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 August 2010

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

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

Attached to the Registrant Form 6-K filing for the month of August 2010, incorporated
by reference herein:

Exhibit

99.1

Release dated August 26, 2010, entitled “REPORT TO SHAREHOLDERS FOR THE
QUARTER AND YEAR ENDED 30 JUNE 2010”.

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: August 26, 2010

By: /s/ Themba Gwebu

Name: Themba Gwebu

Title: Company Secretary

Report to shareholders for the quarter and

year ended 30 June 2010

(Incorporated in the Republic of South Africa)

Registration No.1895/000926/06

JSE share code: DRD

ISIN: ZAE 000058723

Issuer code: DUSM

NASDAQ trading symbol: DROOY ("DRDGOLD" or the “Group")

KEY FEATURES FOR THE QUARTER

Dividend declared of 5 cents per share
Operating profit of R91.5 million for the quarter
Headline earnings increased to 23.9 cents per share for the quarter
No fatalities; continued drive for safety improvement
Ergo: higher volumes, lower costs improve margin
Crown/Ergo pipeline goes ahead
Blyvoor trending towards stability
Zimbabwe: 80% increase in exploration area

GROUP RESULTS

Review of operations

Quarter

12 months to

Group

Jun 2010

Mar 2010

Change

Jun 2009

30 Jun 2010

30 Jun 2009

Change

Gold production

61 632

62 404

(1)

57 775

241 194

247 690

(3)

1 917

1 941

(1)

1 797

7 502

7 704

(3)

Gold production sold

57 293

62 404

(8)

55 234

239 427

245 149

(2)

1 782

1 941

(8)

1 718

7 447

7 625

(2)

Cash operating costs

US$ per oz

1 004

913

(10)

855

953

730

(30)

ZAR per kg

244 331

221 400

(10)

235 499

233 112

212 228

(10)

Gold price received

US$ per oz

1 204

1 113

900

1 092

861

ZAR per kg

292 769

269 980

244 927

267 292

250 589

Capital expenditure

US$ million

8.9

4.2

(112)

13.7

25.5

38.4

ZAR million

67.5

31.3

(116)

117.3

193.9

345.1

STOCK

Issued capital

384 884 379 ordinary no par value shares

5 000 000 cumulative preference shares

Total ordinary no par value shares issued and committed:
404 378 780

Stock traded

JSE

NASDAQ*

Average volume for the quarter per day ('000)

481

1 230

% of issued stock traded (annualised)

Price

• High

R4.06

$0.543

• Low

R3.30

$0.407

• Close

R3.41

$0.435

* This data represents per share data and not ADS data - one ADS reflects ten ordinary shares

Overview

Dear shareholder

Safety, health and environment

It is very pleasing to report that the Group recorded a quarter
free of fatalities. Performance in respect of other key safety
measures was varied. Blyvooruitzicht Gold Mining Company
Limited (“Blyvoor”) recorded a reduction in its Dressing Station
Injury Frequency Rate (“DSIFR”) but deteriorations in its
Disabling Injury Frequency Rate (“DIFR”) and Reportable Injury
Frequency Rate (“RIFR”). While Crown Gold Recoveries (Pty)
Limited (“Crown”) RIFR improved, its DSIFR and RIFR deteriorated.

Various operation-specific, mini safety campaigns and audits are
continuing throughout the Group’s operations.

At Blyvoor, muffling of drilling machines and silencing of fans
have been completed. The mine’s first ‘fogger’ system for
improved dust control at underground tips has been installed on
38 level, and additional installations have been scheduled.

During the quarter, the Group spent a total of R9.6 million on
environmental management issues.

Public debate on the rising levels of acidic water in underground
cavities below Johannesburg escalated in recent weeks.
DRDGOLD has for some time now played a proactive role in
finding a permanent and self-sustainable solution for this issue.
We have posted on our website (www.drdgold.co.za) a clear
summary on the position we hold and our continued role in
the matter.

Production

Total gold production for the quarter was 1% lower at 61 632oz,
reflecting lower total gold production from Blyvoor (see below).
Gold sold was 8% lower at 57 293oz, due to 4 340oz of gold
produced during the quarter but not yet sold by Rand Refinery
Limited at quarter-end.

Total gold production for the year was 3% lower at 241 194oz.
This was as a consequence of lower total gold production for
the year from Blyvoor, reflecting the continuing volume recovery
from the seismic damage caused to high-grade underground

production areas towards the end of the previous financial year
and the wage strike which lasted almost a month.

