities | 88.5 | 94.3 | ||
Current liabilities | 414.8 | 363.9 | ||
2 103.3 | 1 529.7 | |||
| (R m) | ||||
---|---|---|---|---|---|
| Quarter Dec 2002 | Quarter Sep 2002 | |||
| (Unaudited) | ||||
Cash flow from operating activities | (53.2 | ) | 165.1 | ||
Cash flow from investing activities | (23.7 | ) | (42.3 | ) | |
Cash flow from financing activities | 619.5 | (91.3 | ) | ||
Increase in cash and equivalents | 542.6 | 31.5 | |||
Translation adjustment | (48.9 | ) | (2.6 | ) | |
Opening cash and equivalents | 259.3 | 230.4 | |||
Closing cash and equivalents | 753.0 | 259.3 | |||
DRD's growth strategy is focusing on four principal areas of internal growth based on enhancing value of existing assets, a new emphasis on brownfields exploration in the Carletonville and Klerksdorp areas, consolidation of the DRD position in Australasia and a continued perusal of potential strategic acquisitions in South Africa. In addition to these, is the further progression of the Argonaut Project and a reactive approach to other growth opportunities.
Further value will be obtained at the DRD operations from, lowering unit costs, ensuring consistent production, reducing operational risk and increasing reserves available for mining. Each Boost project will implement the strategy within a defined framework for action and funding utilising the resources allocated on an interdisciplinary team basis. Major Boost projects will be implemented in this quarter. The total amount to be invested in these projects is US$ 68 million (R 590 million).
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For further information, contact Ilja Graulich at: | Tel: (+27-11) 381-7800, Fax: (+27-11) 482-4641, e-mail: graulich@drd.co.za, web site: http://www.durbans.com 45 Empire Road, Parktown, South Africa. | |
P O Box 390, Maraisburg 1700, South Africa. |
DIRECTORS — (*British)(**Australian)
Executives: | MM Wellesley-Wood (Chairman and Chief Executive Officer)* IL Murray (Chief Financial Officer) FH Coetzee (Chief Operations Officer) | |
Non-executives: | MP Ncholo; RP Hume; GC Campbell*; DC Baker** | |
Group Company Secretary: | MA Eloff |
ADDRESS DETAILS
REGISTERED OFFICE:
45 Empire Road, Parktown, South Africa,
PO Box 390,
Maraisburg 1700, South Africa
SHARE TRANSFER SECRETARIES:
Ultra Registrars (Pty) Ltd,
PO Box 4844,
Johannesburg 2000, South Africa
UNITED KINGDOM REGISTRARS:
St. James' Corporate Services Ltd,
6 St. James' Place,
London SW IA INP
DEPOSITORY BANK:
American Depository Receipts,
The Bank of New York,
Shareholders Relations Department,
101 Barclay Street, New York, NY 10296
14
KEY OPERATING AND FINANCIAL RESULTS
| | Crown Gold Recoveries | | Blyvoor | North West | | | | | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
US$/Imperial | Quarter | Crown Section | ERPM Section | Attributable to DRD (40% of CGR) | Under- ground | Surface | Under- ground | Surface | Open-pit | Tolukuma | Total continuing operations | Dis- continuing operation # | Total DRD attributable | |||||||||||||
Ore milled—t'000 | Dec 02 | 2 890 | 102 | 1 197 | 256 | 446 | 740 | 1 141 | 167 | 40 | 3 987 | 130 | 4 117 | |||||||||||||
Sep 02 | 3 101 | — | 1 240 | 234 | 470 | 728 | 1 211 | 231 | 38 | 4 152 | 735 | 4 887 | ||||||||||||||
Gold produced—ounces | Dec 02 | 36 588 | 12 346 | 19 574 | 51 248 | 11 896 | 103 139 | 16 590 | 4 854 | 15 754 | 223 055 | 2 186 | 225 241 | |||||||||||||
Sep 02 | 37 295 | — | 14 918 | 51 698 | 11 188 | 108 958 | 15 658 | 6 366 | 14 726 | 223 512 | 4 758 | 228 270 | ||||||||||||||
Yield—ounces per ton | Dec 02 | 0.013 | 0.121 | 0.016 | 0.200 | 0.027 | 0.139 | 0.015 | 0.029 | 0.394 | 0.056 | 0.017 | 0.055 | |||||||||||||
