DRD: DRD - DRDGold Limited - Report to shareholders for the quarter and nine
DRD - DRDGold Limited - Report to shareholders for the quarter and nine
                        months ended 31 March 2010
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE 000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the Company" or "the Group")
REPORT TO SHAREHOLDERS FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2010
GROUP RESULTS
KEY FEATURES FOR THE QUARTER
*    Gold production up 4%
*    Cash operating unit costs in Rands down 1%
*    Operating profit up 11% to R96.9 million
*    Blyvoor provisional judicial management order lifted
KEY RESULTS SUMMARY
GROUP                            Quarter    Quarter       %   Quarter
                                 Mar 10     Dec 09  Change    Mar 09
Gold production              oz   62 404     59 866       4    58 997
                            kg    1 941      1 862       4     1 835
Gold production sold         oz   62 404     59 866       4    58 997
                            kg    1 941      1 862       4     1 835
Cash operating costs     US$/oz      913        925       1       653
                        ZAR/kg  221 400    223 653       1   211 666
Gold price received      US$/oz    1 113      1 106       1       915
                        ZAR/kg  269 980    268 302       1   292 369
Capital expenditure US$ million      4.2        4.2       -       6.4
                   ZAR million     31.3       30.9      (1)     65.8
                                                 9 months   9 months
                                                to Mar 10  to Mar 09
Gold production              oz                    179 562    189 915
                            kg                      5 585      5 907
Gold production sold         oz                    182 134    189 915
                            Kg                      5 665      5 907
Cash operating costs     US$/oz                        935        691
                        ZAR/kg                    229 261    205 149
Gold price received      US$/oz                      1 057        850
                        ZAR/kg                    259 278    252 235
Capital expenditure US$ million                       16.6       24.7
                   ZAR million                      126.4      227.8
STOCK ISSUED CAPITAL
381 012 491 ordinary no par value shares
5 000 000 cumulative preference shares
400 756 741 total ordinary no par value shares issued and committed
STOCK TRADED                                     JSE          NASDAQ
Avg. volume for the quarter per day (000)        758           2 610
% of issued stock traded (annualised)             52             179
Price - High                                   R5.71        US$0.790
     - Low                                    R3.60        US$0.461
     - Close                                  R3.74        US$0.489
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 DRDGOLD serves, a drop in the gold price, a continuing 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 limitations, those described in the section
entitled `Risk Factors' included in the annual report for the fiscal year ended
30 June 2009, which was filed with the United States Securities and Exchange
Commission on 27 November 2009 on Form 20-F.  Shareholders should not place
undue reliance on these forward-looking statements, which speak only as of the
date thereof.  DRDGOLD does 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.
OVERVIEW
Dear shareholder
Safety, health and environment
One fatality, at Blyvooruitzicht Gold Mining Company Limited ("Blyvoor"), was
recorded during the quarter. Mr Respeito Mandangalane Manhica, a rock driller,
died in a conveyance incident when he fell down the sub-shaft at No 5 Shaft
while entering the man-cage to return to surface at the end of his shift. We
extend our deepest condolences to his family, colleagues and friends. At the
time of his death, Blyvoor had recorded 1 945 029 fatality-free shifts, or 16
fatality-free months.
In respect of its Dressing Station Injury Frequency Rate, Blyvoor reported an
improvement for the quarter, but deteriorations in respect of both its
Reportable Injury Frequency Rate and Disabling Injury Frequency Rate. Crown Gold
Recoveries (Pty) Limited ("Crown") reported encouraging improvements in respect
of all safety parameters, and East Rand Proprietary Mines Limited ("ERPM") had
an almost `clear run' for the quarter, reporting just one dressing station
injury.
As a general observation, across the Group, safety audits and hazard assessments
are yielding good results. We expect to launch the group-wide Behaviour-based
Safety Initiative, together with the Mine Occupational Safety and Health Early
Morning Examination campaign, during June 2010.
A total of R7.9 million was spent on environmental rehabilitation at group
operations during the quarter.