Reserves and resources

Attributable mineral reserves increased by 21% to 7.3Moz in
FY2010. This increase was as a result of the higher gold price
used in the mineral reserve calculation together with the
expected increase in Crown’s deposition capacity as a
consequence of the construction of the Crown/Ergo pipeline
linking Crown to Ergo’s Brakpan deposition site. Attributable
mineral resources increased by 6% to 60.0Moz.

The FY2010 reserve and resource information was prepared in
compliance with the SAMREC Code by DRDGOLD’s designated
competent persons, Mr R. Botha and Mr V. Labuschagne, who are
both employees of DRDGOLD.

Financial

Total revenue for the quarter was less than 1% lower at
R521.7 million. An 8% increase in the average Rand gold price
received to R292 769/kg offset the impact of slightly lower gold
production. After accounting for total cash operating costs, 9%
higher at R468.4 million due mainly to the increase in power
costs (see below), total operating profit was 6% lower at
R91.5 million. On-going de-risking of the business during the
quarter saw the transfer of environmental rehabilitation
liabilities in respect of mining rights over the old Durban
Roodepoort Deep and West Wits mining licence areas which
were disposed of. This reduced the provision for environmental
rehabilitation and a consequent credit of R110.9 million
increased gross profit by more than 300% to R144.2 million.

The voluntary liquidation of offshore subsidiaries, which were
previously the holding companies for various offshore operations,
resulted in the foreign translation reserve accumulated over the
life of these subsidiaries to be realised as part of the profit of
R158.2 million on the disposal of subsidiaries and joint venture.
This, together with a reduction in post-retirement employee
provisions reported under administration and other general
costs, resulted in profit before tax of R290.9 million. After
accounting for a deferred tax expense of R55.4 million, net profit
after tax was R247.9 million compared with the previous
quarter’s R12.3 million.

Total revenue for the year was 4% higher than in the previous
year at R1 990.5 million due to a 7% increase in the average

Forward-looking statements

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 sustained 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 on 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. Any forward-looking statement included in this report have not been reviewed and reported
on by DRDGOLD’s auditors.

Rand gold price received for the year to R267 292/kg. Total
operating profit, however, was 4% lower at R271.6 million due to
a 7% increase in total cash operating costs to R1 748.8 million.
After accounting for higher depreciation, an environmental
rehabilitation provision credit and lower retrenchment costs,
gross profit from operating activities was 15% higher at
R148.7 million. Lower administration expenses and general costs
and the afore-mentioned profit on the sale of subsidiaries and
joint venture contributed to a 157% increase in profit before tax
to R211.6 million. Net profit after tax was 84% higher at
R203.3 million.

Exploration and prospecting

In Zimbabwe, the number of claims at Leny has been increased
from 16 (covering 253ha) to 46 (covering 454ha). A magnetic
survey has been completed in a 50mx50m grid and an induced
polarisation survey is currently under way across the entire area
of the claims.

Anomalies from these surveys will be used to plan a drilling
programme. So far, three target areas have been identified and a
drill rig is on site to start the first phase of core drilling.

Some plant and equipment for gold recovery during the
exploration phase has been delivered to site and regulatory
approval of a site of works plan, an environmental plan and
water rights are pending. To date, we have spent R5.2 million on
this project.

At Blyvoor, exploration and cover drilling during the quarter
under review amounted to 743m.

At Crown, follow-up drilling was done at the 4L2 dump
(63 holes) and the 3L42 dump (24 holes). Results confirmed
previous grade estimates. Other drilling completed was at Top
Star (for the verification of the embankments) and in the
southern portion of the 3A2 dump (to confirm grades).

At Ergo, 19 holes were drilled and face sampling at 50m intervals
completed on the Elsburg Tailings Complex’s 4A48 dump. Results
from some 580 samples confirmed the previous valuation,
indicating results higher than those achieved in plant sampling.

Corporate activity

During the year, agreement was reached with Mintails SA (Pty)
Limited (“Mintails”)for the Group to acquire Mintails’ 50% stake
in Ergo Mining (Pty) Limited (also known as the Ergo Joint
Venture) for R82 million (R62 million in cash and the balance in
shares in the Witfontein tailings deposition site on the Far West
Rand valued at R20 million).

Detailed operational review

Blyvoor

Total gold production was 7% lower at 26 685oz, reflecting a 2%
decrease in underground gold production and a 23% decrease in
surface gold production.

