-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CacLu90iMyn5b8sR6bXI14eN3QkNsVYfVFUB5PetbPzJh+t514aOwIy0t4BqbXNP ZPcSyCssv1HbODxz4OA2vQ== 0001047469-03-035458.txt : 20031031 0001047469-03-035458.hdr.sgml : 20031031 20031031154501 ACCESSION NUMBER: 0001047469-03-035458 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031030 FILED AS OF DATE: 20031031 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DURBAN ROODEPOORT DEEP LTD CENTRAL INDEX KEY: 0001023512 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 000000000 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28800 FILM NUMBER: 03969932 BUSINESS ADDRESS: STREET 1: 5 PRESS AVE STREET 2: SELBY CITY: JOHANNESBURG, SOUTH STATE: T3 ZIP: 00000 6-K 1 a2121635z6-k.txt 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2003 (Seventh Filing) Commission File Number: 0-28800 ------- DURBAN ROODEPOORT DEEP, LIMITED --------------------------------------------------------- (Translation of registrant's name into English) 45 EMPIRE ROAD, PARKTOWN, JOHANNESBURG SOUTH AFRICA, 2193 --------------------------------------------------------- (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F......... Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ NOTE: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders. Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): NOTE: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ..... No X If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________ Attached to the Registrant's Form 6-K Filing for the month of October 2003, and incorporated by reference herein, are:
EXHIBIT NO. DESCRIPTION ----------- ----------- 1. Release, dated October 14, 2003, entitled "DRD acquires 20% interest in Porgera Gold Mine." 2 Report to Shareholders for the 1st Quarter ended 30 September 2003.
This Form 6-k and the exhibits contained herein are explicitly incorporated by reference into the Registrant's registration statement on Form F-3 filed with the Securities and Exchange Commission on September 30, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. DURBAN ROODEPOORT DEEP, LIMITED By: /s/ ANDREA TOWNSEND ------------------------------------ Andrea Townsend Company Secretary Dated: October 31, 2003 EX-1 3 a2121635zex-1.txt EXHIBIT 1 Exhibit 1 DURBAN ROODEPOORT DEEP - -------------------------------------------------------------------------------- NEWS RELEASE - -------------------------------------------------------------------------------- 14 October 2003 265/03-jmd - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE DRD ACQUIRES 20% INTEREST IN PORGERA GOLD MINE Durban Roodepoort Deep, Limited (JSE: DUR; NASDAQ: DROOY; ASX: DRD), announced today (14 October 2003) that it has reached agreement with Oil Search Limited (OSL) to acquire that company's 20% interest in the Porgera Gold Mine (Porgera) in Papua New Guinea (PNG). The purchase price of US$73.8 million is comprised of US$52.7 million in cash and US$21.1 million in DRD shares. DRD can elect to pay part or all of the equity component in cash at a 10% discount to the value of the scrip. DRD intends to fund the cash portion of the acquisition price from cash on hand, including monies raised from the issue of 27 million shares to the Investec Group. DRD Chairman and Chief Executive Officer Mark Wellesley-Wood said today that the acquisition of the 20% interest in Porgera was in line with DRD's Australasian growth strategy. "It will lower DRD's risk profile by the addition of lower cost gold production, without placing any stretch on existing management. "Further, it will boost DRD's cash flow outside of South Africa, provide diversification out of the Rand and provide critical mass for our Australasian operations," Wellesley-Wood said. He also noted that the 20% Porgera interest would provide DRD with an additional 1.25 million ounces of reserves and 2.59 million ounces of resources. After completion of the acquisition, DRD will have representation on the Porgera Joint Venture Committee. Porgera, managed by 75% shareholder Placer Dome Inc, has produced more than 10 million ounces of gold since operations began in 1990. The remaining 5% of the operation is owned by Mineral Resources Enga (MRE), on behalf of the Enga Provincial Government and landowners in PNG. As part of the acquisition and subject to the amalgamation occurring, DRD has agreed to offer a 5% direct interest in the Porgera Joint Venture to MRE, on reasonable commercial terms referable to DRD's acquisition cost of the 5% interest, recognising reasonable transaction costs of the acquisition and on-sale of the 5% interest. DRD's presence in Australasia includes 100% ownership of the 85 000 ounces a year Tolukuma Gold Mine in PNG and 19.8% of Emperor Mines Limited (ASX: EMP), which owns the 120 000 ounces a year Vatukoula Gold Mine in Fiji. The acquisition of the interest in Porgera will be implemented by way of an amalgamation under the law of PNG. The transaction documentation was executed by the parties