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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 4th QUARTER AND YEAR ENDED 30 JUNE 2003
Group Results
Highlights
Record production (21 219 ounces) and profits at Tolukuma
Cash costs down 1.2% in Rand unit terms
Rationalisation of North West Operations
Inclusion into XAU Index
| | Quarter June 2003 | Quarter Mar 2003 | 12 months Jun 2003 | ||||
---|---|---|---|---|---|---|---|---|
Gold production (attributable) | oz | 207,725 | 208,999 | 870,235 | ||||
kg | 6,461 | 6,501 | 27,067 | |||||
Cash operating costs | US$/oz | 352 | 329 | 299 | ||||
R/kg | 87,368 | 88,409 | 85,960 | |||||
Net earnings (US GAAP) | US$m | 0.7 | 3.2 | 41.0 | ||||
R m | 9.9 | 24.3 | 408.5 | |||||
Gold price received | US$/oz | 348 | 348 | 332 | ||||
R/kg | 86,348 | 93,734 | 96,714 | |||||
Capital expenditure | US$m | 3.3 | 2.0 | 11.5 | ||||
R m | 24.9 | 17.7 | 104.6 |
STOCK ISSUED CAPITAL | STOCK TRADED | JSE | FRANKFURT | NASDAQ | |||||
---|---|---|---|---|---|---|---|---|---|
184,222,073 ordinary no par value shares | Ave. volume for the quarter per day (000) | 181 | 2,160 | 96 | |||||
5,000,000 cumulative preference shares | % of issued stock traded (annualised) | 26 | % | 306 | % | 14 | % |
Price | — | High | R23.75 USD 2.93 Euro 2.56 | |||||
— | Low | R15.60 USD 2.18 Euro 1.94 | ||||||
— | Close | R19.30 USD 2.52 Euro 2.24 |
ADDRESS DETAILS
REGISTERED OFFICE: | SHARE TRANSFER SECRETARIES: | |
---|---|---|
45 Empire Road, Parktown, | Ultra Registrars (Pty) Ltd, | |
South Africa | PO Box 4844, | |
PO Box 390, | Johannesburg 2000, | |
Maraisburg 1700, | South Africa | |
South Africa |
UNITED KINGDOM REGISTRARS: | DEPOSITORY BANK: | |
---|---|---|
St. James' Corporate Services Ltd, | American Depository Receipts, | |
6 St. James' Place, | The Bank of New York, | |
London | Shareholders Relations Department, | |
SW 1A 1NP | 101 Barclay Street, New York, NY 10296 |
FORWARD LOOKING STATEMENTS
Some of the information in this voluntary announcement, contain projections or other forward looking statements regarding future events or other future performance. We wish to caution you that these statements are only projections and those actual events or results may differ materially due to such risks as difficulties in being a marginal producer of gold, changes and reliability of ore reserve estimates, gold price volatility, currency fluctuations and mining risks. We undertake no obligation to publicly release results of any of these forward looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.
LETTER TO SHAREHOLDERS
Dear shareholder
While the US Dollar gold price remained constant during the quarter, the South African Rand strengthened by 7%, to an average R7.73 to the US Dollar, leading to a corresponding 8% drop in the Rand gold price received. Consequently, revenue of slightly more than R42 million was forsaken. Gold production from operations was virtually unchanged, the slight fall recorded arising from poorer surface grades. Cash costs in absolute terms were reduced by R12.2 million and in unit terms by 1.2%, but the strength of the Rand took the cost per ounce in US Dollar terms to US$352 per ounce, which is above the current gold price. This situation is unacceptable and, as a result, we have issued a 60-day notice—as required under the Labour Relations Act—to all unions and associations representing the 13 000 employees, including contractors, at our North West Operations (Hartebeestfontein and Buffelsfontein mines) that the future of these operations is under review.
Overall Performance
Production at Blyvooruitzicht was affected by a blocked ore pass in the 1A Sub Shaft and poorer grades from the operation's surface sources. While approximately 20 000 tonnes of ore are locked up underground due to the ore pass problem, it is expected that the contained gold will be recovered this quarter. Lower surface grades are likely to continue to December 2003, at which time feed from the higher grade Slimes Dam Project will replace current sources.
2
Our North West Operations have been the subject of considerable management attention over the past three months. Measures taken have included: a synergy exercise with Blyvoor in respect of sharing services; a reduction in overhead; a re-evaluation of the plant configuration; the removal of some 3 000 contract workers; a renewed focus on grade control; and opening up new blocks of ground. However, surface sources have been rendered uneconomical by the current Rand gold price and plans to upgrade the South Shaft plant to treat all feedstock have been shelved, pending the outcome of the 60-day review referred to above.
Tolukuma has now established itself as a consistent gold producer, with ore production now derived from at least six vein sources. Grades continue to improve due to mining of the high grade Tinnabar vein (100 000 ounces in reserves and resources) and the discovery of the Zine vein on surface. The latter, as well as the Miliahamba Deeps, will be drilled for strike extension this quarter. Recent studies, including those conducted by government agencies, have established that the mine meets and exceeds all government compliance requirements. A number of community programmes have also been initiated.
