| Thu 2 Jun 2005, 16:29 | | Issue by KPMG Inc. of US GAAP opinion |
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DRDGOLD - Issue by KPMG Inc. of US GAAP opinion
DRDGOLD Limited
(Formerly Durban Roodepoort Deep, Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
Share code: DRD
ISIN: ZAE000058723
ARBN number: 086 277 616
NASDAQ trading symbol: DROOY
(`DRDGOLD` or `the company`)
ISSUE BY KPMG INC. OF US GAAP OPINION
Shareholders are referred to the report to shareholders for the six months ended
31 December 2004, published on 24 February 2005, which drew attention to certain
circumstances that, if they were to arise, may have had an adverse impact on the
ability of the company and its subsidiaries, associates and joint venture (`the
group`), at that time, to continue as a going concern, as well as to the
modified review opinion issued by KPMG Inc. as a consequence of the existence of
a material uncertainty in this regard.
DRDGOLD is pleased to announce that, on 1 June 2005, KPMG Inc. issued an
unmodified review opinion on publication of DRDGOLD`s US GAAP results for the
six months ended 31 December 2004 on the basis that:
- on 18 March 2005, R38 million was received, in aggregate, from Consolidated
African Mines Limited and JCI Limited in respect of an outstanding legal
dispute;
- on 22 March 2004, application was made and granted for the provisional
liquidation of Buffelsfontein Gold Mines Limited (`Buffelsfontein`),
thereby eliminating DRDGOLD`s exposure to future losses that were expected
to be generated by this operation;
- on 7 April 2005, DRDGOLD entered into a subscription agreement with Baker
Steel Capital Managers LLP on behalf of its clients (`the BSCM clients`),
pursuant to which 17 million new DRDGOLD shares were issued to the BSCM
clients on 24 May 2005, at an issue price of R5.50 per new DRDGOLD share,
for an aggregate consideration of R93.5 million (before expenses); and
- on 5 April 2005, DRDGOLD entered into an underwriting agreement with
certain underwriters (`the underwriters`), pursuant to which DRDGOLD has
raised R86.9 million (before expenses) through the conditional allotment to
the underwriters of 15 804 116 new DRDGOLD shares (`the claw-back shares`)
at a subscription price of R5.50 per share. The claw-back shares are to be
offered to DRDGOLD shareholders in terms of a claw-back offer, details of
which were contained in an announcement published on Thursday, 26 May 2005
on the Securities Exchange New Service of the JSE Securities Exchange South
Africa.
The board of directors of DRDGOLD is of the view that the liquidation of
Buffelsfontein, together with the receipt of cash from the abovementioned
sources and the cash generated by the group`s offshore assets should be
sufficient to meet DRDGOLD`s cash requirements in the short- to medium-term.
Johannesburg
2 June 2005
Sponsor
Standard Bank
Date: 02/06/2005 04:19:28 PM
Produced by the JSE SENS Department
