EX-1 3 a03-4550_1ex1.htm EX-1

Exhibit 1

 



 

DURBAN ROODEPOORT DEEP, LIMITED

(Incorporated in the Republic of South Africa)

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
Sep 2003

 

Quarter
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

 

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% of issued stock 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 :

45 Empire Road, Parktown,

 

Ultra Registrars (Pty) Ltd,

South Africa

 

PO Box 4844,

PO Box 390,

 

Johannesburg 2000,

Maraisburg 1700,

 

South Africa

South Africa

 

 

 

 

 

UNITED KINGDOM REGISTRARS :

 

DEPOSITORY BANK :

St. James’ Corporate Services Ltd,

 

American Depository Receipts,

6 St. James’ Place,

 

The Bank of New York,

London

 

Shareholders Relations

SW IA INP

 

Department,

 

 

101 Barclay Street,

 

 

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

 

2



 

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.

 

3



 

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

 

4



 

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 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

(Unaudited)

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
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 :

 

190 437 051

 

184 091 468

 

Diluted headline (loss)/earnings per share-cents

 

(24.4

)

53.9

 

Diluted basic loss per share-cents

 

(24.1

)

(6.4

)

 

5



 

GROUP BALANCE SHEETS - SA GAAP

ABRIDGED

(Unaudited)

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
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

 

 

CHANGES IN SHAREHOLDERS’ INTEREST - SA GAAP

(Unaudited)

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
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

 

 

GROUP CASH FLOW STATEMENTS - SA GAAP

ABRIDGED

(Unaudited)

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
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

 

 

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.

 

6



 

FINANCIAL PERFORMANCE

 

 

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

Cash costs

 

$/oz

 

378

 

352

 

Cash operating loss

 

$ million

 

(2.7

)

(0.9

)

Net (loss)/profit

 

$ million

 

(9.5

)

1.1

 

Deferred financial liability (Eskom)

 

$ million

 

35.1

 

32.7

 

Interest-bearing debt

 

$ million

 

9.5

 

16.5

 

Convertible bond

 

$ million

 

63.9

 

66.7

 

Net current assets

 

$ million

 

48.7

 

6.4

 

Total assets

 

$ million

 

297.5

 

242.5

 

Market capitalization

 

$ million

 

604.6

 

464.2

 

 

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.

 

FINANCIAL RESULTS

(Unaudited)

 

 

 

(US$ m)

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

Restated

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

Product sales (Gold revenue)

 

62.8

 

64.4

 

Cost and expenses

 

(68.4

)

(67.6

)

Production costs

 

(66.8

)

(66.4

)

Movement in gold in process

 

(1.2

)

(0.5

)

Movement in rehabilitation provision

 

(0.4

)

(0.7

)

Other operating expenses

 

 

 

 

 

Depreciation and amortization

 

(3.3

)

(4.7

)

Impairment of assets

 

0.1

 

(12.5

)

Employment termination costs

 

(5.4

)

(1.5

)

Management and consulting fees

 

(0.5

)

(0.7

)

(Loss)/profit on financial instruments

 

(3.6

)

10.4

 

Profit on sale of investments

 

 

2.7

 

Administration and general charges

 

(3.1

)

(2.3

)

Stock based compensation costs

 

(0.5

)

(1.2

)

Administration and general charges

 

(2.6

)

(1.1

)

Net operating loss

 

(21.4

)

(11.8

)

Investment income

 

1.6

 

2.4

 

Other income

 

0.8

 

1.1

 

Finance cost

 

 

 

 

 

Interest expense

 

(1.8

)

(2.6

)

Loss before taxation

 

(20.8

)

(10.9

)

Loss from associate

 

 

(3.6

)

Income and mining tax benefit

 

 

0.1

 

Deferred taxation benefit

 

11.3

 

15.5

 

Net (loss)/profit applicable to shareholders

 

(9.5

)

1.1

 

Basic (loss)/earnings per share (cents)

 

(5.0

)

0.2

 

Diluted (loss)/earnings per share (cents)

 

(5.0

)

0.2

 

 

GROUP BALANCE SHEETS - US GAAP

ABRIDGED

(Unaudited)

 

 

 

(US$ m)

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

Restated

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

105.8

 

75.4

 

Cash and equivalents

 

85.5

 

44.4

 

Receivables

 

13.5

 

23.1

 

Inventories

 

6.8

 

7.9

 

Mining assets

 

81.6

 

76.9

 

Cost

 

234.4

 

219.8

 

Accumulated depreciation & amortization

 

(152.8

)

(142.9

)

Other assets

 

110.1

 

90.2

 

Deferred income and mining taxes

 

69.6

 

55.4

 

Non-current assets

 

40.5

 

34.8

 

Total assets

 

297.5

 

242.5

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

57.1

 

69.0

 

Bank overdraft

 

0.4

 

3.9

 

Accounts payable and accrued liabilities

 

51.1

 

50.0

 

Short term portion of long term loans

 

5.6

 

