Media releases

DRDGOLD increases dividend five-fold to 62 cents per share

30 August 2016

Johannesburg, South Africa. Tuesday, 30 August 2016. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has announced a final dividend of 12 South African cents per share (cps), making a total declared dividend for FY2016 of 62cps, a more than five-fold increase on the total distribution of 10cps in FY 2015.

CEO Niël Pretorius says a 25% increase in free cash flow – “an important measure for DRDGOLD” – to R308.7 million facilitated the total dividend declaration of close to R261 million as well as the repayment of liabilities.

Volume throughput increased by 5% but yield was 9% lower, resulting in a 4% drop in gold production to 143 457oz.

Revenue rose by 16% however, reflecting a 21% increase in the average Rand gold price received to R546 142/kg and although cash operating unit costs were up 20%, operating profit was 13% higher at R434.8 million.

The operating and all-in sustaining costs (AISC) margin were virtually unchanged at 18% and 8% respectively.

Headline earnings were higher – up 39% to R53.8 million, equivalent to 12.7cps, up 28%.

Pretorius says that the company’s monetary and intellectual investment in plant and process have borne clear, measurable results, reflected in increased throughput and improved extraction efficiency.

“Both are important achievements in helping to address the diminishing grade of our reserves.”

Progress made in securing additional tailings deposition capacity for the Ergo plant at the Brakpan/Withok Tailings Complex, is a major development in terms of leveraging the Ergo plant’s increased throughput capacity in the future, Pretorius says.

“With tailings capacity locked in, we are well placed both to optimise our current 11.8 million ounce resource and to acquire additional resources within the greater Johannesburg area.”

South Africa & North America
Investor and Media Relations

James Duncan
Russell and Associates
+27 11 880 3924 (office)
+27 (0) 79 336 4010 (mobile)

United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James’s Corporate Services
+44 (0) 20 7796 8644 (office)
+44 (0) 779 863 4398 (mobile)

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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 2015, which we filed with the United States Securities and Exchange Commission on 30 October 2015 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 release have not been reviewed and reported on by DRDGOLD’s auditors.