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 2011

Commission File Number 0-28800

______________________

DRDGOLD Limited

Quadrum Office Park

Building 1

50 Constantia Boulevard

Constantia Kloof Ext 28

Roodepoort, South Africa, 1709

(

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

Attached to the Registrant Form 6-K filing for the month of August 2011, incorporated
by reference herein:

Exhibit

99.1 Release dated August 29, 2011, entitled “REPORT TO SHAREHOLDERS FOR THE
QUARTER AND YEAR ENDED JUNE 2011”.

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 29, 2011

By: /s/ Themba Gwebu

Name: Themba Gwebu

Title: Company Secretary

Report to shareholders for the quarter and
year ended 30 June 2011

(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 company”)

Review of operations

Quarter

Quarter

%

Quarter 12 months to 12 months to

%

Group

Jun 2011

Mar 2011

Change

Jun 2010

30 Jun 2011

30 Jun 2010

Change

Gold production

oz

63 079

67 387

(6)

61 632

265 179

241 194

10

kg

1 962

2 096

(6)

1 917

8 248

7 502

10

Gold production sold

oz

61 150

67 387

(9)

57 293

267 590

239 427

12

kg

1 902

2 096

(9)

1 782

8 323

7 447

12

Cash operating costs

US$ per oz

1 283

1 090

18

1 004

1 119

953

17

ZAR per kg

280 240

241 563

16

244 331

251 296

233 112

8

Gold price received

US$ per oz

1 522

1 411

8

1 204

1 372

1 092

26

ZAR per kg

331 372

312 913

6

292 769

308 221

267 292

15

Capital expenditure

US$ million

13.8

12.3

12

8.9

45.3

25.5

78

ZAR million

93.6

85.2

10

67.5

315.8

193.9

63

GROUP RESULTS

KEY FEATURES FOR THE YEAR

Dividend declared of 7.5 cents, up 50%
Gold production up 10% to 265 179oz
Ergo’s gold production up 37%
Revenue up 29% to R2 565.3 million
Operating profit up 76% to R477.0 million
Headline earnings per share up 115% to 28 cents per share
Net cash inflow from operations up 504% to R323.9 million
Crown/Ergo pipeline project on schedule and within budget, to be
completed in December 2011

Net asset value of Blyvoor written down to nil

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: 406 467 306

STOCK TRADED

JSE NASDAQ*

Average volume for the quarter

700

1 641

per day (‘000)

% of issued stock traded (annualised)

47

111

Price •

High

R4.00

$0.623

• Low

R2.98

$0.426

• Close

R3.27

$0.484

* This data represents per share data and not ADS data – one ADS reflects

ten ordinary shares

Dear shareholder

I am pleased to report that our long commitment to a consistent
set of strategic goals, is increasingly showing the desired outcomes.
Our stated strategy involves measures to reduce risk, manage
costs and to increase margin. I have always believed that the true
measure of the health of a business is its net cash flow. This year our
company generated net cash of R323.9 million from operations, up

504% from last year. Our operating profit was R477.0 million, or 38%

of our market capitalisation as at 30 June 2011 and we managed
R315.8 million worth of capital reinvestment in our operations, without
diluting shareholder equity.

Gold production from our mechanised, 24/7 recycling circuits comprised
66% of production. Importantly, we also gave credence to earlier
statements that our underground operation is a ring-fenced risk, when
we suspended financial assistance to Blyvooruitzicht Gold Mining
Company Limited (“Blyvoor”) in June. Blyvoor has been fully impaired in
the year under review, which of course has a once off, non-cash impact
on profit. Headline earnings (“HEPS”) are not affected by this accounting
adjustment, and are up 115% year on year.

We are also delighted to declare a dividend for the fourth year in a row.

This year’s 7.5 cents per share dividend is up 50% from the previous year,

and our stock offers the second highest dividend yield amongst South
African gold mining companies.

Safety, health and environment

The Group’s safety, health and environmental performance for FY2011 will

be reported comprehensively in its Sustainable Development Report, to be
published on or about 30 September 2011.

It is pleasing to report, in the meantime, that the Group recorded its
second fatality-free quarter in succession.

Good progress continues to be made with the behavior-based safety
initiative: a steering committee has been elected and trained; a list of
critical behaviors compiled from analysis of accidents; observer checklists
prepared for critical behaviours; observers selected and trained and safety
officers trained to observe observers.

During the quarter, a total of R12.8 million was spent on environmental
management issues.

Production

Total gold production for the year under review rose by 10% to 265 179oz

from 241 194oz in the previous year. This reflected continued recovery of
the underground circuit of Blyvoor from the negative impact of seismicity-
induced damage to high-grade production areas at No 5 Shaft and
continued bedding down of the Ergo surface retreatment circuit.

Total gold production for the quarter under review was 2% higher at

63 079oz compared with 61 632oz produced in the comparable quarter
of FY2010 as a result of strong performances by the Blyvoor surface
retreatment circuit and the Ergo circuit offsetting the impact of lower
production from the Blyvoor underground and Crown circuits, the
circumstances of which are commented upon in greater detail under the
Detailed operational review below.

