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6-K 1 drd_activities.htm Page 1

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 6-K

REPORT OF A FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For January 2005

Commission File Number 0-28800

______________________

DRDGOLD Limited

45 Empire Road

Parktown

Johannesburg, South Africa, 2193

(Address of principal executive offices)

______________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

If ''Yes'' is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Form 20-F

Form 40-F

Yes

This report on Form 6-K shall be deemed to be incorporated by reference into the Registration Statement on Form F-3 (Registration No. 333-102800) and Registration Statement on Form F-4 (Registration No. 333-121386) of DRDGOLD Limited (the "Company") filed with the Securities and Exchange Commission on September 30, 2003 and December 17, 2004 respectively, and to be part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

Attached to the Registrant Form 6-K filing for the month of January 2005, incorporated by reference herein:

Exhibit

99.1

Release dated January 27, 2005, entitled "Report on Activities for the Second Quarter Ended 31 December 2004 of the 2005 Financial Year".

Some of the information in this report may contain projections or other forward looking statements regarding future events or other future financial performance. We wish to caution you that these forward-looking statements are not guarantees or predictions of future performance, and involve known or unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual events or results to differ materially from those expressed in the statements contained in this report. Factors that could cause or contribute to such differences are discussed in the sections entitled `Risk Factors' included in our annual report on Form 20-F/A for the fiscal year ended June 30, 2004, which we filed with the United States Securities and Exchange Commission on December 3, 2004 and is available on the SEC's website at www.sec.gov. We undertake no obligation to publicly update or release results of any of these projections or forward looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DRDGOLD LIMITED

Date: January 31, 2005

By: /s/ Andrea Townsend

Name: Andrea Townsend

Title: Company Secretary

Exhibit 99.1

REPORT ON ACTIVITIES FOR THE SECOND QUARTER ENDED 31 DECEMBER 2004 OF THE 2005 FINANCIAL YEAR

DRDGOLD LIMITED

(Formerly Durban Roodepoort Deep, Limited)

(Incorporated in the Republic of South Africa)

(Registration number 1895/000926/06)

ARBN number 086 277 616

JSE trading symbol: DRD

ISIN Code: ZAE 000058723

Issuer code: DUSM

NASDAQ trading symbol: DROOY

ASX trading symbol: DRD

("DRDGOLD")

REPORT ON ACTIVITIES FOR THE SECOND QUARTER ENDED 31 DECEMBER 2004

OF THE 2005 FINANCIAL YEAR

GROUP RESULTS (Unaudited)

KEY FEATURES

Outstanding safety record

Porgera Joint Venture achieves 1 million ounces of production

Attributable offshore production increases to 39% of total attributable

production

Blyvoor restructuring completed

ERPM extends life and receives state assistance

Emperor rights issue completed

KEY RESULTS SUMMARY

GROUP

Quarter

6 mths to

Quarter

Dec 2004

Sep 2004

Dec 2004

Dec 2003

Gold production (attributable)

223 297

220 524

443 821

237 307

6 947

6 859

13 806

7 381

Gold price received

US$/oz

433

403

420

396

R/kg

84 843

82 785

83 941

86 032

Capital expenditure

US$ m

6.5

6.0

12.5

8.1

ZAR m

39.0

38.9

77.9

55.4

STOCK

ISSUED CAPITAL

255 316 895 ordinary no par value shares

5 000 000 cumulative preference shares

Total ordinary no par value shares issued and committed: 283 103 158

STOCK TRADED

JSE

ASX

NASDAQ

FRANKFURT

Avg. volume for the quarter per day (000)

167

3 348

107

% of issued stock traded (annualised)

17%

342%

11%

Price - High

R14.76

A$3.10

US$2.25

Euro 1.79

- Low

R8.00

A$1.88

US$1.44

Euro 1.06

- Close

R8.20

A$1.88

US$1.54

Euro 1.06

SAFETY

During the quarter, Blyvoor and North West Operations both achieved one million

fatality-free shifts. This reflects continuing emphasis on programmes designed

to achieve behavioral change relating to safety in the workplace.

