27 October 2020

DRD: DRDGOLD LIMITED - Operating update for the quarter ended 30 September 2020

DRD: DRDGOLD LIMITED - Operating update for the quarter ended 30 September 2020
Operating update for the quarter ended 30 September 2020

(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 2020 is as follows:

                                                                         Quarter ended      Quarter ended
                                                                            30 SEP 2020       30 JUN 2020 % change
Gold produced                                  kg                                 1,514              1,041         45%
                                               oz                                48,676             33,469         45%
Gold sold                                      kg                                 1,522                951         60%
                                               oz                                48,934             30,576         60%
Ore milled                                     Metric (000't)                     7,260              5,737         27%
Yield                                          Metric (g/t)                       0.209              0.181         15%

Price and costs
Average gold price received                    R per kg                      1,029,893             970,198          6%
                                               US$ per oz                        1,896               1,682         13%
Adjusted EBITDA *                              Rm                                770.4               366.3        110%
                                               US$m                               45.6                18.9        141%
Cash operating costs                           R/t                                 104                 102          2%
                                               US$/t                                 6                   6            -
Cash operating costs                           R per kg                        489,750             542,482        -10%
                                               US$ per oz                          901                 941         -4%
All-in sustaining costs **                     R per kg                        588,239             579,180          2%
                                               US$ per oz                        1,083               1,004          8%
All-in cost **                                 R per kg                        613,206             597,371          3%
                                               US$ per oz                        1,129               1,036          9%

Capital expenditure
Sustaining                                     Rm                                  95.1               84.4         13%
                                               US$m                                 5.6                4.7         19%
Non-sustaining/growth                          Rm                                  25.3                4.5        462%
                                               US$m                                 1.5                0.3        400%

Average R/US$ exchange rate                                                       16.90              17.94         -6%

Rounding of figures may result in computational discrepancies

* Adjusted earnings before interest, taxes, depreciation and amortisation ("Adjusted EBITDA") 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

Gold production increased by 45% from the previous quarter to 1,514kg primarily due to a 27% increase in
tonnage throughput and a 15% increase in yield. Gold sold increased by 60%.

As a result, the cash operating cost per kilogram of gold sold decreased by 10% from the previous quarter
to R489,750/kg. The cash operating cost per ton of material processed increased by 2% to R104/t.

All-in sustaining costs per kilogram and all-in costs per kilogram were R588,239/kg and R613,206/kg,
respectively, increasing quarter on quarter mainly due to an increase in sustaining capital expenditure.

Adjusted EBITDA increased by 110% from the previous quarter to R770.4 million primarily due to a 60%
increase in gold sold and a 6% increase in the average Rand gold price received of R1,029,893/kg.

Cash and cash equivalents increased by R300.1 million to R2,015.2 million as at 30 September 2020 after
paying the final dividend for the year ended 30 June 2020 of R299.1 million. External borrowings remained
at Rnil as at 30 September 2020 (30 June 2020: Rnil).

The cash generated during the current quarter will, inter alia, be applied towards the Company┬┤s extended
capital expenditure programme for the year ending 30 June 2021. Despite the capital expenditure planned
for the year, management positions the Company favourably to, in the absence of unforeseen events,
consider declaring an interim dividend in February 2021.

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.

27 October 2020

One Capital

Date: 27-10-2020 08:00:00
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