Media releases

DRDGOLD returns funds to shareholders with second share repurchase

Details

Published: Wednesday, 27 June 2012 02:00

Johannesburg, South Africa. 27 June 2012. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) announced today that it has completed an on-market repurchase of 4.4 million DRDGOLD ordinary shares at an average price of R5.67 per share for a total consideration of approximately R25 million.

To fund the repurchase, the company used a portion of the proceeds of the working capital adjustment owed to it by Village Main Reef Limited (Village), following the sale by DRDGOLD to Village of DRDGOLD’s 74% interest in Blyvooruitzicht Gold Mining Company Limited (Blyvoor).

DRDGOLD CEO Niël Pretorius said the repurchase is consistent with the company’s policy to return ‘windfall’ income to shareholders.

Commenting on the average consideration paid per share, Pretorius said DRDGOLD’s shares are currently trading well below the average sell-side outlook, which makes a repurchase a “very attractive option” for returning funds to DRDGOLD shareholders.

This is the second share repurchase completed by DRDGOLD this year, bringing to approximately R58 million the total amount the company has re-invested in its market capital.

South Africa & North America
James Duncan, Russell and Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)

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 sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses 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 2011, which we filed with the United States Securities and Exchange Commission on 28 October 2011 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. Any forward-looking statement included in this report have not been reviewed and reported on by DRDGOLD’s auditors.