on 14 October 2003 and the acquisition is scheduled for completion immediately upon receipt of regulatory approvals which are expected within the next six weeks. DRD is one of the largest gold producers in the world. Its South African production last year - from the deep-level underground Blyvooruitzicht mine and the North West Operations, and from a 40% share of Crown Gold Recoveries, comprising both underground and tailings retreatment operations - totaled almost one million ounces. The miner has specialized in extending the operating lives of older mines. - -------------------------------------------------------------------------------- SOUTH AFRICA Ilja Graulich, Durban Roodepoort Deep, Limited +27 11 381 7826 (office) +27 83 604 0820 (mobile) James Duncan, Russell & Associates +27 11 880 3924 (office) +27 82 892 8052 (mobile) AUSTRALASIA Paul Downie, Porter Novelli +61 893 861 233 (office) +61 414 947 129 (mobile) - -------------------------------------------------------------------------------- Some of the information in this media release may contain projections or other forward looking statements regarding future events or other future financial performance. We wish to caution you that these statements are only projections and those actual events or results may differ materially. In reviewing, please refer to the documents that we file from time to time with the SEC, specifically to our annual report on Form 20-F. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward looking statements, including such risks as difficulties in being a marginal producer of gold, changes and reliability of ore reserve estimates, gold price volatility, currency fluctuations, problems in the integration of operations, exploration and mining risks and a variety of risks described in our annual report on Form 20-F. We undertake no obligation to publicly release results of any of these forward looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. Cautionary note to US investors: the United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use the term "resources" (which includes "measured", "indicated", and "inferred") in our media releases, which the SEC guidelines strictly prohibit us from including in our filing with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F, File No. 0-28800, available from us at 45 Empire Road, Parktown, Johannesburg, 2193, South Africa. You can also obtain this form from the SEC website at HTTP://WWW.SEC.GOV/EDGAR.SHTML BACKGROUNDER ON PORGERA MINE: The Porgera open pit gold mine is located in the highlands of Papua New Guinea (PNG). The workforce comprises about 2 050 employees, 89% of whom are PNG nationals. In addition, there are approximately 560 contractors, 89% of whom are PNG nationals. During 2002, the mine produced 641 810 ounces of gold at an average cash and total cost of $216 and $269 per ounce, respectively. Open pit mining is currently in Stages 4 and 5 of a 5-stage open-pit mining plan. Stage 4 production will be the principal source of ore in 2003 and until completion of the stage late in 2004. Stage 5 is under development and will contribute ore from 2003 to 2006. Planned gold production based on open pit and stockpile operations at Porgera is expected to average around 685 000 ounces a year from 2003 through 2005, then decline as lower grade stockpiles are treated until 2012. Underground mining, which was suspended in October 1997, was re-started in 2002 and will contribute ore through to late 2005. This is expected to augment average annual production by approximately 125 000 ounces a year over the 2003 to 2005 period. Production by the Porgera Mine is subject to a 2% net smelter royalty payable to the national government's Department of Mines, which then distributes it to the Enga provincial government, the Porgera District Authority, and local landowners. The proven and probable mineral reserves at 31 December 2002 contained 6.2 million ounces of gold with a projected life of 10 years. FURTHER INFORMATION IS AVAILABLE ON: (HTTP://WWW.PLACERDOME.COM/OPERATIONS/PORGERA/PORGERA.HTML) EX-2 4 a2121635zex-2.txt EXHIBIT 2 DURBAN ROODEPOORT DEEP, LIMITED [GRAPHIC] (Incorporated in the Republic of South Africa) [GRAPHIC] Registration No.1895/000926/06 ARBN 086 277616 JSE trading symbol: DUR ISIN Code: ZAE 000015079 Issuer code: DUSM NASDAQ trading symbol: DROOY REPORT TO SHAREHOLDERS FOR THE 1ST QUARTER ENDED 30 SEPTEMBER 2003 OF THE 2004 FINANCIAL YEAR GROUP RESULTS HIGHLIGHTS Safety record continues to improve North West Operations restructuring completed ERPM moves into operating profit Tolukuma resource expansion Acquisition of 20% of Porgera Joint Venture