Production
Total gold production was 4% higher at 62 404oz due to continued recovery at
Blyvoor's underground operations and on-going production build-up at Ergo, about
which more is reported later in this overview. Total surface gold production was
6% lower at 40 992oz, due to lower production at Crown and ERPM, and comprised
66% of the quarter's total gold production.
Financial
Total revenue for the quarter was 5% higher at R524.0 million, a consequence
mainly of higher gold production. The average Rand gold price received increased
by just 1% to R269 980/kg. Total cash operating unit costs were 1% lower at R221
400/kg reflecting higher gold production, and cash operating profit rose by 11%
to R96.9 million. Net profit was 92% higher at R12.3 million.
Blyvoor's provisional judicial management order lifted
Subsequent to the end of the quarter under review, we reported that our
application to the High Court for the lifting of the provisional judicial
management order in respect of Blyvoor had been granted. The quarter on quarter
operating and financial improvement at Blyvoor is amply reflected in the mine's
operating and financial results for the quarter under review.
Detailed operational review
Blyvoor
Total gold production rose by 15% to 28 743oz, reflecting a 31% increase in
underground gold production to 21 412oz. Gold production from surface sources
was 16% lower at 7 331oz.
Increased underground gold production resulted from a 21% rise in underground
throughput to 166 000t and an 8% rise in underground yield to 4.01g/t. Higher
throughput and yield reflected continuing recovery from the negative impact of
seismic damage to high-grade working places underground during May 2009.
Lower surface gold production was a consequence of a 13% decline in yield to
0.33g/t, reflecting recovery of increasing volumes of lower-grade material from
the No 4 Dam. Surface throughput was virtually unchanged at 701 000t.
Total cash operating unit costs were 7% lower at R235 841/kg due both to higher
total gold production and the lower total cost of labour resulting from
restructuring in the first quarter. Underground cash operating unit costs were
18% lower at R281 818/kg reflecting higher gold production, while surface cash
operating unit costs rose by 27% to R101 539/kg due to lower gold production.
Cash operating profit increased by 146% to R31.0 million due to higher total
gold production.
Capital expenditure was unchanged at R17.4 million, reflecting continued strict
management of costs during the judicial management process.
At the Way Ahead Project, additional production crews are to be deployed in the
coming months. This is expected to deliver both increasing volume and improved
grade - a necessary offset against the Eskom increase which take effect this
month.
Crown
Gold production was 5% lower at 18 422oz due to a 6% decline in throughput to 1
312 000t. Lower throughput resulted from reclamation site clean-ups drawing to a
close; heavy rainfall; and pipeline realignments associated with the upgrading
of municipal and other infrastructure. Yield was 2% higher at 0.44g/t.
Lower gold production resulted in a 3% increase in cash operating unit costs to
R210 503/kg and a 12% decline in cash operating profit to R33.9 million.
Capital expenditure, unchanged at R3.4 million, was directed primarily towards
continuing maintenance of the Nasrec tailings deposition site.
ERPM
An 11% drop in throughput to 344 000t due primarily to pipe column failures
during March resulted in an 8% decline in gold production to 5 466oz. Yield was
2% higher at 0.49g/t.
Cash operating unit costs were 11% higher at R183 606/kg and cash operating
profit was 21% lower at R14.6 million due to lower gold production.
Ergo
Gold production increased by 3% to 9 773oz, reflecting an 11% improvement in
yield to 0.10g/t. Throughput rose by 1% to 3 150 000t.
Cash operating unit costs were 1% lower at R220 609/kg and cash operating profit
was 11% higher at R14.8 million, a consequence of higher gold production.
With Phase 1 capital infrastructure development drawing to a close, capital
expenditure dropped by 35% to R6.6 million.
Progress towards the Phase 1 volume target of 1.2Mtpm and the head grade target
of 0.32g/t continues. Completion of the commissioning of the second feeder
pipeline from the Elsburg Tailings Complex ("ETC") to the Brakpan plant brings
this well within reach, increasingly replacing material from the second-
generation L29 dump.