Blyvoor recently won the West Rand Mine Managers' safety competition for the

seventh consecutive year. The mine has achieved a 71% improvement in its Lost

Time Injury Frequency Rate (rate per million man hours) from 17.84 in 1999 to

5.19 currently.

South Africa's Department of Minerals and Energy (DME) recently released

figures indicating that DRDGOLD recorded the lowest fatality rate amongst South

African gold producers in 2004. While this is a pleasing development, it is

regrettable that Blyvoor and East Rand Proprietary Mines Limited (ERPM) both

recorded single fatalities during the quarter under review, indicating that

there is no place for complacency.

PRODUCTION

Attributable gold production for the Group increased marginally quarter on

quarter. This reflects a 13% increase in offshore attributable production, due

mainly to the inclusion of the 45.33% attributable production from Emperor

Mines Limited (Emperor) for the full quarter. Production from the South African

operations decreased by 5%, mainly the result of restructuring at

Blyvooruitzicht (Blyvoor) during the previous quarter. Production from the

North West Operations was slightly lower, reflecting the impact of various

infrastructural constraints. These are being addressed.

COSTS

Cash operating unit costs improved quarter on quarter, indicative both of lower

labour costs at Blyvoor post-restructuring and of overall lower unit costs from

offshore operations. In respect of the South African operations, further

interventions are anticipated in order to achieve cost levels that will deliver

acceptable margins from the South African operations at a planned gold price of

R82 000 per kilogram. Specific details of the unit costs will be released with

our results on or about 24 February 2005.

GOLD MARKET REVIEW

The average gold price received for the quarter was US$433 per ounce or R84 843

per kilogram compared to US$403 per ounce (R82 785 per kilogram) the previous

quarter.

Quarter on quarter, due to the continued strengthening of the Rand, the Rand

gold price increased by just 2% compared to the Dollar gold price increase of

7%. The average Rand/US$ exchange rate for the quarter was R6.06/US$1 compared

to R6.38/US$1 in the previous quarter.

While we are pleased that the gold price has remained well above the US$400 per

ounce mark, we are still of the view that the Rand's continued strength is

having a profoundly negative effect on the South African export industry. We

foresee continued Dollar gold price strength in the coming 12 months on the

back of global economic uncertainty but mainly as a result of a continued

weakness in the Dollar. It is to be hoped that lower real interest rates in

South Africa will bring the Dollar/Rand exchange rate to more acceptable levels

in the coming quarter.

CORPORATE DEVELOPMENTS

During the quarter, DRDGOLD arranged a borrowing facility with Investec Bank

for US$50 million to assist the company with its offshore growth strategy. So

far, some US$7 million has been drawn down in order for the company to exercise

its rights following a rights issue by Emperor.

AUSTRALASIAN OPERATIONS

Quarter

6 mnths to

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Gold production

(attributable)

87 751

77 387

165 138

67 903

2 731

2 407

5 138

2 112

Capital expenditure

US$ m

5.4

3.8

(42)

9.2

3.2

ZAR m

33.1

24.2

(37)

57.3

21.8

Overall higher production from the Australasian operations was mainly due to

good results from Porgera and, for the first time, a full quarter's

attributable ounces included from Emperor.

Porgera

Quarter

6 mnths to

Quarter

(20% of the Joint Venture)

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Ore milled

t'000

318

288

606

295

Yield

g/t

5.32

5.20

5.27

4.86

Gold produced

54 417

48 162

102 579

46 136

1 693

1 498

3 191

1 435

Increased ore milled and improvement in grade resulted in gold production being

13% higher than the previous quarter. The good results for the quarter

contributed to the Joint Venture's achievement of 1 million ounces of

production in the 2004 calendar year.

