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    DRDGold Jan 2010 Presentation

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    Ala Baster
    The document is a presentation from the CEO of DRDGOLD at the Africa Mining Congress in February 2010. It provides an overview of DRDGOLD's operations, including its four surface retreatment plants and one underground mine in South Africa. It summarizes recent performance, with production and costs improving. The presentation outlines DRDGOLD's strategy of focusing on lower-risk, lower-cost surface retreatment and explores recent corporate activity and opportunities in Zimbabwe to pursue this strategy.

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    DRDGold Jan 2010 Presentation

    Uploaded by

    Ala Baster
    57 views10 pages
    The document is a presentation from the CEO of DRDGOLD at the Africa Mining Congress in February 2010. It provides an overview of DRDGOLD's operations, including its four surface retreatment plants and one underground mine in South Africa. It summarizes recent performance, with production and costs improving. The presentation outlines DRDGOLD's strategy of focusing on lower-risk, lower-cost surface retreatment and explores recent corporate activity and opportunities in Zimbabwe to pursue this strategy.

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    The document is a presentation from the CEO of DRDGOLD at the Africa Mining Congress in February 2010. It provides an overview of DRDGOLD's operations, including its four surface retreatment plants and one underground mine in South Africa. It summarizes recent performance, with production and costs improving. The presentation outlines DRDGOLD's strategy of focusing on lower-risk, lower-cost surface retreatment and explores recent corporate activity and opportunities in Zimbabwe to pursue this strategy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    57 views10 pages

    DRDGold Jan 2010 Presentation

    Uploaded by

    Ala Baster
    The document is a presentation from the CEO of DRDGOLD at the Africa Mining Congress in February 2010. It provides an overview of DRDGOLD's operations, including its four surface retreatment plants and one underground mine in South Africa. It summarizes recent performance, with production and costs improving. The presentation outlines DRDGOLD's strategy of focusing on lower-risk, lower-cost surface retreatment and explores recent corporate activity and opportunities in Zimbabwe to pursue this strategy.

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    You are on page 1of 10

    Africa Mining Congress

    Niël Pretorius, CEO


    Livingstone, Zambia
    4 – 7 February 2010

    Disclaimer

    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 included in this document, 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 licences or other governmental approvals, changes in
    DRDGOLD's competitive position, changes in business strategy, any major disruption in production at
    keyy facilities or adverse changes
    g in foreign
    g exchange
    g 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 2009, which we filed with the United States
    Securities and Exchange Commission on 27 November 2009 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.

    1
    Who we are

    ► Medium-tier
    Medium tier gold producer

    ► 247 690oz in FY09

    ► South Africa’s fourth-largest

    ► Four surface retreatment operations

    ► Crown – 19 065oz in Q1 2010

    ► Blyvoor – 7 556oz in Q1 2010

    ► ERPM – 7 009oz in Q1 2010

    ► Ergo – 5 240oz in Q1 2010

    ► One deep-level underground mine

    ► Blyvoor – 18 422oz in Q1 2010

    The difference

    ► Most of our gold comes from retreatment of surface tailings


    ► now 73% of total – and rising
    ► Why?
    ► lower risk
    ► safety, health, government regulation

    ► lower cost
    ► ±48% lower, and dropping

    ► less power, less labour


    ► higher margin

    ► ±34% and rising

    ► mechanised process running 24/7


    ► we know how
    ► 30-year track record of success
    ► huge resource potential

    ► 1.2 billion tonnes

    ► uranium, sulphuric acid upside


    ► property upside
    ► liberated land for re-sale, re-development

    2
    Performance highlights: Q2 2010

    ► ± 4% increase in total gold production


    ► ±12% increase in surface production

    ► ±11% decrease in underground production

    ► surface production 73% of total gold production

    ► ±8% drop in cash operating costs (R/kg terms)


    ► higher production

    ► Blyvoor
    y employee
    p y reduction
    ► lower power costs (no winter tariff)

