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Results for the year ended30 June 2012
Niël Pretorius, CEOCraig Barnes, CFOJohannesburg28 August 2012
Disclaimer
Many factors could cause the actual results, performance or achievements to be materially different from any futureresults, 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 thegold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLDor difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitiveposition, changes in business strategy, any major disruption in production at key facilities or adverse changes inforeign exchange rates and various other factors. These risks include, without limitation, those described in the sectionentitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2011, which we filed with theUnited States Securities and Exchange Commission on 28 October 2011 on Form 20-F. You should not place unduereliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake anyobligation to publicly update or revise these forward-looking statements to reflect events or circumstances after thedate of this report or to the occurrence of unanticipated events. Any forward-looking statement included in this reporthave not been reviewed and reported on by DRDGOLD’s auditors.
228 August 2012Results for the year ended 30 June 2012
Key features for the year (FY12 v FY11)
33% increase in dividend to 10 SA cents per ordinary share53% increase in operating profit from continuing operations to R622.2 million259% increase in HEPS to 61 SA cents91% increase in net cash flow from operations to R619.5 millionErgo’s flotation/fine-grind project on track for completion February 2013Restructuring of surface retreatment operations completed Blyvoor disposal completed
28 August 2012Results for the year ended 30 June 2012 3
Ergo: trends
28 August 2012Results for the year ended 30 June 2012 4
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Crown City Knights Ergo
Tons
(000
's)
Actual 2011 Actual 2012 Target 2013
Tons comparison – annual
28 August 2012Results for the year ended 30 June 2012 5
• Top Star depleted
• 3A2 (JCC dump) commissioned
• City Deep to Elsburg pipeline completed September 2011
• City Deep production from 3L42 starts ramping up
• 9.46Mt @ 0.377g/t
• Final completion of Crown/ERGO pipeline early in calendar 2012
Gold comparison – annual
28 August 2012Results for the year ended 30 June 2012 6
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Crown City Knights Ergo
Kilo
gram
s
Actual 2011 Actual 2012 Target 2013
• 3A2 replaces Top Star
• 11.1Mt @ 0.504g/t
• 5 582kg contained
• Final clean-up phase
• Output further supported by volume increase
• Volume increase• Impact of
flotation/fine-grind circuit in final quarter
Group trends
28 August 2012Results for the year ended 30 June 2012 7
Operating margin (%)
Operating margin up to 35%
28 August 2012Results for the year ended 30 June 2012 8
29%
35% 34%
40%
37%
28%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
FY2011 FY2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012
EBITDA (Rm)
EBITDA from continuing operations up 63% to R346.9 million
928 August 2012Results for the year ended 30 June 2012
212.2
346.9
113.0
141.0
105.6
-12.7-50
0
50
100
150
200
250
300
350
400
FY2011 FY2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Headline earnings per share (SA cents)
Headline earnings per share from continuing operations up 259% to 61 SA cents
1028 August 2012Results for the year ended 30 June 2012
17
61
1215
12
22
0
10
20
30
40
50
60
70
FY2011 FY2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Free cash flow (Rm)
Increase in free cash flow from continuing operations to R207.9 million
1128 August 2012Results for the year ended 30 June 2012
-11.2
207.9
34.8
154.7
73.7
-55.3
-100
-50
0
50
100
150
200
250
FY2011 FY2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Financial review: income statement for the year ended 30 June 2012
1228 August 2012Results for the year ended 30 June 2012
FY2012 FY2011 CommentsRm Rm
Continuing operationsRevenue 1 764.2 1 379.5 Up 28%, higher gold price
Net operating costs (1 142.0) (972.5) Up 17%, higher volumes, electricity and wage increases
Operating profit 622.2 407.0 Up 53%, operating margin increased to 35%
Depreciation (119.2) (98.3) Up 21%, new infrastructure being depreciated
Movement in provision for environmental rehab (59.5) (47.0) Up 27%, new infrastructure and larger footprint
Environmental rehab costs (47.3) (37.2) Up 27%, Crown tailings complex decommissioned
Other income and costs (151.0) (121.9) Up 24%, loss on sale of assets, care and maintenance
Net finance income 15.8 10.6 Up 49%
Profit before tax 261.0 113.2 Up 131%
Taxation (8.0) (29.7) Deferred tax credit
Profit after tax 253.0 83.5 Up 203%
Discontinued operation 124.0 (498.9) Blyvoor profit for 11 months and loss on disposal
Net profit/(loss) 377.0 (415.4)
HEPS from continuing operations (cents) 61 17 Up 258%
HEPS from total operations (cents) 86 28 Up 207%
Financial review: balance sheet at 30 June 2012
1328 August 2012Results for the year ended 30 June 2012
30 Jun 2012 30 Jun 2011 CommentsRm Rm
Property, plant and equipment 1 641.6 1 550.1
