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DRDGOLD LIMITED - Operating and financial results for the six months ended 31 December 2016

Release Date: 15/02/2017 08:00
Code(s): DRD     PDF:  
Wrap Text
Operating and financial results for the six months ended 31 December 2016

DRDGOLD Limited
(Incorporated in the Republic of South Africa) Registration No.1895/000926/06
JSE share code: DRD      NYSE trading symbol: DRD
ISIN: ZAE 000058723
("DRDGOLD" or "the Company" or "the Group")

OPERATING AND FINANCIAL RESULTS
for the six months ended 31 December 2016

KEY FEATURES
Increase in Mineral Reserves from 1.8Moz to 3.0Moz
Operating profit up 4% to R172.6 million
All-in sustaining costs margin increased to 6.0%
Headline loss (2.4)cps
Free cash outflow (R9.7 million)

REVIEW OF OPERATIONS
                                               Six months     Six months
                                                       to             to            %
                                              31 Dec 2016    31 Dec 2015   change (1)
Gold production                kg                   2 100          2 253          (7)
                               oz                  67 508         72 436          (7)
Gold sold                      kg                   2 077          2 298         (10)
                               oz                  66 768         73 882         (10)
Cash operating costs           R per kg           490 531        429 271           14
                               US$ per oz           1 096            982           12
All-in sustaining costs        R per kg           531 948        481 878           10
                               US$ per oz           1 184          1 104            7
Average gold price received    R per kg           572 443        491 993           16
                               US$ per oz           1 273          1 123           13
Operating profit               R million            172.6          165.9            4
Operating margin               %                     14.5           14.7          (1)
All-in sustaining costs margin %                      6.0         4.0(2)           52
Headline (loss)/earnings       R million           (10.2)           10.9        (194)
                               SA cents per
                               share (cps)           (2.4)           2.6        (192)

(1) % Change is rounded to the nearest percent and is based on the rounded amounts as
    presented, which are rounded to the nearest hundred thousand Rand.
    Restated. The report to shareholders for the six months ended 31 December 2015 presented
(2) 2.1% calculated on per unit costs and revenues. Subsequently, the all-in sustaining costs margin
    is calculated based on absolute amounts presented in the segment report.

SHAREHOLDER INFORMATION

Issued capital
431 429 767 ordinary no par value shares (30 June 2016: 431 429 767)
9 361 071 treasury shares held within the Group (30 June 2016: 9 361 071)
5 000 000 cumulative preference shares (30 June 2016: 5 000 000)
431 429 767 total ordinary no par value shares issued and committed
(30 June 2016: 431 463 842)

Stock traded            JSE   NYSE(3)       Market capitalisation
Price                                       As at 31 December 2016   (Rm)        3 196.9
Intra-day high       R12.62    $0.910       As at 31 December 2016 (US$m)          228.2
Intra-day low         R5.25    $0.370       As at 30 June 2016       (Rm)        3 680.1
Close                 R7.41    $0.529       As at 30 June 2016     (US$m)          254.5
     
(3) This data represents per share data and not American Depository Receipt (ADR) data -
    one ADR reflects ten ordinary shares.

DEAR SHAREHOLDER
SIX MONTHS ENDED 31 DECEMBER 2016 VS SIX MONTHS
ENDED 31 DECEMBER 2015

Our primary aim is to generate a financial yield and to preserve and grow financial capital.
In order to do so sustainably the demands of social and natural capital require equal
attention and may, at times, take priority over financial capital, if only to reposition the
business for its 'next phase'.

The last few months were a period during which we chose to devote capital and resources
to natural capital, to first clean up and restore two reclamation sites in the Roodepoort
and Johannesburg South areas, before moving on to the commissioning of two new
reclamation sites in the central Witwatersrand and to the east. The Johannesburg South
site, referred to as 'C-slime', had just been completed as I was writing this report. It was
the more expensive one of the sites, since it required significant mechanical movement of
materials in order for it to be introduced into the production feed system.

The second site, CMR, provided better grade and less mechanical movement of material,
but remained significantly more expensive to mine per unit than the remainder of our
reclamation portfolio. It will be done by the end of March.

