DRDGOLD Limited (DRDGOLD) is a medium-sized, unhedged gold producer with operations and exploration activities in South Africa held through a 74% interest in DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA).
DRDGOLD’s empowerment partner, Khumo Gold (SPV) (Pty) Limited, has recently increased its holding in DRDGOLD SA from 15% to 20%, and has facilitated the incorporation of a further 6% into an employee trust. This means that DRDGOLD has met the 26% black economic empowerment equity target set by the South African Mining Charter for 2014, seven years ahead of schedule.
In October 2007, DRDGOLD Limited announced the sale of its 78.9% stake in its Australasian subsidiary, Emperor Mines.
DRDGOLD SA wholly owns and operates the Blyvooruitzicht Gold Mining Company Limited (Blyvoor) and East Rand Proprietary Mines Limited (ERPM) gold mining operations, and Crown Gold Recoveries (Pty) Limited (Crown), the world’s largest operation recovering gold from disused mine dumps. This aspect of DRDGOLD’s business is set to grow.
The ERGO Joint Venture (ERGO JV) between DRDGOLD Limited and Mintails Limited of Australia was established during the 2007 financial year to explore, evaluate and process approximately 1.7 billion tonnes of surface gold, uranium and sulphur bearing tailings on the East and Central Rand goldfields of South Africa.
DRDGOLD and Mintails have also reached agreement on the formation of a second joint venture – to explore, evaluate and potentially mine gold and uranium by opencast and underground mining methods in the West Rand goldfield.
In the 2007 financial year (FY07), DRDGOLD SA contributed some 334 496 ounces (oz) – some 70% – of DRDGOLD’s total attributable gold production of 477 157oz.
At 30 June 2007 DRDGOLD’s total attributable resource base was 54.2Moz and its total attributable reserves were 6.3Moz. Some 53.9Moz of attributable resources were in South Africa, where an increase of 33% was recorded compared with FY06, when the resource base was 40.6Moz.
The company is well positioned operationally and in terms of its growth strategy to benefit from the strengthening of the gold price, and thus to continue to deliver value to all of its shareholders.
DRDGOLD has a primary listing on the JSE Limited (JSE) and secondary listings on the NASDAQ Capital Market (NSADAQ) and the London Stock Exchange.