DRD has a 40% stake in the Crown Gold Recoveries JV with Khumo Bathong Holdings (Pty) Ltd and manages the ERPM mine and Crown surface retreatment operation on behalf of the JV. ERPM has recovered from the fire in February 2003 and the production build-up is on track. Crown has secured funding of US$22 million (R170 million) from the Industrial Development Corporation, which will be applied to reducing ERPM's pumping costs and retreating the Cason Dump. The latter is expected to yield 30 000 ounces of gold production annually over 7 years.
Group capital expenditure for the quarter was a record US$5.2 million (R40.6 million) excluding recoupments, but all capex programmes are now under review due to the low Rand gold price.
Ore Reserves
At the year end, DRD had audited proven and probable ore reserves of 129.4 million tonnes at an average grade of 3.81 grams per tonne, containing 15.8 million ounces of gold. The life of our North West Operations is 16 years and of Blyvoor, 21 years. Work on the Argonaut project involved expenditure of R0.3 million in the quarter but spending on this programme has been curtailed in view of the Rand's strength.
Financial
Earnings for the quarter decreased from US$3.2 million the previous quarter to US$0.7 million. The net operating loss was US$12.2 million after allowing for increased depreciation and a US$12.5 million write down on assets and investments. Shareholders' equity increased to US$53.2 million. Cash and equivalents stood at US$45.7 million, largely representing the unexpended balance of the convertible note proceeds.
Shareholder Value Recovery Programme
The company is pursuing litigation against various parties, including certain former directors and officers, for recovery of lost shareholder value. During the quarter, we successfully overturned an ex-parte Anton Pillar order against the company and our claim for our lost Continental Goldfields investment was upheld in the West Australian Courts. Meanwhile, we have completed our actions with the issue of our claims for loss from the defunct Rawas mine in Indonesia. Our total programme now covers claims of approximately US$22 million (R160 million) relative to, but not comparable with, the US$80 million (R590 million) written off in the 2000 financial year.
Outlook
The immediate future will depend on the trend in the Rand/Dollar exchange rate, with the Rand having been exceptionally strong over the past six months and the outcome of the review of the North West Operations. While I know that management will do its utmost to preserve an economic future for these assets, equally DRD will not permit persistent losses at any of its operations.
On a positive note, we are pleased to report that the company will be included as a constituent of the Philadelphia Gold and Silver Index with effect from 18 August 2003.
3
Building on our success at Tolukuma, we are engaged in a number of initiatives to implement our Australasian growth strategy.
MARK WELLESLEY-WOOD | ||
Chairman and Chief Executive Officer | 24 July 2003 |
Incorporating the results of all Durban Roodepoort Deep, Limited subsidiaries, including Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines Limited, West Witwatersrand Gold Holdings Limited, Hartebeestfontein Gold Mine (a division of Buffelsfontein Gold Mines Limited), DRD Australasia and Dome Resources NL on a consolidated basis. The results of Crown Gold Recoveries (Pty) Ltd which include the East Rand Proprietary Mines Limited are accounted for on the Equity basis.
4
The financial statements below are prepared in accordance to Generally Accepted Accounting Principles in the United States of America (US GAAP). The accounting policies are, in all material respects, consistent with the annual financial statements for the year ended 30 June 2002.
| (US$ m) | |||||||
---|---|---|---|---|---|---|---|---|
GROUP INCOME STATEMENTS FINANCIAL RESULTS (Unaudited) | ||||||||
Quarter Jun 2003 | Quarter Mar 2003 | 12 months to Jun 2003 | ||||||
Revenues | ||||||||
Product sales (Gold revenue) | 64.4 | 65.7 | 263.2 | |||||
Cost and expenses | (67.6 | ) | (64.3 | ) | (244.6 | ) | ||
Production costs | (66.4 | ) | (64.0 | ) | (242.2 | ) | ||
Movement in gold in process | (0.5 | ) | — | (0.9 | ) | |||
Movement in rehabilitation provision | (0.7 | ) | (0.3 | ) | (1.5 | ) | ||
Other operating expenses | ||||||||
Depreciation and amortization | (5.1 | ) | (2.3 | ) | (11.9 | ) | ||
Impairment of assets | (12.5 | ) | — | (12.5 | ) | |||
Employment termination costs | (1.5 | ) | (0.2 | ) | (1.7 | ) | ||
Management and consulting fees | (0.7 | ) | (0.8 | ) | (2.5 | ) | ||
Profit on financial instruments | 10.4 | 17.8 | 52.8 | |||||