Reserves and resources

Attributable mineral reserves remained unchanged at 7.3Moz in FY2011.

The attributable mineral resource increased slightly to 60.2Moz.

The FY2011 reserve and resource information was prepared in compliance

with the South African Code for Reporting of Exploration Results, Mineral
Resource and Mineral Reserves (“SAMREC”) by DRDGOLD’s designated
competent persons, Mr R Botha and Mr V Labuschagne, who are both
employees of DRDGOLD.

Financial

Year on year

Revenue for the year increased by 29% to R2 565.3 million (FY2010:
R1 990.5 million) reflecting higher gold production and a 15% increase in
the average Rand gold price received to R308 221/kg (FY2010: R267 292/kg).

Cash operating unit costs for the year were 8% higher at R251 296/kg
(FY2010: R233 122/kg), a consequence mainly of electricity price increases
and higher winter tariffs imposed by power utility Eskom.

Operating profit was 76% higher at R477.0 million (FY2010:

R271.6 million). HEPS was 115% higher at 28 SA cents (FY2010: 13 SA
cents).

Capital expenditure was 63% higher at R315.8 million (FY2010:

R193.9 million), reflective mainly of continued investment in development
of the Crown/Ergo pipeline to more fully exploit synergies between the
two surface circuits.

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 licenses 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 2010, which we filed with the United States Securities and Exchange Commission on 29 October 2010 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.

DRDGOLD LIMITED

Shareholder Report 2011

2

Q42011 v Q42010

Revenue for the quarter was 21% higher at R630.2 million compared with
R521.7 million in the comparable quarter of FY2010 reflecting higher gold
production and a higher average Rand gold price received.

Cash operating unit costs were 15% higher at R280 240/kg (Q4 2010:
R244 331/kg), due mainly to the aforementioned higher electricity costs.

Operating profit was 21% higher at R111.0 million (Q4 2010:

R91.5 million). HEPS was 67% lower at 8 SA cents (Q4 2010: 24 SA cents).
Loss before taxation for the quarter was R523.1 million mainly due to a
R546.6 million impairment of Blyvoor’s property, plant and equipment,
consequent upon that operation’s previously reported current financially
distressed position (see below under Corporate activity).

Corporate activity

On 23 June 2011, DRDGOLD’s Board of Directors (“DRDGOLD Board”)
announced its decision to suspend any further financial assistance to
Blyvoor, pointing out that Blyvoor’s operating and consequent financial
difficulties were continuing; that the internal revolving credit facility
for Blyvoor was fully drawn down and that the operation needed an
estimated R80 million in financial assistance through to December 2011.

The Board of Directors of Blyvoor announced simultaneously its decision

to start business rescue proceedings for Blyvoor in terms of Chapter 6 of
South Africa’s new Companies Act.

Subsequent to this, on 14 July 2011, DRDGOLD announced that Blyvoor

had accepted an offer of assistance from AngloGold Ashanti Limited

(“AGA”), subject to finalisation of a binding agreement, in terms of which
AGA would sell to Blyvoor some 390 000m² of its neighbouring Savuka

mining area for R35 million. Pending the necessary regulatory approvals
and subject to the afore-mentioned finalisation of a binding agreement,
Blyvoor will mine the area under contract.

The DRDGOLD Board believes that there may be potential for Blyvoor to

generate significant free cashflow by mining the Savuka ground, which will
assist in respect of discussions between DRDGOLD and prospective lenders
to Blyvoor and suitors for DRDGOLD’s 74% interest in the operation.

Meanwhile, the Blyvoor business rescue process, led by a registered
business rescue practitioner, has been continuing. On 17 August 2011, the
High Court granted an extension until 1 November for the publication
of a business rescue plan. Blyvoor sought the extension so that various
processes currently under way, critical to the finalisation of the plan
could be concluded. These processes include; discussions on terms with
creditors; wage negotiations with unions and associations; negotiations
with neighbouring mines regarding further asset acquisitions and on-mine
measures to improve labour, energy and water efficiencies.

Detailed operational review

Blyvoor

Year on year

Total gold production for the year was 121 114oz, up 14% from

106 452oz. This reflected continued recovery of the underground operations

from the effects of substantial seismic damage in the high-grade areas
of No 5 Shaft and a protracted, wage-related strike in the previous year.
Underground production rose by 18% to 91 470oz from 77 226oz, while
surface production was stable, rising by 1% to 29 644oz from 29 226oz.

Total cash operating unit costs increased by 9% to R289 870/kg from

R265 445/kg, a consequence mainly of power utility Eskom’s price
increases and higher winter tariffs. Underground cash operating unit costs
rose by 5% to R342 123/kg from R324 736/kg and surface cash operating
unit costs by 18% to R128 636/kg from R108 771/kg.