Tolukuma

Quarter

6 mnths to

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Ore milled

t'000

107

Yield

g/t

10.85

11.65

(7)

11.24

13.54

Gold produced

19 183

19 484

(2)

38 667

21 767

597

606

(2)

1 203

677

Tolukuma's gold production was 2% lower than the previous quarter, reflecting

grade fluctuations, the impact of which was partly offset by the milling of

additional tonnage.

Tolukuma employed the services of an external contractor during the quarter to

assist with the implementation and rollout of exploration projects.

Emperor*

Quarter

6 mnths to

Quarter

(45.33% attributable)

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Ore milled

t'000

105

Yield

g/t

6.58

7.97

(17)

7.09

Gold produced

14 151

9 741

23 892

441

303

744

* Emperor accounted for on an equity basis from 1 August 2004.

Increased production is due to DRDGOLD's attributable share being reported for

a full quarter.

SOUTH AFRICAN OPERATIONS

Quarter

6 mnths to

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Gold production

(attributable)

135 546

143 137

(5)

278 683

169 404

4 216

4 452

(5)

8 668

5 269

Capital expenditure

US$ m

1.1

2.2

3.3

5.0

ZAR m

5.9

14.7

20.6

33.5

The South African operations continue to suffer from the effects of the

strong Rand. As a consequence, they are monitored continuously and

remedial action is implemented promptly.

Blyvooruitzicht

Quarter

6 mnths to

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Area mined m

000

(33)

Development

258

720

(64)

978

603

Face length

1 268

1 755

(28)

1 512

2 128

Stoping width

107

109

108

107

Ore milled

Underground

t'000

129

180

(28)

309

193

Surface

t'000

768

577

1 345

430

Total

t'000

897

757

1 654

623

Yield

Underground

g/t

7.49

6.74

7.06

8.85

Surface

g/t

0.27

0.21

0.24

0.66

Total

g/t

1.31

1.76

(26)

1.52

3.20

Gold produced

Underground

31 057

39 031

(20)

70 088

54 914

966

1 214

(20)

2 180

1 708

Surface

6 623

3 858

10 481

9 131

206

120

326

284

Total

37 680

42 889

(12)

80 569

64 045

1 172

1 334

(12)

2 506

1 992

Capital expenditure

US$ m

(0.3)

0.2

250

(0.1)

4.4

ZAR m

(1.9)

1.5

227

(0.4)

29.3

The 12% decrease in gold production compared to the previous quarter is the

result of the operational review which began in the previous quarter. This

resulted in the revised mining plan. The reduction in mining activities at No's

4 and 6 shafts has resulted in more cost-effective mining in this quarter. As a

result of the revised mining plan, the yield from underground improved by 11%

from 6.74 grams per tonne in the previous quarter to 7.49 grams per tonne in

the quarter under review.

While the underground operations are stabilising, the consolidation of mining

areas has increased the mine's exposure to seismicity, resulting in loss of

production. A strategy to increase mining activity to the west of No 5 shaft

has been implemented in order to reduce seismic risk. Grade in this area is

slightly lower than that in the eastern portion of No 5 shaft.

Gold produced from surface operations increased from 3 858 ounces (120

kilograms) to 6 623 ounces (206 kilograms) as a result of higher production

from the slimes dam project. Tonnage increased by 33% quarter on quarter. The

project is beginning to deliver a return on investment but recoveries are not

what were anticipated.

The sale of a sag mill resulted in a net capital expenditure recoupment of

US$0.3 million (R1.9 million).