The effect of the higher unit costs, as well as the consequences of mining materials at
varying rates, densities and gold content are reflected in both the unit costs and lower
recoveries which I refer to in the synopsis below. These dynamics were amplified first
by dry conditions and low water qualities until late November, and then by flash floods
from December onwards. On the whole conditions were less than ideal and most of our
efforts went into limiting stoppage time and restoring and maintaining equilibrium in our
reduction plant.

On the upside we are pleased to be approaching the end of the West Rand clean-up and
that we managed to do this without excessively dipping into our cash balance, considering
also the fact that our working capital balance increased by R70.5 million. The new 4L2
reclamation site, which has been ready and waiting for the last seven months, has now
been commissioned and is being sequentially introduced into the system in proportion to
the reduction of remaining West Rand materials. The new integrated water circuit will be
completed in the third quarter. The new 4L37 reclamation site is in the process of being
commissioned to stabilise reclamation volumes delivered to the Ergo plant.

We are pleased to have achieved a 66.6% addition of reserve, which implies a very
substantial increase of mining over time, bringing us closer to our stated objective to
mine as much of our 11.7Moz resource as we can.

Allow me also to extend a word of congratulations to Thembinkosi Manyeruke, who
matriculated with a score of 100% in both mathematics and science. Hopefully, the extra
classes Ergo offers to his high school in Tsakane (one of seven high schools where these
classes are offered) contributed in some small measure to his success.

I now turn to the detailed financial and production report.

Financial review
Revenue rose by 5% to R1 188.8 million due to a 16% increase in the average Rand gold
price received to R572 443/kg which countered the 10% decrease in gold sold. Total
operating costs were 6% higher at R1 047.6 million; after accounting for these, operating
profit was 4% higher at R172.6 million.

The operating margin remained stable at 14.5%, the 14% increase in cash operating cost
per kilogram countered by the 16% increase in the Rand gold price received per kilogram.
The all-in sustaining costs ("AISC") margin, however, was higher at 6.0%, the 16% increase
in the Rand gold price received being markedly higher than the 10% increase in AISC per kg.

A headline loss of R10.2 million (2.4 South African cents) was recorded compared with
headline earnings of R10.9 million (2.6 South African cents). This was due mainly to
the commencement of the final clean-up and closure of various Crown sites causing
accelerated depreciation and retrenchment costs of R18 million each.

Operational review
Gold production was 7% lower at 2 100kg, reflecting a 2% decline in throughput to
12 632 000t and a 6% decline in yield to 0.166g/t for the reasons discussed in the
introduction to this letter. Gold sold was 10% lower at 2 077kg.

Cash operating unit costs increased by 14% to R490 531/kg due mainly to a 7% decrease
in gold production but was compounded by an average increase in wages of 8.5%, as well
as increases in electricity and water in excess of 9% and 14% respectively. Total cash
operating costs were R1 030.1 million (R967.1 million)

All-in sustaining unit costs rose by 10% to R531 948/kg, with a 48% decrease in
sustaining capital expenditure to R31.6 million, which was mostly directed towards the
4L37 reclamation site.

Two new reclamation sites have been commissioned in recent weeks. Reclaimed slimes
from 4L2 – which contains some 11.9Mt at 0.30g/t – will report to the City Deep plant at
a rate of 300 000tpm and then to the Ergo plant for gold extraction.

Reclaimed slimes from 4L37 – which contains 7.2Mt at 0.28g/t – will report directly to the
Ergo plant at a rate of 300 000tpm for gold extraction for a period of 24 months.

Two other slimes dams – 4L50, containing 20.3Mt at 0.26g/t and 7L15, containing 17.1Mt
at 0.26g/t – are being assessed currently in order to decide which should be prioritised
for reclamation.

These new reclamation sites, together with the phasing out of the West Rand, are
expected to enhance consistency in volume delivery and will obviously also come in at a
much lower unit cost to reclaim than the West Rand clean-up sites.

Reserve conversion
DRDGOLD is pleased to announce its revised Mineral Resources and Mineral Reserves
statement dated 31 December 2016, disclosing a 52.6% increase in Measured Mineral
Resources and an 66.6% increase in Mineral Reserves from those previously reported as
at 30 June 2016.

Measured Mineral Resources increased from 161.9Mt@0.29g/t to 261.5Mt@0.28g/t and
Mineral Reserves from 170.9Mt@ 0.33g/t to 312.6Mt @0.30g/t.