Profit on sale of investments | 2.7 | — | 11.0 | |||||
Administration and general charges | (2.3 | ) | (3.9 | ) | (9.9 | ) | ||
Stock based compensation costs | (1.2 | ) | (1.2 | ) | (4.3 | ) | ||
Administration and general charges | (1.1 | ) | (2.7 | ) | (5.6 | ) | ||
Net operating (loss)/income | (12.2 | ) | 12.0 | 43.9 | ||||
Investment income | 2.4 | 3.3 | 9.1 | |||||
Other income | 1.1 | 0.3 | 2.5 | |||||
Finance cost | ||||||||
Interest expense | (2.6 | ) | (1.6 | ) | (5.3 | ) | ||
(Loss)/profit before taxation | (11.3 | ) | 14.0 | 50.2 | ||||
Loss from associate | (3.6 | ) | (2.3 | ) | (5.4 | ) | ||
Income and mining tax benefit | 0.1 | — | 0.1 | |||||
Deferred taxation benefit/(charge) | 15.5 | (8.5 | ) | (3.9 | ) | |||
Net profit applicable to shareholders | 0.7 | 3.2 | 41.0 | |||||
Basic earnings per share (cents) | — | 1.8 | 22.4 | |||||
Diluted earnings per share (cents) | — | 1.7 | 22.1 |
| (US$m) | |||||||
---|---|---|---|---|---|---|---|---|
CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) | Quarter Jun 2003 | Quarter Mar 2003 | 12 months to Jun 2003 | |||||
Shareholders' equity at the beginning of the period | 48.9 | 42.9 | (11.2 | ) | ||||
Share capital issued | 1.4 | 1.8 | 13.1 | |||||
—for cash | — | — | 6.7 | |||||
—for share options exercised | 0.2 | 0.6 | 2.1 | |||||
—for stock based compensation | 1.2 | 1.2 | 4.3 | |||||
Movement in retained income | 2.9 | 4.2 | 51.3 | |||||
—profit applicable to shareholders | 0.7 | 3.2 | 41.0 | |||||
—mark-to-market on investments | 0.1 | (2.0 | ) | (1.8 | ) | |||
—currency adjustments and other | 2.1 | 3.0 | 12.1 | |||||
Shareholders' equity at the end of the period | 53.2 | 48.9 | 53.2 | |||||
5
| (US$ m) | ||||
---|---|---|---|---|---|
GROUP CASH FLOW STATEMENTS ABRIDGED (Unaudited) | |||||
Quarter Jun 2003 | Quarter Mar 2003 | ||||
Net cash out flow from operating activities | (14.6 | ) | (11.2 | ) | |
Net cash in (out) flow from investing activities | 0.4 | (9.1 | ) | ||
Net cash out flow from financing activities | (13.4 | ) | (7.4 | ) | |
Net decrease in cash & equivalents | (27.6 | ) | (27.7 | ) | |
Effect of exchange rate changes on cash | 10.2 | 3.8 | |||
Cash and equivalents at beginning of period | 63.1 | 87.0 | |||
Cash and equivalents at end of period | 45.7 | 63.1 | |||
| (US$ m) | ||||
---|---|---|---|---|---|
GROUP BALANCE SHEETS ABRIDGED (Unaudited) | |||||
Quarter Jun 2003 | Quarter Mar 2003 | ||||
ASSETS | |||||
Current assets | 75.4 | 93.6 | |||
Cash and equivalents | 45.7 | 63.1 | |||
Receivables | 21.5 | 21.3 | |||
Inventories | 8.2 | 9.2 | |||
Mining assets | 87.7 | 85.0 | |||
Cost | 391.0 | 361.3 | |||
Accumulated depreciation & amortization | (303.3 | ) | (276.3 | ) | |
Other assets | 76.2 | 63.0 | |||
Deferred income and mining taxes | 47.5 | 29.3 | |||
Non-current assets | 28.7 | 33.7 | |||
Total assets | 239.3 | 241.6 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||
Current liabilities | 70.0 | 70.7 | |||
Bank overdraft | 3.6 | 1.6 | |||
Accounts payable and accrued liabilities | 49.9 | 48.1 | |||
Short term portion of long term loans | 16.4 | 20.6 | |||
Income and mining taxes | 0.1 | 0.4 | |||
Long term loans | 5.6 | 5.5 | |||
Convertible loan note | 61.5 | 60.7 | |||
Deferred financial liability | 24.3 | 33.5 | |||
Provision-environmental rehabilitation | 24.7 | 22.3 | |||
Shareholders' equity | 53.2 | 48.9 | |||
AUTHORISED | |||||
300,000,000 ordinary no par value shares | |||||
5,000,000 cumulative preference shares | |||||
ISSUED | |||||
184,222,073 ordinary no par value shares | |||||
5,000,000 cumulative preference shares | |||||
Stated capital | 360.4 | 360.2 | |||
Additional paid in capital | 37.7 | 36.5 | |||
Cumulative preference shares | 0.1 | 0.1 | |||
Accumulated loss | (301.0 | ) | (301.7 | ) | |
Other comprehensive income | (44.0 | ) | (46.2 | ) | |
Total liabilities & shareholders' equity | 239.3 | 241.6 | |||
CONVERSION FACTORS | ||
CURRENCY | ||
Balance Sheet: | 30-Jun-03 US$1 = R7.4700 | |
Income Statement: | Apr-03 US$1 = R7.6734 | |
6
May-03 US$1 = R7.6391 | ||
Jun-03 US$1 = R7.8821 |
SHARE OPTION SCHEME
The following summary provides information in respect of the Durban Roodepoort Deep (1996) Option Scheme as at 30 June 2003:
Number of options in issue: | 6,276,682 | |
Number of options currently vested: | 1,342,839 |
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, Hartebeestfontein Gold Mine (a division of Buffelsfontein Gold Mines Limited), DRD Australasia and Dome Resources NL on a consolidated basis. The results of Crown Gold Recoveries (Pty) Ltd which include the East Rand Proprietary Mines Limited are accounted for on the Equity basis.