North West (Hartebeestfontein and Buffelsfontein mines)

Quarter

6 mnths to

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Area mined m

000

(12)

173

Development

10 442

8 340

18 782

11 082

Face length

2 871

3 003

(4)

2 937

2 845

Stoping width

121

120

(1)

120

118

Ore milled

Underground

t'000

344

396

(13)

740

383

Surface

t'000

394

170

132

564

662

Total

t'000

738

566

1 304

1 045

Yield

Underground

g/t

5.87

5.54

5.70

5.72

Surface

g/t

0.85

1.09

(22)

0.92

0.53

Total

g/t

3.19

4.21

(24)

3.63

2.43

background image

Gold produced

Underground

64 944

70 572

(8)

135 516

70 411

2 020

2 195

(8)

4 215

2 190

Surface

10 770

5 980

16 750

11 221

335

186

521

349

Total

75 714

76 552

(1)

152 266

81 632

2 355

2 381

(1)

4 736

2 539

Capital expenditure US$ m

1.3

2.1

3.4

0.6

ZAR m

7.9

13.1

21.0

4.2

Production was down slightly quarter on quarter. Underground production decreased by 8%, whilst surface production increased by 80% quarter on quarter. Underground production has declined as the result of rationalisation of non- profitable mining areas. Face length mined has been negatively affected by infrastructural constraints. These are being addressed.

Capital expenditure has been limited to what is essential to sustain the opera- tion.

Notwithstanding some positive indicators in respect of underground yield in the quarter, continuing poor results into December have necessitated the placement of the North West Operations under operational review.

Crown (40% attributable)*

6 mnths

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Ore milled

t'000

894

913

(2)

1 807

1 024

Yield

g/t

0.40

0.42

(5)

0.41

Gold produced

11 613

12 282

(5)

23 895

13 631

361

382

(5)

743

424

* Crown accounted for on an equity basis.

Production at Crown was down 5% due both to tonnage shortfall at the Knights and Crown plants and a decrease in grade. Residue pipeline failures during the quarter also impacted negatively on gold production.

ERPM (40% attributable)*

6 mnths

Quarter

Dec 2004

Sep 2004

Change

Dec 2004

Dec 2003

Area mined m2 #

000

(36)

Development #

108

182

956

Face length #

683

770

(11)

727

1 383

Stoping width #

133

128

(4)

130

122

Ore milled

Underground

t'000

(26)

Surface

t'000

210

152

362

Total

t'000

245

199

444

Yield

background image

Underground

g/t

7.27

6.70

6.92

5.77

Surface

g/t

0.36

0.26

0.33

Total

g/t

1.34

1.79

(25)

1.54

5.77

Gold produced

Underground

8 032

10 127

(21)

18 159

10 096

250

315

(21)

565

314

Surface

2 507

1 287

3 794

118

Total

10 539

11 414

(8)

21 953

10 096

328

355

(8)

683

314

* ERPM accounted for on an equity basis # Represents total mine

Gold production from underground was down 21% as a result of wage review- relat- ed work stoppages in December, as well as constraints placed on the operation as a result of the loss of a second outlet facility at the Far East Vertical (FEV) shaft.

Production from the Cason dump reclamation increased by 95% as a result both of high tonnage and improved sand face grade.

During the quarter under review, the DME granted ERPM a pumping subsidy of R1.6 million a month until the end of February 2005, back-dated to April 2004. In addition, the DME has approved a grant of R7 million for the first phase of a project to insert plugs to contain underground water ingress. The full three- phase, 44-month plugging project - expected to cost some R29 million - is intended to allow mining from ERPM's FEV shaft, hoisting from its South East Vertical shaft and pumping from its South West Vertical Shaft to continue beyond the planned closure date of March 2005. Under certain gold price assumptions, these developments create potential for mining to continue for eight years, pre- serving some 2 000 jobs.

EXPLORATION - TOLUKUMA ML104 Exploration Zine Resource - Infill drilling

Infill drilling of the Zine structure continues with a total of six holes com- pleted during the quarter for a total of 558.9 metres.