QUARTER QUARTER SEP 2003 JUN 2003 -------- -------- Gold production (attributable) oz 198 493 207 725 kg 6 174 6 461 Cash operating costs US$/oz 378 352 R/kg 90 520 87 368 Gold price received US$/oz 362 348 R/kg 86 625 86 348 Capital expenditure US$ m 4.7 3.3 R m 35.0 24.9 STOCK ISSUED CAPITAL STOCK TRADED JSE NASDAQ FRANKFURT --- ------ --------- 211 402 045 ordinary no par value shares Ave. volume for the quarter per day (000) 123 4 165 165 5 000 000 cumulative preference shares % of issued stock traded (annualised) 15% 514% 20% Price - High R 26.50 USD 3.54 Euro 2.95 - Low R 16.51 USD 2.20 Euro 2.04 - Close R 20.71 USD 2.86 Euro 2.53 ADDRESS DETAILS REGISTERED OFFICE : SHARE TRANSFER SECRETARIES : UNITED KINGDOM REGISTRARS : DEPOSITORY BANK : 45 Empire Road, Parktown, Ultra Registrars (Pty) Ltd, St. James' Corporate Services Ltd, American Depository Receipts, South Africa PO Box 4844, 6 St. James' Place, The Bank of New York, PO Box 390, Johannesburg 2000, London Shareholders Relations Department, Maraisburg 1700, South Africa SW IA INP 101 Barclay Street, South Africa New York, NY 10296
FORWARD LOOKING STATEMENTS Some of the information in this voluntary announcement, contain projections or other forward looking statements regarding future events or other future performance. We wish to caution you that these statements are only projections and those actual events or results may differ materially due to such risks as difficulties in being a marginal producer of gold, changes and reliability of ore reserve estimates, gold price volatility, currency fluctuations and mining risks. We undertake no obligation to publicly release results of any of these forward looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. LETTER TO SHAREHOLDERS DEAR SHAREHOLDER OVERALL PERFORMANCE The gold price received was substantially unchanged quarter on quarter, with the rise in the dollar price offset by a stronger Rand. Gold production increased at most operations, except for the North West Operations where a 14% reduction from underground feed resulted from the 60-day review process and restructuring exercise. This exercise has now been completed and some 3 000 employees have been retrenched at a cost of R39.5 million (US$ 5.4 million). Cash operating unit costs increased by 3.6% in Rand terms due to the annual wage increase which was effective from 1 July 2003. A two-year agreement has been signed with all unions and associations. The average increase for the current year will be 9.2%. OVERALL PERFORMANCE Our principal focus has been on turning around the North West Operations. This has been achieved without resort to industrial action and the co-operation of all parties in the review process has been much appreciated. The result has been a reduction in wage costs to 44% of the total working costs, and a reduction of 26% in monthly working costs, from R 106 million (US$ 14 million) in July 2003 to R 78 million (US$ 11 million) in October 2003. The new production profile will be 5% lower. Development and opening up of ore reserves have not been compromised in the process and the mine's life remains at 15 years as a result. DRD has a 40% stake in the Crown Gold Recoveries joint venture with Khumo Bathong Holdings and manages the ERPM mine and Crown surface retreatment operations on behalf of the joint venture. ERPM's gold production build up continued with a 34% increase on the previous quarter and the mine reported its first cash operating profit since its acquisition a year ago. Potential for open-pit mining is being examined. Blyvoor recovered some of the lost ground from the previous quarter. Progress on the No 4 and 5 slimes dam project is on track. The budgeted cost of the project is R 45 million (US$ 6 million) and will come into production in January 2004 at a rate of 240 000 tonnes per month. Some 27.2 million tonnes of slime are available at an average delivered grade of 0.568 grams per tonne. Underground feed is still being restricted by ore pass constraints, and around 1A sub shaft, approximately 10 000 tonnes of broken rock is still in circuit. A mid-shaft loading arrangement is being installed in the shaft to relieve the constraint and will be operational in December 2003. At Tolukuma, production was stable, but logistics costs impacted negatively on costs. Mining of the newly discovered Zine Vein on surface is continuing and exploration for the underground extention is showing encouraging results. Zine accounted for an additional 2 000 ounces of the gold this quarter. FINANCIAL The cash operating loss of R 21 million (US$ 2.7 million) is due to the loss of R 41.8 million (US$ 5.6 million) incurred at the North West Operations. All other operations recorded cash operating profits. The purpose of the North West Operations restructure is to return the mine to profit and to restore a meaningful margin to shareholders. Cash and cash equivalents increased to R 612 million (US$ 86 million) from R 332 million (US$ 44 million), mainly as a result of the capital raising completed during the quarter. New shares were issued to Investec Bank on 9 September 2003 (18 million shares) and on 12 September 2003 (9 million shares), at an average price of R 17.86 (US$ 2.40) and R 17.94 (US$ 2.42) respectively, raising a total of R 483 million (US$ 64 million). The