DRDGOLD Ltd. · JSE:DRD

DRDGOLD — Q2 FY2012 Earnings Presentation

18 slides from DRDGOLD's earnings presentation, Feb 14, 2012

  1. Slide 1: Results for the Quarter Ended 31 December 2011

    RESULTS FOR THE QUARTER ENDED 31 DECEMBER 2011 Niël Pretorius, CEO | Craig Barnes, CFO 14 February 2012

  2. Slide 2: Disclaimer

    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, including, among others, adverse changes or uncertainties in genera

  3. Slide 3: Highlights for the Quarter

    HIGHLIGHTS FOR THE QUARTER  Gold production steady  Cash operating unit costs down 2%  Net profit up 99% to R165.1 million  Headline earnings up 66% to R125.3 million  Net cash inflow from operations up 107% to R243.9 million  Agreement concluded for the sale of Blyvoor 3

  4. Slide 4: Gold Production: Q2 2012 vs. Q1 2012

    GOLD PRODUCTION: Q2 2012 vs. Q1 2012  Total gold production virtually unchanged at 63 569oz (Q1: 63 562) • total gold production at Blyvoor up 2% at 29 676oz • surface yield down 17% to 0.25g/t • gold production at Ergo 2% lower at 33 983oz • throughput stable at 5 234 000t 4

  5. Slide 5: Production by Operation

    PRODUCTION BY OPERATION 80 000 70 000 60 000 50 000 36 845 33 983 34 820 oz 40 000 30 000 20 000 32 601 29 676 25 046 10 000 0 Q2 2010 Q2 2011 Q2 2012 Blyvoor Ergo 5

  6. Slide 6: Revenue

    REVENUE  Revenue up 32% to R865.9 million • 44% increase in gold price • 8% decrease in gold sold 1 000 900 800 700 462.8 600 Rm 500 348.2 400 289.9 300 200 403.1 307.4 100 209.7 0 Q2 2010 Q2 2011 Q2 2012 Blyvoor Ergo 6

  7. Slide 7: Operating Profit

    OPERATING PROFIT  Operating profit up to R287.3 million 350 300 250 200 188.7 Rm 150 100 109.3 50 67.3 98.6 42.2 20.1 0 -50 Q2 2010 Q2 2011 Q22012 Blyvoor Ergo 7

  8. Slide 8: HEPS

    HEPS  Headline earnings per share up to 33cps 35 30 25 Cents per share 20 33 15 10 5 9 1 0 Q2 2010 Q2 2011 Q2 2012 8

  9. Slide 9: Net Cash from Operations

    NET CASH FROM OPERATIONS  Net cash inflow from operations up to R243.9 million 300 250 243.9 200 150 Rm 100 78.6 50 0 -7.2 -50 Q2 2010 Q2 2011 Q22012 9

  10. Slide 10: Cash Operating Costs (R/kg)

    CASH OPERATING COSTS (R/kg) 450 000 400 000 350 000 300 000 250 000 R/kg 200 000 326 677 150 000 292 988 253 078 255 208 263 569 223 653 229 560 100 000 202 300 206 866 50 000 0 Q22010 Q22011 Q22012 Blyvoor Ergo Group 10

  11. Slide 11: Operating Margin Analysis

    OPERATING MARGIN ANALYSIS 45% 40% 35% 30% 25% 20% 40% 32% 33% 15% 25% 24% 25% 10% 17% 16% 5% 6% 0% Q2 2010 Q2 2011 Q2 2012 Blyvoor Ergo Group 11

  12. Slide 12: Capital Expenditure by Operation

    CAPITAL EXPENDITURE BY OPERATION 90 80 70 60 45.7 50 51.5 Rm 40 30 13.5 20 33.2 10 21.6 17.5 0 Q2 2010 Q2 2011 Q2 2012 Blyvoor Ergo 12

  13. Slide 13: Crown/Ergo Pipeline: Progress

    CROWN/ERGO PIPELINE: PROGRESS 50km pipeline linking Crown and Ergo 13

  14. Slide 14: Financial Review: Income Statement for the Quarter

    FINANCIAL REVIEW: INCOME STATEMENT FOR THE QUARTER ENDED 31 DECEMBER 2011 Q2 2012 Q2 2011 Comments Continuing operations Rm Rm Revenue 462.8 348.2 Up 33%, higher gold price offset decrease in gold sold Net operating costs (274.1) (238.8) Up 15%, 9% increase in ore milled and other cost increases Ope

  15. Slide 15: Financial Review: Balance Sheet at 31 December 2011

    FINANCIAL REVIEW: BALANCE SHEET AT 31 DECEMBER 2011 31 Dec 2011 30 Sep 2011 Comments Rm Rm Property, plant and equipment 1 570.4 1 599.0 Non-current investments and other assets 10.8 25.1 Environmental rehabilitation trust funds 103.4 136.0 Deferred tax asset 46.8 57.3 FCF of R154.7 million, R78 mil

  16. Slide 16: Zimbabwe Update (Chizimgold JV)

    ZIMBABWE UPDATED (CHIZIMGOLD JV)  Drilling at KT Target (Gweru)  Geochem reports for Leny, Ascot and John Bull prospects (Norton)  Follow-up geochem surveys and trenching to follow 16

  17. Slide 17: Looking Ahead

    LOOKING AHEAD  Crown/Ergo integration • optimisation of circuits • leverage competitive advantage • extensive resource • plant infrastructure • strategic surface holdings • further growth of 11Moz surface resource  Fine-Grind Circuit • flotation and fine-grind circuit to be incorporated into Ergo’

  18. Slide 18: 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 PO Box 390

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