Operating profit rose substantially to R70.0 million from R16.3 million due
to improved gold production and a higher average Rand gold price received.

Capital expenditure, 19% higher at R94.4 million (FY2010: R79.6 million),
was directed mainly towards the relocation and installation of an ERPM
compressor, and to opening up and development.

Q42011 v Q42010

Total gold production for the quarter under review was 27 715oz, an

improvement of 4% on the 26 685oz achieved in the comparable quarter
of FY2010. The key driver of this was substantially higher surface gold
production.

Underground gold production was 7% lower at 19 548oz (Q4 2010:
21 027oz). This reflected the negative impact of six production shifts

lost due to unscheduled Eskom power outages; voluntary suspension
of production from some high-grade No 5 Shaft areas in the interests
of safety because of elevated levels of seismicity; six production shifts
lost due to a Section 54 safety-related stoppage at No 6 Shaft; and an
explosion at an explosives supplier’s site necessitating the use of sub-
optimal explosives for some weeks, resulting in too much fragmentation
and gold loss. Surface gold production increased by 44% to 8 167oz

(Q4 2010: 5 658oz), a consequence of both higher throughput and grade
in respect of surface sources, and a general surface clean-up operation

conducted during the quarter.

Total cash operating unit costs were 17% higher at R344 006/kg

(Q4 2010: R293 034/kg) due mainly to the combined effect of Eskom’s
28.2% electricity price increase and higher winter tariffs. The combined

effect of this and Eskom’s winter tariff was a cash operating unit cost rise
of R28 000/kg. Underground cash operating unit costs rose by 30% to
R432 910/kg (Q4 2010: R333 986/kg), while surface cash operating unit
costs dropped by 7% to R131 197/kg (Q4 2010: R140 858/kg).

An operating loss of R0.6 million was incurred compared with a

R4.6 million operating profit in the comparable quarter of FY2010,
reflecting the impact of higher costs.

Capital expenditure, 35% higher at R26.5 million (Q4 2010: R19.6 million),
was directed mainly towards opening up and development.

Crown

Year on year

Total gold production for the year was down 4% to 95 713oz from

99 410oz in FY2010. This was as a consequence of a 2% decline in average
grade from 0.43g/t to 0.42g/t. Throughput was stable at 7 120 000t.

Total cash operating unit costs increased by 13% to R225 653/kg from

R199 135/kg, reflecting lower gold production and the effect of Eskom
electricity price increases.

Operating profit increased by 18% to R248.5 million (FY2010:

R210.0 million), a substantially higher average Rand gold price received
offsetting the impact of lower production.

Capital expenditure, substantially higher at R148.2 million (FY2010:

R45.8 million), was directed mainly towards the Crown/Ergo pipeline project.

Q42011 v Q42010

Gold production for the quarter under review was 22 152oz compared
with 24 081oz for the comparable quarter in FY2010, a decline of 8%.

This was due to a 12% decline in grade to 0.38g/t from 0.43g/t, mainly

reflecting the conclusion of recovery of surface material from the Top Star
site. Throughput was 4% higher at 1 834 000t (Q4 2010: 1 760 000t).

Cash operating unit costs were 17% higher at R247 673/kg (Q4 2010:
R211 216/kg), a consequence of lower gold production and the combined
effect of Eskom’s 28.2% electricity increase and higher winter tariff.

DRDGOLD LIMITED

Shareholder Report 2011

3

Operating profit was virtually unchanged at R55.4 million, the higher
average Rand gold price received offsetting the impact of lower
production.

Capital expenditure was R40.6 million (Q4 2010: R34.0 million), reflecting
on-going development of the Crown/Ergo pipeline.

Ergo

Year on year

Total gold production for the year under review was 37% higher at

48 352oz (FY2010: 35 332oz). This reflects an 11% rise in throughput to

13 206 000t (FY2010: 11 867 000t) and a 22% rise in average grade to

0.11g/t (FY2010: 0.09g/t), resulting from continued build-up of slimes
recovery from the Elsburg Tailings Complex.

Total cash operating unit costs dropped by 11% to R205 436/kg (FY2010:

R231 294/kg) due mainly to the marked increase in gold production

Operating profit leapt to R158.5 million from R45.3 million, the result of
higher gold production, lower costs and a higher Rand gold price received.

Lower capital expenditure of R57.1 million (FY2010: R62.2 million),
reflecting completion of pumping and pipeline infrastructure to bring
the Elsburg Tailings Complex fully on line, was directed mainly towards
refurbishment of the second carbon in leach (“CIL”) circuit at the Brakpan
plant and increasing the capacity of the Brakpan tailings deposition site.

Q42011 v Q42010

Gold production for the quarter under review was 13 212oz, up 22%
on the 10 866oz produced in the comparable quarter of FY2010. This
reflects an improvement of 11% in throughput to 3 617 000t (Q4 2010:

3 269 000t) and of 10% in average grade to 0.11g/t (Q4 2010: 0.10g/t),

both indicative of continued optimisation of the Ergo circuit.

