Notes to the pro- forma financial effects:
1.
The “Before the Disposal “column has been extracted / derived without adjustment from DRDGOLD’s audited financial statements for the year ended 30 June 2014.
2.
For purposes of the impact of the Disposal on the EPS and HEPS, it has been assumed that the Disposal occurred on 1 July 2013, and for purposes of the NAV and NTAV, it has been assumed that the Disposal occurred on 30 June 2014.
3.
The Disposal is effective in various stages, however for the purpose of these pro-forma financial effects it is assumed that the Disposal will become effective as a single transaction on the dates referred to under 2 above.
4.
In accordance with section 37 of the South African Income Tax Act No 58 of 1962 the proceeds on the Disposal are to be calculated based on an effective value as calculated by the Director General of the Department of Mineral Resources(“DMR”), which is to be concluded subsequent to the effective date of the transaction. For the purposes of these pro-forma financial effects, it is assumed that this valuation is the same as the proceeds, as agreed between the purchaser and the seller, and that tax payable was settled immediately on the receipt of the proceeds on the Disposal.
5.
Various rehabilitation obligations and associated assets may be sold back to ERPM subsequent to the conclusion of the Disposal. An estimate has been included in the pro-forma financial effects for the potential rehabilitation obligations and
associated assets to be sold back to ERPM ("Buy-Back Option").
6.
For the purposes of calculating the pro-forma financial effects on the EPS and HEPS it has been assumed that the net proceeds resulting from the disposal, will not earn interest as the intended use of the net proceeds is not confirmed.
7.
Estimated transaction costs amounting to R 0.5 million has been expensed.
8.
EPS was adjusted for the following:
a.
Profit on the Disposal amounting to R 179.7 million, being the receipt of Disposal proceeds of R202.4 million (USD 20.5 million converted at the closing ZAR:USD exchange rate at 1 July 2013 of 9.87), partially offset by the settlement of Indirect taxes amounting to R 24.9 million;
b.
Direct taxes on the Disposal amounting to R 9.6 million;
c.
Loss on exercise of the Buy-Back Option amounting to R 3.2 million; and
The above entries had no impact on HEPS.
9.
EPS (in addition to 8 above) and HEPS were adjusted for the following:
a.
Reduction in ongoing care and maintenance costs associated with the ERPM Sale Assets amounting to R 4.4 million; and
b.
Reduction in the unwinding of rehabilitation provision included in the Disposal amounting to R 0.5 million and
growth on rehabilitation funds amounting to R 0.9 million.
10.
Total comprehensive income attributable to the owners of the parent increased by R 126.5 million and Non-controlling
interest increased by R 44.5 million as a result of the above adjustments.
11.
NAV and NTAV has been adjusted for the following:
a.
Net increase in cash and cash equivalents of R 190.3 million, being the receipt of Disposal proceeds of R217.0 million (USD 20.5 million converted at the closing ZAR:USD exchange rate at 30 June 2014 of 10.57), partially
offset by the settlement of indirect taxes amounting to R 26.7 million and direct taxes amounting to R nil;
b.
The following items being derecognised on the Disposal:
- Environmental rehabilitation provisions amounting to R 19.6 million;
- Rehabilitation funds amounting to R 18.9 million; and
- Property, plant and equipment amounting to R 1.9 million;
c.
The following items being recognised on the exercise of the Buy-Back Option
- Environmental rehabilitation provisions amounting to R 12.9 million; and
- Rehabilitation funds amounting to R 12.4 million;
d.
Equity attributable to the owners of the parent increased by R 139.6 million and Non-controlling interest increased by R 49.0 million as a result of the above adjustments.
12.
All of the adjustments with the exception of transaction costs are expected to have a continuing impact on the results of
DRDGOLD.