DRDGOLD strike action continues
30 September 2009
Johannesburg, South Africa. 30 September 2009. DRDGOLD Limited (JSE: DRD; Nasdaq: DROOY) said today that wage-related strike action by a total of 4 400 employees in the National Union of Mineworkers (NUM) recognition units at the Blyvooruitzicht Gold Mining Company Limited (Blyvoor) and Crown Gold Recoveries Limited (Crown) operations, which are held by the companys 74%-owned subsidiary, DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA), has entered its third week.
Managements offer of a basic wage increase varying between 4.0% at the East Rand Proprietary Mines Limited (ERPM) operation and 15% for certain job categories at Blyvoor, together with a Blyvoor and Crown gold profit-sharing scheme, which could add up to a further 8.5%, was rejected by the NUM prior to the start of strike action. Managements offer last week to increase the basic wage offer at Crown from 6.0% to 7.5% was similarly rejected.
The union continues to demand a 13% across-the-board basic wage increase.
Total daily gold production loss due to the strike action, mainly from Blyvoors labour-intensive underground mining operation, is estimated at approximately 320 ounces, worth some R2.4 million at the current Rand gold price.
The impact of the strike on Blyvoors surface retreatment operation and on Crown (which is entirely a surface retreatment operation) has not been significant to date.
Employees in the NUM recognition unit at ERPM have continued to report for work as usual.
A Section 189A 60-day consultation process in terms of the Labour Relations Act to effect retrenchments of redundant positions following the suspension of all underground operations at ERPM was concluded yesterday. At Blyvoor, a Section 189A 60-day consultation process on right-sizing the operation is continuing.
South Africa & North America
James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)
Investor and Media Relations
Phil Dexter, St Jamess Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398 (mobile)
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 continuing strengthening of the rand against the dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licences or other governmental approvals, changes in DRDGOLDs 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 annual report for the fiscal year ended 30 June 2008, which we filed with the United States Securities and Exchange Commission on 12 December 2008 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.