EX-6 7 a04-5140_3ex6.htm EX-6

Exhibit 6

 

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 3rd QUARTER ENDED 31 MARCH 2004
OF THE 2004 FINANCIAL YEAR

 

Group Results

(Unaudited)

 

Highlights

 

Cash operating profit up 35% (38% in Rand terms)

 

DRD delivers on growth despite flat Rand gold price

 

Healthy balance sheet ratios

 

North West Operation returns to profit

 

Australasian cash operating costs at US$208 per ounce

 

 

 

 

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

 

 

 

 

 

 

 

 

 

 

Gold production (attributable)

 

oz

 

240 758

 

237 307

 

676 558

 

 

 

kg

 

7 488

 

7 381

 

21 043

 

 

 

 

 

 

 

 

 

 

 

Cash operating costs

 

US$/oz

 

318

 

330

 

340

 

 

 

R/kg

 

69 329

 

71 766

 

76 268

 

 

 

 

 

 

 

 

 

 

 

Gold price received

 

US$/oz

 

406

 

396

 

390

 

 

 

R/kg

 

88 577

 

86 032

 

87 118

 

 

 

 

 

 

 

 

 

 

 

Net profit/(loss) - USGaap

 

US$ m

 

9.7

 

(1.4

)

(13.5

)

 

 

R m

 

64.7

 

(7.1

)

(104.5

)

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

US$ m

 

5.9

 

8.1

 

18.7

 

 

 

R m

 

39.9

 

55.4

 

130.3

 

 

Stock

 

ISSUED CAPITAL

 

STOCK TRADED

 

JSE

 

ASX

 

NASDAQ

 

FRANKFURT

 

 

 

 

 

 

 

 

 

 

 

 

 

231 998 228 ordinary no par value shares

 

Avg. volume for the quarter per day (000)

 

119

 

6

 

4 869

 

143

 

 

 

 

 

 

 

 

 

 

 

 

 

5 000 000 cumulative preference shares

 

% of issued stock traded (annualised)

 

13

%

1

%

548

%

16

%

 

 

 

 

 

 

 

 

 

 

 

 

Total ordinary no par value shares issued and committed : 256 507 828

 

Price

- High

 

R 28.00

 

A$ 5.20

 

USD 4.10

 

Euro 3.16

 

 

 

 

- Low

 

R 20.00

 

A$ 4.00

 

USD 2.98

 

Euro 2.46

 

 

 

 

- Close

 

R 21.62

 

A$ 4.39

 

USD 3.51

 

Euro 2.81

 

 

Address details

 

REGISTERED OFFICE :

 

TRANSFER SECRETARIES :

 

UNITED KINGDOM REGISTRARS :

 

DEPOSITORY BANK :

45 Empire Road, Parktown,

 

Ultra Registrars (Pty) Ltd,

 

St. James’ Corporate Services Ltd,

 

American Depository Receipts,

South Africa

 

PO Box 4844,

 

6 St. James’ Place,

 

The Bank of New York,

PO Box 390,

 

Johannesburg 2000,

 

London

 

Shareholders Relations Department,

Maraisburg 1700,

 

South Africa

 

SW IA INP

 

101 Barclay Street,

South Africa

 

 

 

 

 

New York, NY 10296

 

FORWARD LOOKING STATEMENTS

 

Some of the information in this voluntary release may contain projections or other forward looking statements regarding future events or other future financial performance, including statements regarding the Blyvoor operation reaching full capacity, the success of DRD’s takeover bid of Emperor Mines Limited and its strategy, if its bid is successful, to grow Emperor’s operations and for DRD’s operations to experience continued growth. We wish to caution you that these forward-looking statements are not guarantees or predictions of future performance, and involve known or unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual events or results to differ materially from these expressed in the statements contained in this release.

 

 

Factors that could cause or contribute to such differences are discussed in the sections entitled ‘Risk Factors’ included in our annual report on Form 20-F for the fiscal year ended 30 June 2003, which we filed with the United States Securities and Exchange Commission on 30 December 2003 and is available on the SEC’s website at www.sec.gov. We undertake no obligation to publicly update or release results of any of these projections or forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.

 

 

LETTER TO SHAREHOLDERS

 

Dear shareholder

 

Gold reached another high during the quarter under review, touching US$432.75 per ounce on 22 March 2004, on the back of the continued economic and geopolitical uncertainty that we highlighted in our previous quarterly report. Our belief in the gold price is underpinned by these events, with the current erratic behavior of the metal symptomatic of these global pressures. Quarter on quarter the average Dollar price received was 2.5% higher at US$406 per ounce and the Rand gold price was 3% higher at R88 577 per kilogram. Gold production for the quarter was steady at 240 758 ounces (previous quarter: 237 307 ounces). The Australasian operations delivered 73 014 ounces, representing an increase of 7.5% quarter on quarter. Overall, the South African operations continued to deliver, with the turnaround at the North West Operations demonstrating sustainability.