7
The financial statements below are prepared in accordance to Generally Accepted Accounting Principles in the United States of America (US GAAP). The accounting policies are, in all material respects, consistent with the annual financial statements for the year ended 30 June 2002.
| (R m) | |||||||
---|---|---|---|---|---|---|---|---|
GROUP INCOME STATEMENTS FINANCIAL RESULTS (Unaudited) | ||||||||
Quarter Jun 2003 | Quarter Mar 2003 | 12 months to Jun 2003 | ||||||
Revenues | ||||||||
Product sales (Gold revenue) | 497.7 | 550.0 | 2,385.4 | |||||
Cost and expenses | (518.0 | ) | (540.8 | ) | (2,189.0 | ) | ||
Production costs | (509.1 | ) | (538.1 | ) | (2,168.9 | ) | ||
Movement in gold in process | (3.4 | ) | (0.2 | ) | (7.0 | ) | ||
Movement in rehabilitation provision | (5.5 | ) | (2.5 | ) | (13.1 | ) | ||
Other operating expenses | ||||||||
Depreciation and amortization | (39.2 | ) | (19.1 | ) | (102.4 | ) | ||
Impairment of assets | (98.2 | ) | — | (98.2 | ) | |||
Employment termination costs | (11.6 | ) | (1.7 | ) | (13.6 | ) | ||
Management and consulting fees | (5.7 | ) | (6.7 | ) | (22.1 | ) | ||
Profit on financial instruments | 84.8 | 148.9 | 473.9 | |||||
Profit on sale of investments | 17.8 | — | 106.5 | |||||
Administration and general charges | (17.5 | ) | (32.5 | ) | (87.1 | ) | ||
Stock based compensation costs | (10.0 | ) | (9.7 | ) | (39.0 | ) | ||
Administration and general charges | (7.5 | ) | (22.8 | ) | (48.1 | ) | ||
Net operating (loss)/income | (89.9 | ) | 98.1 | 453.4 | ||||
Investment income | 18.8 | 27.3 | 80.0 | |||||
Other income | 8.5 | 2.3 | 21.1 | |||||
Finance Cost | ||||||||
Interest expense | (20.7 | ) | (13.1 | ) | (44.5 | ) | ||
(Loss)/profit before taxation | (83.3 | ) | 114.6 | 510.0 | ||||
Loss from associate | (27.8 | ) | (18.6 | ) | (40.9 | ) | ||
Income and mining tax benefit | 0.9 | 0.1 | 0.8 | |||||
Deferred taxation benefit/(charge) | 120.1 | (71.8 | ) | (61.4 | ) | |||
Net profit applicable to shareholders | 9.9 | 24.3 | 408.5 | |||||
Basic earnings per share (cents) | 5.4 | 13.2 | 222.9 | |||||
Diluted earnings per share (cents) | 5.3 | 13.1 | 216.8 |
| (R m) | |||||||
---|---|---|---|---|---|---|---|---|
CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) | Quarter Jun 2003 | Quarter Mar 2003 | 12 months to Jun 2003 | |||||
Shareholders' equity at the beginning of the period | 392.2 | 371.8 | (118.1 | ) | ||||
Share capital issued | 11.4 | 14.5 | 125.7 | |||||
—for cash | — | — | 68.0 | |||||
—for share options exercised | 1.4 | 4.8 | 18.7 | |||||
—for stock based compensation | 10.0 | 9.7 | 39.0 | |||||
Movement in retained income | (7.0 | ) | 5.9 | 389.0 | ||||
—profit applicable to shareholders | 9.9 | 24.3 | 408.5 | |||||
—mark-to-market on investments | 1.4 | (16.7 | ) | (14.5 | ) | |||
—currency adjustments and other | (18.3 | ) | (1.7 | ) | (5.0 | ) | ||
Shareholders' equity at the end of period | 396.6 | 392.2 | 396.6 | |||||
8
| (R m) | ||||
---|---|---|---|---|---|
GROUP CASH FLOW STATEMENTS ABRIDGED (Unaudited) | |||||
Quarter Jun 2003 | Quarter Mar 2003 | ||||
Net cash out flow from operating activities | (112.8 | ) | (93.4 | ) | |
Net cash in (out) flow from investing activities | 3.3 | (75.8 | ) | ||
Net cash out flow from financing activities | (103.9 | ) | (61.6 | ) | |
Net decrease in cash & equivalents | (213.4 | ) | (230.8 | ) | |
Effect of exchange rate changes on cash | 49.1 | (16.6 | ) | ||