This results in a 66.6% increase in Gold in Reserves from 1.8Moz to 3Moz and a five-year
extension to the operating life of Ergo.

The revised Mineral Resources and Mineral Reserves statement flows from a drilling
programme and pre-feasibility study begun in September 2016, aimed at re-evaluating
DRDGOLD's surface gold tailings.

Tailings dumps and dams on the East Rand, to the east of the company's Ergo plant –
specifically 7L15, Rooikraal and Grootvlei (6L16/6L17 and 6L17A) – were a particular
focus, the intention being to add these to the mineral reserve base.

Sustainable development
The construction of the Central Water Facility on the footprint of the ERPM high density
separation water treatment plant at a cost to date of R9.3 million will provide the two
days' water storage required for the City and Knights operations. The facility will be
commissioned by the end of March 2017.

Our total environmental expenditure for the six months was R26.1 million. This was
attributable largely to our ongoing vegetation programme to clad and vegetate
approximately 10ha on the Brakpan/Withok Tailings Storage Facility, 5ha on the
Daggafontein Tailings Storage Facility and 10ha on the Crown Tailings Complex.
Dust exceedances were very low despite the dry conditions until November and only four
exceedances were recorded out of a total of 588 measurements (0.7%).

Approval was obtained from the National Nuclear Regulator and the Gauteng Department
for Agriculture and Rural Development for the redevelopment of the cleared 4L8 site, post
rehabilitation. Approximately 90ha of prime land are available.

Appointment of Non-executive Director
Mrs Toko Victoria Buyiswa Nomalanga Mnyango was appointed an Independent
Non-executive Director of the Company with effect from 1 December 2016.

Mrs Mnyango is Chief Executive Officer of Vitom Technologies (Pty) Ltd and Vitom Brands
Communication (Pty) Ltd.

Niël Pretorius
Chief Executive Officer
15 February 2017

CONDENSED CONSOLIDATED INTERIM
Statement of Profit or Loss and Other Comprehensive Income
                                                                  Six months      Six months
                                                                          to              to
                                                                 31 Dec 2016     31 Dec 2015
                                                                          Rm              Rm
                                                      Notes        Unaudited       Unaudited

Revenue                                                              1 188.8         1 130.6
Cost of sales                                                      (1 153.9)       (1 066.6)
      Operating costs                                              (1 047.6)         (984.3)
      Depreciation                                        2          (101.9)          (83.8)
      Retrenchment costs                                  2           (18.3)               –
      Movement in provision for environmental
      rehabilitation                                                      –            (0.9)
      Movement in gold in process                                      13.9              2.4
Gross profit from operating activities                                 34.9             64.0
Administration expenses and general costs                 2          (32.6)           (29.3)
Results from operating activities                                       2.3             34.7
Finance income                                                         19.9             16.1
Finance expenses                                                     (22.5)           (23.7)
(Loss)/profit before tax                                              (0.3)             27.1
Income tax                                                              3.0            (9.0)
Profit for the period                                                   2.7             18.1
Attributable to:
      Equity owners of the parent                                       2.7             18.1
Profit for the period                                                   2.7             18.1

Other comprehensive income
Items that are or may be reclassified to profit
or loss, net of tax
Fair value adjustment of available-for-sale
investments                                                             3.0              8.4
Total comprehensive income for the period                               5.7             26.5
Attributable to:
      Equity owners of the parent                                       5.7             26.5
Total comprehensive income for the period                               5.7             26.5
Earnings per share (1)                                    3             0.6              4.3
Diluted earnings per share (1)                            3             0.6              4.3
  
(1) All per share financial information is presented in South African cents per share (cps) and
    is rounded to the nearest one decimal point based on the results as presented, which is
    rounded to the nearest hundred thousand Rand.