Sep 02 | 0.012 | — | 0.012 | 0.221 | 0.024 | 0.150 | 0.013 | 0.028 | 0.388 | 0.054 | 0.006 | 0.047 | ||||||||||||||
Cash operating cost—US$/oz | Dec 02 | 229 | 423 | na | 252 | 197 | 302 | 195 | 348 | 307 | 276 | 322 | 276 | |||||||||||||
Sep 02 | 210 | — | na | 223 | 198 | 268 | 207 | 208 | 279 | 247 | 348 | 250 | ||||||||||||||
Cash operating cost—US$/ton | Dec 02 | 3 | 51 | na | 50 | 5 | 42 | 3 | 10 | 121 | 20 | 5 | 19 | |||||||||||||
Sep 02 | 3 | — | na | 49 | 5 | 40 | 3 | 6 | 108 | 18 | 2 | 15 | ||||||||||||||
Cash operating profit—US$m | Dec 02 | 3.3 | (1.2 | ) | na | 3.4 | 1.4 | 1.7 | 2.0 | (0.2 | ) | 0.8 | 9.1 | — | 9.1 | |||||||||||
Sep 02 | 4.0 | — | na | 4.8 | 1.3 | 5.1 | 1.7 | 0.7 | 0.4 | 14.0 | (0.1 | ) | 13.9 |
| | Crown Gold Recoveries | | Blyvoor | North West | | | | | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZAR/Metric | Quarter | Crown Section | ERPM Section | Attributable to DRD (40% of CGR) | Under- ground | Surface | Under- ground | Surface | Open-pit | Tolukuma Under- ground | Total continuing operations | Dis- continuing operation # | Total DRD attributable | |||||||||||||
Ore milled—t'000 | Dec 02 | 2 621 | 92 | 1 085 | 232 | 405 | 671 | 1 035 | 152 | 37 | 3 617 | 118 | 3 735 | |||||||||||||
Sep 02 | 2 813 | — | 1 125 | 213 | 426 | 661 | 1 099 | 209 | 35 | 3 768 | 667 | 4 435 | ||||||||||||||
Gold produced—kg | Dec 02 | 1 138 | 384 | 609 | 1 594 | 370 | 3 208 | 516 | 151 | 490 | 6 938 | 68 | 7 006 | |||||||||||||
Sep 02 | 1 160 | — | 464 | 1 608 | 348 | 3 389 | 487 | 198 | 458 | 6 952 | 148 | 7 100 | ||||||||||||||
Yield—g/tonne | Dec 02 | 0.43 | 4.17 | 0.56 | 6.87 | 0.91 | 4.78 | 0.50 | 0.99 | 13.24 | 1.92 | 0.58 | 1.88 | |||||||||||||
Sep 02 | 0.41 | — | 0.41 | 7.55 | 0.82 | 5.13 | 0.44 | 0.95 | 13.09 | 1.85 | 0.22 | 1.60 | ||||||||||||||
Cash operating cost—R/kg | Dec 02 | 71 027 | 126 737 | na | 78 047 | 61 143 | 93 769 | 60 479 | 107 894 | 95 280 | 85 642 | 105 191 | 85 850 | |||||||||||||
Sep 02 | 70 506 | — | na | 74 646 | 66 345 | 89 747 | 69 154 | 69 955 | 93 699 | 82 878 | 116 878 | 83 636 | ||||||||||||||
Cash operating cost—R/tonne | Dec 02 | 31 | 529 | na | 536 | 56 | 448 | 30 | 107 | 1 262 | 210 | 61 | 207 | |||||||||||||
Sep 02 | 29 | — | na | 564 | 54 | 460 | 31 | 66 | 1 226 | 203 | 26 | 168 | ||||||||||||||
Cash operating profit—R m | Dec 02 | 31.8 | (11.5 | ) | na | 32.7 | 13.8 | 15.8 | 19.7 | (1.4 | ) | 7.5 | 88.1 | (0.3 | ) | 87.8 | ||||||||||
Sep 02 | 41.3 | — | na | 50.0 | 13.7 | 54.5 | 17.9 | 7.1 | 4.0 | 147.2 | (1.5 | ) | 145.7 |
# West Witwatersand Gold Mine
| | Crown Section | ERPM Section | Blyvoor | North West | Tolukuma | Total DRD | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Capital Expenditure | Quarter | US$ m | R m | US$ m | R m | US$ m | R m | US$ m | R m | US$ m | R m | US$ m | R m | |||||||||||||
Net Outflow | Dec 02 | 1.3 | 12.7 | 1.1 | 10.3 | 1.0 | 10.3 | 1.3 | 13.1 | 0.3 | 2.8 | 2.7 | 26.4 | |||||||||||||
Sep 02 | 0.8 | 8.4 | — | — | 0.8 | 8.0 | 2.4 | 24.7 | 0.3 | 2.9 | 3.5 | 35.6 | ||||||||||||||
Forecast | Mar 03 | 0.7 | 6.3 | 7.0 | 61.0 | 1.0 | 8.7 | 0.9 | 7.4 | 1.3 | 11.4 | 3.2 | 27.5 |
15
REPORT TO SHAREHOLDERS FOR THE 2nd QUARTER ENDED 31 DECEMBER 2002
Group Results Highlights
Key Operating Results
Stock
LETTER TO SHAREHOLDERS
GROUP INCOME STATEMENTS
CHANGES IN SHAREHOLDER'S EQUITY
GROUP CASH FLOW STATEMENTS
GROUP BALANCE SHEETS
CONVERSION FACTORS
SHARE OPTION SCHEME
ABRIDGED GROUP INCOME STATEMENTS
CHANGES IN SHAREHOLDER'S EQUITY
ABRIDGED GROUP BALANCE SHEETS
GROUP CASH FLOW STATEMENTS
PROJECT BOOST
INVESTOR RELATIONS
DIRECTORS — (*British)(**Australian)
KEY OPERATING AND FINANCIAL RESULTS