Cash and equivalents at beginning of period | 505.6 | 753.0 | |||
Cash and equivalents at end of period | 341.3 | 505.6 | |||
| (R m) | |||||
---|---|---|---|---|---|---|
GROUP BALANCE SHEETS ABRIDGED (Unaudited) | ||||||
Quarter Jun 2003 | Quarter Mar 2003 | |||||
ASSETS | ||||||
Current assets | 563.0 | 750.6 | ||||
Cash and equivalents | 341.3 | 505.6 | ||||
Receivables | 160.8 | 171.1 | ||||
Inventories | 60.9 | 73.9 | ||||
Mining assets | 655.2 | 681.4 | ||||
Cost | 2,920.9 | 2,896.0 | ||||
Accumulated depreciation & amortization | (2,265.7 | ) | (2,214.6 | ) | ||
Other assets | 569.0 | 504.7 | ||||
Deferred income and mining taxes | 354.9 | 234.7 | ||||
Non-current assets | 214.1 | 270.0 | ||||
TOTAL ASSETS | 1,787.2 | 1,936.7 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||
Current liabilities | 518.6 | 554.0 | ||||
Bank overdraft | 26.8 | 12.6 | ||||
Accounts payable and accrued | ||||||
liabilities | 372.8 | 385.7 | ||||
Short term portion of long term loans | 117.9 | 152.5 | ||||
Income and mining taxes | 1.1 | 3.2 | ||||
Long term loans | 41.9 | 44.2 | ||||
Convertible loan note | 464.1 | 499.4 | ||||
Deferred financial liability | 181.8 | 268.3 | ||||
Provision-environmental rehabilitation | 184.2 | 178.6 | ||||
Shareholders' equity | 396.6 | 392.2 | ||||
AUTHORISED | ||||||
300,000,000 ordinary no par value shares | ||||||
5,000,000 cumulative preference shares | ||||||
ISSUED | ||||||
184 222 073 ordinary no par value shares | ||||||
5,000,000 cumulative preference shares | ||||||
Stated capital | 2,200.9 | 2,199.5 | ||||
Additional paid in capital | 86.7 | 76.7 | ||||
Cumulative preference shares | 0.5 | 0.5 | ||||
Accumulated loss | (1,903.5 | ) | (1,913.4 | ) | ||
Other comprehensive income | 12.0 | 28.9 | ||||
Total liabilities & shareholders' equity | 1,787.2 | 1,936.7 | ||||
9
| (R m) | |||||
---|---|---|---|---|---|---|
US/SA GAAP RECONCILIATION Reconciliation of net profit to SA GAAP | ||||||
Quarter Jun 2003 | Quarter Mar 2003 | |||||
Net profit determined under US GAAP | 9.9 | 24.3 | ||||
Adjusted for: | ||||||
Financial instruments | (31.9 | ) | (10.1 | ) | ||
Accounting for business combinations | 0.4 | 0.3 | ||||
Stock based compensation costs | 10.0 | 9.7 | ||||
Fair value adjustments on investments | 1.4 | (16.7 | ) | |||
Deferred taxation on adjustments | (3.2 | ) | 3.0 | |||
Effect of US GAAP adjustments | (23.3 | ) | (13.8 | ) | ||
Net (loss)/profit determined under SA GAAP | (13.4 | ) | 10.5 | |||
KEY OPERATING AND FINANCIAL RESULTS
| | Crown Gold Recoveries | | Blyvoor | North West | | | | | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Crown Section | ERPM Section | Attributable to DRD (40% of CGR) | Under- ground | Surface | Under- ground | Surface | Tolukuma | Total continuing operations | Dis continuing operation # | Total DRD attributable | |||||||||||||
US$/Imperial | |||||||||||||||||||||||||
Ore milled—t'000 | Jun 03 Qtr | 2,954 | 163 | 1,246 | 232 | 452 | 670 | 1,411 | 50 | 4,061 | 378 | 4,439 | |||||||||||||
Mar 03 Qtr | 2,865 | 136 | 1,200 | 248 | 470 | 635 | 1,357 | 49 | 3,959 | 363 | 4,322 | ||||||||||||||
12 Mths to Jun 03 | 11,810 | 401 | 4,884 | 970 | 1,838 | 2,773 | 5,518 | 177 | 16,160 | 1,606 | 17,766 | ||||||||||||||
Gold produced—ounces | Jun 03 Qtr | 33,822 | 22,183 | 22,402 | 49,127 | 9,195 | 85,580 | 16,312 | 21,219 | 203,835 | 3,890 | 207,725 | |||||||||||||