CONDENSED CONSOLIDATED INTERIM
Statement of financial position
                                                   As at          As at        As at
                                             31 Dec 2016    30 Jun 2016  31 Dec 2015
                                                      Rm             Rm           Rm
                                      Notes    Unaudited        Audited    Unaudited
Assets    
Non-current assets                               1 786.3        1 818.4      1 876.0
  Property, plant and equipment                  1 560.2        1 600.5      1 665.3
  Non-current investments and    
  other assets                                     221.4          211.1        210.1
  Deferred tax asset                                 4.7            6.8          0.6
Current assets                                     579.7          600.7        584.4
  Inventories                                      186.7          160.7        173.5
  Trade and other receivables                       92.2           66.5        135.8
  Current tax asset                                  0.2            6.7         11.7
  Cash and cash equivalents               4        290.3          351.8        253.8
  Assets held for sale                    5         10.3           15.0          9.6
    
Total assets                                     2 366.0        2 419.1      2 460.4
    
Equity and Liabilities    
Equity                                           1 294.7        1 339.6      1 507.7
Non-current liabilities                            773.5          766.0        682.9
  Provision for environmental    
  rehabilitation                                   527.7          522.9        499.0
  Post-retirement and other      
  employee benefits                       2         41.7           31.6         10.4
  Deferred tax liability                           188.8          194.7        155.5
  Finance lease obligation                          15.3           16.8         18.0
Current liabilities                                297.8          313.5        269.8
  Trade and other payables                         270.5          288.9        247.8
  Tax payable                                        5.2              –            –
  Post-retirement and other    
  employee benefits                       2          3.1            6.6          1.7
  Finance lease obligation                           2.8            2.4          2.2
  Liabilities held for sale               5         16.2           15.6         18.1
Total liabilities                                1 071.3        1 079.5        952.7
Total equity and liabilities                     2 366.0        2 419.1      2 460.4

CONDENSED CONSOLIDATED INTERIM
Statement of changes in equity
                                                              Six months  Six months
                                                                      to          to
                                                             31 Dec 2016 31 Dec 2015
                                                                      Rm          Rm
                                                               Unaudited   Unaudited
Balance at the beginning of the period                           1 339.6     1 529.9

Total comprehensive income
Profit for the period attributable to owners of the parent           2.7        18.1
Other comprehensive income
  Fair-value adjustment on available-for-sale investments            3.0         8.4

Transactions with the owners of the parent
Dividends paid to owners of the parent                            (50.6)      (42.2)
Treasury shares acquired                                               –       (6.5)
Balance as at the end of the period                              1 294.7     1 507.7

The accompanying notes are an integral part of these condensed consolidated interim
financial statements.
These condensed consolidated interim financial statements for the period ended
31 December 2016 have been prepared under the supervision of DRDGOLD's Chief
Financial Officer, Mr AJ Davel CA(SA). The condensed consolidated interim financial
statements were authorised for issue by the directors on 10 February 2017.

CONDENSED CONSOLIDATED INTERIM
Statement of cash flows
                                                            Six months     Six months
                                                                    to             to
                                                           31 Dec 2016    31 Dec 2015
                                                                    Rm             Rm
                                                     Notes   Unaudited      Unaudited
Net cash inflow from operating activities                         39.2           68.7
  Cash generated by operations                                    17.7           61.5
  Interest received                                               12.3            9.6
  Interest paid                                                  (1.8)          (2.8)
  Tax refunded                                                    11.0            0.4
Net cash outflow from investing activities                      (48.9)         (67.1)
  Additions to property, plant and equipment                    (61.6)         (60.3)
  Proceeds on disposal of property, plant and    
  equipment                                                       17.9              –
  Environmental rehabilitation payments                         (10.2)          (6.1)
  Other                                                            5.0          (0.7)
Net cash outflow from financing activities                      (51.8)         (72.2)
  Loans and other borrowings                                     (1.2)         (23.5)
  Treasury shares acquired                                           –          (6.5)
  Dividends paid to owners of the parent                        (50.6)         (42.2)
Decrease in cash and cash equivalents                           (61.5)         (70.6)
Opening cash and cash equivalents                                351.8          324.4
Closing cash and cash equivalents                                290.3          253.8
Reconciliation of cash generated by operations    
(Loss)/profit before tax                                         (0.3)           27.1
Adjusted for:    
Depreciation                                            2        101.9           83.8
Movement in gold in process                                     (13.9)          (2.4)
Movement in provision for environmental    
rehabilitation                                                       –            0.9
Profit on disposal of property, plant and    
equipment                                                       (12.9)          (9.0)
Share-based payment expense                             2         16.1            4.0
Environmental rehabilitation payments                            (5.0)              –
Finance income                                                  (19.9)         (16.1)
Finance expenses                                                  22.5           23.7
Other non-cash items                                             (0.3)              –
Working capital changes                                         (70.5)         (50.5)
  Change in trade and other receivables                         (33.5)         (34.1)
  Change in inventories                                         (12.1)          (2.4)
  Change in trade and other payables                            (24.9)         (14.0)
Cash generated by operations                                      17.7           61.5

The accompanying notes are an integral part of the condensed consolidated interim
financial statements.