The pilot plant built to help decide the optimal blend of ETC and L29 material
continued to operate and proved useful during the quarter.
Exploration and prospecting
In Zimbabwe the Leny claims - where initial exploration work by DRDGOLD's
Zimbabwean partner, Chizim Investments, on two veins in 2009 showed grades
varying from five to 25g/t - have been prioritised for further exploration.
Camden Geoserve has been contracted to conduct an initial, 28-week programme
that will include updating the sampling base of the known veins; geophysical
exploration using induced polarisation; and selective trenching and drilling.
Limited mining will take place during the exploration phase, with any recovered
gold helping to offset costs. Gravity extraction will be used, without milling
or reagents.
Corporate activity
Subsequent to the end of the quarter, we reported that:
a) we would not conclude the transaction with Aurora Empowerment Systems
("Aurora"), in terms of which Aurora would acquire 60% of Blyvoor and
b) that Competition Commission approval had been received for our acquisition of
Mintails Limited's 50% of Ergo Mining (Pty) Limited, allowing us to assume full
ownership of Ergo.
We extended to Aurora a period of exclusivity until the end of April 2010 to
make an alternative offer in respect of Blyvoor, during which time we will not
consider any alternative offers for Blyvoor without first offering it to Aurora
on similar terms.
Looking ahead
Now that we have acquired full ownership of Ergo is a major step for us in terms
of our shift towards gold recovery from surface retreatment, and provides the
platform for fully exploring and exploiting synergies between Crown and Ergo.
It is very satisfying to reflect on Blyvoor's efforts over the four months
between December and March, and on continuing production build-up at Ergo.
Achieving a full restoration of Blyvoor's underground recovery grades and
developing the Ergo Crown synergies are our main priorities for the months to
come.
Niel Pretorius
Chief Executive Officer
NOTE REGARDING FINANCIAL INFORMATION
The condensed consolidated financial statements below have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and the
requirements of IAS 34, which is consistent with the accounting policies used in
the audited annual financial statements for the year ended 30 June 2009 and have
not been reviewed or reported on by the Company's auditors.
STATEMENT OF COMPREHENSIVE          Quarter      Quarter      Quarter
INCOME                               Mar 10       Dec 09       Mar 09
                                       R m          R m          R m
                                 Unaudited    Unaudited    Unaudited
Gold and silver revenue               524.0        499.6        536.5
Net operating costs                  (427.1)      (412.2)      (406.6)
Cash operating costs                (429.7)      (416.5)      (388.4)
Movement in gold in process            2.6          4.3        (18.2)
Operating profit                       96.9         87.4        129.9
Depreciation                          (45.2)       (45.2)       (23.5)
Movement in provision for
environmental rehabilitation         (14.6)         0.1          7.8
Retrenchment costs                     (0.3)       (18.1)         1.8
Gross profit from operating
activities                            36.8         24.2        116.0
Impairments                               -            -         (3.3)
Administration expenses and
general costs                        (34.1)       (24.2)       (37.4)
Share-based payments                   (1.2)        (1.6)        (2.0)
Financial liabilities measured
at amortised cost                        -            -          5.7
Profit/(loss) on sale of assets and
investments                           11.1          0.5         (0.3)
Finance income                          5.5          6.1         20.6
Finance expenses and unwinding
of provisions                         (0.5)        (4.9)        (4.3)
Profit before taxation                 17.6          0.1         95.0
Income tax                             (8.2)        (7.7)       (25.2)
Deferred tax                            2.9         14.0        (26.3)
Net profit for the period              12.3          6.4         43.5
Attributable to:
Equity owners of the parent             9.9          5.4         34.1