Mar 03 Qtr | 33,533 | 17,329 | 20,345 | 50,927 | 12,347 | 86,619 | 18,667 | 16,397 | 205,302 | 3,697 | 208,999 | ||||||||||||||
12 Mths to Jun 03 | 141,238 | 51,858 | 77,239 | 203,000 | 44,626 | 384,296 | 78,447 | 68,096 | 855,704 | 14,531 | 870,235 | ||||||||||||||
Yield—ounces per ton | Jun 03 Qtr | 0.011 | 0.136 | 0.018 | 0.212 | 0.020 | 0.128 | 0.012 | 0.424 | 0.050 | 0.010 | 0.047 | |||||||||||||
Mar 03 Qtr | 0.012 | 0.127 | 0.017 | 0.205 | 0.026 | 0.136 | 0.014 | 0.335 | 0.052 | 0.010 | 0.048 | ||||||||||||||
12 Mths to Jun 03 | 0.012 | 0.129 | 0.016 | 0.209 | 0.024 | 0.139 | 0.014 | 0.385 | 0.053 | 0.009 | 0.049 | ||||||||||||||
Cash operating cost—US$/oz | Jun 03 Qtr | 303 | 449 | na | 324 | 355 | 407 | 276 | 250 | 352 | 410 | 353 | |||||||||||||
Mar 03 Qtr | 292 | 562 | na | 287 | 237 | 383 | 309 | 265 | 329 | 295 | 328 | ||||||||||||||
12 Mths to Jun 03 | 257 | 481 | na | 271 | 241 | 334 | 252 | 273 | 299 | 347 | 299 | ||||||||||||||
Cash operating cost—US$/ton | Jun 03 Qtr | 3 | 61 | na | 69 | 7 | 52 | 3 | 106 | 23 | 4 | 20 | |||||||||||||
Mar 03 Qtr | 3 | 72 | na | 59 | 6 | 52 | 4 | 89 | 22 | 3 | 20 | ||||||||||||||
12 Mths to Jun 03 | 3 | 62 | na | 57 | 6 | 46 | 4 | 105 | 21 | 3 | 18 | ||||||||||||||
Cash operating profit/(loss)—US$m | Jun 03 Qtr | 1.6 | (2.2 | ) | na | 1.2 | — | (4.8 | ) | 1.1 | 1.8 | (0.7 | ) | (0.2 | ) | (0.9 | ) | ||||||||
Mar 03 Qtr | 1.8 | (3.7 | ) | na | 3.0 | 1.4 | (3.1 | ) | 0.7 | 1.6 | 3.6 | 0.1 | 3.7 | ||||||||||||
12 Mths to Jun 03 | 10.7 | (7.2 | ) | na | 12.4 | 4.1 | (1.1 | ) | 6.0 | 4.6 | 26.0 | (0.2 | ) | 25.8 | |||||||||||
ZAR/Metric | |||||||||||||||||||||||||
Ore milled—t'000 | Jun 03 Qtr | 2,680 | 148 | 1,131 | 211 | 410 | 607 | 1,281 | 45 | 3,685 | 343 | 4,028 | |||||||||||||
Mar 03 Qtr | 2,600 | 124 | 1,090 | 225 | 427 | 576 | 1,232 | 45 | 3,595 | 329 | 3,924 | ||||||||||||||
12 Mths to Jun 03 | 10,714 | 364 | 4,431 | 881 | 1,668 | 2,515 | 5,008 | 162 | 14,665 | 1,457 | 16,122 | ||||||||||||||
Gold produced—kg | Jun 03 Qtr | 1,052 | 690 | 697 | 1,528 | 286 | 2,662 | 507 | 660 | 6,340 | 121 | 6,461 | |||||||||||||
Mar 03 Qtr | 1,043 | 539 | 633 | 1,584 | 384 | 2,694 | 581 | 510 | 6,386 | 115 | 6,501 | ||||||||||||||
12 Mths to Jun 03 | 4,393 | 1,613 | 2,402 | 6,314 | 1,388 | 11,953 | 2,440 | 2,118 | 26,615 | 452 | 27,067 | ||||||||||||||
Yield—g/tonne | Jun 03 Qtr | 0.39 | 4.66 | 0.62 | 7.24 | 0.70 | 4.39 | 0.40 | 14.67 | 1.72 | 0.35 | 1.60 | |||||||||||||
Mar 03 Qtr | 0.40 | 4.35 | 0.58 | 7.04 | 0.90 | 4.68 | 0.47 | 11.33 | 1.78 | 0.35 | 1.66 | ||||||||||||||
12 Mths to Jun 03 | 0.41 | 4.43 | 0.54 | 7.17 | 0.83 | 4.75 | 0.49 | 13.07 | 1.81 | 0.31 | 1.68 | ||||||||||||||
Cash operating cost—R/kg | Jun 03 Qtr | 75,206 | 111,528 | na | 80,488 | 88,297 | 101,038 | 68,574 | 62,198 | 87,368 | 101,306 | 87,661 | |||||||||||||
Mar 03 Qtr | 78417 | 150,959 | na | 77,190 | 63,708 | 102,965 | 83,247 | 70,837 | 88,409 | 77,878 | 88,199 | ||||||||||||||
12 Mths to Jun 03 | 73,645 | 128,325 | na | 77,557 | 68,752 | 96,321 | 73,002 | 78,744 | 85,960 | 101,029 | 86,236 | ||||||||||||||
Cash operating cost—R/tonne | Jun 03 Qtr | 30 | 520 | na | 583 | 62 | 443 | 27 | 912 | 371 | 36 | 174 | |||||||||||||
Mar 03 Qtr | 31 | 656 | na | 543 | 57 | 481 | 39 | 803 | 203 | 27 | 183 | ||||||||||||||
12 Mths to Jun 03 | 30 | 569 | na | 556 | 57 | 458 | 36 | 1,030 | 203 | 31 | 182 | ||||||||||||||