NOTES TO THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS

1. BASIS OF PREPARATION
The condensed consolidated interim financial statement are prepared in accordance with
the JSE Limited Listings Requirements (Listings Requirements) and the requirements of
the Companies Act No. 71 of 2008 of South Africa. The Listings Requirements require that
interim reports be prepared in accordance with and containing the information required
by IAS 34: Interim Financial Reporting, as well as the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Reporting Pronouncements
as issued by the Financial Reporting Standards Council. The accounting policies applied
in the preparation of the condensed consolidated interim financial statements are in
terms of International Financial Reporting Standards (IFRS) and are consistent with those
applied in the previous consolidated annual financial statements.

These condensed consolidated interim financial statements of DRDGOLD for the six
months ended 31 December 2016 have not been reviewed by an independent auditor.

                                                                Six months     Six months
                                                                        to             to
                                                               31 Dec 2016    31 Dec 2015
                                                                        Rm             Rm
                                                                 Unaudited      Unaudited
      
2. RESULTS FROM OPERATING ACTIVITIES includes:      
A. Depreciation      
Depreciation expense increased mainly due to the      
commencement of final clean-up and closure of a      
number of Crown sites. The depreciation of the carrying      
value of these assets has therefore been accelerated.                101.9           83.8
B. Retrenchment cost      
The commencement of the final clean-up and closure      
of the Crown sites described above also resulted in      
retrenchment costs of R18.3 million.                                  18.3              –
     
                                                                Six months     Six months
                                                                        to             to
                                                               31 Dec 2016    31 Dec 2015
                                                                        Rm             Rm
                                                                 Unaudited      Unaudited
C. New long term incentive scheme (LTI)
Post-retirement and other employee benefits as well
as the share based payment expense consists mainly
of the grant made in November 2015 under the new
cash settled LTI scheme. The increase is due to the
November 2015 grant being expensed for six months
during the current reporting period compared to
two months in the comparative period and was also
influenced by the increase in the DRDGOLD share price
to R7.41 at reporting date.                                           16.1            4.0
3. EARNINGS PER SHARE       
Reconciliation of headline (loss)/earnings       
Profit for the period attributable to equity owners                    2.7           18.1
of the parent       
Adjusted for:       
 – Profit on disposal of property, plant and equipment              (12.9)          (9.0)
 – Income tax thereon                                                    –            1.8
Headline (loss)/earnings                                            (10.2)           10.9
Weighted average number of ordinary shares in issue            422 068 696    423 455 750
adjusted for treasury shares:       
Diluted weighted average number of ordinary shares             422 068 696    423 455 750
adjusted for treasury shares: (1)       
Earnings per share (2)                                                 0.6            4.3
Diluted earnings per share (2)                                         0.6            4.3
Headline (loss)/earnings per share (2)                               (2.4)            2.6
Diluted headline (loss)/earnings per share (2)                       (2.4)            2.6

(1) At 31 December 2016, no staff options remain outstanding. At 31 December 2015,
    0.8 million options were excluded from the diluted weighted average number of ordinary
    shares calculation as their effect would have been anti-dilutive.
(2) All per share financial information is presented in South African cents per share (cps) and
    is rounded to the nearest one decimal point based on the results as presented which is
    rounded to the nearest hundred thousand Rand.

4. CASH AND CASH EQUIVALENTS
Included in cash and cash equivalents is restricted cash of:
                                                             31 Dec 2016       30 Jun 2016
                                                                      Rm                Rm
                                                               Unaudited           Audited

– Cash held in escrow relating to the electricity dispute           71.0              47.7
  with Ekurhuleni Metropolitan Municipality
– Guarantees                                                        15.6              15.2
– Cash held on behalf of the DRDSA Empowerment Trust                 6.1               4.8
– Unclaimed dividends                                                0.5               0.2
                                                                    93.2              67.9

5. ASSETS AND LIABILITIES HELD FOR SALE
All regulatory approvals required for the disposal of certain underground mining and
prospecting rights held by East Rand Proprietary Mines (ERPM) have now been obtained,
with the exception of the approval required under Section 11 of the Mineral and
Petroleum Resource Development Act (Section 11 Approval). Management has provided
all the required information timeously and remains confident that this last outstanding
regulatory approval will be obtained in due course.