Underground throughput rose 11% to 185 000t while the
average underground yield declined 12% to 3.54g/t, both a
consequence of higher volumes mined at the lower-grade No 4

and 6 shafts. Volume recovery at the higher grade No 5 Shaft,
damaged by seismic activity in the previous financial year,
continues.

Lower surface gold production resulted from a 30% decline in
the average surface yield to 0.23g/t, reflecting continued
reclamation from the lower-grade No 4 Dam. Surface
throughput rose by 8% to 755 000t.

Total cash operating unit costs increased by 24% to R293 034/kg
due both to lower gold production and to a R14.1 million
increase in power costs, R7.1 million of which was attributable to
Eskom’s 25% price increase and the balance to its higher winter
tariff. Underground cash operating costs were 19% higher at
R333 986/kg and surface cash operating costs 39% higher at
R140 858/kg.

Operating profit was down substantially from the previous
quarter’s R29.3 million at R4.6 million due to lower gold
production and to higher costs.

Capital expenditure, 13% higher at R19.6 million, was directed
towards continuing opening up and development, and towards
completion of an upgrade to the refrigeration plant to
accommodate the extension of the underground mining
footprint westward.

Crown

The Cason surface retreatment operation of East Rand
Proprietary Limited (“ERPM”) has been incorporated, for reporting
purposes, into Crown with effect from the start of the quarter
under review. For comparative purposes, the results of the two
entities for the previous quarter have been combined.

Total gold production for the quarter was 1% higher at 24 081oz
due to a 6% increase in total throughput to 1 760 000t. The
average yield was 4% lower at 0.43g/t.

Cash operating unit costs were 3% higher at R211 216/kg,
reflecting the impact of Eskom’s 25% price increase and higher
winter tariff. Operating profit increased by 9%, due mainly to a
higher average Rand gold price received.

Capital expenditure, significantly higher at R34 million, was
directed towards long-lead items required for the new, 50km
pipeline linking Crown’s Crown and City Deep plants with Ergo.
Construction is under way and scheduled for completion by
August 2011 (see below).

Ergo

Gold production rose by 11% to 10 866oz, reflecting a 4%
increase in throughput to 3 269 000t. The average yield was
maintained at 0.10g/t.

Cash operating unit costs were 10% lower at R198 118/kg due
to higher gold production. Operating profit was 85% higher, a
consequence both of the increase in gold production and in the
average Rand gold price received.

Capital expenditure, 13% higher at R11.4 million, covered
ongoing rehabilitation work at the Brakpan tailings deposition
site and final infrastructure required to increase maximum
throughput from the Elsburg Tailings Complex to 1.2Mtpm.

DRDGOLD LIMITED

Shareholder Report 2010

Dividend

The directors have declared a final dividend of 5 South African
cents per ordinary share for the year ended 30 June 2010, which
amounts to a total final dividend payout of R19.2 million. The
dividend is declared in the currency of the Republic of South Africa.

In compliance with the requirements of Strate, given the
company’s primary listing on the JSE Limited, the salient dates
for payment of the dividend are as follow:

2010

Last date to trade ordinary shares
(cum dividend)

Friday, 1 October

Ordinary shares trade (ex dividend)

Monday, 4 October

Record date

Friday, 8 October

Payment date

Monday, 11 October

On payment date, dividends due to holders of certificated
securities on the South African share register will either be
electronically transferred to the shareholders’ bank accounts or,
in the absence of suitable mandates, dividend cheques will be
posted to such shareholders.

Dividends in respect of dematerialised shareholdings will be
credited to shareholders’ accounts with the relevant CSDP or broker.

To comply with the further requirements of Strate, between
Monday, 4 October 2010 and Friday, 8 October 2010, both days
inclusive, no transfers between the South African and any other
share register will be permitted and no ordinary shares pertaining
to the South African share register may be dematerialised or
rematerialised.

The currency conversion date for the Australian and United
Kingdom registers will be Monday, 11 October 2010.

To holders of American Depository Shares

Each American Depository Share (“ADS”) represents ten
ordinary shares

2010

ADSs trade (ex dividend) on Nasdaq

Wednesday, 6 October

Record date

Friday, 8 October

Approximate date for currency conversion

Friday, 15 October

Approximate payment date of dividend

Monday, 25 October

Assuming an exchange rate of R7.33/$1, the dividend payable on
an ADS is equivalent to 6.82 US cents. However, the actual rate
of payment will depend on the exchange rate on the date for
currency conversion.