Non-controlling interest                2.4          1.0          9.4
                                      12.3          6.4         43.5
Other comprehensive income
Foreign exchange translation              -          0.1          1.1
Total comprehensive income
for the period                        12.3          6.5         44.6
Attributable to:
Equity owners of the parent             9.9          5.5         35.2
Non-controlling interest                2.4          1.0          9.4
                                      12.3          6.5         44.6
Reconciliation of headline profit
Net profit                              9.9          5.4         34.1
Adjusted for:
Impairments                               -            -          3.3
(Profit)/loss on sale of assets
and investments                      (11.1)        (0.5)         0.3
Non-controlling share of
headline adjustments                   2.8          0.5         (0.1)
Headline earnings                       1.6          5.4         37.6
Headline earnings per share-cents       0.4          1.4         10.0
Basic earnings per share-cents          2.6          1.4          9.0
Diluted headline earnings
per share-cents                        0.4          1.4         10.0
Diluted basic earnings
per share-cents                        2.6          1.4          9.0
Calculated on the weighted average
ordinary shares issued of      380 987 431   380 448 068 376 884 611
STATEMENT OF COMPREHENSIVE                      9 months     9 months
INCOME                                         to Mar 10    to Mar 09
                                                    R m          R m
                                              Unaudited    Unaudited
Gold and silver revenue                          1 468.8      1 490.0
Net operating costs                             (1 288.7)    (1 208.6)
Cash operating costs                           (1 280.4)    (1 211.8)
Movement in gold in process                        (8.3)         3.2
Operating profit                                   180.1        281.4
Depreciation                                      (133.1)       (57.6)
Movement in provision for
environmental rehabilitation                      (22.9)       (13.3)
Retrenchment costs                                 (19.6)       (33.5)
Gross profit from operating activities               4.5        177.0
Impairments                                            -        (55.7)
Administration expenses and general costs         (104.6)       (81.8)
Share-based payments                                (3.5)        (6.2)
Financial liabilities measured at amortised cost       -         52.8
Profit on sale of assets and investments            12.8          8.3
Finance income                                      20.0         79.2
Finance expenses and unwinding of provisions        (8.5)       (10.1)
(Loss)/profit before taxation                      (79.3)       163.5
Income tax                                         (22.7)       (49.4)
Deferred tax                                        57.4        (46.0)
Net (loss)/profit for the period                   (44.6)        68.1
Attributable to:
Equity owners of the parent                        (33.1)        91.9
Non-controlling interest                           (11.5)       (23.8)
                                                  (44.6)        68.1
Other comprehensive income
Foreign exchange translation                         0.3        (10.6)
Total comprehensive (loss)/income for the period   (44.3)        57.5
Attributable to:
Equity owners of the parent                        (32.8)        81.3
Non-controlling interest                           (11.5)       (23.8)
                                                  (44.3)        57.5
Reconciliation of headline (loss)/earnings
Net (loss)/profit                                  (33.1)        91.9
Adjusted for:
Impairments                                            -         55.7
Profit on sale of assets and investments           (12.8)        (8.3)
Non-controlling share of headline adjustments        3.3        (11.1)
Headline (loss)/earnings                           (42.6)       128.2
Headline (loss)/earnings per share-cents           (11.2)        34.0
Basic (loss)/earning per share-cents                (8.7)        24.4
Diluted headline (loss)/earning per share-cents    (11.2)        34.0
