DRDGOLD LTD — Capital/Financing Update 2014

Dec 5, 2014

6-K 1 drdfinancialeffects.htm HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" Page 1 SECURITIES AND EXCHANGE COMMISSION

UNDER THE SECURITIES EXCHANGE ACT OF 1934

ISIN: ZAE000058723

PRO-FORMA FINANCIAL EFFECTS OF THE DISPOSAL

Financial effect of the completion of the Disposal.Before
theAfter the Disposal Change
Disposal
(2 - 7)(%)| Basic (loss)/ earnings per share (“EPS”) (cents) | | | | |
| --- | --- | --- | --- | --- |
| | | (12) | 21 | 275% |
| | (8 & 9) | | | |
| Headline earnings per share (“HEPS”) (cents) | | | | |
| | (9) | 0 | 1 | n/a |
| Net asset value per share (“NAV”) (cents) | | | | |
| (11) | | 324 | 360 | 11% |

Net tangible asset value per share (“NTAV”) (cents)

32436011%
(11)

Weighted number of shares in issue
379 209 441379 209 441-

Number of shares in issue 385 383 767385 383 767

Profit on the Disposal amounting to R 179.7 million, being the receipt of Disposal proceeds of R202.4 million (USD 20.5 million converted at the closing ZAR:USD exchange rate at 1 July 2013 of 9.87), partially offset by the settlement of Indirect taxes amounting to R 24.9 million;

Direct taxes on the Disposal amounting to R 9.6 million;
Loss on exercise of the Buy-Back Option amounting to R 3.2 million; and The above entries had no impact on HEPS.

Net increase in cash and cash equivalents of R 190.3 million, being the receipt of Disposal proceeds of R217.0 million (USD 20.5 million converted at the closing ZAR:USD exchange rate at 30 June 2014 of 10.57), partially offset by the settlement of indirect taxes amounting to R 26.7 million and direct taxes amounting to R nil;

The following items being recognised on the exercise of the Buy-Back Option

SUSPENSIVE CONDITIONS The disposal of the mining rights ERPM GP150MR and ERPM GP151MR (together referred to as “ ERPM 1 ”), and the Ancillary Assets are subject to fulfilment / waiver of certain suspensive conditions. The suspensive conditions outstanding as of the date of this announcement are as follows:

1. the 2013 Amendment Application is granted and the section 11 applications are submitted to the DMR in respect of ERPM 1, or alternatively, if the 2013 Amendment Application is not granted, the section 11 application is submitted to the DMR in respect of ERPM GP150MR only, by no later than 120 business days after confirmation of funding has been obtained; and

2. the section 11 applications in respect of ERPM 1 is granted, or alternatively, the section 11 application in respect of ERPM GP150MR only is granted (in the circumstances where the 2013 Amendment Application is not granted), by no later than the second anniversary of the date of submission of the section 11 application to the DMR.

The due date of the above conditions can be extended in certain circumstances.
The disposal of the prospecting right ERPM extension area 2 renewal (“ ERPM 2 ”) is subject to fulfilment waiver of certain suspensive conditions. The suspensive conditions outstanding as of the date of this announcement are as follows:

1.the disposal of ERPM 1 and the Ancillary Assets becoming unconditional (“ ERPM 1 Effective Date ”); and

2.by no later than the long stop date (being the earlier of 30 June 2016 and the first anniversary of the date of submission of the section 11 application to the DMR) the related section 11 application is granted.

If the suspensive conditions to the disposal of ERPM 2 are not fulfilled, then only the sale of ERPM 1 and the Ancillary Assets will remain in force.

On 24 November 2014 DRDGOLD received notification from DMR that the ERPM 2 Renewal Right will be granted. The execution of this renewal is expected imminently.

4.WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcements, the last of which are dated 20 October 2014 and are advised that the pro-forma financial effects of the Disposal have now been finalised and announced.

Johannesburg 5 December 2014

Sponsor:
One Capital

Reporting accountants:
KPMG Inc