Higher gold production contained an increase in cash operating unit costs
by 2% at R201 095/kg (Q4 2010: R198 118/kg).

Operating profit was up 77% at R56.2 million (Q4 2010: R31.8 million)
due to higher gold production, well controlled costs and a higher Rand
gold price received.

Capital expenditure was R18.5 million (Q4 2010: R11.4 million), reflecting
on-going refurbishment of the Brakpan plant’s second CIL circuit and
work to increase the Brakpan tailings deposition facility’s capacity.

Zimbabwe

At the 610ha Leny exploration site, opening up of the quartz veins is

continuing. By the end of the quarter, 150m had been opened up along
strike at a depth of 8m, with grades varying considerably from 1-33g/t.
Results of a soil geochem survey, which will inform a decision whether or
not to proceed with a second drilling programme are expected by the end
of September 2011.

At the 310ha Ascot exploration site, a soil geochem survey and selective
trenching have been completed. Results of these are expected during
September and will inform a decision whether or not to proceed with a

drilling programme.

At the 110ha Dilcap (John Bull) exploration site, a decision on a drilling

programme will depend on results from magnetic, IP and soil geochem
surveys – all completed – which are expected during September.

At Zhombe, 21 new claims covering 210ha have been pegged. Magnetic,
IP and soil geochem surveys are to be carried out over these. Other claims
in the area show very high grade.

At Gweru we have secured a two year option over a leasehold spanning
approximately 21 000 hectares where drilling is currently underway.

Dividend

The DRDGOLD Board has declared a final dividend of 7.5 South African

cents per ordinary share for the year ended 30 June 2011, which amounts
to a total final dividend payout of R28.9 million. The dividend is declared
in Rands.

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 follows:

2011

Last date to trade ordinary shares cum dividend

Friday, 7 October

Ordinary shares trade ex dividend

Monday, 10 October

Record date

Friday, 14 October

Payment date

Monday, 17 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,

10 October 2011 and Friday, 14 October 2011, 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, 17 October 2011.

To holders of ADSs

Each ADS represents ten ordinary shares

2011

ADSs trade ex dividend on NASDAQ

Wednesday,12 October

Record date

Friday, 14 October

Approximate date for currency conversion

Friday, 21 October

Approximate payment date of dividend

Monday, 31 October

Assuming an exchange rate of R7.20/$1, the dividend payable per ADS is

equivalent to 10.42 US cents. However, the actual rate of payment will
depend on the exchange rate on the date for currency conversion.

Looking ahead

We are now in a position to add a level of detail to our statement of

strategic objectives. Reducing risk means further growing surface recovery
exposure and phasing out our deep level underground mining operation.

Improving margin and managing costs means optimising recoveries
at Crown and Ergo whilst improving efficiencies. In this regard we are
encouraged by recent findings in the ongoing research at Ergo. We intend
to build on this and match its science to appropriate technology to
increase recoveries from current throughput.

Responsible growth means that our internal growth will be focused on
organic business enhancement with near term payback. External growth
will remain focused on exploration opportunities in Zimbabwe, and
possibly Mozambique.

At Blyvoor the Business Rescue Practitioner is preparing a business

plan that will facilitate divestiture on appropriate terms. Progress has
been encouraging. Our objective is to have certainty on a new Blyvoor
structure by the end of this calendar year.

We intend to appoint a dedicated management team to ERPM Extensions

1 and 2. Their key task will be to take it up the value curve and position

it appropriately to unlock the potential of the 18 million ounce resource.

Niël Pretorius

Chief Executive Officer

29 August 2011

DRDGOLD LIMITED

Shareholder Report 2011

4

The condensed consolidated preliminary financial statements are prepared in accordance with the recognition and measurement principles of International
Financial Reporting Standards (“IFRS”) and presented in accordance with the minimum content, including disclosures, prescribed by IAS 34 Interim
Financial Reporting applied to year end reporting, and South African Statements and Interpretations of Statements of Generally Accepted Accounting
Practice (AC 500 Series). The accounting policies adopted are in line with IFRS and are consistent with those applied in the annual financial statements
for the year ended 30 June 2010.

The condensed consolidated financial statements of DRDGOLD Limited for the year ended 30 June 2011 have been reviewed by Mr R Davel of KPMG Inc,
the group’s auditor. In their review report dated 29 August 2011, which is available for inspection at the Company’s Registered Office, KPMG Inc state that
their review was conducted in accordance with the International Standard on Review Engagements 2410, Review of Interim Information Performed by the
Independent Auditor of the Entity, which applies to a review of group preliminary financial information, and have expressed an unmodified conclusion on
the condensed consolidated preliminary financial statements.