Looking ahead

Blyvoor underground is now, for the first time in years,
consistently hitting 70 000 underground reef tonnes per month.
Our focus will be on further improving key sustainability drivers
– enhanced optionality through increased opening and
development and creating more-face-length, maintaining
current trending in employee efficiency (per capita output) and
managing the ore mix carefully so as to reduce our reliance on
high grade areas.

The Crown/Ergo pipeline now under construction, by providing
two of Crown’s plants with access to Ergo’s Brakpan deposition
site, will allow Crown to restore its maximum deposition
capacity to 600 000tpm. Crown’s deposition capacity was
reduced to 400 000tpm in the previous financial year due to
capacity constraints at its Nasrec deposition site. Restored
deposition capacity provides the operation with the opportunity
to bring to account potential new resources on the Western and
Central Witwatersrand, thus increasing production and extending
its life.

At Ergo, in the short to medium term at least, the plan is to
maintain steady volumes and beat cost targets. With these
delivering healthy margins, we can look longer term to
improvements in recovered grade from on-going pilot plant work
and other research and development initiatives.

In Zimbabwe, where DRDGOLD is a 50% partner with
Zimbabwe-owned Chizim Investments (Pvt) Limited in a new
gold exploration and mining company to be known as Chizim
Gold (Pvt) Limited, exploration will continue at current levels of
investment.

Niël Pretorius
Chief Executive Officer
26 August 2010

Condensed statement of comprehensive income

Quarter

12 months to

Jun 2010

Mar 2010

Jun 2009

30 Jun 2010

30 Jun 2009

Unaudited

Reviewed

Gold and silver revenue

521.7

524.0

420.7

1 990.5

1 910.7

Net operating costs

(430.2)

(427.1)

(419.4)

(1 718.9)

(1 628.0)

Cash operating costs

(468.4)

(429.7)

(423.2)

(1 748.8)

(1 635.0)

Movement in gold in process

38.2

2.6

3.8

29.9

7.0

Operating profit

91.5

96.9

1.3

271.6

282.7

Depreciation

(57.7)

(45.2)

(41.6)

(190.8)

(99.2)

Movement in provision for environmental rehabilitation

110.9

(14.6)

(6.2)

88.0

(19.5)

Retrenchment costs

(0.5)

(0.3)

(1.4)

(20.1)

(34.9)

Gross profit/(loss) from operating activities

144.2

36.8

(47.9)

148.7

129.1

Impairments

(6.2)

–

(19.4)

(6.2)

(75.1)

Administration expenses and general costs

(12.0)

(34.1)

(56.5)

(116.6)

(138.3)

Share-based payments

(0.6)

(1.2)

(1.7)

(4.1)

(7.9)

Net gain/(loss) on financial liabilities measured at
amortised cost – note1

6.2

–

(8.8)

6.2

44.0

Recognition of goodwill on purchase of subsidiary

–

53.0

–

53.0

Profit on disposal of assets

0.9

11.1

–

13.7

8.3

Profit on disposal of subsidiaries and joint venture – note 2

158.2

–

158.2

–

Finance income

7.4

5.5

3.3

27.4

82.5

Finance expenses

(7.2)

(0.5)

(3.2)

(15.7)

(13.3)

Profit/(loss) before taxation

290.9

17.6

(81.2)

211.6

82.3

Income tax

12.4

(8.2)

3.2

(10.3)

(46.2)

Deferred tax

(55.4)

2.9

120.6

2.0

74.6

Profit for the period

247.9

12.3

42.6

203.3

110.7

Attributable to:

Equity owners of the parent

240.9

9.9

37.2

207.8

129.1

Non-controlling interest

7.0

2.4

5.4

(4.5)

(18.4)

247.9

12.3

42.6

203.3

110.7

Other comprehensive income
Foreign exchange translation – note 2

(156.8)

–

10.0

(156.5)

(0.6)

Purchase of subsidiaries and other

–

192.9

–

192.9

Market-to-market of available-for-sale investments

5.2

–

(1.1)

5.2

(1.1)

Total comprehensive income for the period

96.3

12.3

244.4

52.0

301.9

Attributable to:

Equity owners of the parent

88.0

9.9

179.3

55.2

260.6

Non-controlling interest

8.3

2.4

65.1

(3.2)

41.3

96.3

12.3

244.4

52.0

301.9

Reconciliation of headline earnings/(loss)
Profit

240.9

9.9

37.2

207.8

129.1

Adjusted for:
– Impairments

6.2

–

19.4

6.2

75.1

– Goodwill on purchase of subsidiary

–

(53.0)

