Corporate profile and structure

DRDGOLD is a South African-based, medium-sized, unhedged gold company which has made a strategic shift in the past few years to lower-risk, lower-cost, higher-margin retreatment production.

DRDGOLD’s operations are:

• Blyvooruitzicht Gold Mining Company Limited (Blyvoor) – underground mining, surface tailings retreatment;
• ErgoGold and Ergo Mining (Pty) Limited (Ergo) – surface tailings retreatment;
• Crown Gold Recoveries (Pty) Ltd (Crown) – surface tailings retreatment; and
• East Rand Proprietary Mines Limited (ERPM) – underground mining discontinued, surface tailings retreatment (reported under Crown) and ERPM Extension 1 and 2 exploration tenements with an estimated resource of 18.3Moz.

In FY2011, the company employed 6 875 people (including contractors) and produced 265 179 ounces of gold (FY2010: 241 194 ounces), generating R2 565.3 million in income and spending R317.3 million on capital projects. DRDGOLD declared attributable Mineral Resources of 60.2 million ounces (Moz) and attributable Mineral Reserves of 7.3Moz for the year under review.

DRDGOLD’s black economic empowerment partners are Khumo Gold SPV (Pty) Ltd (Khumo Gold) and the DRDSA Empowerment Trust, which hold 20% and 6% respectively in DRDGOLD’s operating subsidiaries, Ergo Mining Operations (Pty) Ltd (Ergo Mining Operations) and Blyvooruitzicht Gold Mining Company Limited (Blyvoor).

DRDGOLD is also a 50% partner in an early-stage gold exploration project on Zimbabwe’s Greenstone Belt.

With its head office in Johannesburg, DRDGOLD has its primary listing on the JSE Limited and its secondary listing on the Nasdaq Capital Market. The company’s shares are also traded on the Marché Libre in Paris, the Regulated Unofficial Market of the Frankfurt Stock Exchange, the Berlin and Stuttgart OTC markets, as well as on Euronext Brussels in the form of International Depositary Receipts. At year end, the company had 384 884 379 ordinary shares in issue and a market capitalisation of R1.3 billion ($186.3 million).

DRDGOLD’s Board of Directors is made up of two executive directors (the Chief Executive Officer and the Chief Financial Officer) and four non-executive directors, three of whom are independent. The chairman is an independent, non-executive director. The board has four subcommittees: the Audit Committee, the Risk Committee, the Remuneration Committee and the Transformation and Sustainable Development Committee. The board is responsible for setting the direction of the company through the drawing up of strategic objectives and key policies and it monitors their implementation. The board retains full and effective control over the company, meeting on a quarterly basis, with additional ad hoc meetings being arranged when necessary, to review strategy and planning, and operational, financial and sustainability performance.

Group structure

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