Media releases

14% Increase in group gold production

Details

Published: Thursday, 02 November 2006 02:00

DRDGOLD Limited today announced a 14% increase in Group gold production to 150 197oz for the quarter ended 30 September 2006.
Johannesburg, South Africa, 2 November 2006. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) today announced a 14% increase in Group gold production to 150 197oz for the quarter ended 30 September 2006.

The announcement of the company’s quarterly results coincides with the 10th anniversary of its listing on NASDAQ.

The increase in Group gold production resulted from a 41% increase in attributable gold production from the Australasian operations of Emperor Mines (78.72% held) to 58 858oz, arising mainly from the Vatukoula mine in Fiji coming back on stream after a planned shutdown in the previous quarter, to produce 17 338oz in the quarter under review. While Vatukoula and Porgera both reported improvements in gold production, Tolukuma produced 2% less, and performance at all three Australasian operations was negatively affected by a variety of factors.

DRDGOLD CEO Mark Wellesley-Wood says a previously-reported skip-cage incident at Vatukoula during October was ‘an unfortunate and serious setback’ to Emperor Mines’ previously announced plan to achieve 350 000oz of gold production at a cash operating cost of US$350oz by June 2007.

Production from the South African operations was slightly higher at 91 339oz. The Crown surface operation reported a 16% increase in gold production while Blyvooruitzicht (Blyvoor) was stable at 40 477oz and ERPM was 12% down, mainly as a result of an 8% drop in underground grade.

Wellesley-Wood says the South African operations are ‘on the way’ to attaining an acceptable level of stability, notwithstanding the slower than expected volume ramp-up at Blyvoor resulting from repairs to No 6 Shaft following the shaft accident there, and underground grade issues at ERPM arising from increased seismicity and consequent safety concerns.

While Group revenue increased by 22% to R642.1 million, mainly as a result of the weaker Rand, Group cash operating profit was 43% lower at R76.2 million, reflecting a 44% increase in total cash operating costs to R565.9 million.

Revenue from the South African operations was 10% higher at R406.2 million, and after accounting for cash operating costs – 11% higher at R329 million – cash operating profit was 3% higher at R77.2 million.

By contrast, revenue from the Australasian operations was 50% higher at R235.9 million but after accounting for a 140% increase in cash operating costs to R236.9 million, a R1 million cash operating loss was recorded compared with a cash operating profit of R58.0 million in the previous quarter.

Queries:

South Africa
Investor and Media Relations
Ilja Graulich, DRDGOLD
+27 11 219 8707(office)
+27 83 604 0820 (mobile)

James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)

North America
Investor and Media Relations
Barbara Cano, Breakstone Group International
+1 646 452 2334 (office)

United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398 (mobile)

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DRDGOLD is a medium-sized, unhedged gold producer with investments in South Africa and Australasia.

Incontrovertibly bullish about its product, the company has recently concluded extensive refocusing of its gold interests.

In South Africa, the company has an 85% interest in DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA), while in Australasia, it has a 78.72% interest in Emperor Mines Limited.

In the 2006 financial year, DRDGOLD SA contributed 60% or 315 976 ounces – of total attributable gold production of 527 401 ounces, and Emperor 211 425 ounces. At 30 June 2006, DRDGOLD’s total attributable resource base was 47.6 million ounces and its total attributable reserves were 8.8 million ounces.

For more information, please visit www.drdgold.com

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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 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 2005, which we filed with the United States Securities and Exchange Commission on 15 December 2005 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.