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Charles Symons, Chief Operating OfficerGold and Precious Metals Day
London26 April 2013
Disclaimer
Many factors could cause the actual results, performance or achievements to be materially different from any futureresults, 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 thegold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLDor difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitiveposition, changes in business strategy, any major disruption in production at key facilities or adverse changes inforeign exchange rates and various other factors. These risks include, without limitation, those described in the sectionentitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2012, which we filed with theUnited States Securities and Exchange Commission on 26 October 2012 on Form 20-F. You should not place unduereliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake anyobligation to publicly update or revise these forward-looking statements to reflect events or circumstances after thedate of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this reporthave not been reviewed and reported on by DRDGOLD’s auditors.
26 April 2013 2Gold and Precious Metals Day, London
Introduction
Among largest surface tailings retreatment companies globally
Retreats gold tailings from world’s single largest ‘stockpile’, established over 100+ years
Recovery sites and plants, covering West, Central and East Witwatersrand
Simple corporate structure, compliant with SA Mining Charter
Listed on JSE and NYSE Euronext
Market capitalisation: three-month range from $275 million to $300 million
10 biggest shareholders hold 41.9%
Liquidity as percentage of issued stock traded (March 2013 annualised)
• JSE: 44%
• NYSE: 75%
Coverage: JP Morgan; Edison; Cadiz; Merrill Lynch initiating soon
26 April 2013Gold and Precious Metals Day, London 3
How the business works
Up to 2Mtpm of slimes material recovered from mine dumps and tailings dams with high-pressure water jets
Slimes mixed with water, resulting slurry pumped to two CIL plants
Dissolved in cyanide, carbon loaded, eluted and recovered in electro-winning circuit
Residue disposal at large tailings deposition facility
Head-grade average: 0.38g/t
Recovery on average: 52% (0.197g/t)
426 April 2013Gold and Precious Metals Day, London
Operational flow chart, Including proposed flotation/fine-grind circuit
Operational differentiators
Mechanised, 24/7/365 operationCompetitive advantage
• Ergo plant• tailings deposition facility• resource: on-surface stockpile, built up over 100+ years• land access infrastructure for pipelines and other installations
Established, experienced management team
526 April 2013Gold and Precious Metals Day, London
Our operating footprint
Gold and Precious Metals Day, London 626 April 2013
Strategy
Lower risk, lower cost, higher marginGrowth through:
• new technology• driven by ongoing research and development (R&D)
• R&D’s first delivery: new flotation/fine-grind circuit• cautious, low-capital diversification
• geographic • product
726 April 2013Gold and Precious Metals Day, London
Delivery on strategy: lower risk
Operational risk:
• more mechanised – less volatile
• 24/7 process
• on-surface
• defined, visible resource
Strategic risk:
• long capital – significantly lower stay-in-business capital
• processing risk rather than underground mining risk
• greater degree of optionality – greater ‘switch on/switch off’ flexibility
• fewer hands involved in moving run of mine material
• lower safety interruption risk
826 April 2013Gold and Precious Metals Day, London
Investment drivers FY 2012
9
Driver 2012 2011
Free cash flow margin 12% 0%
ROE 20% 9%
EBITDA R502.2 million R264.9 million
EBITDA margin 17% 10%
Production 232 353oz 265 179oz
Dividend yield 1.9% 2.3%
Share price R5.35 R3.27
PE ratio 6.2 11.7
Current ratio 1.8 1.2
Operating margin $583/oz $253/oz
Cash and cash equivalents R298.5 million R259.1 million
26 April 2013Gold and Precious Metals Day, London
Cost breakdown
