DRDGOLD LTD — Annual Report 2015

Sep 2, 2015

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

previously communicated intention to seek early redemption of these unsecured notes. The remaining unsecured notes outstanding at 30 June 2015 were redeemed on 3 July 2015.

of R464 170/kg. After accounting for total cash operating costs, 6% higher at R464.6 million, operating profit was 26% higher at R122.6 million.

The operating margin increased from 18.4% to 21.9% due mainly to higher gold production and this, notwithstanding higher capex, contributed to a rise in the AISC margin from 9.0% to 13.8%.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to R106.6 million from R72.4 million, reflecting higher operating profit and R2.2 million profit realised on the disposal of redundant property, plant and equipment during the quarter.

Headline earnings increased to R30.4 million from R9.2 million, equivalent to 7 South African (SA) cents compared with 2 SA cents.

The cash balance rose by 13% to R324.4 million. This includes R14.3 million in the form of guarantees and R11.4 million held in escrow, pending resolution of a dispute with Ekurhuleni Metropolitan Municipality regarding surcharges on top of Eskom charges for the supply of electricity from Eskom.

Cash operating costs were stable at R372 932/kg. Increased gold production helped to offset the cost of running all three streams of the float circuit and of general inflationary increases averaging 7.4% year-on-year. AISC increased by 2% to R411 548/kg, a consequence of a 65% increase in sustaining capital expenditure to R113.3 million, and a reduction in the decrease in provision for environmental provision from R86.6 million to R20.4 million, offset by higher gold production. Non-sustaining capital expenditure decreased to almost zero from R91.8 million in the prior year, reflecting completion of the FFG circuit.

FINANCIAL REVIEW Higher gold production and sales, and a higher average Rand gold price received, resulted in a 16% increase in revenue to R2 105.3 million. Operating profit was up 48% to R384.3 million, after accounting for total cash operating costs, 13% higher at R1 741.6 million.

The operating margin improved from 14.4% to 18.3% due mainly to higher gold production. This, in spite of higher sustaining capex, strengthened the AISC margin from 8.3% to 8.7%.

EBITDA increased by 45% to R296.1 million, a reflection mainly of the improvement in operating profit and profit on the disposal of redundant property, plant and equipment.

Headline earnings increased substantially from R0.7 million to R38.7 million, equivalent to 10 SA cents per share compared with 0 SA cents per share.

REPORT TO SHAREHOLDERS FOR THE FOURTH QUARTER AND YEAR ENDED 30 JUNE 2015

To holders of American Depositary Shares: • Each American Depositary Share (“ADS”) represents 10 ordinary shares:

• • • •

30 Jun 201531 Mar 201530 Jun 201430 Jun 201530 Jun 2014
RmRmRmRmRm

447.4 7.7

52.6

94.7

7.9

11.7

Rm

30 Jun 201531 Mar 201530 Jun 201430 Jun 201530 Jun 2014 RmRmRmRmRm Reviewed

12 months to 30 Jun 201531 Mar 201530 Jun 201430 Jun 201530 Jun 2014 RmRm UnauditedReviewed

2.2 206.7 208.9

9.8

12.8 19.3

These condensed consolidated financial statements for the year ended 30 June 2015 have been prepared under the supervision of DRDGOLD’s Chief Financial Officer, Mr AJ Davel CA(SA). The condensed consolidated financial statements were authorised for issue by the directors on 27 August 2015.

investments reclassified to profit or loss on the disposal of the investment in Village Main Reef Limited shares; and

to profit or loss on the disposal of Chizim.The provision for environmental rehabilitation relating to the Ergo operating segment increased by a net amount of R42 million due to: • the unwinding of the liability amounting to R37.3 million; and •

Jun 2015 QtrJun 2015 Ytd

420 195 1 112

Metric/Rand

Ore milled (000’t) (Metric)(Imperial)
Yield (g/t)(oz/t) (Metric)(Imperial)0.197

Gold produced (kg)(oz) (Metric)(Imperial)
Cash operating costs (R/kg)(US$/oz)
Cash operating costs (R/t)(US$/t)
Gold and Silver revenue (R million)(US$ million)
Operating profit (R million)(US$ million)
Profit before tax (R million)(US$ million) * Capital expenditure (R million)(US$ million)

FORWARD LOOKING STATEMENTS 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.

DIRECTORS (British)(*American) Executives: DJ Pretorius (Chief Executive Officer), AJ Davel (Chief Financial Officer) – appointed 6 January 2015, TJ Meyer (Acting Chief Financial Officer) – appointed

29 July 2014, resigned 31 December 2014, FD van der Westhuizen (Chief Financial Officer) – resigned 18 July 2014

Independent non-executives: GC Campbell (Non-Executive Chairman), EA Jeneker, J Turk *, JA Holtzhausen, R Hume – retired 31 October 2014 Company Secretary: TJ Gwebu Sponsor: One Capital