Production update for the quarter ended 30 September 2015; change to six-monthly reporting
28 October 2015
Johannesburg, South Africa. 28 October, 2015. DRDGOLD Limited (DRDGOLD JSE, NYSE: DRD), in a production update for the first quarter of FY2016 ended 30 September released today, reported a 2% increase in throughput quarter on quarter and operating costs stable at R75 per tonne.
Gold production was 11% lower due to inventory build-up associated with the introduction of five new leach tanks in the low-grade carbon-in-leach (CIL) circuit, and the switch-over from the carbon-in-pulp (CIP) process to CIL in the high-grade flotation/fine-grind (FFG) section.
After payment of the final R23 million instalment in respect of its Domestic Medium Term Note (DMTN) programme, the company ended the first quarter of FY2016 with R300 million in cash and cash equivalents, compared with R324 million in the previous quarter.
The company has decided that it will no longer report on a quarterly basis but rather at six-monthly intervals – at half-year and year-end. Operating and financial results for the period ended 31 December 2015 will be provided as soon as reasonably possible following the end of the period. Trading and operating updates may be provided from time to time, should circumstances require.
The decision to review and adjust the reporting cycle flows from DRDGOLD’s intention to reduce corporate costs; the leads and lags associated with business improvements; and the cyclical nature of certain cost drivers in the South African operating environment – for example, power supply.
South Africa & North America
Investor and Media Relations
Leigh King/Grace Sing Gen
Russell and Associates
+27 11 880 3924 (office)
Investor and Media Relations
Phil Dexter, St James’s Corporate Services
+44 (0) 20 7796 8644 (office)
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For more information, please visit www.drdgold.com
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 integrated report for the fiscal year ended 30 June 2014, which we filed with the United States Securities and Exchange Commission on 31 October 2014 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 report have not been reviewed and reported on by DRDGOLD’s auditors.