Media releases

76% increase in operating profit in FY 2011

DRDGOLD Limited today reported a 76% increase in operating profit to R477.0 million for the year ended 30 June 2011.

50% rise in dividend

Johannesburg, South Africa. 29 August 2011. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) today reported a 76% increase in operating profit to R477.0 million for the year ended 30 June 2011.

A dividend of 7.5 South African cents per share has been declared, a 50% increase on that of the previous year.

Noting that this is the fourth year in a row that the company has declared a dividend, DRDGOLD CEO Niël Pretorius says DRDGOLD stock offers the second-highest dividend yield amongst South African gold producers.

Pretorius adds that net cash generated – “the true measure of the health of a business” – from operations in FY 2011 was up 504% from the previous year at R323.9 million.

Annual operating profit was 38% of market capitalisation, and during the year capital totaling R315.8 million was re-invested in operations without diluting shareholder equity.

While DRDGOLD’s only remaining, predominantly deep-level, underground operation, Blyvoor, was fully impaired in the year under review with a consequent once-off, non-cash impact on net profit, Pretorius points out that headline earnings per share (HEPS) for the year were unaffected by the accounting adjustment, rising by 115% to 28 South African cents.

Gold production for the year rose 10% to 265 179oz, demonstrating continuing recovery at Blyvoor – where high-grade production areas underground were damaged by seismicity during FY2010 – and also the successful bedding down of the Ergo surface retreatment circuit (see accompanying media release, Ergo shines: 250% increase in operating profit).

A 15% increase in the average Rand gold price received during FY 2011 to R308 221/kg – together with higher gold production – contributed to a 29% rise in revenue to R 2 565.3 million, and to increased operating profit. Cash operating unit costs for the year were 8% higher at R251 296/kg (FY2010: R233 122/kg), due mainly to power utility Eskom’s substantial price increases and higher winter tariffs.


South Africa & North America
James Duncan, Russell & 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


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 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 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.

COOKIES: This site uses cookies to enhance your website experience. See our privacy policy for further details.