Cash operating profit/(loss)—R m | Jun 03 Qtr | 12.3 | (16.7 | ) | na | 9.8 | (1.0 | ) | (37.3 | ) | 8.9 | 14.1 | (5.5 | ) | (2.1 | ) | (7.6 | ) | |||||||
Mar 03 Qtr | 15.5 | (30.9 | ) | na | 25.5 | 11.7 | (26.1 | ) | 6.1 | 13.7 | 30.9 | 1.6 | 32.5 | ||||||||||||
12 Mths to Jun 03 | 100.9 | (59.1 | ) | na | 118.0 | 38.2 | 6.9 | 58.3 | 39.3 | 260.7 | (2.3 | ) | 258.4 | ||||||||||||
# West Witwatersand Gold Mine | |||||||||||||||||||||||||
| | Crown Gold Recoveries | | 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 | ||||||||||||||
Net Outflow | Jun 03 Qtr | 1.3 | 10.7 | 1.4 | 11.0 | 1.7 | 12.7 | 2.0 | 15.6 | 3.3 | 24.9 | ||||||||||||||
Mar 03 Qtr | 1.1 | 8.6 | 1.0 | 8.0 | 0.7 | 5.8 | 0.3 | 3.1 | 2.0 | 17.7 | |||||||||||||||
12 Mths to Jun 03 | 5.6 | 50.7 | 4.2 | 37.3 | 6.1 | 56.3 | 2.9 | 24.4 | 11.5 | 104.6 |
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, Hartebeestfontein Gold Mine (a division of Buffelsfontein Gold Mines Limited), DRD Australasia and Dome Resources NL on a consolidated basis. The results of Crown Gold Recoveries (Pty) Ltd which include the East Rand Proprietary Mines Limited are accounted for on the Equity basis.
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The financial statements below are prepared on the historical cost basis and in accordance with South African Statements of Generally Accepted Accounting Practice (SA GAAP). The accounting policies are, in all material respects, consistent with the annual financial statements for the year ended 30 June 2002 except for the adoption of AC133—Financial instruments: Recognition and Measurement.
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KPMG's unmodified review report on the condensed SA GAAP financial statements contained in this voluntary announcement of annual results is available for inspection at the company's registered office.
| (R m) | ||||||
---|---|---|---|---|---|---|---|
GROUP INCOME STATEMENTS FINANCIAL RESULTS (Reviewed) | |||||||
Quarter Jun 2003 | Quarter Mar 2003 | 12 months to Jun 2003 | |||||
Gold revenue | 497.7 | 550.0 | 2,385.4 | ||||
Cash operating costs | (505.3 | ) | (517.5 | ) | (2,127.0 | ) | |
Cash operating (loss)/profit | (7.6 | ) | 32.5 | 258.4 | |||
Other expenses—net | (7.2 | ) | (36.7 | ) | (72.4 | ) | |
Business development | (4.2 | ) | (1.6 | ) | (7.9 | ) | |
Care and maintenance costs | (3.3 | ) | (2.2 | ) | (9.3 | ) | |
Cash(loss)/profit from operations | (22.3 | ) | (8.0 | ) | 168.8 | ||
Retrenchment costs | (11.6 | ) | (1.7 | ) | (13.6 | ) | |
Investment income | 18.8 | 27.3 | 80.0 | ||||
Interest paid | (20.5 | ) | (13.4 | ) | (44.4 | ) | |
Net cash operating (loss)/profit | (35.6 | ) | 4.2 | 190.8 | |||
Rehabilitation | (5.5 | ) | (2.5 | ) | (13.1 | ) | |
Depreciation | (38.7 | ) | (18.8 | ) | (100.9 | ) | |
Gain on financial instruments | 60.2 | 115.0 | 396.9 | ||||
Gold in process | (3.4 | ) | (0.2 | ) | (7.0 | ) | |
(Loss)/profit before taxation | (23.0 | ) | 97.7 | 466.7 | |||
Loss from associate | (27.8 | ) | (18.6 | ) | (40.9 | ) | |
Taxation | 0.9 | 0.1 | 0.8 | ||||
Deferred taxation benefit/(charge) | 116.9 | (68.7 | ) | (61.8 | ) | ||
Profit after taxation | 67.0 | 10.5 | 364.8 | ||||
Exceptional items | (80.4 | ) | — | 4.5 | |||
Net (loss)/profit | (13.4 | ) | 10.5 | 369.3 | |||
Headline earnings per share (cents) | 36.4 | 5.7 | 199.0 | ||||
Basic (loss)/earnings per share (cents) | (7.3 | ) | 5.7 | 201.5 | |||
