Media releases

9% increase in operating profit, 11% rise in HEPS in FY2013

23 August 2013

180% increase in total dividend to 28 SA cents per share

Johannesburg, South Africa. 23 August, 2013. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has reported a 9% increase in operating profit to R679.3 million for the financial year ended 30 June 2013 compared with FY2012, and a consequent 11% increase in headline earnings per share (HEPS) to 68 South African (SA) cents.

The company has declared a final dividend of 14 SA cents per share, contributing to a total distribution for the year of 28 SA cents, up 180% on the previous year.

Gold production for the year was 8% higher at 146 381oz, reflecting an 8% increase in ore milled to 23 254 000t and a slight increase in recovered grade, from 0.195g/t to 0.196g/t.

Revenue increased by 18% to R2 076.5 million, a consequence both of higher gold production and a 9% improvement in the average rand gold price received to R458 084/kg.

All-in sustaining unit costs, as defined by the World Gold Council, rose by 10% to R365 569/kg. Key contributors were the costs associated with the mining of additional sand resources at the Knights plant and above-inflation increases in the cost of labour, electricity and reagents. The all-in sustaining costs margin was steady at 20%.

Capital expenditure was 13% higher at R361.5 million, due mainly to continued development of the flotation/fine-grind circuit at Ergo’s Brakpan plant.

While higher capex and a 10% drop in the average rand gold price received during the fourth quarter resulted in a 53% decline in free cash flow generated to R97.9 million, this cash – together with debt raised during the year of R165 million – resulted in an increase in cash and cash equivalents to R377.2 million.

In respect of the company’s Zimbabwe assets, which have been up for sale, expressions of interest have been received and negotiations to conclude the sale are continuing. The small Cason underground operation has been placed on care and maintenance.

Looking ahead to the first half of FY2014, CEO Niël Pretorius says commissioning of the flotation/fine-grind circuit at Ergo’s Brakpan plant will continue, with a view to achieving completion and stable production by December 2013.

For the ensuing year as a whole, there will be increased focus on achieving sustainable profits and to deliver into the targets set for reduced potable water usage and dust emission, Pretorius says.

“We will invest substantially in development of social capital; in particular we want to improve our employees’ competence in the area of personal financial management, to curb the associated scourges of over-indebtedness and garnishee orders.

“On the technology front, we will look afresh at the potential our new technologies offer in terms of greater scale, both within our existing footprint and further afield.”

South Africa & North America

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)

For more information, please visit www.drdgold.com

Disclaimer

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 annual report for the fiscal year ended 30 June 2012, which we filed with the United States Securities and Exchange Commission on 26 October 2012 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 statement included in this report have not been reviewed and reported on by DRDGOLD’s auditors.