15.1

 

Long term loans

 

5.6

 

5.7

 

Convertible loan note

 

62.2

 

62.4

 

Deferred financial liability

 

35.1

 

32.7

 

Provision-environmental rehabilitation

 

26.1

 

24.6

 

Shareholders’ equity 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 Stated capital

 

424.3

 

360.3

 

Additional paid in capital

 

38.2

 

37.7

 

Cumulative preference shares

 

0.1

 

0.1

 

Accumulated loss

 

(314.5

)

(305.0

)

Other comprehensive income

 

(36.7

)

(45.0

)

Total liabilities & shareholders’ equity

 

297.5

 

242.5

 

 

7



 

CHANGES IN SHAREHOLDERS' EQUITY - US GAAP

(Unaudited)

 

 

 

 

 

(US$ m)

 

 

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

 

 

Restated

 

 

 

 

 

 

 

 

 

Shareholders’ equity at the beginning of the period

 

 

 

48.1

 

48.9

 

Prior period adjustment (Argonaut mineral rights)

 

 

 

 

(4.5

)

Shareholders’ equity at the beginning of the period as restated

 

 

 

48.1

 

44.4

 

Share capital issued

 

 

 

64.5

 

1.4

 

  for cash

 

 

 

63.8

 

 

  for share options exercised

 

 

 

0.2

 

0.2

 

  for stock based compensation

 

 

 

0.5

 

1.2

 

Movement in retained income

 

 

 

(1.2

)

2.3

 

  (loss)/profit applicable to shareholders

 

 

 

(9.5

)

1.1

 

  mark-to-market on investments

 

 

 

3.6

 

0.1

 

  currency adjustments and other

 

 

 

4.7

 

1.1

 

Shareholders’ equity at the end of the period

 

 

 

111.4

 

48.1

 

 

GROUP CASH FLOW STATEMENTS

ABRIDGED

(Unaudited)

 

 

 

 

 

(US$ m)

 

 

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

Net cash out flow from operating activities

 

 

 

(6.4

)

(14.6

)

Net cash in flow from investing activities

 

 

 

1.4

 

0.4

 

Net cash in/(out) flow from financing activities

 

 

 

44.0

 

(13.4

)

Net increase/(decrease) in cash & equivalents

 

 

 

39.0

 

(27.6

)

Translation adjustment

 

 

 

2.1

 

8.9

 

Cash and equivalents at beginning of period

 

 

 

44.4

 

63.1

 

Cash and equivalents at end of period

 

 

 

85.5

 

44.4

 

 

FINANCIAL PERFORMANCE

 

 

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

Cash costs

 

R/kg

 

90 520

 

87 368

 

Cash operating loss

 

R million

 

(21.0

)

(7.6

)

Net (loss)/profit

 

R million

 

(70.1

)

12.7

 

Deferred financial liability (Eskom)

 

R million

 

250.8

 

244.4

 

Interest-bearing debt

 

R million

 

67.8

 

123.0

 

Convertible bond

 

R million

 

457.1

 

498.8

 

Net current assets

 

R million

 

348.8

 

48.7

 

Total assets

 

R million

 

2 128.4

 

1 811.7

 

Market capitalization

 

R million

 

4 378.1

 

3 555.5

 

 

8



 

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.

 

FINANCIAL RESULTS

(Unaudited)

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

Restated

 

Revenues

 

 

 

 

 

Product sales (Gold revenue)

 

467.5

 

497.7

 

Cost and expenses

 

(509.1

)

(518.0

)

Production costs

 

(497.5

)

(509.1

)

Movement in gold in process

 

(8.9

)

(3.4

)

Movement in rehabilitation provision

 

(2.7

)

(5.5

)

Other operating expenses

 

 

 

 

 

Depreciation and amortization

 

(24.7

)

(36.4

)

Impairment of assets

 

0.7

 

(98.2

)

Employment termination costs

 

(39.5

)

(11.6

)

Management and consulting fees

 

(3.4

)

(5.7

)

(Loss)/profit on financial instruments

 

(27.1

)

84.8

 

Profit on sale of investments

 

 

17.8

 

Administration and general charges

 

(22.9

)

(17.5

)

Stock based compensation costs

 

(3.6

)

(10.0

)

Administration and general charges

 

(19.3

)

(7.5

)

Net operating loss

 

(158.5

)

(87.1

)

Investment income

 

11.7

 

18.8

 

Other income

 

6.2

 

8.5

 

Finance cost

 

 

 

 

 

Interest expense

 

(13.6

)

(20.7

)

Loss before taxation

 

(154.2

)

(80.5

)

Loss from associate

 

 

(27.8

)

Income and mining tax benefit

 

 

0.9

 

Deferred taxation benefit

 

84.1

 

120.1

 

Net (loss)/profit applicable to shareholders

 

(70.1

)

12.7

 

Basic (loss)/earnings per share (cents)

 

(36.8

)

6.9

 

Diluted (loss)/earnings per share (cents)

 

(36.8

)