Tabulated below are some of the results. Hole No

From

Interval

True

Depth(m)

(m)

width(m)

(g/t)

ZN075

61.6

64.0

2.6

1.74

5.73(incl 0.39m

@ 18.13 g/t)

ZN076

77.4

78.2

0.8

<0.10 g/t

ZN077

103.1

104.1

1.0

0.77

3.38(incl 0.49m

@ 4.59 g/t)

ZN078

82.8

83.3

0.5

0.4

3.55

ZN080

75.3

76.3

1.0

0.6

14.8

The deposit appears to be characterised by a high nugget effect with erratic grade distribution and large grade range. Current indications are that gold is mostly localised at flexure points or bends along a structure in a dilatational setting and at the intersection of fault planes.

Underground LMA90 drilling

background image

The LMA90 rig continued drilling the southern extension of Gulbadi and Zine structures. During the quarter, a total of 2 568.8 metres was drilled from eleven holes.

Assay results received to date with grades >1.0 g/t Au are presented below. Hole No

From

Interval

True

Depth(m)

(m)

width(m)

(g/t)

TU022

127.5

129.7

2.2

1.7

3.00

TU025

125.4

129.6

4.2

3.0

22.1(incl 1.6m

@ 31.0 g/t)

TU027

160.4

164.8

4.4

4.1

1.2 (incl 1.1m

@ 2.2 g/t)

TU028

149.3

153.5

4.2

2.5

2.9 (0.8m

@ 4.0 g/t & 0.6m

@ 4.0 g/t)

TU029

277.8

279.2

1.4

5.3 (incl 0.5m

@ 13.4 g/t)

TU030

135.0

136.9

1.9

1.5

4.2

TU030

185.6

189.9

4.3

2.5

9.1(incl 1.2m

@17.9 g/t)

TU031

102.0

103.5

1.5

1.3

3.4

TU032

142.6

145.0

2.4

1.4

6.6(incl 0.3m

@16.7 g/t)

TU032

225.0

230.6

5.6

3.6

4.4(incl 0.9m

@10.80 g/t)

Banana Vein

Significant drilling results are as follows: Hole No

From

Weighted Average Au

(m)

g/t

DG001

64.6

65.1

0.5m @ 16.8 g/t

DG002

146.7

149.2

0.5m @ 5.0 g/t incl 0.2m @ 13.1 g/t

DG002

152.1

155.1

0.7m @ 7.2 g/t incl 0.3m @ 11.1 g/t

Lock/Dagakuma Vein exploration

A detailed geological review is currently in progress on all trench and drill hole data for the Lock/Dagakuma project area.

120/Zine North Project

Trenching, mapping and sampling have been completed along the strike length of the 120/Zine structure over a total length of 180 metres.

A total of three holes were completed to date.

Significant intercepts are tabulated as follows: Hole No

True Thickness

Comments

(m)

g/t

120/ZN_001

5.67

6.05

Incl 1.2m @ 14.3 g/t & 1.4m

@ 7.53 g/t Au

120/ZN_002

5.0

5.00

Incl 1.0m @ 9.79 g/t

BOARD CHANGES

DRDGOLD is pleased to announce the appointment of Doug Campbell as Chief Financial Officer and as an executive director of the company. Doug has a wealth

background image

of financial experience, a significant portion of which has been acquired in the South African mining sector.

MARK WELLESLEY-WOODIAN MURRAY
Executive Chairman Chief Executive Officer
27 January 2005

INVESTOR INFORMATION

DIRECTORS - (*British)(**Australian)(***American)

Executives:
MM Wellesley-Wood (Executive Chairman)*
IL Murray (Chief Executive Officer)
DN Campbell (Chief Financial Officer)

Non-executives:
MP Ncholo ; J Turk ***

Independent non-executives:
D Blackmur** ; GC Campbell ; RP Hume

Alternate:
A Lubbe

Group Company Secretary:
AI Townsend

INVESTOR RELATIONS
For further information, contact Ilja Graulich at:
Tel: (+27-11) 381-7800, Fax: (+27-11) 482-4641,
e-mail: ilja.graulich @za. drdgold.com,
website: http:// www. drdgold.com
45 Empire Road,
Parktown,
South Africa.

PO Box 390,
Maraisburg, 1700,
South Africa.