proceeds from the placements are to be used for the North West Operations restructuring costs and to substantially fund the purchase price for the 20% stake in the Porgera Joint Venture (see Acquisition, below), as well as for general working capital requirements. In addition, during the quarter, cash resources were used to reduce debt by R 118 million (US$ 16 million). As a result of the above activities, the current ratio has increased to 1.85 (1.09), while shareholders' equity has more than doubled to R 798 million (US$ 111 million) from R 359 million (US$ 48 million). Our interest-bearing debt : equity ratio improved to 66% (173%), while our interest-bearing debt : market capitalization improved to 11% (15%). ACQUISITION On 14 October 2003 we announced that an agreement had been reached to acquire Oil Search Limited's interest in the Porgera Joint Venture in Papua New Guinea at a cost of US$ 73.8 million. We refer you to the detailed announcement issued on 14 October 2003 regarding the acquisition. On completion, this will increase DRD's attributable annual gold production from the Australasian region from 90 000 ounces to 260 000 ounces. MANAGEMENT We are pleased to announce the appointment of Andrea Townsend as Group Company Secretary and Wayne Koonin as Divisional Director Group Finance. COMPLIANCE I am pleased to report on a continued improvement in our safety performance. The lost time injury rate has improved by 10% to 8.63, with the reportable frequency rate improving by 5% to 3.65 and the fatality injury frequency rate at 0.24, an improvement of 44%. In September 2003, the Department of Environment and Conservation and the Provincial Health Department in Papua New Guinea reported on its water quality and health investigations at DRD's operations in that country. It was found that all test results were within compliance limits and that there was no connection between regional health issues and the operation of the mine. We will continue to monitor our environment and the roll-out of our local community programmes in the area. OUTLOOK Prospects for the immediate future will depend on the Rand/Dollar exchange rate. We have closed high-cost capacity at the North West Operations and seeking to add lower cost production to the portfolio in Papua New Guinea. We continue to diversify our asset base, and it is expected that a greater proportion of our earnings and cash flow will be derived from outside South Africa from the next quarter. In spite of the cost of restructuring our North West Operations and the job losses that unfortunately resulted from this, DRD has nevertheless made a valuable contribution both to the South African economy and the gold market as a whole. During the last three years we have created more than 6000 jobs on our South African operations, while our localization programmes in Papua New Guinea have taken the representation of nationals in the Tolukuma workforce to more than 95%. While we are still one of the most marginal gold producers in the industry at the current exchange rate, the recent acquisition of the stake in the Porgera Joint Venture will provide a sustainable cash flow to support our value creative strategy. We are confident that the gold price trend will continue upward, at which point our gearing to gold will become evident. MARK WELLESLEY-WOOD Chairman and Chief Executive Officer 23 October 2003 INCORPORATING THE RESULTS OF ALL DURBAN ROODEPOORT DEEP, LIMITED SUBSIDIARIES, INCLUDING BLYVOORUITZICHT GOLD MINING COMPANY LIMITED, BUFFELSFONTEIN GOLD MINES LIMITED, WEST WITWATERSRAND GOLD HOLDINGS LIMITED, HARTEBEESTFONTEIN GOLD MINE (A DIVISION OF BUFFELSFONTEIN GOLD MINES LIMITED), DRD AUSTRALASIA AND DOME RESOURCES NL ON A CONSOLIDATED BASIS. THE RESULTS OF CROWN GOLD RECOVERIES (PTY) LTD WHICH INCLUDE THE EAST RAND PROPRIETARY MINES LIMITED ARE ACCOUNTED FOR ON THE EQUITY BASIS. THE FINANCIAL STATEMENTS BELOW ARE PREPARED IN ACCORDANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES OF AMERICA (US GAAP). THE ACCOUNTING POLICIES ARE, IN ALL MATERIAL RESPECTS, CONSISTENT WITH THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003. FINANCIAL PERFORMANCE
QUARTER QUARTER QUARTER QUARTER JUN 2003 SEP 2003 SEP 2003 JUN 2003 352 378 $/oz Cash costs R/kg 90 520 87 368 (0.9) (2.7) $ million Cash operating loss R million (21.0) (7.6) 1.1 (9.5) $ million Net (loss)/profit R million (70.1) 12.7 32.7 35.1 $ million Deferred financial liability (Eskom) R million 250.8 244.4 16.5 9.5 $ million Interest-bearing debt R million 67.8 123.0 66.7 63.9 $ million Convertible bond R million 457.1 498.8 6.4 48.7 $ million Net current assets R million 348.8 48.7 242.5 297.5 $ million Total assets R million 2 128.4 1 811.7 464.2 604.6 $ million Market capitalization R million 4 378.1 3 555.5
GROUP INCOME STATEMENTS - US GAAP The US GAAP financial information has been restated to reflect the immediate expense on acquisition of the Argonaut mineral rights during the year ended June 30, 1998.