6.8

 

 

GROUP BALANCE SHEETS - US GAAP

ABRIDGED

(Unaudited)

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

Restated

 

ASSETS

 

 

 

 

 

Current assets

 

756.9

 

563.8

 

Cash and equivalents

 

611.6

 

331.8

 

Receivables

 

96.8

 

172.9

 

Inventories

 

48.5

 

59.1

 

Mining assets

 

583.5

 

573.9

 

Cost

 

1 676.6

 

1 641.6

 

Accumulated depreciation & amortization

 

(1 093.1

)

(1 067.7

)

Other assets

 

788.0

 

674.0

 

Deferred income and mining taxes

 

498.0

 

413.9

 

Non-current assets

 

290.0

 

260.1

 

Total assets

 

2 128.4

 

1 811.7

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

408.1

 

515.1

 

Bank overdraft

 

2.6

 

29.1

 

Accounts payable and accrued liabilities

 

365.5

 

373.2

 

Short term portion of long term loans

 

40.0

 

112.8

 

Long term loans

 

39.8

 

42.5

 

Convertible loan note

 

445.1

 

466.5

 

Deferred financial liability

 

250.8

 

244.4

 

Provision-environmental rehabilitation

 

186.5

 

184.0

 

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 Stated capital

 

2 684.5

 

2 200.9

 

Additional paid in capital

 

90.3

 

86.7

 

Cumulative preference shares

 

0.5

 

0.5

 

Accumulated loss

 

(2 001.6

)

(1 931.5

)

Other comprehensive income

 

24.4

 

2.6

 

Total liabilities & shareholders’ equity

 

2 128.4

 

1 811.7

 

 

9



 

CHANGES IN SHAREHOLDERS’ EQUITY - US GAAP

(Unaudited)

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

Restated

 

Shareholders’ equity at the beginning of the period

 

359.2

 

392.2

 

Prior period adjustment (Argonaut mineral rights)

 

 

(36.1

)

Shareholders’ equity at the beginning of the period as restated

 

359.2

 

356.1

 

Share capital issued

 

487.2

 

11.4

 

  for cash

 

482.9

 

 

  for share options exercised

 

0.7

 

1.4

 

  for stock based compensation

 

3.6

 

10.0

 

Movement in retained income

 

(48.3

)

(8.3

)

  (loss)/profit applicable to shareholders

 

(70.1

)

12.7

 

  mark-to-market on investments

 

26.4

 

1.4

 

  currency adjustments and other

 

(4.6

)

(22.4

)

Shareholders’ equity at the end of the period

 

798.1

 

359.2

 

 

GROUP CASH FLOW STATEMENTS

ABRIDGED

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

Net cash out flow from operating activities

 

(47.9

)

(112.8

)

Net cash in flow from investing activities

 

10.5

 

3.3

 

Net cash in/(out) flow from financing activities

 

327.2

 

(103.9

)

Net increase/(decrease) in cash & equivalents

 

289.8

 

(213.4

)

Translation adjustment

 

(10.0

)

39.6

 

Cash and equivalents at beginning of period

 

331.8

 

505.6

 

Cash and equivalents at end of period

 

611.6

 

331.8

 

 

US/SA GAAP RECONCILIATION

Reconciliation of net (loss)/profit to SA GAAP

 

 

 

(R m)

 

 

 

Quarter
Sep 2003

 

Quarter
Jun 2003

 

 

 

 

 

Restated

 

Net (loss)/profit determined under US GAAP

 

(70.1

)

12.7

 

Adjusted for:

 

 

 

 

 

Financial instruments

 

(3.2

)

(30.3

)

Depreciation of mineral rights

 

(2.8

)

(2.8

)

Accounting for business combinations

 

0.4

 

0.4

 

Stock based compensation costs

 

3.6

 

10.0

 

Fair value adjustment on investments

 

26.4

 

1.4

 

Deferred taxation on adjustments

 

(0.1

)

(3.2

)

Effect of US GAAP adjustments

 

24.3

 

(24.5

)

Net loss determined under SA GAAP

 

(45.8

)

(11.8

)

 

CONVERSION FACTORS

 

Balance Sheet : 30 Sep 03

 

US$1 =

 

R 7.1538

 

Income Statement average for :

 

 

 

 

 

Jul-03

 

US$1 =

 

R 7.5654

 

Aug-03

 

US$1 =

 

R 7.4048

 

Sep-03

 

US$1 =

 

R 7.3472

 

Sep-03 quarter

 

US$1 =

 

R 7.4402

 

 

10



 

SHARE OPTION SCHEME

 

The following summary provides information in respect of the Durban Roodepoort Deep (1996) Share Option Scheme as at 30 September 2003:

 

 

 

Number of options in issue :

 

6 027 733

 

Number of options currently vested :

 

1 578 883

 

 

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.

 

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**; D Blackmur**

 

Alternates :

 

A Lubbe ; D van der Mescht

 

Group Company Secretary : AI Townsend

 

11