7 May 2020

DRD: DRDGOLD LIMITED - Operating update for the quarter ended 31 March 2020

DRD: DRDGOLD LIMITED - Operating update for the quarter ended 31 March 2020
Operating update for the quarter ended 31 March 2020

DRDGOLD LIMITED
(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")

OPERATING UPDATE FOR THE QUARTER ENDED 31 MARCH 2020

The operating update of the Company for the quarter ended 31 March 2020 is as follows:

                                                                      Quarter ended     Quarter ended
                                                                        31 MAR 2020       31 DEC 2019    % change
Production
Gold produced                                 kg                              1,346             1,544        -13%
                                              oz                             43,274            49,641        -13%
Gold sold                                     kg                              1,462             1,514         -3%
                                              oz                             47,004            48,677         -3%
Ore milled                                    Metric (000't)                  6,560             6,828         -4%
Yield                                         Metric (g/t)                    0.205             0.226         -9%


Price and costs
Average gold price received                   R per kg                     785,581            697,879         13%
                                              US$ per oz                     1,590              1,477          8%
Adjusted EBITDA *                             Rm                             389.3              329.8         18%
                                              US$m                            25.4               22.5         13%
Cash operating costs                          R/t                              101                100          1%
                                              US$/t                              7                  7            -
Cash operating costs                          R per kg                     489,193            460,634          6%
                                              US$ per oz                       990                975          2%
All-in sustaining costs **                    R per kg                     577,633            508,124         14%
                                              US$ per oz                     1,169              1,075          9%
All-in cost **                                R per kg                     588,235            511,889         15%
                                              US$ per oz                     1,229              1,118         10%


Capital expenditure
Sustaining                                    Rm                               47.1              27.2         73%
                                              US$m                              3.1               1.9         63%
Non-sustaining/growth                         Rm                                2.8                 -            -
                                              US$m                              0.2                 -            -

Average R/US$ exchange rate                                                   15.37             14.70          5%
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 2013.

   Gold production reflected a 13% decrease quarter on quarter due primarily to a 9% decrease in yield and a
   4% decrease in tonnage throughput compared to the previous quarter respectively, as the operations at
   Ergo Mining Proprietary Limited (Ergo) and Far West Gold Recoveries (FWGR) were temporarily halted
   towards the end of March 2020 as a result of the national lockdown declared by the South African
   government in response to the COVID-19 pandemic ("Lockdown").

   Gold sold reflected a mere 3% decrease quarter on quarter despite the 13% decrease in gold produced as
   gold inventory was sold down in anticipation of the Lockdown. As a result, the cash operating cost per
   kilogram of gold sold increased by 6% compared to the previous quarter while the cash operating cost per
   ton of material processed remained stable.

   Adjusted EBITDA increased by 18% to R389.3 million for the current quarter compared to R329.8 million
   for the previous quarter despite the 3% decrease in gold sold, which was mainly due to the gold price
   received which increased by 13%.

   All-in sustaining costs per kilogram and all-in costs per kilogram for the quarter were R577,633/kg and
   R588,235/kg, respectively, and increased quarter on quarter mainly due to an increase in capital
   expenditure.

   Cash and cash equivalents increased by R1,291.0 million from R543.4 million for the quarter ended 31
   December 2019 to R1,834.4 million for the quarter ended 31 March 2020, mainly due to free cashflow
   (cash flows from operating activities less cash flows from investing activities) of R422.8 million, the
   subscription for shares by Sibanye-Stillwater Limited at an aggregate price of R1,085.6 million and
   payment of an interim cash dividend of R213.6 million. External borrowings remained at Rnil as at 31
   March 2020 (31 December 2019: Rnil).

   The Company┬┤s previous gold production guidance for the year to 30 June 2020 was between 175,000 and
   190,000 ounces. On 10 January 2020, DRDGOLD informed the market that it was tracking the higher end
   of this production guidance. As a result of the Lockdown and related interruptions in our business, and in
   anticipation of continuing uncertainty surrounding the COVID-19 pandemic, DRDGOLD now expects to
   track the lower end of the gold production guidance of 175,000 ounces. DRDGOLD is, however, benefiting
   from the increase in the gold price which is currently more than R1,000,000/kg.

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.

Johannesburg
7 May 2020

Sponsor
One Capital

Date: 07-05-2020 08:00:00
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