Africa Mining Congress

Niël 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
key
y facilities or adverse changes
g in foreign
g exchange
g 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.

2

1

Who we are

Medium-tier
Medium
tier gold producer

247 690oz in FY09

South Africa’s 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

Blyvoor – 18 422oz in Q1 2010

3

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
► uranium, sulphuric acid upside
► property upside
► liberated land for re-sale, re-development

4

2

Performance highlights: 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
► Blyvoor
y
employee
p y 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
Capex (Rand terms) down significantly
► Ergo capex winds down

5

Production: Q1 2010 vs Q2 2010

6

3

Profit contribution: Q2 2010

7

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
► second feed from Elsb
Elsburg
rg
► 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 optionality
p
y
In Zimbabwe
► exploratory steps

8

4

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
Marievale (37.2Mt
(37 2Mt at 0.296/g/t)
0 296/g/t) dumps for Ergo

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

9

Ergo: trending upward

5

Ergo: trending upward, cont’d

Ergo: trending upward, cont’d

6

Ergo: Crown pipeline

Domain

Volume
t’000

Crown
(including
tailings)

456 145

ERPM

193 853

Ergo
(including
tailings)

835 362

Total

1 485 360

13

Ergo: Crown pipeline

Grootvlei

Grootvlei and Marievale dumps
Size (Mt)

117.2

I f
Inferred
d resource (Moz)
(M )

1 048
1.048

Capital required (Rm)

260

Marievale

7

Zimbabwe

15

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-compliant
resource by September 2010
small-scale mining meantime: R2 million mobile scrubber plant;
R1 million for earthmoving equipment

Ideal earlyy bird opportunity
pp
y to assess lay
y of the land

16

8

Zimbabwe, cont’d

17

Summary

Overall,, a good
g
December q
quarter

production up

Rand gold price up

cash costs down

cash operating profit up

Blyvoor trending in the right direction

Crown solid

Ergo trending encouraging

Looking ahead, ‘more of the same’

growing surface retreatment:
efficiencies and synergies
y g

stabilising Blyvoor

Zimbabwe: the next natural step?
18

9

Investment case

Times ((economically)
y) are still tough
g

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 surface
f
re-treatment
t t
t footprint
f t i t

We continue to control costs

We continue to take a disciplined approach to growth

Our balance sheet remains strong

19

Africa Mining Conference
Niël Pretorius, CEO
Livingstone, Zambia
4 – 7 February 2010

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