 

Cash operating profit increased by a respectable 35% (38% in Rand terms) to US$19.1 million (R130.4 million) from US$14.1 million (R94.7 million) in the previous quarter. At the South African operations, cash operating profit doubled to US$4.6 million (R32.0 million) and at the Australasian operations increased by 23% to US$14.5 million (R98.4 million) quarter on quarter. Unit cash operating costs continued to improve quarter on quarter reducing by 3.6% to US$318 per ounce and 3.4% to R69 329 per kilogram.

 

South African operations

 

The North West Operations returned to profitability during the quarter for the first time since the December 2002 quarter. Cash operating profit was US$4.3 million (R28.9 million) compared to a cash operating loss in the previous quarter of US$0.5 million (R3.9 million). Gold production has been over 900 kilograms (28 900 ounces) per month and average cash operating costs were US$357 per ounce (R77 859 per kilogram) for the quarter. This result reflects the sustainability of the turnaround since completing the 60-day review and subsequent restructuring in September 2003.

 

The Blyvoor operation reported a decline in profit due to a reduction in grade and a slow start up during the commissioning phase of the slimes dam project. The grade profile has been corrected through the implementation of various operational initiatives including a ground breaking incentive scheme with rock drill operators. The re-balancing of the slimes dam project has been completed with gold output expected to reach full capacity by the end of the current quarter. Average cash operating costs for the quarter were US$398 per ounce (R86 855 per kilogram).

 

Overall, the South African operations produced 144 775 ounces (previous quarter: 145 677 ounces). Average cash operating costs were US$373 per ounce or R81 398 per kilogram compared to the previous quarter of US$376 per ounce or R81 697 per kilogram. This generated a cash operating profit of US$4.6 million (R32.0 million) compared to the previous quarter’s US$2.3 million (R15.4 million).

 

Australasian operations

 

Tolukuma continues to deliver outstanding results, with production in excess of 7 000 ounces per month for thirteen consecutive months. Cash operating costs for the quarter were US$254 per ounce (R55 348 per kilogram). Production for the quarter was marginally lower at 21 509 ounces compared to 21 767 ounces in the previous quarter, however there has been a dramatic increase in exploration activity. A further outcrop of the Zine vein has been identified containing a resource of nearly 50 000 ounces. Capital expenditure of US$1.2 million was spent on mobile plant and equipment, the Milaihamba project and exploration.

 

The Porgera Joint Venture continued to deliver strong results with a 12% increase in gold produced to 51 505 ounces from 46 136 ounces in the previous quarter. Porgera was DRD’s lowest-cost producer for the quarter, with unit cash operating costs down by 15% to US$189 per ounce (R41 245 per kilogram). The offer to sell 25% of DRD’s 20% stake in the Porgera Joint Venture to the community-based Mineral Resource Enga (MRE), the local landowners, will not proceed, after a number of conditions precedent for the transaction were not fulfilled.

 

The Australasian operations (excluding the 19.78% share of Emperor Mines Limited) accounted for 73 014 ounces of quarterly production or just under one third of the company’s production. Average cash operating costs were US$208 per ounce (US$232 per ounce in the previous quarter) or R 45 400 per kilogram (R50 460 per kilogram in the previous quarter). Cash operating profit increased by 23% to US$14.5 million (R98.4 million) for the quarter. During the quarter, DRD launched a takeover bid for the remaining 80.22% of Emperor Mines Limited. The offer is valued at AUS$105 million and has been priced at a ratio of one DRD share for five Emperor shares. The implied premium on the day of the announcement was 32% over the closing Emperor share price the previous business day. The offer closes (unless extended) on 14 May 2004 (7pm Sydney time). This acquisition is in line with our stated strategy to initially grow the Australasian operations to 100 000 ounces of quarterly production at an average cash operating cost below US$250 per ounce.

 

Crown/ERPM Joint Venture

 

DRD has a 40% interest in these entities, and manages and operates them on behalf of the shareholders. Attributable production decreased marginally to 22 969 ounces (previous quarter: 23 727 ounces) at an average cash operating costs of US$385 per ounce (R83 994 per kilogram). Capital expenditure for the quarter of US$4.9 million (R33.4 million) — primarily funded by a loan from the Industrial Development Corporation — was directed towards ERPM’s Cason Dump reclamation project and the new pumping facility at the Far East Vertical shaft. On 23 April 2004, Crown Gold Recoveries, the holding company of Crown and ERPM, announced that it was reassessing the viability of ERPM’s underground operations, primarily as a result of the impact of the strong Rand.

 

Capital raising

 

During the quarter, Investec Bank (Mauritius) Limited exercised an option to acquire 10.2 million new DRD ordinary shares at a 4.5% discount to the 10-day weighted average share price on NASDAQ. A total of R 217.4 million (US$32.4 million) was raised. Part of the proceeds were used to close out 180 000 ounces or 57% of the remaining 315 000 ounces under the Eskom “gold for electricity” contract. The balance of 135 000 ounces covers the period January 2005 to September 2005.

 

An amount of US$2.0 million was invested to acquire the controlling stake in one of the Internet-based gold marketing company GoldMoney.com’s group of companies, which translates into an indirect 14% stake in GoldMoney.com.