Diluted basic (loss)/earnings per share-cents       (8.7)        24.4
Calculated on the weighted average
ordinary shares issued of:                  379 810 206  376 684 531
STATEMENT OF FINANCIAL                     As at      As at      As at
POSITION                               31 Mar 10  31 Dec 09  31 Mar 09
                                             Rm         Rm         Rm
                                      Unaudited  Unaudited  Unaudited
Property, plant and equipment            1 730.7    1 744.7      932.8
Non-current investments and  other assets   43.0       43.0       65.4
Environmental rehabilitation trusts funds  141.4      138.2      125.6
Deferred tax asset                         200.3      200.5       35.6
Current assets                             464.3      401.9      989.9
Inventories                                 98.0       98.4       80.6
Trade and other receivables                150.0      125.7      348.6
Cash and cash equivalents                  201.3      162.8      545.7
Assets classified as held for sale          15.0       15.0       15.0
Total assets                             2 579.7    2 528.3    2 149.3
Equity and Liabilities
Equity                                   1 539.7    1 525.9    1 335.7
Equity of the owners of the parent       1 448.7    1 437.3    1 298.3
Non-controlling interest                    91.0       88.6       37.4
Loans and borrowings                        65.1       65.1       88.2
Post retirement and other employee benefits 43.4       46.3       24.7
Provision for environmental rehabilitation 440.4      426.5      401.1
Deferred tax liability                     172.4      175.5          -
Current liabilities                        318.8      289.0      299.6
Trade and other payables                   268.7      289.0      292.8
Loans and borrowings                        50.0          -        6.8
Total equity and liabilities             2 579.7    2 528.3    2 149.3
SATEMENT OF CHANGES IN EQUITY            Quarter   Quarter     Quarter
                                         Mar 10    Dec 09      Mar 09
                                             Rm        Rm          Rm
                                      Unaudited Unaudited   Unaudited
Balance at the beginning of
the period                              1 525.9   1 502.5    1 285.4
Share capital issued                         0.3      15.3        3.7
for acquisition finance and cash              -      15.5          -
for share options exercised                 0.2       0.5        4.1
for costs                                   0.1      (0.7)      (0.4)
Increase in share-based payment reserve      1.2       1.6        2.0
Net profit attributed to
owners of the parent                        9.9       5.4       34.1
Net profit attributed to
non-controlling interest                    2.4       1.0        9.4
Other comprehensive income                     -       0.1        1.1
Balance as at the end of the
period                                  1 539.7   1 525.9    1 335.7
STATEMENT OF CHANGES IN EQUITY                    9 months   9 months
                                                   Mar 10     Mar 09
                                                       Rm         Rm
                                                Unaudited  Unaudited
Balance at the beginning of
the period                                        1 584.0    1 305.5
Share capital issued                                  15.5        4.1
for acquisition finance and cash                     15.5          -
for share options exercised                           1.1        4.5
for costs                                            (1.1)      (0.4)
Increase in share-based payment reserve                3.5        6.2
Net (loss)/profit attributed to
owners of the parent                                (33.1)      91.9
Net loss attributed to non-controlling interest      (11.5)     (23.8)
Dividends declared                                   (19.0)     (37.6)
Other comprehensive income                             0.3      (10.6)
Balance as at the end of the period                1 539.7    1 335.7
STATEMENT OF CASH FLOWS           Quarter      Quarter       Quarter
                                  Mar 10       Dec 09        Mar 09
                                      Rm           Rm            Rm
                               Unaudited    Unaudited     Unaudited
