6-K 1 drd_acqui.htm Page 1
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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 October 2008
Commission File Number 0-28800
______________________
DRDGOLD Limited
EBSCO House 4
299 Pendoring Avenue
Blackheath
Randburg, South Africa, 2195
(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.
Form 20-F        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.
Yes           No

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









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Attached to the Registrant Form 6-K filing for the month of October 2008, incorporated
by reference herein:

Exhibit

99.1     Release dated October 3, 2008, entitled “ACQUISITION BY DRDGOLD SOUTH
AFRICAN OPERATIONS (PTY) LIMITED (“DRDGOLDSA”) OF AN ADDITIONAL
15% INTEREST IN THE ELSBURG GOLD MINING JOINT VENTURE.”


































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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: October 6, 2008
By: /s/ Themba Gwebu
Name: Themba Gwebu
Title:    Company Secretary
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Exhibit 99.1
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: DROO
("DRDGOLD" or "the company")

Acquisition by DRDGOLD South African Operations (Pty) Limited (“DRDGOLD SA”) of an additional
15% interest in the Elsburg Gold Mining Joint Venture

1.     Introduction

On 7 June 2007, DRDGOLD and Mintails Limited of Australia (“Mintails”) announced the formation of a
joint venture whereby DRDGOLD SA would contribute the Elsburg Tailings Complex (some 180 million
tonnes) and Mintails, through its subsidiary Mintails SA (Pty) Limited, would contribute one refurbished
CIL gold circuit at its Brakpan plant in order to commence the processing of tailings on the East Rand for the
recovery of gold (“the Elsburg Gold Mining Joint Venture”). (DRDGOLD SA is controlled as to 74% by
DRDGOLD and 26% by a black economic empowerment partner Khumo Gold SPV (Pty) Limited and an
employee trust.)

On 26 November 2007, DRDGOLD and Mintails announced a significant expansion of their joint activities
through the planned refurbishment of infrastructure at the Brakpan plant and an increase in available tailings
material for processing to approximately 1.7 billion tonnes, including the Elsburg Tailings Complex (“the
ERGO JV”).

Whilst the Elsburg Gold Mining Joint Venture was constituted through the structure of a 50:50 joint venture
agreement, the ERGO JV was consummated through the creation of a 50:50 joint venture entity namely Ergo
Mining (Pty) Limited. The ERGO JV plans to explore, evaluate and process up to 1.7 billion tonnes of
surface gold, uranium and sulphur bearing tailings from the East and Central Rand goldfields of South
Africa.

In terms of an agreement dated 29 September 2008 (“the agreement”), DRDGOLD SA has agreed to acquire
a further 15% interest in the Elsburg Gold Mining Joint Venture from Mintails (“the acquisition”) resulting
in DRDGOLD SA, which holds its interest through its subsidiary, East Rand Proprietary Mines Limited,
holding a 65% interest and Mintails a 35% interest in the joint venture.

In addition, Mintails has granted DRDGOLD SA a conditional option to acquire a further 11.4% interest in
the Elsburg Gold Mining Joint Venture (“the option”). The 50:50 interests of DRDGOLD SA and Mintails
in the ERGO JV are not affected by the acquisition and remain unchanged.

2.
Purchase consideration and effective date
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The purchase consideration in respect of the acquisition is R100 million (approximately AUD15.3 million),
which is to be re-invested by Mintails towards its outstanding capital requirements in the Elsburg Gold
Mining Joint Venture and the Ergo JV. The effective date of the acquisition will be the date upon which it
becomes unconditional.

The option is exercisable between 1 January 2009 and 15 January 2009 at an exercise price of R75.9 million.

3.
Rationale for and benefits of the acquisition

Although the Elsburg Gold Mining Joint Venture is scheduled to commission the Brakpan plant in early
October 2008, both joint ventures require significant capital investment as the projects continue. In terms of
the agreement, Mintails has agreed, through its subsidiaries, to apply the purchase consideration and any
proceeds from the exercise of the option towards the partial fulfilment of such capital requirements as
follows:
•    approximately R52.4 million for the capital required by the Elsburg Gold Mining Joint Venture (with
an additional R52.1 million should the option be exercised);
•    approximately R17.4 million for the refurbishment of the CIL gold circuit which is to be used by the
Elsburg Gold Mining Joint Venture; and
•    approximately R30.2 million for capital required by the ERGO JV (with an additional R23.8 million
should the option be exercised).

The acquisition therefore facilitates the advancement of both the Elsburg Gold Mining Joint Venture and the
ERGO JV as well as being consistent with DRDGOLD’s stated intention of focusing on its South African
gold operations and, in particular, its surface dump retreatment operations.

4.
Pro forma financial effects of the acquisition and the exercise of the option

The pro forma financial effects of the acquisition and the exercise of the option are presented below. Such
pro forma financial effects are the responsibility of the board of directors of DRDGOLD and are presented
for illustrative purposes only to provide information on how the acquisition and the exercise of the option
may have impacted on the reported financial information of the company if they had been implemented in
the year ended 30 June 2008. Because of their nature, the pro forma financial effects may not give a fair
indication of the company’s financial position at 30 June 2008 or its future earnings.

Before the
acquisition (i)


After the
acquisition (ii)
After the acquisition
and the exercise of
the option
(iii) Overall
%
change
Attributable earnings per
ordinary share for the year
ended 30 June 2008 (cents)
(iv)




265




263




261




(2)
Headline earnings per
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ordinary share for the year
ended 30 June 2008 (cents)
(iv)



30



28



27



(10)
Net asset value per ordinary
share at 30 June 2008
(cents) (v)


347


345


343


(1)
Net tangible asset value per
ordinary share at 30 June
2008 (cents) (v)



347



345



343



(1)
Weighted average number
of ordinary shares in issue
for the period



376 023 344



376 023 344



376 023 344



-
Number of ordinary shares
in issue at the end of the
period


376 571 588


376 571 588


376 571 588


-

Notes:
i. The figures in this column are extracted from the audited annual financial results of the company for the
year ended 30 June 2008.
ii. The figures in this column are based on the figures set out in the previous column, having adjusted for the
effects of the acquisition.
iii. The figures in this column are based on the figures set out in the previous column, having further
adjusted for the effects of the exercise of the option.
iv. For purposes of the pro forma attributable and headline earnings per ordinary share after the acquisition
and the exercise of the option it was assumed that:
- the acquisition and the exercise of the option were implemented with effect from 1 July 2007; and
- earnings were reduced by the interest which would have been earned on the purchase consideration at an
interest rate of 11% per annum, adjusted for tax at a tax rate of 28%.
v. For purposes of net asset value and net tangible asset value per ordinary share after the acquisition and the
exercise of the option, it was assumed that the acquisition and the exercise of the option were implemented
on 30 June 2008.

5.
Condition precedent

The acquisition is subject to the approval of the Competition Commission.

6.
JSE Limited requirements
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In terms of the JSE Limited Listings Requirements, the acquisition is classified as a Category 2 transaction.
This announcement is therefore for information purposes only and no further action is required by
DRDGOLD shareholders.

Randburg
3 October 2008

Sponsor
QuestCo Sponsors (Pty) Limited

Corporate adviser
QuestCo (Pty) Limited

Attorneys
Feinsteins
(Levy, Feinsteins & Associates Incorporated-Reg No 1995/001716/21)