5

DRDGOLD LIMITED

Shareholder Report 2011

Condensed consolidated statement of comprehensive income

Quarter

Quarter

Quarter 12 months to 12 months to

Jun 2011

Mar 2011

Jun 2010

30 Jun 2011

30 Jun 2010

Rm

Rm

Rm

Rm

Rm

Unaudited

Unaudited

Unaudited

Reviewed

Reviewed

Gold and silver revenue

630.2

655.9

521.7

2 565.3

1 990.5

Net operating costs

(519.2)

(510.8)

(430.2)

(2 088.3)

(1 718.9)

Cash operating costs

(549.8)

(506.4)

(468.4)

(2 072.7)

(1 748.8)

Movement in gold in process

30.6

(4.4)

38.2

(15.6)

29.9

Operating profit

111.0

145.1

91.5

477.0

271.6

Depreciation

(34.9)

(32.7)

(57.7)

(130.9)

(190.8)

Movement in provision for environmental rehabilitation (note 1)

(35.3)

(7.8)

110.9

(52.6)

88.0

Retrenchment costs

–

(0.4)

(0.5)

(0.8)

(20.1)

Net operating profit

40.8

104.2

144.2

292.7

148.7

Impairments (note 2)

(547.7)

–

(6.2)

(547.7)

(6.2)

Corporate, administration and other expenses

(59.2)

(35.4)

(12.0)

(158.5)

(116.6)

Share-based payments

(0.9)

(0.8)

(0.6)

(3.5)

(4.1)

Net gain/(loss) on financial liabilities measured at amortised
cost (note 3)

33.5

(1.9)

6.2

17.1

6.2

Profit on disposal of assets

1.6

–

0.9

3.3

13.7

Profit on disposal of subsidiaries and joint venture

–

–

158.2

–

158.2

Finance income

6.4

5.2

7.4

27.8

27.4

Finance expenses

2.4

(6.5)

(7.2)

(14.4)

(15.7)

(Loss)/profit before taxation

(523.1)

64.8

290.9

(383.2)

211.6

Income tax

(0.4)

(0.2)

12.4

(6.3)

(10.3)

Deferred tax (note 4)

15.6

(5.5)

(55.4)

(25.9)

2.0

Net (loss)/profit for the period

(507.9)

59.1

247.9

(415.4)

203.3

Attributable to:
Equity owners of the parent

(367.9)

48.1

240.9

(287.9)

207.8

Non-controlling interest

(140.0)

11.0

7.0

(127.5)

(4.5)

(507.9)

59.1

247.9

(415.4)

203.3

Other comprehensive income
Foreign exchange translation reserve

0.8

–

(156.8)

0.8

(156.5)

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

0.3

–

5.2

0.3

5.2

Total comprehensive (loss)/income for the period

(506.8)

59.1

96.3

(414.3)

52.0

Attributable to:
Equity owners of the parent

(366.9)

48.1

88.0

(286.9)

55.2

Non-controlling interest

(139.9)

11.0

8.3

(127.4)

(3.2)

(506.8)

59.1

96.3

(414.3)

52.0

Reconciliation of headline earnings
Net (loss)/profit

(367.9)

48.1

240.9

(287.9)

207.8

Adjusted for:
– Impairments

547.7

–

6.2

547.7

6.2

– Profit on disposal of assets

(1.6)

–

(0.9)

( 3.3)

(13.7)

– Profit on disposal of subsidiaries and joint venture

–

–

(158.2)

–

(158.2)

– Non-controlling interest in headline earnings adjustment

(150.0)

–

3.5

(149.6)

6.8

– Taxation thereon

0.8

–

–

0.8

–

Headline earnings

29.0

48.1

91.5

107.7

48.9

Headline earnings per share-cents

8

13

24

28

13

Basic (loss)/earnings per share-cents

(96)

13

63

(75)

55

Diluted headline earnings per share-cents

8

13

24

28

13

Diluted basic (loss)/earnings per share-cents

(96)

13

63

(75)

55

Calculated on the weighted average ordinary shares issued of :

384 884 379

384 884 379

382 569 557 384 884 379

380 407 239

Condensed consolidated statement of financial position

As at

As at

As at

30 Jun 2011

31 Mar 2011

30 Jun 2010

Rm

Rm

Rm

Reviewed

Unaudited

Reviewed

Assets
Non-current assets

1 778.6

2 231.0

2 178.1

Property, plant and equipment (note 2)

1 550.1

1 992.6

1 863.2

Non-current Investments and other assets

25.1

24.8

48.1

Environmental rehabilitation trust funds

134.2

132.8

126.1

Deferred tax asset

69.2

80.8

140.7

Current assets

510.0

498.4

402.1

Inventories

122.9

95.5

132.6

Trade and other receivables

128.0

119.3

66.3

Cash and cash equivalents

259.1

268.6

188.2

Assets classified as held for sale

–

15.0

15.0

Total assets

2 288.6

2 729.4

2 580.2

Equity and Liabilities
Equity

1 219.2

1 725.1

1 649.9

Equity of the owners of the parent

1 247.3

1 613.3

1 550.6

Non-controlling interest

(28.1)

