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DRD - Drdgold Limited - Blyvoor gives notice of intention to reduce

Release Date: 27/09/2011 14:59
Code(s): DRD
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DRD - Drdgold Limited - Blyvoor gives notice of intention to reduce employee numbers DRDGOLD LIMITED (Incorporated in the Republic of South Africa) (Registration number 1895/000926/06) JSE share code: DRD ISIN: ZAE000058723 Issuer code: DUSM Nasdaq trading symbol: DROOY ("DRDGOLD") BLYVOOR GIVES NOTICE OF INTENTION TO REDUCE EMPLOYEE NUMBERS DRDGOLD 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 Blyvoor`s 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: * a reduction in overtime expenditure; * an increase in available face time and subsequent re-organisation of shifts; * a re-evaluation of the profitability of 6 Shaft, 4 Shaft and the Reef Picking Project; * a reduction of departmental costs by 10%; and * revised mining plans. Roodepoort 27 September 2011 Sponsor One Capital Date: 27/09/2011 14:59:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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