Non-current investments and other assets 176.1 25.1 Village shares R151.3m
Environmental rehabilitation trust funds and guarantees 165.6 134.2 Funding of rehab guarantees
Deferred tax asset 38.3 69.2
Cash and cash equivalents 298.5 259.1 Strong cash position
Other current assets 172.1 250.9
Total assets 2 492.2 2 288.6
Equity 1 633.9 1 219.2
Long-term liabilities 6.0 46.7 No long-term loans and borrowings
Provision for environmental rehabilitation 504.3 490.2
Deferred tax liability 87.0 122.5
Current liabilities 261.0 410.0 Current loans and borrowings of R30.7m
Total equity and liabilities 2 492.2 2 288.6
Current ratio 1.8 1.2 Improved liquidity
Progress to date
Orders placed for all major equipment and refurbishingEquipment deliveries on scheduleExtensive build up in on site activity over the next three monthsProject currently on schedule and budget
28 August 2012Results for the year ended 30 June 2012 14
Activity Feb2012
Mar2012
Apr2012
May2012
Jun2012
Jul2012
Aug2012
Sep2012
Oct2012
Nov2012
Dec2012
Jan2013
Feb2013
Mar2013
Apr2013
May2013
Jun2013
Jul2013
Aug2013
Project approval
Strip and clear redundant plant
Order/delivery of new plant
Refurbish existing plant
Shipping of mills from Canada
Install equipment
Plant commissioning
Tonnage build-up
Full tonnage
100%95%
75%40%
0%30%
0%0%
Completed
Shows % complete
0%
Date Action Effect
1 February 2012 Working capital adjustment (cash flow cut-off) • No further funds repaid by Blyvoor to DRDGOLD
• No further funding to Blyvoor from DRDGOLD
• Blyvoor working capital adjusted to Rnil
1 June 2012 Part A closed (disposal of DRDGOLD loans to Blyvoor and transfer of control)
All conditions precedent were either met or waived
• Blyvoor consolidated by DRDGOLD until 31 May 2012
• DRDGOLD accounted for Blyvoor disposal 1 June 2012
• Control transfers to Village Main Reef (VMR) ito IFRS
• DRDGOLD received 85 714 286 VMR shares; 20 000 000 held in Escrow until Park B closes
By 11 February 2014
By 11 February 2015
Part B closing (disposal of DRDGOLD ordinary shares in Blyvoor)
Conditions precedent:
• Blyvoor mining right converted to New Order by first date
• share sale consent by Minister by second date
• 20 000 000 VMR shares held in Escrow released to DRDGOLD
Blyvoor countdown
1528 August 2012Results for the year ended 30 June 2012
Zimbabwe updated (CHIZIMGOLD JV)
Focus-based exploration drilling planned for FY2013Four areas of focus will be:• Leny & Ascot• John Bull• alluvial deposits• KT
28 August 2012Results for the year ended 30 June 2012 16
Sustainable development
28 August 2012Results for the year ended 30 June 2012 17
Financial capital
Salaries, wages, other benefits paid to employees: R821 million (59% of total expenditure) R22 million paid to government in taxes, royaltiesTotal expenditure on goods, services: R1 637 millionRe-investment through share repurchases: R58 millionDividends paid to shareholders: R46 millionTotal value distribution: R1 400 million
28 August 2012Results for the year ended 30 June 2012 18
Intellectual and manufactured capital
Improving recoveries:• flotation/fine grind process • second CIL circuit at Ergo refurbished
Increasing deposition capacity at Brakpan tailings facility (BTF)Creating synergies: Crown/Ergo pipeline
28 August 2012Results for the year ended 30 June 2012 19
Human capital
2 222 people currently employed (792 permanent employees and 1 430 contractors)35.5% HDSAs in managementNo industrial action No DMR safety stoppages R3.9 million spent on employee training, development
28 August 2012Results for the year ended 30 June 2012 20
Natural capital
Mega water consumer: 30Ml/pm
• focus on recycling, storing
• further innovations pending
Carbon footprint: pipeline design delivers 25% electricity cost reduction
R116.1 million spent on dump rehabilitation
• 8.6ha of slide slopes, 20ha of top surfaces vegetated during FY2012
• 22ha of dust netting installed
Total net closure provision: R447 million
28 August 2012Results for the year ended 30 June 2012 21
Social capital
Corporate social investment: R16 millionSocio-economic development projects: R9.4 million Life after employment initiatives implemented (Vuselela and Best Life)Flagship Ekurhuleni Business Development Academy (EBDA): 5 432 people trained
28 August 2012Results for the year ended 30 June 2012 22
Looking ahead
Deliver into targets• maintain tonnage volumes to plant• complete flotation/fine-grind circuit before financial year-end
Continue R&D• improve recoveries
Progress strategic sustainable development initiatives• intelligent water consumption• reduced carbon footprint• real human, social capital (EBDA)
Explore expansion into other reclamation/recovery areas
2328 August 2012Results for the year ended 30 June 2012
Registered office 1st Floor, Quadrum 1Quadrum Office Park50 Constantia BoulevardConstantia Kloof Ext 28RoodepoortSouth Africa
PO Box 390 Maraisburg 1700 South Africa
Contact details Tel: +27 (0) 11 470 2600 Fax: +27 (0) 11 470 2618 Email: [email protected]
[email protected] Website: www.drdgold.com
Shareholder data (Incorporated in the Republic of South Africa) Registration No.1895/000926/06 JSE share code: DRDISIN: ZAE 000058723 Issuer code: DUSM NYSE trading symbol: DRD