Media releases

DRDGOLD re-focuses on South Africa

DRDGOLD CEO John Sayers says the company’s stronger balance sheet – a consequence of the ‘substantially completed’ balance sheet restructuring of its Australasian interests – ‘provides impetus’ for growth in South Africa.

Stronger balance sheet provides impetus'

693/07-jmd

Johannesburg, South Africa. 31 August 2007. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) CEO John Sayers says the company’s stronger balance sheet – a consequence of the ‘substantially completed’ balance sheet restructuring of its Australasian interests – ‘provides impetus’ for growth in South Africa.

Reporting today on DRDGOLD’s results for the quarter and year ended 30 June 2007, Sayers said:

  • ‘signs of responsiveness’ by the South African operations to their ‘stabilisation strategy’;
  • the unlocking and growth of surface assets through collaboration with Mintails SA;
  • brownfields resource growth, and
  • DRDGOLD SA’s current evaluation of its uranium potential, all underscored the company’s South African focus.

The recently concluded sale by 79%-held Emperor Mines Limited of its 20% interest in the Porgera Joint Venture in Papua New Guinea would result in the repatriation to South Africa of significant funds in the form of a capital distribution and loan repayments, Sayers said. This would greatly strengthen DRDGOLD’s balance sheet going forward.

South African gold production for the quarter rose by 7% to 80 505 oz, reflecting a return to planned production levels at Blyvooruitzicht and improved surface production at ERPM. Group gold production was 12% lower at 91 067 oz however, a consequence both of the disposal by Emperor of the Vatukoula Mine in Fiji and its Porgera JV stake.

While the South African operations recorded a 4% increase in cash operating profit to R45.1 million for the quarter, the Australasian operations incurred a loss of R2.4 million compared with the previous quarter’s R15.1 million profit, resulting in a 23% decrease in Group cash operating profit to R44.9 million.

The South African operations produced 6% more gold for the year (334 496 oz) but Group gold production was dragged 10% lower to 477 157 oz due to a 33% decline in Australasian gold production to 115 751 oz.

For the year, the South African operations recorded a cash operating profit of R232.00 and net profit of R55 million compared with the previous year’s R30 million loss. The Australasian operations’ net loss for the year totalled R1 344 million, R1 022 million of which was incurred by the discontinued Vatukoula operation.

At 30 June 2007, the Group’s attributable Mineral Resource reflected a 14% increase on the previous year to 54.2 million oz, a consequence of a 33% increase in the attributable resource of the South African operations to 53.9 million oz. This increase resulted from the granting of the ERPM Extension 2 prospecting right and 12.4 million oz of resource identified in ERPM’s southern lease area.

Queries:

South Africa 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)

 


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 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 2006, which we filed with the United States Securities and Exchange Commission on 22 December 2006 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.