 

Financial

 

Profit before taxation has increased from breakeven in the previous quarter to US$10.7 million. The basic profit per share rose to 4.2 US cents per share. Stockholder’s equity has increased to US$135.7 million (R861.6 million) from US$85.6 million (R570.5 million) in the previous quarter. With the current ratio at 1.09 and the interest-bearing debt (including the convertible bond) to stockholders’ equity down from 82% in the previous quarter to 52% this quarter, the balance sheet continues to improve.

 

Cash and cash equivalents doubled from US$21.9 million (R145.4 million) to US$47.9 million (R304.4 million), quarter on quarter. Net cash inflow from operating activities after changes in working capital was US$21.8 million (R147.9 million) in the current quarter compared to US$1.5 million (R10.1 million) in the previous quarter.

 

Outlook

 

Every operation in the DRD stable has now been the subject of a successful turnaround. By recording continued growth in the face of a flat gold price and a strong Rand, our management has shown that, when this is combined with a focused acquisition strategy, there is scope for adding further value to a mature asset portfolio. We believe that we will continue to find opportunities to drive this growth further. Our balance of margin on current ounces of production and leverage on increasing reserve life has now been established. A weakening of the South African Rand would be helpful for the margin, but we believe that it is no longer a pre-requisite to sustaining our gold production.

 

 

MARK WELLESLEY-WOOD

 

IAN MURRAY

Executive Chairman

 

Chief Executive Officer and Chief Financial Officer

28 April 2004

 

 

 

 

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),

 

Tolukuma Gold Mines Limited, 20% of the Porgera Joint Venture, and DRD Australasia on a consolidated basis.

 

The results of Crown Gold Recoveries (Pty) Ltd, which include East Rand Proprietary Mines Limited, are accounted for on the equity basis.

 

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 2003.

 

GROUP INCOME STATEMENTS - US GAAP

 

 

 

(US$ m)

 

(R m)

 

FINANCIAL RESULTS

 

9 months to
Mar 2004

 

Quarter
Dec 2003

 

Quarter
Mar 2004

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales (Gold revenue)

 

235.9

 

84.7

 

88.4

 

600.0

 

571.5

 

1 639.0

 

Cost and expenses

 

(212.3

)

(74.5

)

(69.4

)

(470.7

)

(502.9

)

(1 482.7

)

Production costs

 

(211.7

)

(73.0

)

(71.9

)

(487.6

)

(493.4

)

(1 478.5

)

Movement in gold in process

 

0.7

 

(1.1

)

3.0

 

20.6

 

(6.6

)

5.1

 

Movement in rehabilitation provision

 

(1.3

)

(0.4

)

(0.5

)

(3.7

)

(2.9

)

(9.3

)

Other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(19.0

)

(5.7

)

(3.6

)

(24.9

)

(39.0

)

(136.6

)

Impairment of assets

 

(1.1

)

—

 

(1.2

)

(8.3

)

—

 

(7.6

)

Employment termination costs

 

(7.8

)

(0.8

)

(1.6

)

(10.7

)

(5.3

)

(55.5

)

Management and consulting fees

 

(1.4

)

(0.5

)

(0.4

)

(3.1

)

(3.4

)

(9.9

)

Profit/(loss) on derivative instruments

 

(0.1

)

(0.2

)

2.9

 

19.2

 

10.2

 

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administration and general charges

 

(8.7

)

(2.3

)

(3.3

)

(21.9

)

(23.2

)

(59.9

)

Stock based compensation costs

 

(1.7

)

(0.6

)

(0.6

)

(4.2

)

(4.0

)

(11.8

)

Administration and general charges

 

(7.0

)

(1.7

)

(2.7

)

(17.7

)

(19.2

)

(48.1

)

Net operating income/(loss)

 

(14.5

)

0.7

 

11.8

 

79.6

 

7.9

 

(113.5

)

Non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividends

 

4.5

 

1.7

 

1.2

 

8.1

 

11.4

 

31.2

 

Other income

 

1.8

 

0.5

 

0.5

 

3.1

 

3.4

 

12.7

 

Finance cost

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(8.4

)

(3.3

)

(2.8

)

(19.0

)

(22.1

)

(58.3

)

Profit/(loss) before taxation and other items

 

(16.6

)

(0.4

)

10.7

 

71.8

 

0.6

 

(127.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income and mining tax expense

 

(2.9

)

(0.7

)

(2.2

)

(15.4

)

(4.6

)

(20.0

)

Deferred taxation benefit/(expense)

 

6.0

 

(0.3

)

1.2

 

8.3

 

(3.1

)

43.4

 

Net profit/(loss) applicable to stockholders

 

(13.5

)

(1.4

)

9.7

 

64.7

 

(7.1

)

(104.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic profit/(loss) per share (cents)

 

(6.4

)

(0.7

)

4.2

 

28.5

 

(3.3

)

(49.4

)

Diluted profit/(loss) per share (cents)

 

(6.7

)

(0.7

)

3.2

 

22.3

 

(3.3

)

(50.8

)

 

RECONCILIATION OF CASH OPERATING COSTS TO TOTAL COSTS

 

 

 

