Chairman’s letter

During the past year we took the action required to successfully refocus on our core business in South Africa. We sold our investments in Australasia and directed our financial and managerial resources into our South African operations.

CEO’s review

The first priority was to stabilise our operations and return them to sustainable production levels. The next step was to start focusing on growing our ounces, both at existing assets and through pursuing new opportunities.

Review of operations

In FY08, DRDGOLD’s gold production decreased by 33% to 321 432 ounces from 477 157 ounces in FY07. The main reasons for this were the disposal of the group’s interests in Australasia and the focus on stabilising the South African operations.

Ergo

The Ergo Joint Venture between DRDGOLD SA and Mintails SA – now known as Ergo – was established during FY07 to explore, evaluate and process surface gold-, uranium- and sulphur-bearing tailings on the East and Central Rand goldfields of South Africa.