Good morning, everybody, and thank you very much for braving the elements, both natural and man-made, to get here this morning. You're all very special to us, and it's very good to have you here. Riaan and I will take you through this presentation and just take you some of the highlights of the past six months and - an eventful six months it were, or it was. So it were, or it was, James?

Was.

It was. Thank you. So I'll take you through some of the key features. Riaan will, as usual, take you through the financial news. It's really been a period of two opposites, so to speak. On the one hand, there is the excitement of our new project in the Far West Rand that took off quite nicely. We started construction at the Far West operations of the plant in August and set ourselves the target to start commissioning towards the end of the quarter, which we managed to do. We had about 2.5, 3 weeks of production of the newly refurbished DP2 plant. And then that's working really well for us. So we're quite pleased with what we're seeing in terms of metallurgical recoveries, quality of ore body, volume throughput, et cetera, et cetera. And that ramping-up will take place as we go along. On the other hand, we had the volume challenges associated with the Far East Rand. So although the plant is in good shape and the plant has had the benefit of all sorts of additional backup infrastructure, et cetera, we were not able to completely avoid the impact of very significant interruptions in power supply, especially towards the latter part of the quarter. And these weren't just associated with inability on the part of Eskom to generate power. A lot of this had to do with the grid of the - just the state of the distribution grid, the standard of maintenance, et cetera. And this is something that we brought to the attention of the market a number of years ago that, increasingly, our concern was that the quality of maintenance of the distribution grid and challenges experienced in that regard becoming more and more of - were becoming more and more problematic. And we…

Thank you very much, Niel. Good morning, ladies and gentlemen. I beg to differ on the intelligent part. My job is made a lot easier with the context that Niel has provided, and you'll see the production flow-in and the core of that flow-in flowing into the numbers. Firstly, looking at the operating margin. Yes, as Niel has explained, we've a - basically a flat gold price period-on-period. And I always compare it to the last six months of the calendar year, 2017 to 2018, so the first six months of our financial year. Unfortunately, production, down as a result of throughput that was down. Yield, also slightly down. And with a flat gold price, obviously, that will impact on the operating margin directly. Still at 8.2%, which is not bad, but as Niel has explained, we would like that to be better. Those same factors, unfortunately, flow into all-in sustaining cost margin, sitting for this period at 0.8%. In that number, not only cash operating or cash cost's taken into account but other factors, like environmental unwinding of a provision, some administration and general costs. And maybe, just to point out, in these numbers, it is the first time that we've included Far West. So for example, on a cost side, you do have a disconnect in that under the accounting standards. You cannot capitalize all costs as directly attributable to the capital side of the project. There's an element of that, but there's also an element of holding costs in that period that you construct. So the way we look at Far West at the moment, we're actually very proud of having contained costs. And Niel has referred to using existing infrastructure that's there to do some processing. Obviously, that's not our main project, but as a result,…

Thanks, Riaan. I think I've covered most of this in the highlights, and it will remain an important focus area for us going forward. And we've probably also reached a stage where we have to be a little bit more aggressive on how we communicate our involvement and where we are required. The fact that we are a mine and that we are in Johannesburg doesn't mean that the entire Johannesburg footprint is our responsibility. So from time to time, you would read that this organization or that individual or this journalist has stumbled upon something that is placed at the feet of DRDGOLD. And then just read in the intelligent place what the real situation is. And we - invariably, we do publish something to setting the record straight. So we are very committed to maintaining our footprint to a good standard, to a responsible standard. We're very committed to make sure that we clean up after our own mess, but we're not cleaning the mess of other entities or corporations. And the mere fact that it exists in proximity of our operations doesn't mean that we're going to be rushing to the rescue of this and that and throwing our shareholders' money at issues that have been by other entities and other individuals. It doesn't mean that we are entirely indifferent. We do make our resources and skills and our intellectual capital available for some of these ventures and always trying, in particular, we - assisting out on certain areas where there is a requirement. But that is without cost to our shareholders, and that is as part of our commitment to being a good corporate citizen. And we'll certainly make sure that we maintain a healthy balance between this and what we are legally entitled to disperse…

You're assuming I can read this? Our discount rate around is cost of capital, is that 15.5%? What did we use?

30 June, we used 11%.

11%. Okay. So question of, what was the discount rate? We used 11%, which is cost of capital, average cost of capital. And then there's a second question for the Far West project Phase 2. At what gold price NPV of construction new plant and tailings facility will exceed another option? I don't have a definitive answer for that just yet. So maybe I can talk a little bit about the Phase 2. Thank you. So what we have in Phase 1 is a plant capable of treating two tailings dams that contain between 0.4 and 0.5 gram a ton of gold, roughly 80 million tons. If you were to NPV that, then the value I think is about twice of what we recognized, ZAR1.3 billion is what we - what the cost was. And I think we - that number is in the public. We - that forecast, the NPV number, if I'm not mistaken. Okay. So we've got a...

