Wrap Text
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.
Johannesburg
1 February 2019
Sponsor
One Capital
Date: 01/02/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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