Net cash inflow/(out)
from operations                      8.3         (7.2)        114.1
Net cash outflow from
investing activities               (20.2)       (30.9)        (88.0)
Net cash inflow/(out) from
financing activities                50.1        (33.0)        (89.7)
Decrease in cash and
cash equivalents                    38.2        (71.1)        (63.6)
Translation adjustment                0.3         (0.4)          0.3
Opening cash and cash equivalents   162.8        234.3         609.0
Closing cash and cash equivalents   201.3        162.8         545.7
Reconciliation of net cash
in/(out)flow from operations
Profit before taxation               17.6          0.1          95.0
Adjusted for:
Movement in gold process             (2.6)        (4.3)         18.2
Depreciation and impairments         45.2         45.2          26.8
Movement in provision for
environmental rehabilitation        14.6         (0.1)         (7.8)
Share-based payments                  1.2          1.6           2.0
Profit on financial liabilities
measured at amortised cost             -            -          (5.7)
(Profit)/loss on sale of assets
and investments                    (11.1)        (0.5)          0.3
Finance expenses and unwinding of
provisions                           0.4          3.1           3.2
Growth in environmental trust funds  (2.4)        (2.3)         (3.3)
Other non cash items                 (4.8)         0.5           8.3
Taxation paid                           -        (12.1)         (1.8)
Working capital changes             (49.8)       (38.4)        (21.1)
Net cash inflow/(out)                 8.3         (7.2)        114.1
STATEMENT OF CASH FLOWS                       9 months      9 months
                                               Mar 10        Mar 09
                                                   Rm            Rm
                                            Unaudited     Unaudited
Net cash (out)/inflow from operations           (100.5)        168.9
Net cash outflow from investing activities      (115.3)       (216.0)
Net cash in/(out)flow from financing activities   63.0        (241.8)
Decrease in cash and cash equivalents           (152.8)       (288.9)
Translation adjustment                             0.5         (11.5)
Opening cash and cash equivalents                353.6         846.1
Closing cash and cash equivalents                201.3         545.7
Reconciliation of net cash (out)/inflow from operations
(Loss)/profit before tax                         (79.3)        163.5
Adjusted for:
Movement in gold process                           8.3          (3.2)
Depreciation and impairments                     133.1         113.3
Movement in provision for
environmental rehabilitation                     22.9          13.3
Share-based payments                               3.5           6.2
Profit on financial liabilities
measured at amortised cost                          -         (52.8)
Profit on sale of assets and investments         (12.8)         (8.3)
Finance expenses and unwinding of provisions       6.0           6.6
Growth in environmental trust funds               (7.1)        (10.1)
Other non cash items                               0.7           4.2
Taxation paid                                    (12.1)        (26.7)
Working capital changes                         (163.3)        (37.1)
Net cash (out)/inflow from operations           (100.5)        168.9
KEY OPERATING AND FINANCIAL RESULTS (Unaudited)
Metric                    Blyvoor    Crown     ERPM      Ergo*   Total
Ore milled (`000t)
Underground   Mar 10 Qtr      166        -        -         -      166
             Dec 09 Qtr      137        -        -         -      137
             Mar 10 Ytd      448        -        -         -      448
Surface       Mar 10 Qtr      701    1 312      344     3 150    5 507
             Dec 09 Qtr      702    1 393      386     3 124    5 605
             Mar 10 Ytd    2 213    4 145    1 217     8 598   16 173
Total         Mar 10 Qtr      867    1 312      344     3 150    5 673
             Dec 09 Qtr      839    1 393      386     3 124    5 742
             Mar 10 Ytd    2 661    4 145    1 217     8 598   16 621
Yield (g/t)
Underground   Mar 10 Qtr     4.01        -        -         -     4.01
             Dec 09 Qtr     3.72        -        -         -     3.72
