Production results for the quarter ended 30 September 2005

Transcription

1 Production results for the quarter ended 3 September 25 Mark Wellesley-Wood Chief Executive Officer DRDGOLD Paseka Ncholo Executive Chairman DRDGOLDSA 27 October 25 DISCLAIMER Some of the information in this presentation may contain projections or other forward looking statements regarding future events or other financial performance, including forward-looking statements and information relating to us that are based on the beliefs of our management, as well as assumptions made by and information currently available to our management. When used in this presentation, the words "estimate", "project", "believe", anticipate", "intend", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a continuing strengthening of the Rand against the Dollar, regulatory developments adverse to us or difficulties in maintaining necessary licenses or other governmental approvals, changes in our competitive position, changes in business strategy, any major disruption in production at our key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled "Risk Factors" included in our annual report for the fiscal year ended 3 June 24, which we filed with the United States Securities and Exchange Commission on 29 November 24 on Form 2-F, as amended by the Form 2-F/A filed on 29 April 25 and those detailed from time to time with the United States Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. 2

2 KEY FEATURES Board approves extension of BEE structure SA production up 5% Australasian cost pressures being addressed 3 OPERATIONAL OVERVIEW Cash costs () Production ounces (troy) Comment Australasia Porgera JV (2%) Tolukuma Emperor(45.33%) # , , 199 1, 326 Hitting the west wall 19 no-fly days; 11 production days lost Changes initiated South Africa Blyvoor Crown (4%) # ERPM (4%) # , , , 6 Wage agreement reached Good quarter Through the dyke # Equity accounted 4

3 RESULTS SUMMARY Sep24 June 25 Sep 25 Attributable gold production 22, , , 63 (oz) 25, 2, 7,99 77,387 87,751 15, 79,334 1, 5, 157, , ,546 47,584 72,662 67,92 6,733 64,752 67,71 5 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 South Africa North West Operations Australasia RESULTS SUMMARY Sep 24 June 25 Sep 25 Gold price received 43 82, , , January 23: 44 R1 /kg 43 18, 13, 42 98, , 88, 83, 78, $/oz 36 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 73, 6

4 RESULTS SUMMARY Sep 24 June 25 Sep 25 Group cash operating costs , , , , 41 15, 39 1, 37 95, , 85, $/oz 31 8, 29 75, 27 7, 25 Jun-4 Mar-5 Jun-5 Sep-5 65, 7 MARGIN MANAGEMENT 8 $/oz R59m write-off Hedge book close out Jun- Sep- Dec- Mar-1 Jun-1 Sep-1 Dec-1 Mar-2 Rand strength Jun-2 NWO liquidation Margin restored Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Gold price 22% margin Sep-4 Dec-4 Mar-5 Jun-5 Sep-5

5 R 15, SA OPERATIONS: CASH OPERATING PROFIT/LOSS , 5, -5, ,818 5,454 3, , , ,193-1,693-1,574-2,553-2,94-3, , -1,619-15, Sep-4 Oct-4 Nov-4 Dec-4 Jan-5 Feb-5 Mar-5 Apr-5 May-5 Jun-5 Jul-5 Aug-5 Sep-5 SA Continued Ops Crown/ERPM * Excludes discontinued NWO 9 AUSTRALASIAN OPERATIONS Sep 24 June 25 Sep 25 Attributable gold production ounces 77, , , 92 1, 9, 47 8, 7, 42 6, 37 5, 4, 32 3, 27 2, 1, 22 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep

6 PORGERA JV West Wall rectification commences DRDGOLD capex share: US$1m to September 26 6, 5 5, 45 4, 3, 2, , 2 Jun-5 Sep-5 Dec-5 Mar-5 Jun-5 Sep TOLUKUMA Bad weather affects flying windows Impact of higher fuel costs 25, 5 2, 45 15, , 3 5, 25 Jun-5 Sep-5 Dec-4 Mar-5 Jun-5 Sep

7 BLYVOOR Development up 72% Increasing surface production No 2 Sub-Shaft Project replan Wage settlement finalised 6, 12, 5, 11, 4, 1, 3, 9, 2, 8, 1, 7, June'4 Sep'4 Dec'4 Mar'5 June'5 Sep'5 6, 13 CROWN JV: ERPM Dyke now traversed Surface production improves Plugging project: phase 2 now 4% complete 14, 12, 12, 11, 1, 8, 6, 4, 1, 9, 8, 2, 7, Jun-5 Sep-5 Dec-5 Mar-5 Jun-5 Sep-5 6, 14

8 CROWN JV: CROWN Yield up 16% as CMR (2/A/1) reclamation site is commissioned Costs contained 13, 12, 12,5 1, 12, 11,5 11, 1,5 8, 6, 4, 1, 2, 9,5 Jun-5 Sep-5 Dec-5 Mar-5 Jun-5 Sep-5 15 SA ORE RESERVE RECONCILIATION 24/5 oz (x 1) Moz , 8, 6, , 2, , , -6, Additions Costs Gold price Depletion NWO Other 25 *4 Crown and ERPM 16

9 KBH EMPOWERMENT TRANSACTION Extends existing BEE structure covers all SA assets Platform for African growth Facilitated by IDC debt restructuring in Crown JV Step 1:KBH acquires 15% in DRDGOLD SA DRDGOLD SA includes ERPM, Crown, Blyvoor Step 2: KBH option to acquire 11% in DRDGOLD SA R9.3 million includes 6% Employee Trust Stake 17 KBH EMPOWERMENT TRANSACTION,, cont d Transaction vendor financed conversion of existing R7.9 million loan to KBH issue of R31.8 million new KhumoGold preference shares DRDGOLD attributable gold production increases by 3% DRDGOLD attributable gold reserves increase by 165 oz 18

10 CONCLUSION SA stabilising DRDGOLD SA looks to Africa Australasian costs receive attention Positioning the business for the gold market preserving ounces in the ground leveraging to the gold price 19 Production results for the quarter ended 3 September 25 Mark Wellesley-Wood Chief Executive Officer DRDGOLD Paseka Ncholo Executive Chairman DRDGOLDSA 27 October 25