DRDGOLD releases forecast and pro forma financial information for WRTRP acquisition
06 February 2018
Johannesburg, South Africa. 6 February 2018. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in a further announcement to the market today regarding its proposed acquisition of Sibanye-Stillwater’s West Rand Tailings Retreatment Project (WRTRP), forecasts profit of R229.4 million from the WRTRP for the 12 months ending 31 December 2019.
The profit forecast is based on throughput of approximately 500 000tpm at a recovered grade of 0.294g/t; working costs per ton processed of R63.97 (excluding contingency and inflation); and a gold price of R564 245/kg.
The company states that the forecast financial information provided has been prepared on the assumption that:
- the proposed acquisition becomes unconditional on 30 April 2018; and
- the reconfiguration of the infrastructure acquired and related ramp-up (including gold lock-up) to steady-state production is obtained by 31 December 2018.
Pro forma financial information for DRDGOLD for the year ended 30 June 2017 – also contained in today’s announcement – values the WRTRP at R2.1 billion.
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Forward looking Statements
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 general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2017, which we filed with the United States Securities and Exchange Commission on 31 October 2017 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.