Quarter Mar 2004

 

Quarter Dec 2003

 

9 months to Mar 2004

 

 

 

US$ million

 

US$/oz

 

US$ million

 

US$/oz

 

US$ million

 

US$/oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before taxation

 

10.7

 

 

 

(0.4

)

 

 

(16.6

)

 

 

Add back: Product sales (Gold revenue)

 

(88.4

)

 

 

(84.7

)

 

 

(235.9

)

 

 

Total costs

 

77.7

 

357

 

85.1

 

398

 

252.5

 

417

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

(2.8

)

(13

)

(3.3

)

(15

)

(8.4

)

(14

)

Non-operating income

 

1.7

 

8

 

2.2

 

10

 

6.3

 

10

 

Administration and general charges

 

(3.3

)

(15

)

(2.3

)

(11

)

(8.7

)

(14

)

Other operating costs

 

(4.1

)

(19

)

(11.2

)

(52

)

(36.3

)

(60

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating costs

 

69.2

 

318

 

70.5

 

330

 

205.4

 

340

 

 

CONVERSION FACTORS

 

Balance Sheet : 31 Mar 04

US$ 1 =  R 6.3525

 

 

Income Statement average:

Quarter Mar 04

 

 

Jan-04

US$ 1 =  R 6.9297

Feb-04

US$ 1 =  R 6.7777

Mar-04

US$ 1 =  R 6.6500

 

 

Quarter

US$ 1 =  R 6.7859

 

 

 

Quarter Dec 03

 

 

Oct-03

US$ 1 =  R 6.9892

Nov-03

US$ 1 =  R 6.7366

Dec-03

US$ 1 =  R 6.5620

 

 

Quarter

US$ 1 =  R 6.7629

 

US/SA GAAP RECONCILIATION

 

 

 

(R m)

 

 

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

 

 

 

 

 

 

 

 

Net profit/(loss) determined under US GAAP

 

64.7

 

(7.1

)

(104.5

)

 

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

 

Financial instruments

 

(0.5

)

4.9

 

(0.8

)

Depreciation of mineral rights and assets

 

(2.8

)

(2.8

)

39.7

 

Accounting for business combinations

 

0.3

 

0.3

 

1.0

 

Stock based compensation costs

 

4.2

 

4.0

 

11.8

 

Fair value adjustment on investments

 

5.3

 

1.1

 

32.8

 

Deferred taxation on adjustments

 

(17.7

)

8.1

 

36.2

 

Effect of US GAAP adjustments

 

(11.2

)

15.6

 

120.7

 

 

 

 

 

 

 

 

 

Net profit determined under SA GAAP

 

53.5

 

8.5

 

16.2

 

 

 

 

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 2003.

 

GROUP BALANCE SHEETS - US GAAP

 

 

 

(US$ m)

 

(R m)

 

ABRIDGED

 

Quarter
Dec 2003

 

Quarter
Mar 2004

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

(Unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

57.9

 

82.9

 

526.9

 

384.6

 

Cash and cash equivalents

 

21.9

 

47.9

 

304.4

 

145.4

 

Receivables

 

19.2

 

18.2

 

115.5

 

127.4

 

Inventories

 

16.8

 

16.8

 

107.0

 

111.8

 

Mining assets

 

157.6

 

168.0

 

1 067.0

 

1 048.7

 

Cost

 

460.6

 

480.3

 

3 050.8

 

3 064.0

 

Accumulated depreciation & amortization

 

(303.0

)

(312.3

)

(1 983.8

)

(2 015.3

)

Other assets

 

72.7

 

80.3

 

510.3

 

483.8

 

Deferred income and mining tax

 

—

 

—

 

—

 

—

 

Non-current assets

 

72.7

 

80.3

 

510.3

 

483.8

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

288.2

 

331.2

 

2 104.2

 

1 917.1

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

63.3

 

76.1

 

483.3

 

420.4

 

Bank overdraft

 

3.4

 

5.7

 

36.2

 

22.3

 

Accounts payable and accrued liabilities

 

53.4

 

63.7

 

404.4

 

355.0

 

Short-term portion of long-term loans

 

6.5

 

6.7

 

42.7

 

43.1

 

Long-term loans

 

3.5

 

3.1

 

20.0

 

23.4

 

Convertible loan note

 

60.2

 

60.4

 

383.9

 

400.3

 

Derivative instruments (Eskom)

 

34.6

 

15.0

 

95.4

 

230.1

 

Deferred income and mining tax

 

8.8

 

6.9

 

44.1

 

58.3

 

Provision-environmental rehabilitation

 

32.2

 

34.0

 

215.9

 

214.1

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

85.6

 

135.7

 

861.6

 

570.5

 

Authorised

 

 

 

 

 

 

 

 

 

300 000 000 ordinary no par value shares

 

 

 

 

 

 

 

 

 

5 000 000 cumulative preference shares

 

 

 

 

 

 

 

 

 

Issued

 

 

 

 

 

 

 

 

 

231 998 228 ordinary no par value shares

 

 

 

 

 

 

 

 

 

5 000 000 cumulative preference shares

 

 

 

 

