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Gold/Mining/Energy : A "A" list of JR gold mining companies -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (33)	9/14/1998 11:28:00 AM
From: Jeff	Read Replies (1) \| Respond to of 169

drd.co.za Durban Roodepoort Deep, Limited Group Results for the quarter ended 30 June 1998 Letter to Shareholders, Consolidated, DRD, Blyvoor, Buffels, Notes Letter to Shareholders Following last quarter's results, which saw the group return to an operating profit, management is pleased to report an even better performance this quarter. Cash operating profit reached a new level since the group's formation in September 1997, increasing 355% to R7.5 million(US$1.5 million). Another first is the achievement of a cash profit after tax which totalled R8.4 million (US$1.6 million) for the quarter. These results attest to the success of the group's strategy of restructuring, which has given our marginal mines a new lease on life. Cash costs are well under control at R49 246/kg or US$296/oz. Total gold production for the quarter decreased by 12% to 4 205 kilograms. This was mainly attributable to the curtailment of unprofitable production at Doornfontein underground section and the planned closure of Strathmore and East Shafts at Buffelsfontein. Planned production for the next quarter is 4.1 tonnes of gold. Another encouraging event was the group's ability to restructure its hedging programme in order to participate in the depreciation of the Rand. The price achieved for the quarter of R51 031/kg was 3% higher than the average spot price. Capital expenditure for the quarter totalled R12.9 million (US$2.5 million). The pre-stripping of overburden in the opencast pit at West Wits absorbed R3.8 million (US$0.7 million) and R8.7 million (US$1.7 million) was expended on the purchase of new equipment and metallurgical renewal projects. During the quarter shareholders approved the conversion of Durban Deep preferred shares to Durban Deep ordinary shares and options. This was done in order to rationalise the capital structure and preserve cash resources. The scheme of arrangement between Durban Deep and Crown Consolidated is progressing according to timetable and the scheme meeting is set for 24th August 1998. Looking ahead, the group is striving to achieve growth which will show consistent real returns and at the same time continue to strengthen the balance sheet of the company. ÿ Letter to Shareholders, Consolidated, DRD, Blyvoor, Buffels, Notes ÿ Durban Roodepoort Deep, Limited Consolidated Results<Picture: Durban Roodepoort Deep Group> Incorporating the results of all Durban Roodepoort Deep subsidiaries, including Blyvooruitzicht Gold Mining Company Limited, Buffelsfontein Gold Mines Limited and West Witwatersrand Gold Holdings Limited. Issued Capital: 48 749 035 ordinary no par value shares, 5 182 773 options and 8 937 607 "B" options. OPERATING RESULTSJune QuarterMarch Quarter12 Months to 30 June ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Pro-formaTotal operationsGold price - R/kg51 03149 21449 729Gold price - R/t88.49100.4994.45Ore milled - t'0002 4252 34210 008Gold produced - kg4 2054 78219 009Yield - g/t1.732.041.90Cash operating cost - R/kg49 24648 86950 195Cash operating profit/(loss) - R/kg1 785345(466)Cash operating cost - R/t85.3999.7895.34Cash operating profit/(loss) - R/t3.090.70(0.89)Underground operationsOre milled - t'0004785282 259Gold produced - kg2 5062 95512 197Yield - g/t5.245.605.40Cash operating cost - R/kg57 32056 21257 142Cash operating loss - R/kg(6 289)(6 998)(7 413)Gold price - R/t milled267.54275.43268.50Cash operating cost - R/t milled300.51314.60308.53Cash operating loss - R/t milled(32.97)(39.17)(40.03)Sand operationsTonnage treated - t'0001 3871 2835 963Gold produced - kg9851 1514 638Yield - g/t0.710.900.78Cash operating cost - R/kg36 75036 75235 213Cash operating profit - R/kg14 28112 46214 516Gold price - R/t treated36.2444.1538.68Cash operating cost - R/t treated26.1032.9727.39Cash operating profit - R/t treated10.1411.1811.29Opencast operationsTonnage treated - t'0005605311 786Gold produced - kg7146762 174Yield - g/t1.281.271.22Cash operating cost - R/kg38 14837 40143 184Cash operating profit - R/kg12 88311 8136 545Gold price - R/t treated65.0662.6560.53Cash operating cost - R/t treated48.6447.6152.57Cash operating profit - R/t treated16.4215.047.96 ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ FINANCIAL RESULTS (R000) ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Gold sales214 586235 339954 160Cash operating cost207 081233 691954 160Cash operating profit/(loss)7 5051 648(8 870)Retrenchment costs(840)(8 000)(31 257)Tribute payments(224)(1 131)(6 617)Sundry revenue - net1 6796808 899Cash profit/(loss) before taxation8 120(6 803)(37 845)SA normal taxation(324)253854Cash profit/(loss)8 444(7 056)(38 699)Capital expenditure - net12 866(1 091)46 397 ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ABRIDGED CONSOLIDATED 30 June31 MarchBALANCE SHEET (R000) ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Capital employedShareholders' equity#715 922668 360Employment of capitalNet mining assets after depreciation810 494800 653Other long term assets56 16063 324Long term liabilities(149 099)(186 674)Net current liabilities(1 633)(8 943)715 922668 360 # Shareholders' equity is adjusted for non-cash items, being depreciation and provisions, amounting to R10.4 million (previous quarter: R11.6 million) and shares issued of R49.5 million. For and on behalf of the board R A R Kebble, Chairman ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ M J Prinsloo, Managing Director 27 July 1998 ÿ Letter to Shareholders, Consolidated, DRD, Blyvoor, Buffels, Notes ÿ Durban Roodepoort Deep & West Wits Sections<Picture: DRD Mine> ÿ OPERATING RESULTSJune Quarter