Blyvoor provisional judicial management order lifted
13 April 2010
‘Once again, a successful concern’
Johannesburg, South Africa. 13 April 2010. DRDGOLD announced today that the High Court of South Africa has agreed to lift, with immediate effect, the provisional judicial management order in place since 10 November 2009 in respect of the Company's 74%-owned subsidiary, Blyvooruitzicht Gold Mining Company Limited ("Blyvoor").
DRDGOLD CEO Niël Pretorius, in the Company's application to the court for the lifting of the provisional judicial management order, pointed out that:
- for the period November 2009 to February 2010, Blyvoor has traded at an unaudited profit of
- R33 578 400;
- trade creditors at the time when the provisional judicial management order was granted have been reduced from R39 million to R2.17 million;
- monthly production of gold has increased from 272kg to 315kg;
- the gold price has increased from R240 000/kg to R265 000/kg.
Pretorius added that the four judicial managers appointed by the court, supported its application for the lifting of the provisional judicial management order, on condition that DRDGOLD's provision of a R15 million facility to Blyvoor, available from November 2009 but not accessed, remains in place.
"The provisional judicial management of Blyvoor has been a success; the Company is able to pay its debts as and when they fall due for payment; it has turned the corner and is, once again, a successful concern," Pretorius said.
DRDGOLD applied for and was granted the provisional judicial management order in November 2009 following several months of increasing operational and financial stress experienced by Blyvoor as a consequence of:
- a series of seismic events during May 2009 which caused a substantial drop in mining production;
- a 33% rate increase imposed by power utility Eskom during July 2009;
- a protracted labour strike; and
- a sharp decline in the gold price between February and May 2009, from R317 000/kg to R240 000/kg.
The financial information provided in this announcement has not been reviewed or reported on by the Company's auditors.
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 James's 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 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 annual report for the fiscal year ended 30 June 2009, which we filed with the United States Securities and Exchange Commission 27 November 2009 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.