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(South Africa) DRD Gold LTD- Operating update for the quarter ended 31 December 2018 & trading statement for the 6 months ended 31 December 2018

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Operating update for the quarter ended 31 December 2018 & trading statement for the 6 months ended 31 December 2018

DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ISIN: ZAE000058723
JSE share code: DRD
NYSE trading symbol: DRD
("DRDGOLD" or the "Company")


OPERATING UPDATE FOR THE QUARTER ENDED 31 DECEMBER 2018 AND TRADING
STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2018


1. Operating Update

   The operating update of the Company for the quarter ended 31 December 2018 is as follows:

                                                          31 Dec 2018       30 Sep 2018      % change
   Production
   Gold produced                         kg                        1,111             1,169           -5%
                                         oz                       35,732            37,572           -5%
   Gold sold                             kg                        1,137             1,118            2%
                                         oz                       36,556    35,944            2%
   Ore Milled                            Metric (000't)            5,755             6,249           -8%
   Yield                                 Metric (g/t)              0.193             0.187            3%

   Price and costs
   Average gold price received           R per kg               564,218            545,867           3%
                                         US per oz                1,227              1,208           2%
   Adjusted EBITDA *                     Rm                        29.2               12.9         126%
                                         US$m                       2.0                0.9         127%
   Cash operating costs                  R/t                        101                 94           8%
                US/t                         7                  7           6%
   Cash operating costs                  R per kg               510,245            509,979           0%
                                         US per oz                1,110              1,129          -2%
   All-in sustaining costs **            R per kg               560,512            541,541           4%
                                US per oz                1,219              1,199           2%
   All-in cost **                        R per kg               732,394            658,180          11%
                                         US per oz                1,593              1,457           9%

   Capital expenditure
   Sustaining                            Rm                          9.8              3.8         158%
                                         US$m                        0.7               0.3         128%
   Non-sustaining/growth                 Rm                        188.4             117.6          60%
                                         US$m                       13.2               8.4          57%

   Average R/US$ exchange rate           14.30             14.05           2%

   Rounding of figures may result in computational discrepancies

   * The adjusted earnings before interest, taxes, depreciation and amortisation ("EBITDA") is based on the
   definitions in DRDGOLD´s revolving credit facility agreements. Adjusted EBITDA is not an IFRS measure and
   is provided for illustrative purposes only and because of its nature, it may not fairly present the Company´s
   results of operations.

   ** All-in cost definitions based on the guidance note on non-GAAP Metrics issued by the World Gold Council
   on 27 June 2013.

    Gold production quarter on quarter was down 5% primarily as a consequence of an 8% drop in
    tonnage throughput. Ergo Mining Proprietary Limited's lower throughput was mainly as a result of
    major power interruptions experienced over 11 days during the second quarter, caused by a fire at
    an Eskom sub-station, a lightning strike on the Brakpan tailings complex transformer yard and load-
    shedding by the Johannesburg Metropolitan Municipality. Overall yield showed an improvement
    quarter on quarter of 3%.

    The increase in gold price received and gold sold contributed to an increase in adjusted EBITDA
    for the quarter.

    The 8% increase in cash operating unit costs per ton was mainly as a result of the 8% decrease in
    overall throughput. Cash operating costs per kilogram were stable quarter on quarter, offset by the
    increase in gold sold.

    All-in sustaining cost and all-in costs per kilogram include both growth and sustaining capital
    expenditure, as well as production costs associated with the initial commissioning of our new Far
    West Gold Recoveries ("FWGR") project. Construction of this began in August 2018 and early-
    stage commissioning on 6 December 2018. FWGR is off to a flying start and we look forward to the
    benefit of its contribution in the second half of the 2019 financial year.

2. Trading Statement

    In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to
    publish a trading statement as soon as they are satisfied, with a reasonable degree of certainty,
    that the financial results for the current reporting period will differ by at least 20% from the financial
    results of the previous corresponding period.

    DRDGOLD is in the process of finalising its results for the six months ended 31 December 2018
    ("Results") and shareholders are accordingly advised that the Company has reasonable certainty
    that it will report a:

    •   loss per share of between 5.8 cents and 8.6 cents per share compared to earnings of 14.4
        cents per share for the previous corresponding period; and
    •   headline loss per share of between 5.8 cents 8.6 cents per share compared to headline
        earnings of 14.3 cents per share for the previous corresponding period.

    The expected decrease in earnings per share and headline earnings per share for the six months
    ended 31 December 2018 compared to the previous corresponding period are primarily due to the
    costs associated with the commissioning and start of FWGR, as well as a 3% decrease in gold
    produced.

The information contained in this announcement does not constitute an earnings forecast. The financial
information provided is the responsibility of the directors of DRDGOLD, and such information has not
been reviewed or reported on by the Company's auditors. The Company's Results are expected to be
published on SENS on or about 13 February 2019.
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