Media releases

Ergo shines: 250% leap in operating profit

DRDGOLD Limited announced today that the operating profit of its surface retreatment circuit, Ergo, leapt 250% to R158.5 million for the year ended 30 June 2011, reflecting higher gold production, lower costs and a higher average Rand gold price received.

Johannesburg, South Africa. 29 August 2011. DRDGOLD Limited (DRDGOLD; JSE: DRDGOLD, NASDAQ: DROOY) announced today that the operating profit of its surface retreatment circuit, Ergo, leapt 250% to R158.5 million for the year ended 30 June 2011, reflecting higher gold production, lower costs and a higher average Rand gold price received.

DRDGOLD CEO Niël Pretorius points out that 66% of DRDGOLD’s total gold production now comes from its mechanised, 24/7 Ergo, Crown and Blyvoor surface retreatment circuits.

Ergo’s gold production for the year under review was 37% higher at 48 352oz due to an 11% rise in throughput to 13 206 000t and a 22% rise in average grade to 0.11g/t, both resulting from continued build-up of slimes recovery from the Elsburg Tailings Complex.

Pretorius says recent research into securing improved recoveries from the Ergo circuit has produced encouraging findings and that the intention now is to “match science with appropriate technology”.

Ergo’s total cash operating unit costs in FY2011 dropped by 11% to R205 436/kg due mainly to the marked increase in gold production.

Lower capital expenditure of R57.1 million reflected completion of pumping and pipeline infrastructure to bring the Elsburg Tailings complex fully on line and was directed mainly towards refurbishment of the second carbon in leach (CIL) circuit at Ergo’s Brakpan plant and increasing the capacity of its Brakpan tailings deposition site.

The 50km pipeline linking DRDGOLD’s Crown surface retreatment circuit to the west of Johannesburg with Ergo in the east is expected to be completed during the December quarter. Once operational, the pipeline will substantially increase Crown’s lifespan by providing access to Ergo’s increased tailings deposition capacity while creating retreatment synergies between Crown’s two plants and the expanded Ergo plant.

Queries:

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 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 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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