DRDGOLD Ltd. · JSE:DRD
DRDGOLD — Q1 FY2012 Earnings Presentation
20 slides from DRDGOLD's earnings presentation, Oct 27, 2011
Slide 1: Results for the quarter ended 30 September 2011
Results for the quarter ended 30 September 2011 Niël Pretorius, CEO Craig Barnes, CFO 27 October 2011
Slide 2: DRDGOLD: disclaimer
DRDGOLD: disclaimer Many factors could cause the 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 included in this document, including, among others, adverse
Slide 3: Highlights for the quarter
Highlights for the quarter Gold production up 1% to 63 562oz Revenue up 28% to R806.2 million Operating profit up 82% to R202.5 million Headline earnings per share up 150% to 20cps Net cash inflow from operations up 14% to R117.9 million Board considering offers received for Blyvoor 2
Slide 4: Gold production: Q1 2012 vs Q4 2011
Gold production: Q1 2012 vs Q4 2011 Total gold production up 1% to 63 562oz • underground gold production up 10 % to 21 509oz • yield higher due to resolution of explosives issue • Blyvoor sets several safety records • surface gold production down 3% to 42 053oz • production mainly affected by cha
Slide 5: Production by operation
Production by operation 70 000 60% 60 000 50% 50 000 40% Contribution (%) Production (oz) 40 000 30% 30 000 20% 20 000 10% 10 000 - 0% Q12010 Q12011 Q12012 Blyvoor Ergo % Ergo 4
Slide 6: Revenue
Revenue Revenue up 29% to R806.2 million • 37% increase in gold price • 6% decrease in gold sold 900.0 60% 800.0 50% 700.0 600.0 40% Contribution (%) Revenue (R’m) 500.0 30% 400.0 300.0 20% 200.0 10% 100.0 - 0% Q12010 Q12011 Q12012 Blyvoor Ergo % Ergo 5
Slide 7: Operating profit
Operating profit Operating profit up 192% to R202.5 million 250.0 110% 100% 200.0 90% 80% Operating profit (R’m) 150.0 Contribution (%) 70% 60% 100.0 50% 40% 50.0 30% - 20% 10% -50.0 0% Q12010 Q12011 Q12012 Blyvoor Ergo % Ergo 6
Slide 8: HEPS
HEPS Headline earnings per share up to 20cps 25 20 20 15 Cents per share 10 5 - -1 -5 -10 -15 -13 Q12010 Q12011 Q12012 7
Slide 9: Net cash from operations
Net cash from operations Net cash inflow from operations up 438% to R117.9 million 150.0 117.9 100.0 50.0 21.9 R’ million - -50.0 -100.0 -101.6 -150.0 Q12010 Q12011 Q12012 8
Slide 10: Cash operating costs and gold price (R/kg)
Cash operating costs and gold price (R/kg) 400 000 350 000 300 000 250 000 R/kg 200 000 150 000 100 000 50 000 - Q12010 Q12011 Q12012 Blyvoor Ergo Group Gold price - R/kg 9
Slide 11: Operating margin analysis
Operating margin analysis 40% 34% 30% 25% 20% 20% 13% Operating margin (%) 11% 11% 10% 0% 0% -2% -10% -20% -18% -30% Q12010 Q12011 Q12012 Blyvoor Ergo Group 10
Slide 12: Capital expenditure by operation
Capital expenditure by operation 90.0 90% 80% 70.0 70% 50.0 Capital expenditure (R’m) 60% Contribution (%) 30.0 50% 40% 10.0 2009 2010 2011 30% -10.0 20% -30.0 10% -50.0 0% Blyvoor Ergo % Ergo 11
Slide 13: Operational review: Ergo (incorporating Crown)
Operational review: Ergo ( incorporating Crown) % Production down 1% Q1 2012 Q1 2011 inc/(dec) Cash operating unit costs up 13% Gold produced • lower production oz 34 562 34 980 (1) • electricity tariff increase kg 1 075 1 088 (1) • wage increases Cash operating costs Operating profit up 137% US$
Slide 14: Crown/Ergo pipeline: progress
Crown/Ergo pipeline: progress Pipeline linking Ergo and Crown (50km) Steel pipe installation (44km) 88% complete HDPE lining (44km) 88% complete 13
Slide 15: Operational review: Blyvoor
Operational review: Blyvoor % Q1 2012 Q1 2011 inc/(dec) Production down 4% Gold produced Cash operating unit costs up 19% Total • lower production oz 29 000 30 287 (4) • electricity tariff increases kg 902 942 (4) • wage increases Underground Operating profit of R46.0 million oz 21 509 24 210 (11
Slide 16: Financial review: income statement for the quarter ended 30 September 2011
Financial review: income statement for the quarter ended 30 September 2011 Q1 2012 Q1 2011 Comments Rm Rm Revenue 806.2 623.6 Up 29% due to higher Rand gold price Net operating costs (603.7) (554.2) Up 9%, electricity price increase and labour cost increases Operating profit 202.5 69.4 Up 192%, gear
Slide 17: Financial review: balance sheet at 30 September 2011
Financial review: balance sheet at 30 September 2011 30 Sep 2011 30 Jun 2011 Comments Rm Rm Property, plant and equipment 1 599.0 1 550.1 Non-current investments and other assets 25.1 25.1 Environmental rehabilitation trust funds 136.0 134.2 Deferred tax asset 57.3 69.2 Cash and cash equivalents 293
Slide 18: Zimbabwe update (ChizimGold JV)
Zimbabwe update (ChizimGold JV) Cautious growth continuing • compliant local structure • exceptional local partner Early bird advantage: 21 000ha footprint Total spend to date: US$2.5m 17
Slide 19: Looking ahead
Looking ahead Considering Blyvoor offers ERPM Exts 1 & 2 • appointment made Ergo integrated by December 2011 R&D feasibility due in December 2011 Extend exploration in Mozambique 18
Slide 20: Contact details
Contact details Registered office Contact details 1st Floor, Quadrum 1 Tel: +27 (0) 11 470 2600 Quadrum Office Park Fax: +27 (0) 11 470 2618 50 Constantia Boulevard Email: craig.barnes@za.drdgold.com Constantia Kloof Ext 28 james@rair.co.za Roodepoort Website: www.drdgold.com South Africa Shareholde