    ► ±12% increase in average Rand gold price received


    ► Cash operating profit vs loss the previous quarter
    ► higher production

    ► higher gold price received

    ► lower cash costs

    ► Capex (Rand terms) down significantly


    ► Ergo capex winds down

    Production: Q1 2010 vs Q2 2010

    3
    Profit contribution: Q2 2010

    Strategy

    ► Continuing focus on:


    ► lower risk

    ► lower cost

    ► higher margin

    ► In South Africa:
    ► continuing shift towards more gold production from surface retreatment

    ► Ergo: bedding down, building capacity

    ► second feed from Elsb


    Elsburg
    rg
    ► full access to Brakpan plant potential

    ► synergies with Crown – pipeline feasibility study nearing completion

    ► access to Grootvlei and Marievale dumps

    ► stabilising Blyvoor

    ► re-establish seismicity-damaged high-grade stopes

    ► retain surface optionality


    p y
    ► In Zimbabwe
    ► exploratory steps

    4
    In pursuit of strategy: recent corporate activity

    ► Blyvoor
    ► agreement with Aurora for Aurora to acquire 60% of Blyvoor
    for R296 million consideration to DRDGOLD and R80 million loan facility to Blyvoor
    ► ERPM
    ► agreement with Aurora for Aurora to acquire ERPM plant for R20 million
    ► effect: cash in the bank and access to Grootvlei (80Mt at 0.27g/t) and
    Marievale (37.2Mt
    (37 2Mt at 0.296/g/t)
    0 296/g/t) dumps for Ergo
    ► Ergo
    ► agreement with Mintails for DRDGOLD group to acquire Mintails’ 50% in
    Ergo Mining (Pty) Ltd (Ergo JV)
    ► effect: full access to Brakpan plant and capacity to double throughput;
    full access to uranium, sulphuric acid potential

    Ergo: trending upward

    5
    Ergo: trending upward, cont’d

    Ergo: trending upward, cont’d

    6
    Ergo: Crown pipeline

    Domain Volume
    t’000

    Crown 456 145


    (including
    tailings)

    ERPM 193 853

    Ergo 835 362


    (including
    tailings)

    Total 1 485 360

    13

    Ergo: Crown pipeline

    Grootvlei

    Grootvlei and Marievale dumps


    Size (Mt) 117.2
    I f
    Inferred
    d resource (Moz)
    (M ) 1 048
    1.048
    Marievale
    Capital required (Rm) 260

    7
    Zimbabwe

    15

    Zimbabwe, cont’d

    ► Collaboration with Zimbabwe based Chizim Investments to explore 32 contiguous claims


    over 550 ha in established Greenstone Zone
    ► Two strikes so far with values ranging between 8g/t and 25g/t
    ► ‘Topped and tailed’ by established mines
    ► Ascot to north east
    ► Epsom to south west
    ► R5 million seed capital
    ► R2 million diamond drilling programme to determine SAMREC/JORC-compliant
    resource by September 2010
    ► small-scale mining meantime: R2 million mobile scrubber plant;
    R1 million for earthmoving equipment
    ► Ideal earlyy bird opportunity
    pp y to assess lay
    y of the land

    16

    8
    Zimbabwe, cont’d

    17

    Summary

    ► Overall,, a good
    g December q
    quarter
    ► production up
    ► Rand gold price up
    ► cash costs down
    ► cash operating profit up
    ► Blyvoor trending in the right direction
    ► Crown solid
    ► Ergo trending encouraging
    ► Looking ahead, ‘more of the same’
    ► growing surface retreatment:
    efficiencies and synergies
    y g
    ► stabilising Blyvoor
    ► Zimbabwe: the next natural step?

    18

    9
    Investment case

    ► Times ((economically)
    y) are still tough
    g
    ► Gold is even better
    ► We continue to optimise what we have
    ► We continue to reduce our risk profile
    ► manage our underground footprint for better outcomes
    ► grow surface
    f re-treatment
    t t t footprint
    f t i t
    ► We continue to control costs
    ► We continue to take a disciplined approach to growth
    ► Our balance sheet remains strong

    19

    Africa Mining Conference


    Niël Pretorius, CEO
    Livingstone, Zambia
    4 – 7 February 2010

    10

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