(US$ M) FINANCIAL RESULTS (R M) QUARTER QUARTER (UNAUDITED) QUARTER QUARTER JUN 2003 JUN 2003 RESTATED SEP 2003 SEP 2003 RESTATED REVENUES 64.4 62.8 Product sales (Gold revenue) 467.5 497.7 (67.6) (68.4) COST AND EXPENSES (509.1) (518.0) (66.4) (66.8) Production costs (497.5) (509.1) (0.5) (1.2) Movement in gold in process (8.9) (3.4) (0.7) (0.4) Movement in rehabilitation provision (2.7) (5.5) OTHER OPERATING EXPENSES (4.7) (3.3) Depreciation and amortization (24.7) (36.4) (12.5) 0.1 Impairment of assets 0.7 (98.2) (1.5) (5.4) Employment termination costs (39.5) (11.6) (0.7) (0.5) Management and consulting fees (3.4) (5.7) 10.4 (3.6) (Loss)/profit on financial instruments (27.1) 84.8 2.7 - Profit on sale of investments - 17.8 (2.3) (3.1) ADMINISTRATION AND GENERAL CHARGES (22.9) (17.5) (1.2) (0.5) Stock based compensation costs (3.6) (10.0) (1.1) (2.6) Administration and general charges (19.3) (7.5) (11.8) (21.4) NET OPERATING LOSS (158.5) (87.1) 2.4 1.6 Investment income 11.7 18.8 1.1 0.8 Other income 6.2 8.5 FINANCE COST (2.6) (1.8) Interest expense (13.6) (20.7) - -------- -------- -------- -------- (10.9) (20.8) LOSS BEFORE TAXATION (154.2) (80.5) (3.6) - Loss from associate - (27.8) 0.1 - Income and mining tax benefit - 0.9 15.5 11.3 Deferred taxation benefit 84.1 120.1 - -------- -------- -------- -------- 1.1 (9.5) NET (LOSS)/PROFIT APPLICABLE TO SHAREHOLDERS (70.1) 12.7 - -------- -------- -------- -------- 0.2 (5.0) Basic (loss)/earnings per share (cents) (36.8) 6.9 0.2 (5.0) Diluted (loss)/earnings per share (cents) (36.8) 6.8 CONVERSION FACTORS US/SA GAAP RECONCILIATION Balance Sheet : 30 Sep 03 US$1 = R 7.1538 (R M) Income Statement average for : QUARTER QUARTER Jul-03 US$1 = R 7.5654 Reconciliation of net (loss)/profit to SA GAAP JUN 2003 Aug-03 US$1 = R 7.4048 SEP 2003 RESTATED Sep-03 US$1 = R 7.3472 Sep-03 quarter US$1 = R 7.4402 Net (loss)/profit determined under US GAAP (70.1) 12.7 Adjusted for: SHARE OPTION SCHEME Financial instruments (3.2) (30.3) Depreciation of mineral rights (2.8) (2.8) The following summary provides information in Accounting for business combinations 0.4 0.4 respect of the Durban Roodepoort Deep (1996) Stock based compensation costs 3.6 10.0 Share Option Scheme as at 30 September 2003: Fair value adjustment on investments 26.4 1.4 Deferred taxation on adjustments (0.1) (3.2) -------- -------- Number of options in issue : 6 027 733 Effect of US GAAP adjustments 24.3 (24.5) -------- -------- Number of options currently vested : 1 578 883 Net loss determined under SA GAAP (45.8) (11.8) -------- --------
THE FINANCIAL STATEMENTS BELOW ARE PREPARED IN ACCORDANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES OF AMERICA (US GAAP). THE ACCOUNTING POLICIES ARE, IN ALL MATERIAL RESPECTS, CONSISTENT WITH THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003. GROUP BALANCE SHEETS - US GAAP
(US$ M) ABRIDGED (R M) QUARTER QUARTER (UNAUDITED) QUARTER QUARTER JUN 2003 JUN 2003 RESTATED SEP 2003 SEP 2003 RESTATED ASSETS 75.4 105.8 CURRENT ASSETS 756.9 563.8 44.4 85.5 Cash and equivalents 611.6 331.8 23.1 13.5 Receivables 96.8 172.9 7.9 6.8 Inventories 48.5 59.1 76.9 81.6 MINING ASSETS 583.5 573.9 219.8 234.4 Cost 1 676.6 1 641.6 (142.9) (152.8) Accumulated depreciation & amortization (1 093.1) (1 067.7) 90.2 110.1 OTHER ASSETS 788.0 674.0 55.4 69.6 Deferred income and mining taxes 498.0 413.9 34.8 40.5 Non-current assets 290.0 260.1 -------- -------- -------- -------- 242.5 297.5 TOTAL ASSETS 2 128.4 1 811.7 -------- -------- -------- -------- LIABILITIES & STOCKHOLDERS' EQUITY 69.0 57.1 CURRENT LIABILITIES 408.1 515.1 3.9 0.4 Bank overdraft 2.6 29.1 50.0 51.1 Accounts payable and accrued liabilities 365.5 373.2 15.1 5.6 Short term portion of long term loans 40.0 112.8 5.7 5.6 LONG TERM LOANS 39.8 42.5 62.4 62.2 CONVERTIBLE LOAN NOTE 445.1 466.5 32.7 35.1 DEFERRED FINANCIAL LIABILITY 250.8 244.4 24.6 26.1 PROVISION-ENVIRONMENTAL REHABILITATION 186.5 184.0 48.1 111.4 SHAREHOLDERS' EQUITY 798.1 359.2 AUTHORISED 300 000 000 ordinary no par value shares 5 000 000 cumulative preference shares ISSUED 211 402 045 ordinary no par value shares 5 000 000 cumulative preference shares 360.3 424.3 Stated capital 2 684.5 2 200.9 37.7 38.2 Additional paid in capital 90.3 86.7 0.1 0.1 Cumulative preference shares 0.5 0.5 (305.0) (314.5) Accumulated loss (2 001.6) (1 931.5) (45.0) (36.7) Other comprehensive income 24.4 2.6 -------- -------- -------- -------- 242.5 297.5 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2 128.4 1 811.7 -------- -------- -------- -------- CHANGES IN SHAREHOLDERS' EQUITY - US GAAP (US$ M) (UNAUDITED) (R M) QUARTER QUARTER QUARTER QUARTER JUN 2003 JUN 2003 RESTATED SEP 2003 SEP 2003 RESTATED 48.9 48.1 Shareholders' equity at the beginning of the period 359.2 392.2 (4.5) - Prior period adjustment (Argonaut mineral rights) - (36.1) -------- -------- -------- -------- 44.4 48.1 Shareholders' equity at the beginning of the period 359.2 356.1 as restated 1.4 64.5 Share capital issued 487.2 11.4 - 63.8 - for cash 482.9 - 0.2 0.2 - for share options exercised 0.7 1.4 1.2 0.5 - for stock based compensation 3.6 10.0 2.3 (1.2) Movement in retained income (48.3) (8.3) 1.1 (9.5) - (loss)/profit applicable to shareholders (70.1) 12.7 0.1 3.6 - mark-to-market on investments 26.4 1.4 1.1 4.7 - currency adjustments and other (4.6) (22.4) 48.1 111.4 Shareholders' equity at the end of the period 798.1 359.2 -------- -------- -------- -------- GROUP CASH FLOW STATEMENTS (US$ M) ABRIDGED (R M) QUARTER QUARTER (UNAUDITED) QUARTER QUARTER JUN 2003 SEP 2003 SEP 2003 JUN 2003 (14.6) (6.4) Net cash out flow from operating activities (47.9) (112.8) 0.4 1.4 Net cash in flow from investing activities 10.5 3.3 (13.4) 44.0 Net cash in/(out) flow from financing activities 327.2 (103.9) -------- -------- -------- -------- (27.6) 39.0 Net increase/(decrease) in cash & equivalents 289.8 (213.4) 8.9 2.1 Translation adjustment (10.0) 39.6 63.1 44.4 Cash and equivalents at beginning of period 331.8 505.6 -------- -------- -------- -------- 44.4 85.5 Cash and equivalents at end of period 611.6 331.8 -------- -------- -------- --------
INCORPORATING THE RESULTS OF ALL DURBAN ROODEPOORT DEEP, LIMITED SUBSIDIARIES, INCLUDING BLYVOORUITZICHT GOLD MINING COMPANY LIMITED, BUFFELSFONTEIN GOLD MINES LIMITED, WEST WITWATERSRAND GOLD HOLDINGS LIMITED, HARTEBEESTFONTEIN GOLD MINE (A DIVISION OF BUFFELSFONTEIN GOLD MINES LIMITED), DRD AUSTRALASIA AND DOME RESOURCES NL ON A CONSOLIDATED BASIS. THE RESULTS OF CROWN GOLD RECOVERIES (PTY) LTD WHICH INCLUDE THE EAST RAND PROPRIETARY MINES LIMITED ARE ACCOUNTED FOR ON THE EQUITY BASIS. THE FINANCIAL STATEMENTS BELOW ARE PREPARED ON THE HISTORICAL COST BASIS AND IN ACCORDANCE WITH SOUTH AFRICAN STATEMENTS OF GENERALLY ACCEPTED ACCOUNTING PRACTICE (SA GAAP). THE ACCOUNTING POLICIES ARE, IN ALL MATERIAL RESPECTS, CONSISTENT WITH THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003. GROUP INCOME STATEMENTS - SA GAAP