–

(53.0)

– Profit on disposal of assets

(0.9)

(11.1)

–

(13.7)

(8.3)

– Profit on disposal of subsidiaries and joint venture

(158.2)

–

(158.2)

–

– Non-controlling interest in headline earnings adjustment

3.5

2.8

(4.4)

6.8

(15.5)

Headline earnings/(loss)

91.5

1.6

(0.8)

48.9

127.4

Headline earnings/(loss) per share-cents

23.9

0.4

(0.2)

12.9

33.8

Basic earnings per share-cents

63.0

2.6

9.8

54.6

34.3

Diluted headline earnings/(loss) per share-cents

23.9

0.4

(0.2)

12.9

33.8

Diluted basic earnings per share-cents

63.0

2.6

9.8

54.6

34.3

Calculated on the weighted average ordinary shares issued of: 382 569 557

380 987 431

377 733 911

380 407 239

376 678 974

Adjusted headline earnings per share-cents

22.3

0.4

2.1

11.2

22.1

(Adjusted for the net gain/(loss) on financial liabilities
measured at amortised cost – note 1)

Note – From time to time DRDGOLD may publicly disclose certain "Non-GAAP" financial measures in the course of its financial presentation release, earnings conference calls
and otherwise.

The condensed consolidated financial statements below have been prepared in accordance with International Financial Reporting Standards
(“IFRSs”), AC 500 standards as issued by the Accounting Practices Board, Schedule 4 of the Companies Act and the requirements of
International Accounting Standard 34, which is consistent with the accounting policies used in the audited annual financial statements for
the year ended 30 June 2009.

KPMG’s unmodified review report on condensed consolidated IFRS financial statements contained in this announcement; is available for
inspection at the Group’s registered office.

DRDGOLD LIMITED

Shareholder Report 2010

Condensed statement of financial position

As at

30 Jun 2010

31 Mar 2010

30 Jun 2009

Reviewed

Unaudited

Reviewed

Assets
Property, plant and equipment – note 3

1 863.2

1 730.7

1 737.5

Non-current investments and other assets

48.1

43.0

Environmental rehabilitation trust funds

126.1

141.4

129.7

Deferred tax asset

140.7

200.3

165.1

Current assets

409.4

464.3

550.5

Inventories

132.6

98.0

93.9

Trade and other receivables

73.6

150.0

88.0

Cash and cash equivalents

188.2

201.3

353.6

Assets classified as held for sale

15.0

Total assets

2 587.5

2 579.7

2 625.8

Equity and liabilities
Equity

1 649.9

1 539.7

1 584.0

Equity of the owners of the parent

1 550.6

1 448.7

1 481.5

Non-controlling interest

99.3

91.0

102.5

Loans and borrowings

59.0

65.1

Post-retirement and other employee benefits – note 4

13.4

43.4

43.6

Provision for environmental rehabilitation – note 5

420.6

440.4

412.5

Deferred tax liability

168.1

172.4

194.6

Current liabilities

276.5

318.7

326.0

Trade and other payables

276.5

268.7

323.9

Loans and borrowings

–

50.0

2.1

Total equity and liabilities

2 587.5

2 579.7

2 625.8

Condensed statement of changes in equity

Quarter

Quarter 12 months to

12 months to

Jun 2010

Mar 2010

Jun 2009

30 Jun 2010

30 Jun 2009

Unaudited

Reviewed

Balance at the beginning of the period

1 539.7

1 525.9

1 335.7

1 584.0

1 305.5

Share capital issued

13.3

0.3

2.2

28.8

6.3

– for acquisition finance and cash

14.3

–

2.2

29.8

–

– for share options exercised

–

0.2

–

1.1

6.7

– for costs

(1.0)

0.1

–

(2.1)

(0.4)

Increase in share-based payment reserve

0.6

1.2

1.7

4.1

7.9

Profit attributable to equity owners of the parent

240.9

9.9

37.2

207.8

129.1

Profit/(loss) attributable to non-controlling interest

7.0

2.4

5.4

(4.5)

(18.4)

Dividends paid

–

(19.0)

(37.6)

Other comprehensive income

(151.6)

–

201.8

(151.3)

191.2

Balance as at the end of the period

1 649.9

1 539.7

1 584.0

1 649.9

1 584.0

Condensed statement of cash flows

Quarter

Quarter 12 months to

12 months to

Jun 2010

Mar 2010

Jun 2009

30 Jun 2010

30 Jun 2009

Unaudited

Reviewed

Net cash inflow from operations

154.1

8.3

39.5

53.6

208.4

Net cash outflow from investing activities

(111.1)

