DRDGOLD Limited is a mid-tier, unhedged gold producer with a mix of assets – underground mines and surface re-treatment operations – and exploration programmes in South Africa. With its head office in Johannesburg, the group has its primary listing on the JSE Limited and its secondary listing on the Nasdaq Capital Market.
Since late October 2007, when DRDGOLD disposed of its entire interest in Australian company Emperor Mines Limited, the company has focused on opportunities in South Africa, stabilising and improving the performance of existing mines, expanding its surface treatment activities and investigating the potential for uranium and sulphuric acid production.
The South African assets are held through a 74% interest in DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA). Empowerment partner Khumo Gold SPV (Pty) Limited (Khumo Gold) has a 20% holding in DRDGOLD SA and has facilitated the incorporation of a further 6% into an employee trust. The result is that DRDGOLD has already met the 26% black economic empowerment equity target set by the South African Mining Charter for 2014.
DRDGOLD SA wholly owns and operates Blyvooruitzicht Gold Mining Company Limited (Blyvoor), East Rand Proprietary Mines Limited (ERPM) and Crown Gold Recoveries (Crown), the world’s largest operation recovering gold from disused mine dumps.
Each of these operations has organic growth projects on track. At Blyvoor, the Way Ahead and No 6 Shaft (15/29 incline) projects are in development, and exploration of the mine’s southern lease area has begun. At ERPM, two areas known as ERPM Extensions 1 and 2, contiguous to the current lease area, are currently being explored. At Crown, a licence has been granted to recover the Top Star mine dump to the south of Johannesburg’s central business district.
DRDGOLD SA is also in a 50:50 joint venture – now known as Ergo Mining (Pty) Limited (Ergo) – with Mintails SA (Pty) Limited, a subsidiary of Mintails Limited of Australia. Ergo Mining will explore, evaluate and process surface up to 1.7 billion tonnes of gold-, uranium- and sulphur-bearing tailings on the East and Central Rand goldfields of South Africa. Production will start in the second quarter of FY09.
During the 2008 financial year, DRDGOLD’s produced 321 432 attributable ounces of gold (FY07: 477 157 ounces) and, at 30 June 2008, had mineral resources of 54.7 million ounces and ore reserves of 7.9 million ounces. The group has a strong balance sheet with no interest-bearing liabilities and the ability to fund short- to medium-term growth.