 

 

 

 

 

Stated capital and share premium

 

448.3

 

481.0

 

3 066.5

 

2 846.3

 

Additional paid in capital

 

38.8

 

39.4

 

98.5

 

94.3

 

Cumulative preference shares

 

0.1

 

0.1

 

0.5

 

0.5

 

Accumulated loss

 

(363.6

)

(353.9

)

(2 359.4

)

(2 424.1

)

Other comprehensive (loss)/income

 

(38.0

)

(30.9

)

55.5

 

53.5

 

 

 

 

 

 

 

 

 

 

 

Total liabilities & stockholders’ equity

 

288.2

 

331.2

 

2 104.2

 

1 917.1

 

 

CHANGES IN STOCKHOLDERS’ EQUITY - US GAAP

 

 

 

(US$ m)

 

(R m)

 

(Unaudited)

 

9 months to
Mar 2004

 

Quarter
Dec 2003

 

Quarter
Mar 2004

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity at the beginning of the period

 

5.2

 

53.8

 

85.6

 

570.5

 

376.9

 

39.1

 

Share capital issued

 

122.4

 

24.6

 

33.3

 

224.4

 

165.8

 

877.4

 

- for acquisition finance and cash

 

120.2

 

24.0

 

32.4

 

217.4

 

162.1

 

862.4

 

- for share options exercised & issue expenses

 

0.5

 

—

 

0.3

 

2.8

 

(0.3

)

3.2

 

- for stock based compensation

 

1.7

 

0.6

 

0.6

 

4.2

 

4.0

 

11.8

 

Movement in retained income

 

8.1

 

7.2

 

16.8

 

66.7

 

27.8

 

(54.9

)

- profit/(loss) applicable to stockholders

 

(13.5

)

(1.4

)

9.7

 

64.7

 

(7.1

)

(104.5

)

- mark-to-market on investments

 

3.2

 

(0.7

)

0.3

 

1.7

 

(4.3

)

20.6

 

- foreign currency adjustments and other

 

18.4

 

9.3

 

6.8

 

0.3

 

39.2

 

29.0

 

Stockholders’ equity at the end of the period

 

135.7

 

85.6

 

135.7

 

861.6

 

570.5

 

861.6

 

 

GROUP CASH FLOW STATEMENTS

 

 

 

(US$ m)

 

(R m)

 

ABRIDGED

 

9 months to
Mar 2004

 

Quarter
Dec 2003

 

Quarter
Mar 2004

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash generated from operating activities

 

2.4

 

6.6

 

7.7

 

52.2

 

44.9

 

8.6

 

Working capital changes

 

14.5

 

(5.1

)

14.1

 

95.7

 

(34.8

)

101.5

 

Net cash used in investing activities

 

(90.1

)

(83.6

)

(7.9

)

(53.7

)

(565.7

)

(608.9

)

Net cash generated from financing activities

 

69.6

 

15.4

 

10.2

 

69.4

 

104.2

 

500.8

 

Net increase/(decrease) in cash & equivalents

 

(3.6

)

(66.7

)

24.1

 

163.6

 

(451.4

)

2.0

 

Effect of exchange rate changes on cash

 

7.1

 

3.1

 

1.9

 

(4.6

)

(14.8

)

(29.4

)

Cash and equivalents at beginning of period

 

44.4

 

85.5

 

21.9

 

145.4

 

611.6

 

331.8

 

Cash and equivalents at end of period

 

47.9

 

21.9

 

47.9

 

304.4

 

145.4

 

304.4

 

 

 

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), Tolukuma Gold Mines Limited, 20% of the Porgera Joint Venture, and DRD Australasia on a consolidated basis. The results of Crown Gold Recoveries (Pty) Ltd, which include East Rand Proprietary Mines Limited, are accounted for on the equity basis.

 

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 2003.

 

GROUP INCOME STATEMENTS - SA GAAP

 

 

 

(R m)

 

FINANCIAL RESULTS

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold revenue

 

600.0

 

571.5

 

1 639.0

 

Cash operating costs

 

(469.6

)

(476.8

)

(1 434.9

)

Cash operating profit

 

130.4

 

94.7

 

204.1

 

Other expenses - net

 

(31.6

)

(23.5

)

(76.0

)

Business development

 

(1.9

)

(1.1

)

(4.5

)

Care and maintenance costs

 

(1.6

)

(2.2

)

(6.3

)

Cash profit from operations

 

95.3

 

67.9

 

117.3

 

Retrenchment costs

 

(10.7

)

(5.3

)

(55.5

)

Investment income

 

8.1

 

11.4

 

31.2

 

Interest paid

 

(12.5

)

(13.0

)

(39.1

)

Net cash operating profit

 

80.2

 

61.0

 

53.9

 

Rehabilitation

 

(3.7

)

(2.9

)

(9.3

)

Depreciation

 

(50.5

)

(41.5

)

(119.0

)

Profit/(loss) on derivative instruments

 

16.8

 

(1.9

)

10.3

 

Gold in process

 

20.6

 

(6.6

)

5.1

 

Profit/(loss) before taxation

 