(20.2)

(377.3)

(226.4)

(593.3)

Net cash (out)/inflow from financing activities

(55.2)

50.1

156.0

7.8

(85.8)

(Decrease)/increase in cash and cash equivalents

(12.2)

38.2

(181.8)

(165.0)

(470.7)

Translation adjustment

(0.9)

0.3

(10.3)

(0.4)

(21.8)

Opening cash and cash equivalents

201.3

162.8

545.7

353.6

846.1

Closing cash and cash equivalents

188.2

201.3

353.6

188.2

353.6

Reconciliation of net cash inflow from operations
Profit/(loss) before taxation

290.9

17.6

(81.2)

211.6

82.3

Adjusted for:
Movement in gold in process

(38.2)

(2.6)

(3.8)

(29.9)

(7.0)

Depreciation and impairment

63.9

45.2

61.0

197.0

174.3

Movement in provision for environmental rehabilitation

(110.9)

14.6

6.2

(88.0)

19.5

Share-based payments

0.6

1.2

1.7

4.1

7.9

Net (gain)/loss on financial liabilities measured at amortised cost

(6.2)

–

8.8

(6.2)

(44.0)

Profit on disposal of assets

(0.9)

(11.1)

–

(13.7)

(8.3)

Recognition of goodwill on purchase of subsidiary

–

(53.0)

–

(53.0)

Profit on disposal of subsidiaries and joint venture

(158.2)

–

(158.2)

–

Finance expense and unwinding of provisions

4.8

0.4

3.2

10.8

9.8

Growth in Environmental Trust Funds

(2.4)

(2.8)

(9.5)

(12.9)

Other non-cash items

(26.0)

(4.8)

38.5

(25.3)

42.7

Taxation paid

(0.5)

–

(20.2)

(12.6)

(46.9)

Working capital changes

137.2

(49.8)

81.1

(26.5)

44.0

Net cash inflow from operations

154.1

8.3

39.5

53.6

208.4

Notes to financial statements

1. Net gain/(loss) on financial liabilities measured at amortised cost
The net gain/(loss) on financial liabilities measured at amortised cost in the statement of comprehensive income comprises the expected cash flows of the preference shares
issued to Khumo Gold SPV (Pty) Ltd and the DRDSA Empowerment Trust. These preference shares are re-assessed on a quarterly basis and based on the expected future cash
flows from DRDGOLD South African Operations (Pty) Limited.

2. Profit on disposal of subsidiaries and joint venture
All DRDGOLD’s foreign subsidiaries, which were holding companies of DRDGOLD’s foreign operations, have been voluntarily placed into liquidation as at 30 June 2010.
A foreign currency translation reserve has accumulated over the life of these foreign subsidiaries. The voluntary liquidation constitutes a disposal and therefore, any
accumulated foreign currency translation reserves have been realised in profit and loss.

Also included in the amount of R158.2 million is a R1.5 million profit realised on the disposal of DRDGOLD’s 50% interest in Witfontein Mining (Pty) Limited.

3. Asset acquisition of subsidiary
On 21 January 2010 DRDGOLD signed an agreement to acquire, subject to certain suspensive conditions including Competition Commission approval, Mintails' remaining 50%
interest in Ergo for a total consideration of R82.1 million; R62.1 million to be settled in cash and the balance in shares in the Witfontein tailings deposition site on the Far West
Rand valued at R20 million. On 15 April 2010 Competition Commission approval was obtained and Ergo has been consolidated effective 1 May 2010. The transaction has been
treated for accounting purposes as the acquisition of an asset, or group of assets.

4. Post-retirement and other employee benefits
As a result of a project initiated during the year to optimise the synergies of our surface retreatment operations and the resulting possibility of a settlement of existing post
retirement medical benefits, we have revised some of the assumptions used in the calculation of this provision. The resulting decrease in the provision for post retirement medical
benefits of approximately R30 million has been treated, for accounting purposes, as a change in estimate and is included under administration expenses and general costs.

5. Provision for environmental rehabilitation
The provision for environmental rehabilitation has decreased mainly as a result of the disposal of the old Durban Roodepoort Deep and West Wits mining licenses. The
environmental rehabilitation liability transfers along with these mining licenses.