             Mar 10 Ytd     3.90        -        -         -     3.90
Surface       Mar 10 Qtr     0.33     0.44     0.49      0.10     0.23
             Dec 09 Qtr     0.38     0.43     0.48      0.09     0.24
             Mar 10 Ytd     0.33     0.43     0.47      0.09     0.24
Total         Mar 10 Qtr     1.03     0.44     0.49      0.10     0.34
             Dec 09 Qtr     0.93     0.43     0.48      0.09     0.32
             Mar 10 Ytd     0.93     0.43     0.47      0.09     0.34
Gold Produced (kgs)
Underground   Mar 10 Qtr      666        -        -         -      666
             Dec 09 Qtr      509        -        -         -      509
             Mar 10 Ytd    1 748        -        -         -    1 748
Surface       Mar 10 Qtr      228      573      170       304    1 275
             Dec 09 Qtr      270      605      184       294    1 353
             Mar 10 Ytd      733    1 771      572       761    3 837
Total         Mar 10 Qtr      894      573      170       304    1 941
             Dec 09 Qtr      779      605      184       294    1 862
             Mar 10 Ytd    2 481    1 771      572       761    5 585
Cash operating costs (ZAR per kg)
Underground   Mar 10 Qtr  281 818        -        -         -  281 818
             Dec 09 Qtr  344 990        -        -         -  344 990
             Mar 10 Ytd  321 275        -        -         -  321 275
Surface       Mar 10 Qtr  101 539  210 503  183 606   220 609  189 841
             Dec 09 Qtr   79 807  203 519  165 957   223 224  178 005
             Mar 10 Ytd  101 067  204 044  168 117   246 029  187 343
Total         Mar 10 Qtr  235 841  210 503  183 606   220 609  221 400
             Dec 09 Qtr  253 078  203 519  165 957   223 224  223 653
             Mar 10 Ytd  256 215  204 044  168 117   246 029  229 261
Cash operating costs (ZAR per tonne)
Underground   Mar 10 Qtr    1 131        -        -         -    1 131
             Dec 09 Qtr    1 282        -        -         -    1 282
             Mar 10 Ytd    1 254        -        -         -    1 254
Surface       Mar 10 Qtr       33       92       91        21       44
             Dec 09 Qtr       31       88       79        21       43
             Mar 10 Ytd       33       87       79        22       44
Total         Mar 10 Qtr      243       92       91        21       76
             Dec 09 Qtr      235       88       79        21       73
             Mar 10 Ytd      239       87       79        22       77
Gold and silver revenue (ZAR million)
             Mar 10 Qtr    241.8    154.5     45.7      82.0    524.0
             Dec 09 Qtr    209.7    161.7     49.1      79.1    499.6
             Mar 10 Ytd    644.4    465.3    154.2     204.9  1 468.8
Cash operating profit/(loss)(ZAR million)
             Mar 10 Qtr     31.0     33.9     14.6      14.8     94.3
             Dec 09 Qtr     12.6     38.6     18.6      13.3     83.1
             Mar 10 Ytd      8.8    103.9     58.2      17.5    188.4
Capital expenditure (ZAR million)
             Mar 10 Qtr     17.4      3.4      0.9       6.6     28.3
             Dec 09 Qtr     17.5      3.4        -      10.1     31.0
             Mar 10 Ytd     60.0     11.8      0.9      50.8    123.5
Imperial                  Blyvoor    Crown     ERPM      Ergo*   Total
Gold Produced (oz)
Underground   Mar 10 Qtr   21 412        -        -         -   21 412
             Dec 09 Qtr   16 365        -        -         -   16 365
             Mar 10 Ytd   56 199        -        -         -   56 199
Surface       Mar 10 Qtr    7 331   18 422    5 466     9 773   40 992
             Dec 09 Qtr    8 681   19 451    5 916     9 453   43 501
             Mar 10 Ytd   23 568   56 938   18 391    24 466  123 363
Total         Mar 10 Qtr   28 743   18 422    5 466     9 773   62 404
             Dec 09 Qtr   25 046   19 451    5 916     9 453   59 866
             Mar 10 Ytd   79 767   56 938   18 391    24 466  179 562
Cash operating costs (US$ per oz)
Underground   Mar 10 Qtr    1 163        -        -         -    1 163
             Dec 09 Qtr    1 429        -        -         -    1 429
             Mar 10 Ytd    1 310        -        -         -    1 310
Surface       Mar 10 Qtr      419      868      758       909      783
             Dec 09 Qtr      332      840      686       919      735
             Mar 10 Ytd      412      832      685     1 003      764