63.4

 

8.1

 

(59.0

)

Loss from associate

 

—

 

—

 

—

 

Taxation

 

(15.4

)

(4.6

)

(20.0

)

Deferred taxation benefit

 

(9.4

)

5.0

 

79.6

 

Profit after taxation

 

38.6

 

8.5

 

0.6

 

Exceptional items

 

14.9

 

—

 

15.6

 

Net profit

 

53.5

 

8.5

 

16.2

 

 

 

 

 

 

 

 

 

Headline earnings per share (cents)

 

17.0

 

3.9

 

0.2

 

Basic earnings per share (cents)

 

23.5

 

4.0

 

7.6

 

 

 

 

 

 

 

 

 

Calculated on the weighted average ordinary shares issued of :

 

227 024 097

 

216 388 899

 

211 481 242

 

 

 

 

 

 

 

 

 

Diluted headline earnings/(loss) per share (cents)

 

11.7

 

(0.4

)

(6.5

)

Diluted basic earnings/(loss) per share (cents)

 

17.7

 

(0.4

)

0.3

 

 

CHANGES IN SHAREHOLDERS’ INTEREST - SA GAAP

 

 

 

(R m)

 

(Unaudited)

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

Shareholders’ interest at the beginning of the period

 

1 092.6

 

891.2

 

456.1

 

 

 

 

 

 

 

 

 

Share capital issued

 

220.2

 

161.0

 

864.6

 

- for acquisition finance and cash

 

217.4

 

162.1

 

862.4

 

- for share options exercised and costs

 

2.8

 

(0.3

)

3.2

 

- for equity portion of convertible note

 

—

 

(0.8

)

(1.0

)

Movement in retained income

 

53.5

 

8.5

 

16.2

 

Currency adjustments and other

 

(34.5

)

31.9

 

(5.1

)

Shareholders’ interest at the end of the period

 

1 331.8

 

1 092.6

 

1 331.8

 

 

INVESTOR RELATIONS

 

For further information, contact Ilja Graulich at :

 

Tel: (+27-11) 381-7800, Fax: (+27-11) 482-4641,
e-mail: Ilja.graulich@za.drdgold.com,
web site: http://www.durbans.com
45 Empire Road,
Parktown, South Africa.

 

P O Box 390,
Maraisburg 1700,
South Africa.

 

GROUP BALANCE SHEETS - SA GAAP

 

 

 

(R m)

 

ABRIDGED

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

(Unaudited)

 

 

 

 

 

Employment of Capital

 

 

 

 

 

Net mining assets

 

1 041.1

 

1 048.5

 

Investments

 

167.4

 

154.7

 

Environmental Trust funds

 

138.7

 

137.6

 

Deferred mining and income taxes

 

368.0

 

372.0

 

Other non-current assets

 

204.2

 

191.4

 

Current assets

 

526.9

 

384.6

 

Inventories

 

107.0

 

111.8

 

Trade and other receivables

 

115.5

 

127.4

 

Cash and equivalents

 

304.4

 

145.4

 

 

 

 

 

 

 

 

 

2 446.3

 

2 288.8

 

Capital employed

 

 

 

 

 

Shareholders’ equity

 

1 331.8

 

1 092.6

 

Borrowings

 

319.9

 

331.6

 

Derivative instruments (Eskom)

 

95.4

 

230.1

 

Rehabilitation

 

215.9

 

214.1

 

Other non-current liabilities

 

88.0

 

71.5

 

Current liabilities

 

395.3

 

348.9

 

Trade and other payables

 

352.6

 

305.8

 

Current portion of borrowings

 

42.7

 

43.1

 

 

 

 

 

 

 

 

 

2 446.3

 

2 288.8

 

 

SHARE OPTION SCHEME

 

The following summary provides information in respect of the Durban Roodepoort
Deep (1996) Share Option Scheme as at 31 March 2004:

 

 

 

No. of options

 

% of issued
Capital

 

In issue :

 

6 909 600

 

3.0

 

Options currently vested :

 

2 131 039

 

0.9

 

 

GROUP CASH FLOW STATEMENTS - SA GAAP

 

 

 

(R m)

 

ABRIDGED

 

Quarter
Mar 2004

 

Quarter
Dec 2003

 

9 months to
Mar 2004

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash inflow from operating

 

 

 

 

 

 

 

activities before working capital changes

 

52.2

 

44.9

 

8.6

 

Working capital changes

 

95.7

 

(34.8

)

101.5

 

Net cash outflow from investing activities

 

(53.7

)

(565.7

)

(608.9

)

Net cash in flow from financing activities

 

69.4

 

104.2

 

500.8

 

Increase/(decrease) in cash & equivalents

 

163.6

 

(451.4

)

2.0

 

Translation adjustment

 

(4.6

)

(14.8

)

(29.4

)

 

 

 

 

 

 

 

 

Opening cash and equivalents

 

145.4

 

611.6

 

331.8

 

Closing cash and equivalents

 

304.4

 

145.4

 

304.4

 

 

DIRECTORS - (*British)(**Australian)

 

Executives :