Key operating and financial results (unaudited)

Total

Metric/ZAR

Blyvoor

Crown*

Ergo**

Operations

Ore milled (t'000)

Underground

Jun 2010 Qtr

185

–

185

Mar 2010 Qtr

166

–

166

Jun 2010 Ytd

633

–

633

Surface

Jun 2010 Qtr

755

1 760

3 269

5 784

Mar 2010 Qtr

701

1 656

3 150

5 507

Jun 2010 Ytd

2 968

7 122

11 867

21 957

Total

Jun 2010 Qtr

940

1 760

3 269

5 969

Mar 2010 Qtr

867

1 656

3 150

5 673

Jun 2010 Ytd

3 601

7 122

11 867

22 590

Yield (g/t)

Underground

Jun 2010 Qtr

3.54

–

3.54

Mar 2010 Qtr

4.01

–

4.01

Jun 2010 Ytd

3.79

–

3.79

Surface

Jun 2010 Qtr

0.23

0.43

0.10

0.22

Mar 2010 Qtr

0.33

0.45

0.10

0.23

Jun 2010 Ytd

0.31

0.43

0.09

0.23

Total

Jun 2010 Qtr

0.88

0.43

0.10

0.32

Mar 2010 Qtr

1.03

0.45

0.10

0.34

Jun 2010 Ytd

0.92

0.43

0.09

0.33

Gold produced (kg)

Underground

Jun 2010 Qtr

654

–

654

Mar 2010 Qtr

666

–

666

Jun 2010 Ytd

2 402

–

2 402

Surface

Jun 2010 Qtr

176

749

338

1 263

Mar 2010 Qtr

228

743

304

1 275

Jun 2010 Ytd

909

3 092

1 099

5 100

Total

Jun 2010 Qtr

830

749

338

1 917

Mar 2010 Qtr

894

743

304

1 941

Jun 2010 Ytd

3 311

3 092

1 099

7 502

Cash operating costs

Underground

Jun 2010 Qtr

333 986

–

333 986

(ZAR per kg)

Mar 2010 Qtr

281 818

–

281 818

Jun 2010 Ytd

324 736

–

324 736

Surface

Jun 2010 Qtr

140 858

211 216

198 118

197 907

Mar 2010 Qtr

101 539

204 349

220 609

189 841

Jun 2010 Ytd

108 771

199 135

231 294

189 959

Total

Jun 2010 Qtr

293 034

211 216

198 118

244 331

Mar 2010 Qtr

235 841

204 349

220 609

221 400

Jun 2010 Ytd

265 445

199 135

231 294

233 112

Cash operating costs

Underground

Jun 2010 Qtr

1 181

–

1 181

(ZAR per tonne)

Mar 2010 Qtr

1 131

–

1 131

Jun 2010 Ytd

1 232

–

1 232

Surface

Jun 2010 Qtr

Mar 2010 Qtr

Jun 2010 Ytd

Total

Jun 2010 Qtr

259

Mar 2010 Qtr

243

Jun 2010 Ytd

244

Gold and silver revenue

Jun 2010 Qtr

217.0

215.3

89.4

521.8

(ZAR million)

Mar 2010 Qtr

241.8

200.2

82.0

524.0

Jun 2010 Ytd

861.4

834.8

294.3

1 990.5

Operating profit

Jun 2010 Qtr

4.6

55.1

31.8

91.5

(ZAR million)

Mar 2010 Qtr

29.3

50.4

17.2

96.9

Jun 2010 Ytd

16.3

210.0

45.3

271.6

Capital expenditure

Jun 2010 Qtr

19.6

34.0

11.4

65.0

(ZAR million)

Mar 2010 Qtr

17.4

3.4

10.1

30.9

Jun 2010 Ytd

79.6

45.8

62.2

187.6

DRDGOLD LIMITED

Shareholder Report 2010

For further information, contact Niël Pretorius at:
Tel: +27 (0)11 470 2600 Fax: +27 (0)11 470 2618
Web: www.drdgold.com

1st Floor, Quadrum 1 • Quadrum Office Park •
50 Constantia Boulevard • Constantia Kloof Ext 28 •
Roodepoort • South Africa

PO Box 390 • Maraisburg 1700 • South Africa

Executives:

DJ Pretorius (Chief Executive Officer)

CC Barnes (Chief Financial Officer)

Non-executive:

J Turk**

Independent non-executives:

GC Campbell* (Non-Executive Chairman)

RP Hume; EA Jeneker

Company secretary:

TJ Gwebu

Russell and Associates 3589/10

Key operating and financial results (unaudited) (continued)