Total         Mar 10 Qtr      973      868      758       909      913
             Dec 09 Qtr    1 049      840      686       919      925
             Mar 10 Ytd    1 045      832      685     1 003      935
Gold and silver revenue (US$ million)
             Mar 10 Qtr     32.0     20.5      6.1      10.9     69.5
             Dec 09 Qtr     27.8     21.5      6.5      10.4     66.2
             Mar 10 Ytd     84.5     61.0     20.2      26.9    192.6
Cash operating profit/(loss)(US$ million)
             Mar 10 Qtr      4.1      4.5      2.0       1.9     12.5
             Dec 09 Qtr      1.5      5.1      2.4       1.8     10.8
             Mar 10 Ytd      1.2     13.6      7.6       2.3     24.7
Capital expenditure (US$ million)
             Mar 10 Qtr      2.4      0.5      0.1       0.9      3.9
             Dec 09 Qtr      2.3      0.5        -       1.4      4.2
             Mar 10 Ytd      7.9      1.6      0.1       6.7     16.3
CASH OPERATING COSTS RECONCILIATION
(R'000 unless otherwise stated)
                       Blyvoor     Crown     ERPM      Ergo*   Total
Total cash costs
            Mar 10 Qtr 204 910   125 366   47 554    67 580  445 410
            Dec 09 Qtr 208 677   136 346   49 837    69 124  463 984
            Mar 10 Ytd 652 072   390 907  166 557   198 875 1408 411
Movement in gold in process
            Mar 10 Qtr  (1 691)    2 045      (10)    2 238    2 582
            Dec 09 Qtr   7 515    (1 754)    (132)   (1 303)   4 326
            Mar 10 Ytd   2 873      (255)  (6 788)   (4 111)  (8 281)
Less: Production taxes, rehabilitation and other
            Mar 10 Qtr (11 980)    2 389   11 397     2 591    4 397
            Dec 09 Qtr   2 484     7 059   10 922     1 894   22 359
            Mar 10 Ytd  (6 922)   16 079   45 784     6 775   61 716
Less: Retrenchment costs
            Mar 10 Qtr      25         -      302         -      327
            Dec 09 Qtr  11 221         -    3 592         -   14 813
            Mar 10 Ytd  11 693         -    3 894         -   15 587
Less: Corporate and general administration costs
            Mar 10 Qtr   4 332     4 404    4 632       162   13 530
            Dec 09 Qtr   5 339     4 404    4 655       299   14 697
            Mar 10 Ytd  14 504    13 211   13 928       761   42 404
Cash operating costs
            Mar 10 Qtr 210 842   120 618   31 213    67 065  429 738
            Dec 09 Qtr 197 148   123 129   30 536    65 628  416 441
            Mar 10 Ytd 635 670   361 362   96 163   187 228 1280 423
Gold produced - kgs
            Mar 10 Qtr     894       573      170       304    1 941
            Dec 09 Qtr     779       605      184       294    1 862
            Mar 10 Ytd   2 481     1 771      572       761    5 585
Total cash operating costs - R/kg
            Mar 10 Qtr 235 841   210 503  183 606   220 609  221 400
            Dec 09 Qtr 253 078   203 519  165 957   223 224  223 653
            Mar 10 Ytd 256 215   204 044  168 117   246 029  229 261
Total cash operating costs - US$/oz
            Mar 10 Qtr     973       868      758       909      913
            Dec 09 Qtr   1 049       840      686       919      925
            Mar 10 Ytd   1 045       832      685     1 003      935
*Ergo represents DRDGOLD's 100% share in ErgoGold (the Elsburg Joint Venture)
and 50% in the Ergo Joint Venture.
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 company's annual report of 30 June 2009 and
subsequent public announcements.
The technical information included in this report has been reviewed by Mr Ryno
Botha (SAIMM) - Mineral Resource Manager and a full-time employee of the
Company. He has approved this information in writing before the publication of
this report.
DIRECTORS - (*British)(**American)
Executive:
DJ (Niel) Pretorius (Chief Executive Officer)
CC Barnes (Chief Financial Officer)
Non-executives:
J Turk **
Independent non-executives:
GC Campbell*(Non-Executive Chairman); RP Hume; EA Jeneker
Company Secretary:
TJ Gwebu
INVESTOR RELATIONS
For further information, contact Niel Pretorius at:
Tel: (+27-11) 219-8700, Fax: (+27-11) 476-2637,
website: http://www.drdgold.com
Ebsco House 4, 299 Pendoring Avenue,
Blackheath, Randburg, South Africa.
PO Box 390,
Maraisburg, 1700,
South Africa.
23 April 2010
Sponsor
One Capital
Date: 23/04/2010 08:00:02 Produced by the JSE SENS Department.
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