Calculated on the weighted average ordinary shares issued | 184,091,468 | 183,708,812 | 183,300,665 | ||||
Diluted headline earnings per share (cents) | 36.2 | 5.6 | 192.5 | ||||
Diluted basic (loss)/earnings per share (cents) | (7.3 | ) | 5.6 | 194.7 |
| (R m) | ||||||
---|---|---|---|---|---|---|---|
RECONCILIATION OF HEADLINE EARNINGS | Quarter Jun 2003 | Quarter Mar 2003 | 12 months to Jun 2003 | ||||
Net (loss)/profit per income statement | (13.4 | ) | 10.5 | 369.3 | |||
Less: Profit of sale of Investment | (17.8 | ) | — | (102.7 | ) | ||
Asset and investment Impairment | 98.2 | — | 98.2 | ||||
Headline earnings | 67.0 | 10.5 | 364.8 | ||||
| (R m) | |||||||
---|---|---|---|---|---|---|---|---|
CHANGES IN SHAREHOLDERS' INTEREST ABRIDGED (Reviewed) | ||||||||
Quarter Jun 2003 | Quarter Mar 2003 | (R m) 12 months to Jun 2003 | ||||||
Shareholders' interest at the beginning of the period | 493.5 | 480.4 | (144.0 | ) | ||||
Share capital issued | 6.8 | (2.4 | ) | 241.7 | ||||
—for cash | — | — | 68.0 | |||||
—for share options exercised | 1.4 | 4.8 | 18.7 | |||||
—for equity portion of convertible note | 5.4 | (7.2 | ) | 155.0 | ||||
Movement in retained income | (13.4 | ) | 10.5 | 369.3 | ||||
Currency adjustments and other | (24.5 | ) | 5.0 | (4.6 | ) | |||
Shareholders' interest at the end of the period | 462.4 | 493.5 | 462.4 | |||||
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| (R m) | |||
---|---|---|---|---|
GROUP BALANCE SHEETS ABRIDGED (Reviewed) | ||||
Quarter Jun 2003 | Quarter Mar 2003 | |||
Employment of Capital | ||||
Net mining assets | 626.5 | 652.3 | ||
Investments | 80.4 | 138.4 | ||
Environmental Trust funds | 133.7 | 131.6 | ||
Deferred mining and income taxes | 355.4 | 238.6 | ||
Current assets | 563.0 | 750.6 | ||
Inventories | 60.9 | 73.9 | ||
Trade and other receivables | 160.8 | 171.1 | ||
Cash and equivalents | 341.3 | 505.6 | ||
1,759.0 | 1,911.5 | |||
Capital Employed | ||||
Shareholders' equity | 462.4 | 493.5 | ||
Borrowings | 412.0 | 417.1 | ||
Deferred financial liability | 181.8 | 268.3 | ||
Rehabilitation | 184.2 | 178.6 | ||
Other non-current liabilities | 74.1 | 88.0 | ||
Current liabilities | 444.5 | 466.0 | ||
Trade and other payables | 325.5 | 310.3 | ||
Current portion of borrowings | 117.9 | 152.5 | ||
Taxation | 1.1 | 3.2 | ||
1,759.0 | 1,911.5 | |||
| (R m) | ||||
---|---|---|---|---|---|
GROUP CASH FLOW STATEMENTS ABRIDGED (Reviewed) | |||||
Quarter Jun 2003 | Quarter Mar 2003 | ||||
Net cash out flow from operating activities | (112.8 | ) | (93.4 | ) | |
Net cash in (out) flow from investing activities | 3.3 | (75.8 | ) | ||
Net cash out flow from financing activities | (103.9 | ) | (61.6 | ) | |
Decrease in cash & equivalents | (213.4 | ) | (230.8 | ) | |
Translation adjustment | 49.1 | (16.6 | ) | ||
Opening cash and equivalents | 505.6 | 753.0 | |||
Closing cash and equivalents | 341.3 | 505.6 | |||
INVESTOR RELATIONS
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
PO Box 390,
Maraisburg 1700,
South Africa
DIRECTORS—(*British)(**Australian)
Executives:
MM Wellesley-Wood (Chairman and Chief Executive Officer)*
IL Murray (Chief Financial Officer and Deputy Chief Executive Officer)
13
Non-Executives:
MP Ncholo; RP Hume; GC Campbell*; DC Baker**
Alternates:
A Lubbe; D van der Mescht
Group Company Secretary: JH Dissel (Acting)
14
REPORT TO SHAREHOLDERS FOR THE 4th QUARTER AND YEAR ENDED 30 JUNE 2003