Media releases

Operating improvements, higher rand gold price, lower costs deliver 118% operating profit increase

DRDGOLD Limited has announced a 118% increase in operating profit to R151.5 million for the quarter ended 31 December 2010, reflecting higher gold production, an improved Rand gold price received and lower costs.

Johannesburg, South Africa, 10 February 2011: DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) has announced a 118% increase in operating profit to R151.5 million for the quarter ended 31 December 2010, reflecting higher gold production, an improved Rand gold price received and lower costs.

Steady performance by the Group’s surface retreatment operations, Ergo and Crown, and continued improvement by its Blyvoor underground operation resulted in a 6% increase in total gold production to 69 446oz. Some 65% of total gold production for the quarter was from surface sources.

Indicative of the positive turnaround at the Blyvoor underground operation, productivity – in terms of per capita output per in-stope employee for the quarter under review was 33% higher at 17.6m, compared with 13.3 m in the comparable quarter of 2009.

The Group’s average Rand gold price received was 5% higher at R303 495/kg.

Total cash operating costs dropped by 5% to R495.8 million due both to higher gold production and the quarter’s three summer months being free from power utility Eskom’s higher winter tariff.

Capital expenditure was 31% higher, the major line items being the Crown-Ergo pipeline and refurbishment of the second carbon-in-leach (CIL) circuit at Ergo’s Brakpan plant. More than 7km of the 55km pipeline – which will allow both Ergo and Crown to retreat substantial additional surface material – have already been laid. Completion is scheduled for the fourth quarter of calendar 2011. Refurbishment of Ergo’s second CIL plant – due for completion during the third quarter of calendar 2012, will increase the operation’s capacity to 1.8Mtpm.

In Zimbabwe, DRDGOLD’s joint venture exploration project with Zimbabwean company Chizim Investments continues. At the Leny claims, four of five holes drilled were mineralised, the best showing 20g/t over 1m. Trenching has exposed quartz veins that have been assayed at 25-33g/t. A scrubber plant commissioned during the quarter to treat surface rubble may be upgraded to treat the quartz material.

The joint venture, known as ChizimGold, has acquired additional exploration blocks at Ascot, 15km north-east of Leny, covering more than 300ha, and at Beatrice, 30km east of Leny, covering more than 200ha.


South Africa & North America

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

United Kingdom/Europe

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


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 included in this document, 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 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 2010, which we filed with the United States Securities and Exchange Commission on 29 October 2010 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.

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