111.8

99.3

Non-current liabilities

659.4

687.4

661.1

Loans and borrowings (note 5)

40.4

73.8

59.0

Post-retirement and other employee benefits

6.3

14.1

13.4

Provision for environmental rehabilitation

490.2

449.8

420.6

Deferred tax liability

122.5

149.7

168.1

Current liabilities

410.0

316.9

269.2

Trade and other payables

330.7

238.1

269.2

Loans and borrowings (note 5)

79.3

78.8

–

Total equity and liabilities

2 288.6

2 729.4

2 580.2

Condensed consolidated statement of changes in equity

Quarter

Quarter

Quarter 12 months to 12 months to

Jun 2011

Mar 2011

Jun 2010

30 Jun 2011

30 Jun 2010

Rm

Rm

Rm

Rm

Rm

Unaudited

Unaudited

Unaudited

Reviewed

Reviewed

Balance at the beginning of the period

1 725.1

1 665.5

1 539.7

1 649.9

1 584.0

Share capital issued

–

(0.3)

13.3

(0.7)

28.8

– for acquisition finance and cash

–

–

14.3

–

29.8

– for share options exercised

–

–

–

–

1.1

– for costs

–

(0.3)

(1.0)

(0.7)

(2.1)

Increase in share-based payment reserve

0.9

0.8

0.6

3.5

4.1

Net (loss)/profit attributable to equity owners of the parent

(367.9)

48.1

240.9

(287.9)

207.8

Net (loss)/profit attributable to non-controlling interest

(140.0)

11.0

7.0

(127.5)

(4.5)

Dividends paid on ordinary share capital

–

–

–

(19.2)

(19.0)

Other comprehensive income

1.1

–

(151.6)

1.1

(151.3)

Balance as at the end of the period

1 219.2

1 725.1

1 649.9

1 219.2

1 649.9

Condensed consolidated statement of cash flows

Quarter

Quarter

Quarter 12 months to 12 months to

Jun 2011

Mar 2011

Jun 2010

30 Jun 2011

30 Jun 2010

Rm

Rm

Rm

Rm

Rm

Unaudited

Unaudited

Unaudited

Reviewed

Reviewed

Net cash inflow from operations

103.0

120.4

154.1

323.9

53.6

Net cash outflow from investing activities

(114.6)

(85.2)

(111.1)

(335.1)

(226.4)

Net cash in/(out)flow from financing activities

1.3

(0.3)

(55.2)

81.3

7.8

(Decrease)/increase in cash and cash equivalents

(10.3)

34.9

(12.2)

70.1

(165.0)

Translation adjustment

0.8

–

(0.9)

0.8

(0.4)

Opening cash and cash equivalents

268.6

233.7

201.3

188.2

353.6

Closing cash and cash equivalents

259.1

268.6

188.2

259.1

188.2

Reconciliation of net cash inflow from operations

(Loss)/profit before taxation

(523.1)

64.8

290.9

(383.2)

211.6

Adjusted for:
Movement in gold in process

(30.6)

4.4

(38.2)

15.6

(29.9)

Depreciation and impairment

582.6

32.7

63.9

678.6

197.0

Movement in provision for environmental rehabilitation

35.3

7.8

(110.9)

52.6

(88.0)

Share-based payments

0.9

0.8

0.6

3.5

4.1

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

(33.5)

1.9

(6.2)

( 17.1)

(6.2)

Profit on disposal of assets

(1.6)

–

(0.9)

( 3.3)

(13.7)

Profit on disposal of subsidiaries and joint venture

–

–

(158.2)

–

(158.2)

Finance expense and unwinding of provisions

0.8

2.6

4.8

9.4

10.8

Growth in Environmental Trust Funds

(2.8)

(1.7)

(2.4)

(8.4)

(9.5)

Other non-cash items

(11.9)

(1.3)

(26.0)

(14.3)

(25.3)

Taxation paid

(0.4)

–

(0.5)

(6.2)

(12.6)

Working capital changes

87.3

8.4

137.2

(3.3)

(26.5)

Net cash inflow from operations

103.0

120.4

154.1

323.9

53.6

DRDGOLD LIMITED

Shareholder Report 2011

6

7

DRDGOLD LIMITED

Shareholder Report 2011

Notes to financial statements

1. Movement in provision for environmental rehabilitation

The current year charge to profit or loss includes a charge of R11.0 million for East Rand Proprietary Mines Limited (“ERPM”), R27.2 million for Crown,

R5.6 million for Blyvoor and R9.2 million for Ergo relating to ongoing mining activities. The prior year credit to profit or loss includes credits of R63.4 million
and R4.8 million relating to the derecognition of the provisions of Durban Roodepoort Deep and West Witwatersrand Gold Mines (Pty) Ltd respectively.

2. Impairments

The current year impairment includes R546.6 million in respect of Blyvoor’s property, plant and equipment as a result of the uncertainties brought about by their

current distressed financial position.

