Johannesburg, South Africa. 27 September 2011. DRDGOLD Limited (DRDGOLD; JSE: DRD, NASDAQ: DROOY) announced today that the Business Rescue Practitioner overseeing business rescue proceedings at its 74%-owned Blyvooruitzicht Gold Mining Company Limited (Blyvoor) has given notice of Blyvoors intention to enter a 60-day consensus-seeking process in terms of Section 189 (3) of the Labour Relations Act with the National Union of Mineworkers and UASA The Union, to consider reducing employee numbers by approximately 500 people.
The reason for the need to consider the reduction is that Blyvoor under business rescue proceedings in terms of Chapter 6 of the Companies Act since June this year has been unable to meet production and financial targets, a situation exacerbated by higher utility costs.
Blyvoor is proposing voluntary separation and application of the principle of last in, first out as among the mechanisms to be applied to effect the required reduction in employee numbers.
Measures currently under consideration to achieve a targeted 30% improvement in the cost of production in R/kg terms and thus to avoid employee reduction, include:
Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)
St James's Corporate Services
Investor and Media Relations
+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.