[Indiscernible].

Yes. So it's about ZAR2.3 billion NPV for Phase 1 on a stand-alone basis, which means that there's, obviously, the - a temptation to just not do anything else. But that's not why we bought this project, we want to mine the whole thing. And we mentioning these numbers to the markets only to give comfort to the market that Phase 2 is not a requisite for value add. And when we talk about value add, we talk about cash earnings per share as a component of value add. It's very important to us when we consider any new project that we will increase cash earnings per share to shareholders. Or else what you're doing is, you're just producing the same cash but just for a high number of shares. And I think with that comes additional risk. So our approach to Phase 2 basically is the following: one, we are very determined to construct Phase 2 because we believe that in the long term providing exposure to gold price over a longer period of time is consistent with what many of our shareholders expect from us. The reason why they buy and sell the stocks because of that exposure to gold price and the multiples associated with it. So we're determined to mine that. And we're talking about a 15-year life of varying a significant production going forward. In order to do that, though, there are two important requisites or requirements. The one is, that a large tailings deposition facility is required, a new one, that has to be built. The one that's on the cards now has been licensed. And it can be built in stages. So it can cost anything between ZAR400 million and in excess of ZAR1 billion, depending on both how ambitious we are, and…

Niel, it's Everest [ph] here. And I just - I'm just looking on to your presentation as well as the stat in South Africa in terms of gold production is about 142 tons of gold that is produced. So if I calculate with you guys is about 2% of productions nationwide. So it's quite significant in terms of gold production. So I just have a little bit of concern in terms of the 49 kilogram of gold that has been lost, like, early this year due to Eskom issue. We all know actually that Eskom will be a, like, quite a big issue. Have you thought about any - applied any alternative energy source such as green energy? So that's my first questions. The second one is, I was really expecting to see a little bit of a breakdown in terms of environmental rehabilitation spend, which is about ZAR24 million in terms of how the population is impacting and which - what is the real attempt that is really affecting the environmental rehabilitation spend? Because, right now, the company is in a stage whereby you have to look at which items, whereby you need to work towards cutting off some of the expenditures to ensure that's the - to maximize your profit or your revenues. So I would just like to see those things, if it's - could we break down, will much appreciate that.

Certainly. Look, I think your first question is a very valid one and I know a lot of companies are looking at alternative sources of energy. In fact, I believe in the Kalahari session, there is a 70-megawatt power station that is solar power station, which is making that area almost independent of Eskom. I think the dilemma that - one needs to look at these things in a broader perspective and just consider the impact of a failing Eskom against the environment within which we do business. And I'm a firm believer that in terms of crucial and important pieces of infrastructure, things that you cannot allow to go into neglect, a state of neglect. For example, the management of your tailings deposition facility, that there you need to have virtually independent capacity. But in terms of the plant itself and the various reclamation sites that we've got, we use so much power that in order to substitute that, you would have to have a forward-looking life of mine that can justify an offtake arrangement of 15 - up to 15 to 20 years. And I think those technologies have not really been developed to the fullest, to the full extent. The other concern that I do have is to rush into energy independence too early. If Eskom were to fail completely and I have a big concern that by so many of the bulk consumers, bulk paying consumers we're throwing from the grid or putting measures in place to reduce its consumption that Eskom's clientele, it's client base is starting to become unbalanced where you have a whole lot of nonpaying consumers that we need to continue to supply because if we don't, we face anarchy. And then on the other end, you have a shrinking, diminishing group…

Could you talk a little bit just on your operational, your recoveries and so on cyanide, I mean, how is the effectiveness of your extraction going?

Well, we're not quite where we want to be, but I don't think we'll ever be exactly when we want to be. There's always that elusive 0.01 gram per ton that we want to get from the plant. On the whole, the plant is stable and predictable but we're continuously pushing the envelope and trying to for it to be better. We introduced this information management system, that's automated information management system a few years ago where we took the information that's been collected across the plant and this is automated information that's being sent to its data collection and we reduced it down to 7 or 8 so called nonnegotiables. These are the key drivers of the plant that interact and interplay and that can each have the effect of the plant going out of sync or becoming unstable or unpredictable. And what has helped us to do is because you could see exactly what is getting out of range or what is pushing against the limits of range, it helps you to anticipate those and to keep them within range and has also very much assisted us in precision dosaging. So whereas in the past, cyanide, for example, was something that was done at times reactively or proactively but hoping to see some sort of a result. We can now - because we know exactly where the other key drivers are, your dissolved oxygen levels, your pH, et cetera, et cetera, we can apply precision dosaging, which means that, that the range of cyanide - the concentration of cyanide or percentage of cyanide in the solution itself, that is far more stable. And the first year, for example, that we started doing that, I think, we saved on average about ZAR1 million a month just on cyanide. And…

Once again, thank you, so much. And please help us to eat all the sandwiches that they have prepared for us.