DRDGOLD received a request from the purchaser to restructure the payment terms
following the lapse in time awaiting Section 11 Approval.

6. SILICOSIS
In January 2013, DRDGOLD Limited, ERPM (the DRDGOLD respondents) and 23 other
mining companies (the Other Mining Companies) were served with a court application for
a class action by alleged former mineworkers and dependants of deceased mineworkers. In
the pending application, the applicants allege that the Other Mining Companies and the
DRDGOLD Respondents conducted underground mining operations in a negligent manner
that caused occupational lung diseases.

On 17 January 2017, the DRDGOLD Respondents and the Other Mining Companies filed an
appeal against the judgement handed down by the South Gauteng High Court, Johannesburg
(Court) on 13 May 2016, in which judgement the Court ordered the certification of a single
class action comprising two separate and distinct classes – a silicosis class and a
tuberculosis class.

7. FAIR VALUES
The carrying values of financial instruments approximate their fair values.

8. SUBSEQUENT EVENTS
There were no subsequent events between the reporting date of 31 December 2016 and
the date of issue of these condensed consolidated interim financial statements.

9. OPERATING SEGMENTS
The following summary describes the operations in the group's reportable operating segment:
– Ergo is a surface retreatment operation and treats old slime and sand dumps to the south
of Johannesburg's central business district as well as the East and Central Rand goldfields. The
operation comprises four plants. Ergo and Knights continue to operate as metallurgical plants
and Crown and City Deep continue as pump/milling stations feeding the metallurgical plants.

Corporate office and other reconciling items are taken into consideration in the strategic
decision-making process of the chief operating decision maker (CODM) and are therefore
included in the disclosure here, even though they do not earn revenue. They do not represent
a separate segment.

The Group's revenue stream consists of the sale of gold bullion.