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

The net gain/(loss) on financial liabilities measured at amoritised cost in the statement of comprehensive income comprises the expected cash flows of

the preference shares issued to Khumo Gold SPV (Pty) Limited and the DRDSA Empowerment Trust. These preference shares are re-assessed on a quarterly

basis and based on the expected future cash flows from ERPM and Blyvoor.

4. Deferred tax

During the year under review the company changed the deferred tax rate from the maximum statutory rate to the expected average effective tax
rate, resulting from the income tax formula for mining income. This change has been accounted for as a change in estimate and is therefore applied
prospectively. The reason for the change is to align ourselves with the rest of the gold mining industry in South Africa. The change reduced the expense
through profit or loss and the net deferred tax liability with R40.1 million.

5. Loans and borrowings

Included in loans and borrowings is a R500 million Domestic Medium Term Note Programme (“DMTN Programme”) under which DRDGOLD may from
time to time issue notes. R108 million was issued on 1 October 2010, consisting of R78 million and R30 million respectively, under the DMTN Programme
and the different notes issued mature 12 and 24 months from the date of issue and bear interest at the three month Johannesburg Inter-bank Acceptance
Rate plus a margin ranging from 4% to 5% per annum. The DMTN Programme is unsecured.

KEY OPERATING AND FINANCIAL RESULTS (Unaudited)

Metric

Blyvoor

Crown

Ergo

Total

Operations

Ore milled (t’000)

Underground

Jun 2011 Qtr

182

–

–

182

Mar 2011 Qtr

172

–

–

172

Jun 2011 Ytd

732

–

–

732

Surface

Jun 2011 Qtr

779

1 834

3 617

6 230

Mar 2011 Qtr

828

1 796

3 227

5 851

Jun 2011 Ytd

3 129

7 120

13 206

23 455

Total

Jun 2011 Qtr

961

1 834

3 617

6 412

Mar 2011 Qtr

1 000

1 796

3 227

6 023

Jun 2011 Ytd

3 861

7 120

13 206

24 187

Yield (g/t)

Underground

Jun 2011 Qtr

3.34

–

–

3.34

Mar 2011 Qtr

4.19

–

–

4.19

Jun 2011 Ytd

3.89

–

–

3.89

Surface

Jun 2011 Qtr

0.33

0.38

0.11

0.22

Mar 2011 Qtr

0.28

0.42

0.12

0.24

Jun 2011 Ytd

0.29

0.42

0.11

0.23

Total

Jun 2011 Qtr

0.90

0.38

0.11

0.31

Mar 2011 Qtr

0.95

0.42

0.12

0.35

Jun 2011 Ytd

0.98

0.42

0.11

0.34

Gold produced (kg)

Underground

Jun 2011 Qtr

608

–

–

608

Mar 2011 Qtr

720

–

–

720

Jun 2011 Ytd

2 845

–

–

2 845

Surface

Jun 2011 Qtr

254

689

411

1 354

Mar 2011 Qtr

229

758

389

1 376

Jun 2011 Ytd

922

2 977

1 504

5 403

Total

Jun 2011 Qtr

862

689

411

1 962

Mar 2011 Qtr

949

758

389

2 096

Jun 2011 Ytd

3 767

2 977

1 504

8 248

Cash operating costs (ZAR per kg)

Underground

Jun 2011 Qtr

432 910

–

–

432 910

Mar 2011 Qtr

327 200

–

–

327 200

Jun 2011 Ytd

342 123

–

–

342 123

Surface

Jun 2011 Qtr

131 197

247 673

201 095

211 685

Mar 2011 Qtr

131 266

219 185

191 594

196 753

Jun 2011 Ytd

128 636

225 653

205 436

203 470

Total

Jun 2011 Qtr

344 006

247 673

201 095

280 240

Mar 2011 Qtr

279 920

219 185

191 594

241 563

Jun 2011 Ytd

289 870

225 653

205 436

251 296

Cash operating costs (ZAR per tonne)

Underground

Jun 2011 Qtr

1 446

–

–

1 446

Mar 2011 Qtr

1 370

–

–

1 370

Jun 2011 Ytd

1 330

–

–

1 330

Surface

Jun 2011 Qtr

43

93

23

46

Mar 2011 Qtr

36

93

23

46

Jun 2011 Ytd

38

94

23

47

Total

Jun 2011 Qtr

309

93

23

86

Mar 2011 Qtr

266

93

23

84

Jun 2011 Ytd

283

94

23

86

Gold and Silver revenue (ZAR million)

Jun 2011 Qtr

285.6

216.8

127.8

630.2

Mar 2011 Qtr

295.9

237.6

122.4

655.9

Jun 2011 Ytd

1 185.9

910.9

468.5

2 565.3

Operating profit/(loss) (ZAR million)

Jun 2011 Qtr

(0.6)

55.4

56.2

111.0

Mar 2011 Qtr

25.0

71.6

48.5

145.1

Jun 2011 Ytd

70.0

248.5

158.5

477.0

Capital expenditure (ZAR million)

