28 October 2019

DRD: DRDGOLD LIMITED - Operating update for the quarter ended 30 September 2019 and robbery and fatal shooting at the ERGO plant

DRD: DRDGOLD LIMITED - Operating update for the quarter ended 30 September 2019 and robbery and fatal shooting at the ERGO plant
Operating update for the quarter ended 30 September 2019 and robbery and fatal shooting at the ERGO plant

(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ISIN: ZAE000058723
JSE share code: DRD
NYSE trading symbol: DRD
("DRDGOLD" or the "Company")


The operating update of the Company for the quarter ended 30 September 2019 is as follows:

                                                                                                               Quarter ended              Quarter ended
                                                                                                                   30-Sep-19                  30-Jun-19             % change
    Gold produced                                                      kg                                              1,493                      1,418                   5%
                                                                       oz                                             48,001                     45,590                   5%
    Gold sold                                                          kg                                              1,510                      1,429                   6%
                                                                       oz                                             48,547                     45,943                   6%
    Ore milled                                                         Metric (000't)                                  7,155                      6,853                   4%
    Yield                                                              Metric (g/t)                                    0.209                      0.207                   1%

    Price and costs
    Average gold price received                                        R per kg                                      696,368                    603,755                 15%
                                                                       US$ per oz                                      1,475                      1,307                 13%
    Adjusted EBITDA *                                                  Rm                                              326.1                      153.7                112%
                                                                       US$m                                             22.2                       10.9                104%
    Cash operating costs                                               R/t                                                97                         99                 -2%
                                                                       US$/t                                               7                          7                   -
    Cash operating costs                                               R per kg                                      459,868                    475,657                 -3%
                                                                       US$ per oz                                        974                      1,030                 -5%
    All-in sustaining costs **                                         R per kg                                    517,219 1                    466,927                 11%
                                                                       US$ per oz                                    1,096 1                      1,011                  8%
    All-in cost **                                                     R per kg                                    528,344 1                    484,315                  9%
                                                                       US$ per oz                                    1,155 1                      1,082                  7%
 1 All-in sustaining cost per kg and all-in cost per kg were disproportionately impacted by including a R41.1 million increase in the liability for the long-term incentive
    scheme while including gold production/sold for the first quarter only

    Capital expenditure
    Sustaining                                                         Rm                                                5.5                        5.9                 -7%
                                                                       US$m                                              0.4                        0.4                   -
    Non-sustaining/growth                                              Rm                                               11.2                       13.7                -18%
                                                                       US$m                                              0.8                        1.0                -20%

   Average R/US$ exchange rate                                                                                        14.68                      14.37                  2%
   Rounding of figures may result in computational discrepancies

   * The adjusted earnings before interest, taxes, depreciation and amortisation ("Adjusted EBITDA") (that was
   considered from the quarter ended 30 June 2019 following the implementation of the Revolving Credit Facility
   agreement) may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure
   of performance under International Financial Reporting Standards ("IFRS") and should be considered in addition to,
   and not as a substitute for, other measures of financial performance and liquidity.

   ** All-in cost definitions based on the guidance note on non-GAAP Metrics issued by the World Gold Council on 27
   June 2013.
Gold production increased by 5% quarter on quarter primarily due to a 4% increase in tonnage throughput
as Far West Gold Recoveries Proprietary Limited achieved the planned throughput of 500 000tpm from
Phase 1 during the quarter and successfully started operating its mills at the beginning of September 2019.
This resulted in a 3% and 2% decrease in cash operating cost per kilogram of gold sold and cash operating
cost per ton of material processed respectively, compared to the previous quarter.

Overall yield increased by 1% compared to the previous quarter due mostly to improved head grade at
Ergo Mining Proprietary Limited.

Adjusted EBITDA more than doubled for the quarter, due mainly to the 15% increase in gold price received
and a 6% increase in gold sold.

All-in sustaining costs per kilogram and all-in costs per kilogram for the quarter were 11% and 9% higher
respectively, due to the positive impact of the change in estimate of environmental rehabilitation recognised
in profit or loss, lowering the comparative unit costs of the previous quarter.

Cash and cash equivalents increased to R333.6 million as at 30 September 2019 (30 June 2019: R279.5
million), after paying a cash dividend of R136.4 million (declared for the year ended 30 June 2019) and
increasing working capital lockup by R133.9 million for the quarter. External borrowings remained at Rnil as
at 30 September 2019 (30 June 2019: Rnil). The board of directors of the Company ("board") will consider
the payment of a dividend once the half year results have been finalised.

On the evening of Monday, 21 October 2019 an armed gang gained entry to the ERGO plant at Brakpan, in
the process fatally wounding Chief Security Officer Bart Coetzee during an exchange of gun fire. The board
extends its deepest condolences to Mr Coetzee´s family, colleagues and friends. The gang escaped with a
quantity of calcine concentrate, estimated to contain up to 17kg of gold. A large part of the gold containing
concentrate was recovered by the South African Police Service in the investigation following the incident.

The information contained in this announcement does not constitute an earnings forecast. The financial
information provided is the responsibility of the directors of DRDGOLD, and such information has not been
reviewed or reported on by the Company´s auditors.

28 October 2019

One Capital

Date: 28/10/2019 08:00:00
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