                                                                            Six months to 31 Dec 2016                    Six months to 31 Dec 2015
                                                                                  Unaudited                                    Unaudited
                                                                                  Corporate                                    Corporate
                                                                           office and other                             office and other
                                                                 Ergo     reconciling items        Total       Ergo    reconciling items        Total
                                                                   Rm                    Rm           Rm         Rm                   Rm           Rm
Revenue                                                       1 188.8                     –      1 188.8    1 130.6                    –      1 130.6
Cash operating costs                                        (1 030.1)                     –    (1 030.1)    (967.1)                    –      (967.1)
Movement in gold in process                                      13.9                     –         13.9        2.4                    –          2.4
Operating profit                                                172.6                     –        172.6      165.9                    –        165.9
Administration expenses and general costs                      (14.7)                (32.5)       (47.2)      (2.4)               (36.2)       (38.6)
Finance income                                                    2.9                   9.3         12.2        0.8                  8.2          9.0
Finance expenses                                                (1.5)                 (0.4)        (1.9)      (2.1)                    –        (2.1)
Retrenchment costs                                             (18.3)                     –       (18.3)          –                    –            –
Income tax (1)                                                  (0.8)                     –        (0.8)      (0.6)                    –        (0.6)
Working profit before capital expenditure                       140.2                (23.6)        116.6      161.6               (28.0)        133.6
    Additions to property, plant and equipment                 (61.4)                 (0.2)       (61.6)     (60.5)                    –       (60.5)
    Additions to listed investments                                 –                     –            –          –                (1.3)        (1.3)
­ Working profit after capital expenditure and additions         78.8                (23.8)         55.0      101.1               (29.3)         71.8
(1)Income tax excludes deferred tax.
Reconciliation of profit for the period
Working profit before capital expenditure                       140.2                (23.6)        116.6      161.6               (28.0)        133.6
– Depreciation                                                (101.8)                 (0.1)      (101.9)     (83.8)                    –       (83.8)
– Movement in provision for environmental rehabilitation            –                     –            –      (1.1)                  0.2        (0.9)
– Growth in environmental rehabilitation trust funds and 
  reimbursive right                                               5.2                   2.5          7.7        5.0                  2.1          7.1
– Profit on disposal of property, plant and equipment             0.1                  12.8         12.9        9.0                    –          9.0
– Unwinding of provision for environmental rehabilitation      (20.1)                 (0.6)       (20.7)     (20.7)                (0.8)       (21.5)
– Ongoing rehabilitation expenditure                           (10.8)                     –       (10.8)     (11.6)                (0.4)       (12.0)
– Other operating (costs)/income including care and
  maintenance costs                                             (6.6)                   1.7        (4.9)        0.6                (5.7)        (5.1)
– Deferred tax                                                    5.9                 (2.1)          3.8      (7.7)                (0.6)        (8.3)
Profit for the period                                            12.1                 (9.4)          2.7       51.3               (33.2)         18.1
Reconciliation of all-in sustaining costs
Cash operating costs                                                                           (1 030.1)                                      (967.1)
Movement in gold in process                                                                         13.9                                          2.4
Administration expenses and general costs                                                         (47.2)                                       (38.6)
Other operating (costs)/income excluding care and 
maintenance costs                                                                                  (1.4)                                          0.5
Movement in provision for environmental rehabilitation                                                 –                                        (0.9)
Unwinding of provision for environmental rehabilitation                                           (20.7)                                       (21.5)
Capital expenditure (sustaining)                                                                  (31.6)                                       (60.5)
All-in sustaining costs                                                                        (1 117.1)                                    (1 085.7)
Retrenchment costs                                                                                (18.3)                                            –
Care and maintenance costs                                                                         (3.5)                                        (5.7)
Ongoing rehabilitation expenditure                                                                (10.8)                                       (12.0)
Capital expenditure (non-sustaining)                                                              (30.0)                                            –
Capital recoupment                                                                                   5.0                                            –
All-in costs                                                                                   (1 174.7)                                    (1 103.4)
Operational performance
Ore milled
  Metric (000't)                                                                                  12 632                                       12 835
  Imperial (000't)                                                                                13 924                                       14 148
Yield   
  Metric (g/t)                                                                                     0.166                                        0.176
  Imperial (oz/t)                                                                                  0.005                                        0.005
Gold produced   
  Metric (kg)                                                                                      2 100                                        2 253
  Imperial (oz)                                                                                   67 508                                       72 436
Cash operating costs   
  (R/t)                                                                                               82                                           75
  (US$/t)                                                                                              5                                            5
Cash operating costs         R per kg                                                            490 531                                      429 271
Cash operating costs         US$ per oz                                                            1 096                                          982
All-in sustaining costs*     R per kg                                                            531 948                                      481 878
All-in sustaining costs*     US$ per oz                                                            1 184                                        1 104
All-in cost *                R per kg                                                            559 353                                      489 766
All-in cost *                US$ per oz                                                            1 245                                        1 122

* Cost definitions based on the guidance note on non-GAAP Metrics issued by the World Gold Council on 27 June 2013.
There has been no material change to the technical information relating to, inter alia, the Group's reserves and resources, legal title to its mining and prospecting
rights and legal proceedings relating to its mining and exploration activities as disclosed in the announcement published on SENS on 2 February 2017. Investors
are advised to read said announcement with the Company's annual reports for the year ending 30 June 2016.

RESULTS
The condensed consolidated interim financial statements of DRDGOLD for the six months ended 31 December 2016 are available on the DRDGOLD website as well as at the Company's
Registered Office.

FORWARD LOOKING STATEMENTS
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, 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 licenses 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 2016, which we filed with the United States Securities and
Exchange Commission on 31 October 2016 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. Any forward-looking statement included in this report has not been
reviewed and reported on by DRDGOLD's auditors.

DIRECTORS (*British)(**American)
Executives:
DJ Pretorius (Chief Executive Officer)
AJ Davel (Chief Financial Officer)
Independent non-executives:
GC Campbell* (Non-Executive Chairman)
EA Jeneker
J Turk **
JA Holtzhausen
TVBN Mnyango
(Appointed 1 December 2016)

Company Secretary:
R Masemene
Sponsor
One Capital

FOR FURTHER
INFORMATION CONTACT
NIËL PRETORIUS:
Tel: (+27) (0) 11 470 2600
Fax: (+27) (0) 11 470 2618
Website: http://www.drdgold.com

Off Crownwood Road,
Crown Mines, 2092
PO Box 390, Maraisburg, 1700,
South Africa


Date: 15/02/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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