FINANCIAL RESULTS (R M) (UNAUDITED) QUARTER QUARTER SEP 2003 JUN 2003 Gold revenue 467.5 497.7 Cash operating costs (488.5) (505.3) ----------- ----------- CASH OPERATING LOSS (21.0) (7.6) Other expenses - net (20.9) (17.4) Business development (1.5) (4.2) Care and maintenance costs (2.5) (3.3) ----------- ----------- CASH LOSS FROM OPERATIONS (45.9) (32.5) Retrenchment costs (39.5) (11.6) Investment income 11.7 16.2 Interest paid (13.6) (15.6) ----------- ----------- NET CASH OPERATING LOSS (87.3) (43.5) Rehabilitation (2.7) (5.2) Depreciation (27.0) (43.5) (Loss)/gain on financial instruments (4.6) 54.7 Gold in process (8.9) (7.7) ----------- ----------- LOSS BEFORE TAXATION (130.5) (45.2) Loss from associate - (30.6) Taxation - (0.2) Deferred taxation charge 84.0 175.7 ----------- ----------- (LOSS)/PROFIT AFTER TAXATION (46.5) 99.7 Exceptional items 0.7 (111.5) ----------- ----------- NET LOSS (45.8) (11.8) ----------- ----------- HEADLINE (LOSS)/EARNINGS PER SHARE-CENTS (24.4) 54.2 BASIC LOSS PER SHARE-CENTS (24.1) (6.4) Calculated on the Weighted Average Ordinary Shares Issued of : 90 437 051 184 091 468 DILUTED HEADLINE (LOSS)/EARNINGS PER SHARE-CENTS (24.4) 53.9 DILUTED BASIC LOSS PER SHARE-CENTS (24.1) (6.4) CHANGES IN SHAREHOLDERS' INTEREST - SA GAAP (UNAUDITED) (R M) QUARTER QUARTER SEP 2003 JUN 2003 Shareholders' interest at the beginning of the period 456.1 493.5 Share capital issued 483.4 6.8 - - for cash 482.9 - - - for share options exercised 0.7 1.4 - - for equity portion of convertible note (0.2) 5.4 Movement in retained income (45.8) (11.8) Currency adjustments and other (2.5) (32.4) ----------- ----------- Shareholders' interest at the end of the period 891.2 456.1 ----------- -----------
INVESTOR RELATIONS For further information, contact Ilja Graulich at : Tel: (+27-11) 381-7800, Fax: (+27-11) 482-4641, e-mail: graulich@drd.co.za, web site: http://www.durbans.com 45 Empire Road, Parktown, South Africa. P O Box 390, Maraisburg 1700, South Africa. GROUP BALANCE SHEETS - SA GAAP
ABRIDGED (R M) (UNAUDITED) QUARTER QUARTER SEP 2003 JUN 2003 EMPLOYMENT OF CAPITAL Net mining assets 585.8 578.5 Investments 154.2 126.4 Environmental Trust funds 135.7 133.7 Deferred mining and income taxes 498.3 414.3 Current assets 756.9 563.8 Inventories 48.5 59.1 Trade and other receivables 96.8 172.9 Cash and equivalents 611.6 331.8 ----------- ----------- 2 130.9 1 816.7 ----------- ----------- CAPITAL EMPLOYED Shareholders' equity 891.2 456.1 Borrowings 394.2 387.5 Deferred financial liability 250.8 244.4 Rehabilitation 186.5 184.0 Other non-current liabilities 74.0 73.2 Current liabilities 334.2 471.5 Trade and other payables 294.2 329.1 Current portion of borrowings 40.0 142.4 ----------- ----------- 2 130.9 1 816.7 ----------- ----------- GROUP CASH FLOW STATEMENTS - SA GAAP ABRIDGED (R M) (UNAUDITED) QUARTER QUARTER SEP 2003 JUN 2003 Net cash out flow from operating activities before working capital changes (88.5) (87.6) Working capital changes 40.6 (25.2) Net cash in flow from investing activities 10.5 3.3 Net cash in/(out) flow from financing activities 327.2 (103.9) Increase/(decrease) in cash & equivalents 289.8 (213.4) Translation adjustment (10.0) 39.6 Opening cash and equivalents 331.8 505.6 ----------- ----------- Closing cash and equivalents 611.6 331.8 ----------- -----------