35%
30%
16%
4%
4%
11%
Labour and contractorsConsumablesElectricityWaterRehabilitationAdministration/other
1026 April 2013Gold and Precious Metals Day, London
Gold produced quarterly
26 April 2013Gold and Precious Metals Day, London 11
0
200
400
600
800
1 000
1 200
1 400
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun12 Sep-12 Dec-12 Mar-13
Gold production: deviation from average by quarter (kg)
12
-150
-100
-50
0
50
100
150
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13
26 April 2013Gold and Precious Metals Day, London
Share price performance
13
750
725
700
675
650
625
600
575
550
525
500
475
450
425 01-03-12 01-05-12 01-07-12 01-09-12 01-11-12 01-01-13 01-03-13 10-04-13
Source: INet Bridge
26 April 2013Gold and Precious Metals Day, London
Ergo performance Q3 FY2013
26 April 2013Gold and Precious Metals Day, London 14
5 613
5 5255 598
6 066
5 766
5 200
5 300
5 400
5 500
5 600
5 700
5 800
5 900
6 000
6 100
6 200
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Volume (000t)
0.194
0.181
0.199 0.200
0.194
0.17
0.18
0.19
0.20
0.21
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Yield (g/t)
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
0
200
400
600
800
1 000
1 200
1 400
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Gold - kg Gold - oz
Group performance, Q3 FY2013
1526 April 2013Gold and Precious Metals Day, London
108.9141.0
105.6
355.5
114.7
171.9
114.7
401.3
0
50
100
150
200
250
300
350
400
450
Q1 Q2 Q3 YTD
EBITDA (Rm)
FY2012 FY2013
34.8
154.7
73.7
263.2
-53.3
111.685.7
144.0
-100
-50
0
50
100
150
200
250
300
Q1 Q2 Q3 YTD
Free cash flow (Rm)
FY2012 FY2013
1215
12
39
2025
14
59
0
10
20
30
40
50
60
70
Q1 Q2 Q3 YTD
HEPS (SA cents)
FY2012 FY2013
34
4037 37
32
41
3335
0
5
10
15
20
25
30
35
40
45
Q1 Q2 Q3 YTD
Operating margin (%)
FY2012 FY2013
Delivery on strategy: technology growth
New flotation/fine-grind circuit
• objective: optimise 11Moz resource
• 16-20% increase in extraction efficiency
• capex: R250 million (US$32 million)
• Total cost increase (real terms): R52/t (from R45/t) over LOM
• uranium upside potential (bolt-on, resin-in-pulp technology)
• feasibility study in progress
16
Total slimes feed to Ergo plant
4% mass pullto fine grind
Flotation
CIL
Milling
96% to conventional
CIL
26 April 2013Gold and Precious Metals Day, London
Key targets
Production – between 135 000 and 140 000 ounces per year
Monthly throughput: ~2.0-2.1Mtpm
Cash costs ($/oz): ~US$1 000-US$1 100
Maintenance capex: ~R11 000/kg; US$42/oz
1726 April 2013Gold and Precious Metals Day, London
Looking ahead
Maintain tonnage volumes to plantStart commissioning of flotation/fine-grind circuitZimbabwe clean-up Move on ERPMSupport TCTA re AMDSecure additional water supplyExtend EBDA footprintLaunch Best Life
• employee personal development programme
1826 April 2013Gold and Precious Metals Day, London
Investment case
5th consecutive annual dividend
First interim dividend declared December 2012
Long capital, steady yield
Operating profit for year ending June 2012: R622 million (U$75m)* – at the time ~30% of market cap
Top performer, benchmarked against other major SA producers: cash cost (R/kg), operating margin, free cash flow margin, NCE margin, share price performance, dividend yield
Conservative approach to capital management – 9 852 800 shares bought back to offset stock-option dilution
19
*At an exchange rate of 0.121 US cents per rand
26 April 2013Gold and Precious Metals Day, London
Registered office 1st Floor, Quadrum 1Quadrum Office Park50 Constantia BoulevardConstantia Kloof Ext 28RoodepoortSouth Africa
PO Box 390 Maraisburg 1700 South Africa
Contact details Tel: +27 (0) 11 470 2600 Fax: +27 (0) 11 470 2618 Email: Craig Barnes, CFO: [email protected]
James Duncan, Investor Relations: [email protected]
Website: www.drdgold.com
Shareholder data (Incorporated in the Republic of South Africa) Registration No.1895/000926/06 JSE share code: DRDISIN: ZAE 000058723 Issuer code: DUSM NYSE trading symbol: DRD
26 April 2013Gold and Precious Metals Day, London 20
