drdgold jan 2010 presentation

8/14/2019 DRDGold Jan 2010 Presentation

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Nil Pretorius, CEO

Livingstone, Zambia

4 7 February 2010

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

ke facilities or adverse chan es in forei n exchan e 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 2009, which we filed with the United States

Securities and Exchange Commission on 27 November 2009 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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Who we are

-

247 690oz in FY09

South Africas fourth-largest

Four surface retreatment operations

Crown 19 065oz in Q1 2010

Blyvoor 7 556oz in Q1 2010

ERPM 7 009oz in Q1 2010

Ergo 5 240oz in Q1 2010

One deep-level underground mine

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Blyvoor 18 422oz in Q1 2010

The difference

Most of our gold comes from retreatment of surface tailings

now 73% of total and rising

Why?

lower risk

safety, health, government regulation

lower cost

48% lower, and dropping

less power, less labour

higher margin

34% and rising

mechanised process running 24/7 we know how

30-year track record of success

huge resource potential

1.2 billion tonnes

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uranium, sulphuric acid upside

property upside

liberated land for re-sale, re-development


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Performance highl ights: Q2 2010

4% increase in total gold production

12% increase in surface production

11% decrease in underground production

surface production 73% of total gold production

8% drop in cash operating costs (R/kg terms)

higher production

Bl voor em lo ee reduction

lower power costs (no winter tariff)

12% increase in average Rand gold price received

Cash operating profit vs loss the previous quarter

higher production

higher gold price received

lower cash costs

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Capex (Rand terms) down significantly

Ergo capex winds down

Production: Q1 2010 vs Q2 2010

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Profit contr ibut ion: Q2 2010

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Strategy

Continuing focus on:

lower risk

lower cost

higher margin

In South Africa:

continuing shift towards more gold production from surface retreatment

Ergo: bedding down, building capacity

secon ee rom s urg

full access to Brakpan plant potential

synergies with Crown pipeline feasibility study nearing completion access to Grootvlei and Marievale dumps

stabilising Blyvoor

re-establish seismicity-damaged high-grade stopes

retain surface o tionalit

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In Zimbabwe

exploratory steps


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In pursuit of strategy: recent corporate activity

Blyvoor

agreement with Aurora for Aurora to acquire 60% of Blyvoor

for R296 million consideration to DRDGOLD and R80 million loan facility to Blyvoor

ERPM

agreement with Aurora for Aurora to acquire ERPM plant for R20 million

effect: cash in the bank and access to Grootvlei (80Mt at 0.27g/t) and

. .

Ergo

agreement with Mintails for DRDGOLD group to acquire Mintails 50% in

Ergo Mining (Pty) Ltd (Ergo JV)

effect: full access to Brakpan plant and capacity to double throughput;

full access to uranium, sulphuric acid potential

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Ergo: trending upward


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Ergo: trending upward, contd

Ergo: trending upward, contd


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Ergo: Crown pipeline

Domain Volume

t000

Crown

(including

tailings)

456 145

ERPM 193 853

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Ergo

(includingtailings)

835 362

Total 1 485 360

Ergo: Crown pipeline

Grootvlei

Grootvlei and Marievale dumps

Size (Mt) 117.2

n erre resource oz .

Capital required (Rm) 260Marievale


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Zimbabwe

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Zimbabwe, cont d

Collaboration with Zimbabwe based Chizim Investments to explore 32 contiguous claims

over 550 ha in established Greenstone Zone

Two strikes so far with values ranging between 8g/t and 25g/t

Topped and tailed by established mines

Ascot to north east

Epsom to south west

R5 million seed capital

R2 million diamond drilling programme to determine SAMREC/JORC-compliantresource by September 2010

small-scale mining meantime: R2 million mobile scrubber plant;

R1 million for earthmoving equipment

Ideal early bird opportunity to assess lay of the land

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Zimbabwe, cont d

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Summary

Overall, a ood December uarter

production up

Rand gold price up

cash costs down

cash operating profit up

Bl voor trendin in the ri ht direction

Crown solid

Ergo trending encouraging

Looking ahead, more of the same

growing surface retreatment:

efficiencies and synergies

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stabilising Blyvoor

Zimbabwe: the next natural step?


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Investment case

Times economicall are still tou h

Gold is even better

We continue to optimise what we have

We continue to reduce our risk profile

manage our underground footprint for better outcomes

grow sur ace re-treatment ootpr nt

We continue to control costs

We continue to take a disciplined approach to growth

Our balance sheet remains strong

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Nil Pretorius, CEO

Livingstone, Zambia

4 7 February 2010

drdgold jan 2010 presentation

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