Jun 2011 Qtr

26.5

40.6

18.5

85.6

Mar 2011 Qtr

27.1

35.6

20.8

83.5

Jun 2011 Ytd

94.4

148.2

57.1

299.7

DIRECTORS (*British)(**American)
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

FOR FURTHER INFORMATION, CONTACT NIËL PRETORIUS AT:

Tel:+27 (0)11 470 2600 Fax: +27 (0)11 470 2618

Web:

www.drdgold.com

Quadrum Office Park • Building 1 • 50 Constantia Boulevard
Constantia Kloof Ext 28 South Africa
PO Box 390 • Maraisburg 1700 • South Africa

KEY OPERATING AND FINANCIAL RESULTS (Unaudited) (continued)

Imperial

Blyvoor

Crown

Ergo

Total

Operations

Gold produced (oz)

Underground

Jun 2011 Qtr

19 548

–

–

19 548

Mar 2011 Qtr

23 149

–

–

23 149

Jun 2011 Ytd

91 470

–

–

91 470

Surface

Jun 2011 Qtr

8 167

22 152

13 212

43 531

Mar 2011 Qtr

7 362

24 370

12 506

44 238

Jun 2011 Ytd

29 644

95 713

48 352

173 709

Total

Jun 2011 Qtr

27 715

22 152

13 212

63 079

Mar 2011 Qtr

30 511

24 370

12 506

67 387

Jun 2011 Ytd

121 114

95 713

48 352

265 179

Cash operating costs (US$ per oz)

Underground

Jun 2011 Qtr

1 980

–

–

1 980

Mar 2011 Qtr

1 476

–

–

1 476

Jun 2011 Ytd

1 523

–

–

1 523

Surface

Jun 2011 Qtr

599

1 138

920

970

Mar 2011 Qtr

591

975

865

888

Jun 2011 Ytd

573

1 002

915

906

Total

Jun 2011 Qtr

1 573

1 138

920

1 283

Mar 2011 Qtr

1 263

975

865

1 090

Jun 2011 Ytd

1 290

1 002

915

1 119

Gold and silver revenue (US$ million)

Jun 2011 Qtr

42.2

32.1

18.8

93.1

Mar 2011 Qtr

42.9

34.0

17.7

94.6

Jun 2011 Ytd

169.7

130.1

67.1

366.9

Operating profit (US$ million)

Jun 2011 Qtr

–

8.2

8.2

16.4

Mar 2011 Qtr

3.6

10.1

7.0

20.7

Jun 2011 Ytd

10.0

35.6

22.7

68.3

Capital expenditure (US$ million)

Jun 2011 Qtr

3.9

6.0

2.7

12.6

Mar 2011 Qtr

3.9

5.2

3.0

12.1

Jun 2011 Ytd

13.5

21.3

8.2

43.0

CASH OPERATING COSTS RECONCILIATION

R000 unless otherwise stated

Blyvoor

Crown

Ergo

Total

Operations

Total cash costs

Jun 2011 Qtr

293 455

171 614

80 175

545 244

Mar 2011 Qtr

277 929

177 286

76 217

531 432

Jun 2011 Ytd

1 144 117

703 739

324 451

2 172 307

Movement in gold in process

Jun 2011 Qtr

10 352

9 339

10 897

30 588

Mar 2011 Qtr

(5 198)

218

580

(4 400)

Jun 2011 Ytd

(23 878)

9 464

(1 197)

(15 611)

Less: Assessment rates, rehabilitation and other

Jun 2011 Qtr

2 715

4 319

7 692

14 726

Mar 2011 Qtr

2 517

7 246

1 640

11 403

Jun 2011 Ytd

9 817

23 097

11 796

44 710

Less: Corporate and general administration costs

Jun 2011 Qtr

4 559

5 987

730

11 276

Mar 2011 Qtr

4 570

4 116

627

9 313

Jun 2011 Ytd

18 481

18 336

2 482

39 299

Cash operating costs

Jun 2011 Qtr

296 533

170 647

82 650

549 830

Mar 2011 Qtr

265 644

166 142

74 530

506 316

Jun 2011 Ytd

1 091 941

671 770

308 976

2 072 687

Gold produced (kg)

Jun 2011 Qtr

862

689

411

1 962

Mar 2011 Qtr

949

758

389

2 096

Jun 2011 Ytd

3 767

2 977

1 504

8 248

Total cash operating costs (R/kg)

Jun 2011 Qtr

344 006

247 673

201 095

280 240

Mar 2011 Qtr

279 920

219 185

191 594

241 563

Jun 2011 Ytd

289 870

225 653

205 436

251 296

Total cash operating costs (US$/oz)

Jun 2011 Qtr

1 573

1 138

920

1 283

Mar 2011 Qtr

1 263

975

865

1 090

Jun 2011 Ytd

1 290

1 002

915

1 119