MM Wellesley-Wood (Executive Chairman)*
IL Murray (Chief Executive Officer and Chief Financial Officer)

 

Non-executives :

MP Ncholo ; RP Hume ; GC Campbell* ; DC Baker** ; D Blackmur**

 

Alternates :

A Lubbe ; D van der Mescht

 

Group Company Secretary : AI Townsend

 

 

KEY OPERATING AND FINANCIAL RESULTS

 

 

 

 

 

 

Crown Gold Recoveries

 

Attributable
to DRD
(40%)

 

Blyvoor

 

North West

 

South African
Operations

 

Tolukuma

 

Porgera
Joint Venture
(20%)

 

Australasian
Operations

 

Total
DRD
attributable

 

Crown
Section

 

ERPM
Section

Under-
ground

 

Surface

 

Total

Under-
ground

 

Surface

 

Total

US$/Imperial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore milled - t’000

 

Mar 04 Qtr

 

2 821

 

158

 

1 192

 

230

 

827

 

1 057

 

444

 

35

 

479

 

1 536

 

56

 

353

 

409

 

3 137

 

 

 

Dec 03 Qtr

 

2 819

 

150

 

1 189

 

213

 

474

 

687

 

422

 

730

 

1 152

 

1 839

 

56

 

326

 

382

 

3 410

 

 

 

9 Mths to Mar 04

 

8 431

 

480

 

3 565

 

688

 

1 729

 

2 417

 

1 398

 

1 577

 

2 975

 

5 392

 

160

 

679

 

839

 

9 796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold produced - ounces

 

Mar 04 Qtr

 

31 573

 

25 849

 

22 969

 

47 615

 

9 324

 

56 939

 

80 280

 

7 556

 

87 836

 

144 775

 

21 509

 

51 505

 

73 014

 

240 758

 

 

 

Dec 03 Qtr

 

34 080

 

25 239

 

23 727

 

54 914

 

9 131

 

64 045

 

70 411

 

11 221

 

81 632

 

145 677

 

21 767

 

46 136

 

67 903

 

237 307

 

 

 

9 Mths to Mar 04

 

98 447

 

80 731

 

71 671

 

154 325

 

27 682

 

182 007

 

224 348

 

36 332

 

260 680

 

442 687

 

64 559

 

97 641

 

162 200

 

676 558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield - ounces per ton

 

Mar 04 Qtr

 

0.011

 

0.164

 

0.019

 

0.207

 

0.011

 

0.054

 

0.181

 

0.216

 

0.183

 

0.094

 

0.384

 

0.146

 

0.179

 

0.077

 

 

 

Dec 03 Qtr

 

0.012

 

0.168

 

0.020

 

0.258

 

0.019

 

0.093

 

0.167

 

0.015

 

0.071

 

0.079

 

0.389

 

0.142

 

0.178

 

0.070

 

 

 

9 Mths to Mar 04

 

0.012

 

0.168

 

0.020

 

0.224

 

0.016

 

0.075

 

0.160

 

0.023

 

0.088

 

0.082

 

0.403

 

0.144

 

0.193

 

0.069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating cost - US$/oz

 

Mar 04 Qtr

 

368

 

406

 

na

 

395

 

416

 

398

 

383

 

85

 

357

 

373

 

254

 

189

 

208

 

318

 

 

 

Dec 03 Qtr

 

348

 

388

 

na

 

336

 

408

 

346

 

416

 

294

 

399

 

376

 

253

 

222

 

232

 

330

 

 

 

9 Mths to Mar 04

 

346

 

380

 

na

 

358

 

389

 

362

 

420

 

225

 

393

 

381

 

262

 

205

 

228

 

340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating cost - US$/ton

 

Mar 04 Qtr

 

4

 

66

 

na

 

82

 

5

 

21

 

69

 

18

 

65

 

35

 

97

 

28

 

37

 

36

 

 

 

Dec 03 Qtr

 

4

 

65

 

na

 

87

 

8

 

32

 

69

 

5

 

28

 

30

 

98

 

31

 

41

 

32

 

 

 

9 Mths to Mar 04

 

4

 

64

 

na

 

80

 

6

 

27

 

67

 

5

 

34

 

31

 

106

 

29

 

44

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating profit/(loss) - US$ m

 

Mar 04 Qtr

 

1.2

 

—

 

na

 

0.5

 

(0.2

)

0.3

 

1.8

 

2.5

 

4.3

 

4.6

 

3.3

 

11.2

 

14.5

 

19.1

 

 

 

Dec 03 Qtr

 

1.5

 

—

 

na

 

3.0

 

(0.2

)

2.8

 

(1.8

)

1.3

 

(0.5

)

2.3

 

3.0

 

8.8

 

11.8

 

14.1

 

 

 

9 Mths to Mar 04

 

4.0

 

0.3

 

na

 

4.3

 

(0.1

)

4.2

 

(7.6

)

5.8

 

(1.8

)

2.4

 

8.1

 

20.0

 

28.1

 

30.5

 

ZAR/Metric

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore milled - t’000

 

Mar 04 Qtr

 

2 559

 

143

 

1 081

 