Total

Imperial/US$

Blyvoor

Crown*

Ergo**

Operations

Gold produced (oz)

Underground

Jun 2010 Qtr

21 027

–

21 027

Mar 2010 Qtr

21 412

–

21 412

Jun 2010 Ytd

77 226

–

77 226

Surface

Jun 2010 Qtr

5 658

24 081

10 866

40 605

Mar 2010 Qtr

7 331

23 888

9 773

40 992

Jun 2010 Ytd

29 226

99 410

35 332

163 968

Total

Jun 2010 Qtr

26 685

24 081

10 866

61 632

Mar 2010 Qtr

28 743

23 888

9 773

62 404

Jun 2010 Ytd

106 452

99 410

35 332

241 194

Cash operating costs (US$ per oz)

Underground

Jun 2010 Qtr

1 373

–

1 373

Mar 2010 Qtr

1 163

–

1 163

Jun 2010 Ytd

1 327

–

1 327

Surface

Jun 2010 Qtr

580

869

815

814

Mar 2010 Qtr

419

843

909

783

Jun 2010 Ytd

444

814

945

776

Total

Jun 2010 Qtr

1 204

869

815

1 004

Mar 2010 Qtr

973

843

909

913

Jun 2010 Ytd

1 085

814

945

953

Gold and silver revenue (US$ million)

Jun 2010 Qtr

28.7

28.4

11.8

68.9

Mar 2010 Qtr

32.0

26.6

10.9

69.5

Jun 2010 Ytd

113.2

109.6

38.7

261.5

Operating profit (US$ million)

Jun 2010 Qtr

0.6

7.3

4.2

12.1

Mar 2010 Qtr

3.8

6.7

2.2

12.7

Jun 2010 Ytd

2.1

27.6

6.0

35.7

Capital expenditure (US$ million)

Jun 2010 Qtr

2.6

4.4

1.5

8.5

Mar 2010 Qtr

2.4

0.5

0.9

3.8

Jun 2010 Ytd

10.5

6.0

8.2

24.7

Cash operating costs reconciliation

Total

R’000 unless otherwise stated

Blyvoor

Crown*

Ergo**

Operations

Total cash costs

Jun 2010 Qtr

218 875

143 931

65 172

427 978

Mar 2010 Qtr

204 910

156 589

67 580

429 079

Jun 2010 Ytd

870 947

637 789

264 047

1 772 783

Movement in gold in process

Jun 2010 Qtr

30 894

(1 997)

9 326

38 223

Mar 2010 Qtr

(1 691)

2 035

2 238

2 582

Jun 2010 Ytd

33 767

(9 040)

5 215

29 942

Less: Production taxes, rehabilitation and other

Jun 2010 Qtr

2 150

(22 808)

6 931

(13 727)

Mar 2010 Qtr

(11 980)

2 389

2 591

(7 000)

Jun 2010 Ytd

(4 772)

(6 729)

13 706

2 205

Less: Retrenchment costs

Jun 2010 Qtr

(768)

–

(768)

Mar 2010 Qtr

–

Jun 2010 Ytd

10 925

–

10 925

Less: Corporate and general administration costs

Jun 2010 Qtr

5 169

6 541

603

12 313

Mar 2010 Qtr

4 332

4 404

162

8 898

Jun 2\010 Ytd

19 673

19 752

1 364

40 789

Cash operating costs

Jun 2010 Qtr

243 218

158 201

66 964

468 383

Mar 2010 Qtr

210 842

151 831

67 065

429 738

Jun 2010 Ytd

878 888

615 726

254 192

1 748 806

Gold produced (kg)

Jun 2010 Qtr

830

749

338

1 917

Mar 2010 Qtr

894

743

304

1 941

Jun 2010 Ytd

3 311

3 092

1 099

7 502

Total cash operating costs (R/kg)

Jun 2010 Qtr

293 034

211 216

198 118

244 331

Mar 2010 Qtr

235 841

204 349

220 609

221 400

Jun 2010 Ytd

265 445

199 135

231 294

233 112

Total cash operating costs (US$/oz)

Jun 2010 Qtr

1 204

869

815

1 004

Mar 2010 Qtr

973

843

909

913

Jun 2010 Ytd

1 085

814

945

953

Crown includes ERPM's Cason surface retreatment operation.

** With effect from 1 May 2010 Ergo represents 100% of the ErgoGold Joint Venture and 100% of the Ergo JointVenture.

DIRECTORS (*British)(**American)