| Tue 13 Apr 2010, 11:32 | | DRD - DRDGold Limited - Blyvoor Provisional Judicial Management Order Lifted |
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DRD
DRDD
DRD - DRDGold Limited - Blyvoor Provisional Judicial Management Order Lifted
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the Company")
BLYVOOR PROVISIONAL JUDICIAL MANAGEMENT ORDER LIFTED
`Once again, a successful concern`
Johannesburg, South Africa. 13 April 2010. DRDGOLD announced today that the
High Court of South Africa has agreed to lift, with immediate effect, the
provisional judicial management order in place in respect of the Company`s 74%-
owned subsidiary, Blyvooruitzicht Gold Mining Company Limited ("Blyvoor") since
10 November 2009.
DRDGOLD CEO Niel Pretorius, in the Company`s application to the court for the
lifting of the provisional judicial management order, pointed out that:
- for the period November 2009 to February 2010, Blyvoor has traded at an
unaudited profit of R33 578 400;
- trade creditors at the time when the provisional judicial management order
was granted have been reduced from R39 million to R2.17 million;
- monthly production of gold has increased from 272kg to 315kg;
- the gold price has increased from R240 000/kg to R265 000/kg.
Pretorius added that the four judicial managers appointed by the court supported
its application for the lifting of the provisional judicial management order, on
condition that DRDGOLD`s provision of a R15 million facility to Blyvoor,
available from November 2009 but not accessed, remains in place.
"The provisional judicial management of Blyvoor has been a success; the Company
is able to pay its debts as and when they fall due for payment; it has turned
the corner and is, once again, a successful concern," Pretorius said.
DRDGOLD applied for and was granted the provisional judicial management order in
November 2009 following several months of increasing operational and financial
stress experienced by Blyvoor as a consequence of:
- a series of seismic events during May 2009 which caused a substantial drop
in mining production;
- a 33% rate increase imposed by power utility Eskom during July 2009;
- a protracted labour strike; and
- a sharp decline in the gold price between February and May 2009, from R317
000/kg to R240 000/kg.
The financial information provided in this announcement has not been reviewed or
reported on by the Company`s auditors.
13 April 2010
Queries:
South Africa & North America
James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)
United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James`s Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398 (mobile)
Sponsor
One Capital
For more information, please visit www.drdgold.com
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, including, among
others, adverse changes or uncertainties in general economic conditions in the
markets we serve, 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 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
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.
Date: 13/04/2010 11:32:01 Produced by the JSE SENS Department.
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