209

 

750

 

959

 

403

 

31

 

434

 

1 393

 

50

 

319

 

369

 

2 843

 

 

 

Dec 03 Qtr

 

2 558

 

136

 

1 078

 

193

 

430

 

623

 

383

 

662

 

1 045

 

1 668

 

50

 

295

 

345

 

3 091

 

 

 

9 Mths to Mar 04

 

7 649

 

435

 

3 234

 

624

 

1 568

 

2 192

 

1 269

 

1 430

 

2 699

 

4 891

 

144

 

614

 

758

 

8 883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold produced - kg

 

Mar 04 Qtr

 

982

 

804

 

714

 

1 481

 

290

 

1 771

 

2 497

 

235

 

2 732

 

4 503

 

669

 

1 602

 

2 271

 

7 488

 

 

 

Dec 03 Qtr

 

1 060

 

785

 

738

 

1 708

 

284

 

1 992

 

2 190

 

349

 

2 539

 

4 531

 

677

 

1 435

 

2 112

 

7 381

 

 

 

9 Mths to Mar 04

 

3 062

 

2 511

 

2 229

 

4 800

 

861

 

5 661

 

6 978

 

1 130

 

8 108

 

13 769

 

2 008

 

3 037

 

5 045

 

21 043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield - g/tonne

 

Mar 04 Qtr

 

0.38

 

5.62

 

0.66

 

7.09

 

0.39

 

1.85

 

6.20

 

7.58

 

6.29

 

3.23

 

13.38

 

5.02

 

6.15

 

2.63

 

 

 

Dec 03 Qtr

 

0.41

 

5.77

 

0.68

 

8.85

 

0.66

 

3.20

 

5.72

 

0.53

 

2.43

 

2.72

 

13.54

 

4.86

 

6.12

 

2.39

 

 

 

9 Mths to Mar 04

 

0.40

 

5.77

 

0.69

 

7.69

 

0.55

 

2.58

 

5.50

 

0.79

 

3.00

 

2.82

 

13.94

 

4.95

 

6.66

 

2.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating cost - R/kg

 

Mar 04 Qtr

 

80 283

 

88 526

 

na

 

86 086

 

90 786

 

86 855

 

83 450

 

18 460

 

77 859

 

81 398

 

55 348

 

41 245

 

45 400

 

69 329

 

 

 

Dec 03 Qtr

 

75 625

 

84 699

 

na

 

73 068

 

88 532

 

75 273

 

90 384

 

63 857

 

86 738

 

81 697

 

55 195

 

48 226

 

50 460

 

71 766

 

 

 

9 Mths to Mar 04

 

77 638

 

85 736

 

na

 

80 369

 

87 093

 

81 391

 

94 846

 

51 647

 

88 825

 

85 769

 

59 107

 

44 544

 

50 340

 

76 268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating cost - R/tonne

 

Mar 04 Qtr

 

31

 

498

 

na

 

610

 

35

 

160

 

517

 

140

 

490

 

263

 

741

 

207

 

279

 

267

 

 

 

Dec 03 Qtr

 

31

 

489

 

na

 

647

 

58

 

241

 

517

 

34

 

211

 

222

 

747

 

235

 

309

 

237

 

 

 

9 Mths to Mar 04

 

31

 

495

 

na

 

618

 

48

 

210

 

522

 

41

 

267

 

241

 

824

 

220

 

335

 

254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating profit/(loss) - R m

 

b

 

8.2

 

0.5

 

na

 

3.8

 

(0.7

)

3.1

 

12.1

 

16.8

 

28.9

 

32.0

 

22.0

 

76.4

 

98.4

 

130.4

 

 

 

Dec 03 Qtr

 

10.0

 

(0.3

)

na

 

20.3

 

(1.0

)

19.3

 

(11.3

)

7.4

 

(3.9

)

15.4

 

20.4

 

58.9

 

79.3

 

94.7

 

 

 

9 Mths to Mar 04

 

27.8

 

2.7

 

na

 

30.2

 

(0.4

)

29.8

 

(56.5

)

39.7

 

(16.8

)

13.0

 

55.8

 

135.3

 

191.1

 

204.1

 

 

Capital Expenditure - net

 

Quarter

 

Crown Gold Recoveries

 

 

 

Blyvoor

 

North West

 

Tolukuma

 

Porgera JV

 

 

 

Total DRD

 

 

 

 

 

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

 

Mar 04 Qtr

 

4.9

 

33.4

 

 

 

0.8

 

5.8

 

0.4

 

2.8

 

1.2

 

8.2

 

3.4

 

23.2

 

 

 

5.9

 

39.9

 

 

 

Dec 03 Qtr

 

4.1

 

27.8

 

 

 

4.4

 

29.3

 

0.6

 

4.2

 

1.4

 

9.5

 

1.8

 

12.3

 

 

 

8.1

 

55.4

 

 

 

9 Mths to Mar 04

 

10.5

 

72.1

 

 

 

7.6

 

53.2

 

2.6

 

18.8

 

3.2

 

22.4

 

5.2

 

35.5

 

 

 

18.7

 

130.3