DIRECTORS - (*BRITISH)(**AUSTRALIAN) EXECUTIVES : MM Wellesley-Wood (Chairman and Chief Executive Officer)* IL Murray (Deputy Chief Executive Officer and Chief Financial Officer) NON-EXECUTIVES : MP Ncholo ; RP Hume ; GC Campbell* ; DC Baker** ; Prof D Blackmur** ALTERNATES : A Lubbe ; D van der Mescht Group Company Secretary : AI Townsend KEY OPERATING AND FINANCIAL RESULTS
CROWN GOLD RECOVERIES ATTRIBUTABLE BLYVOOR NORTH WEST CROWN ERPM TO DRD UNDER- SURFACE UNDER- SURFACE SECTION SECTION (40% OF CGR) GROUND GROUND US$/IMPERIAL Ore milled - t'000 SEP 03 QTR 2 791 172 1 184 245 428 532 812 Jun 03 Qtr 2 954 163 1 246 232 452 670 1 411 Gold produced - ounces SEP 03 QTR 32 794 29 643 24 975 51 796 9 227 73 657 17 555 Jun 03 Qtr 33 822 22 183 22 402 49 127 9 195 85 580 16 312 Yield - ounces per ton SEP 03 QTR 0.012 0.172 0.021 0.211 0.022 0.138 0.022 Jun 03 Qtr 0.011 0.136 0.018 0.212 0.020 0.128 0.012 Cash operating cost - US$/oz SEP 03 QTR 323 352 NA 346 342 466 242 Jun 03 Qtr 303 449 na 324 355 407 276 Cash operating cost - US$/ton SEP 03 QTR 4 61 NA 73 7 65 5 Jun 03 Qtr 3 61 na 69 7 52 3 Cash operating profit/(loss) - US$ m SEP 03 QTR 1.3 0.3 NA 0.8 0.3 (7.6) 2.0 Jun 03 Qtr 1.6 (2.2) na 1.2 - (4.8) 1.1 ZAR/METRIC Ore milled - t'000 SEP 03 QTR 2 532 156 1 075 222 388 483 737 Jun 03 Qtr 2 680 148 1 131 211 410 607 1 281 Gold produced - kg SEP 03 QTR 1 020 922 777 1 611 287 2 291 546 Jun 03 Qtr 1 052 690 697 1 528 286 2 662 507 Yield - g/tonne SEP 03 QTR 0.40 5.91 0.72 7.26 0.74 4.74 0.74 Jun 03 Qtr 0.39 4.66 0.62 7.24 0.70 4.39 0.40 Cash operating cost - R/kg SEP 03 QTR 77 185 84 185 NA 82 853 81 937 111 531 58 126 Jun 03 Qtr 75 206 111 528 na 80 488 88 297 101 038 68 574 Cash operating cost - R/tonne SEP 03 QTR 31 498 NA 601 61 529 43 Jun 03 Qtr 30 520 na 583 62 443 27 Cash operating profit/(loss) - R m SEP 03 QTR 9.6 2.5 NA 6.1 1.3 (57.3) 15.5 Jun 03 Qtr 12.3 (16.7) na 9.8 (1.0) (37.3) 8.9 CAPITAL EXPENDITURE QUARTER CROWN GOLD RECOVERIES BLYVOOR NORTH WEST US$ m R m US$ m R m US$ m R m Net Outflow SEP 03 QTR 1.5 10.9 2.4 18.1 1.6 11.8 Jun 03 Qtr 1.3 10.7 1.4 11.0 1.7 12.7 TOTAL DIS- TOTAL DRD CONTINUED DRD TOLUKUMA OPERATIONS OPERATION ATTRIBUTABLE US$/IMPERIAL Ore milled - t'000 SEP 03 QTR 48 3 249 - 3 249 Jun 03 Qtr 50 4 061 378 4 439 Gold produced - ounces SEP 03 QTR 21 283 198 493 - 198 493 Jun 03 Qtr 21 219 203 835 3 890 207 725 Yield - ounces per ton SEP 03 QTR 0.443 0.061 - 0.061 Jun 03 Qtr 0.424 0.050 0.010 0.047 Cash operating cost - US$/oz SEP 03 QTR 280 378 - 378 Jun 03 Qtr 250 352 410 353 Cash operating cost - US$/ton SEP 03 QTR 124 32 - 32 Jun 03 Qtr 106 23 4 20 Cash operating profit/(loss) - US$ m SEP 03 QTR 1.8 (2.7) - (2.7) Jun 03 Qtr 1.8 (0.7) (0.2) (0.9) ZAR/METRIC Ore milled - t'000 SEP 03 QTR 44 2 949 - 2 949 Jun 03 Qtr 45 3 685 343 4 028 Gold produced - kg SEP 03 QTR 662 6 174 - 6 174 Jun 03 Qtr 660 6 340 121 6 461 Yield - g/tonne SEP 03 QTR 15.05 2.09 - 2.09 Jun 03 Qtr 14.67 1.72 0.35 1.60 Cash operating cost - R/kg SEP 03 QTR 66 905 90 520 - 90 520 Jun 03 Qtr 62 198 87 368 101 306 87 661 Cash operating cost - R/tonne SEP 03 QTR 1 007 261 - 261 Jun 03 Qtr 912 193 36 174 Cash operating profit/(loss) - R m SEP 03 QTR 13.4 (21.0) - (21.0) Jun 03 Qtr 14.1 (5.5) (2.1) (7.6) CAPITAL EXPENDITURE QUARTER TOLUKUMA TOTAL DRD US$ m R m US$ m R m Net Outflow SEP 03 QTR 0.6 4.7 4.7 35.0 Jun 03 Qtr 2.0 15.6 3.3 24.9
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