UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 20-F
 
 
 
 
 REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934
 For the fiscal year ended June 30, 2014
 Commission file number 0-28800
 DRDGOLD LIMITED
 (Exact name of Registrant as specified in its charter and translation of Registrant's name into English)
 REPUBLIC OF SOUTH AFRICA
 (Jurisdiction of incorporation or organization)
 50 Constantia Boulevard, Constantia Kloof Ext 28, Roodepoort, 1709, South Africa
 (Address of principal executive offices)
 Anthon Meyer, Acting Chief Financial Officer, Tel. no. +27 11 470 2600, Email anthon.meyer@drdgold.com
 Francois Bouwer, Group Financial Accountant, Tel. no. +27 11 470 2600, Email francois.bouwer@drdgold.com
 50 Constantia Boulevard, Constantia Kloof Ext 28, Roodepoort, 1709, South Africa
 (Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
  Title of each class:
 Name of each exchange on which registered:
      None
  None
   period covered by the annual report.
 
 As of June 30, 2014 the Registrant had outstanding 385,383,767 ordinary shares, of no par value.
  
  
  Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for the past 90 days.
 
  every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232-405 of this chapter)during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes
 
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. Large accelerated filer          Accelerated filer         Non-accelerated filer Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this
 .


TABLE OF CONTENTS
 Page
 PART I
 ITEM 1.
 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS ......................................................... 4
 ITEM 2.
 OFFER STATISTICS AND EXPECTED TIMETABLE ........................................................................................... 4
 ITEM 3.
 KEY INFORMATION ................................................................................................................................................ 4
 
 3A.
 Selected Financial Data ............................................................................................................................................... 4
 
 3B.
 Capitalization And Indebtedness ................................................................................................................................. 6
 
 3C.
 Reasons For The Offer And Use Of Proceeds ............................................................................................................. 6
 3D.
 Risk
 Factors
 .................................................................................................................................................................. 6
 ITEM 4.
 INFORMATION ON THE COMPANY ................................................................................................... . ....... . ........ . 18
 
 4A.
 History And Development Of The Company ...................................................................................................... . ....... 18
 4B.
 Business
 Overview
 ......................................................................................................................................................... 20
 4C.
 Organizational
 Structure
 ................................................................................................................................................ 29
 
 4D.
 Property, Plant And Equipment ................................................................................................................................... 29
 ITEM 4A.
 UNRESOLVED STAFF COMMENTS ....................................................................................................................... 42
 ITEM 5.
 OPERATING AND FINANCIAL REVIEW AND PROSPECTS .......................................................................... . ... 43
 
 5A.
 Operating Results  ........................................................................................................................................................
 5B.
 Liquidity
 And
 Capital
 Resources
 ................................................................................................................................... 63
 
 5C.
 Research And Development, Patents And Licenses, Etc ............................................................................................. 65
 5D.
 Trend
 Information
 ..........................................................................................................................................................
 
 5E.
 Off-Balance Sheet Arrangements ..................................................................................................................................65
 
 5F.
 Tabular Disclosure Of Contractual Obligations ............................................................................................................66
 5G.
 Safe
 Harbor ...................................................................................................................................................................
 ITEM 6.
 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES ..................................................................... . ........ . .66
 
 6A.
 Directors And Senior Management ...............................................................................................................................66
 6B.
 Compensation ...............................................................................................................................................................
 6C.
 Board
 Practices
 ............................................................................................................................................................... 70
 6D.
 Employees
 ..................................................................................................................................................................... 75
 6E.
 Share Ownership
 ............................................................................................................................................................
 ITEM 7.
 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS ............................................................... 79
 7A.
 Major
 Shareholders
 ......................................................................................................................................................... 79
 7B.
 Related
 Party
 Transactions
 .............................................................................................................................................. 80
 
 7C.
 Interests Of Experts And Counsel ................................................................................................................................ 81
 ITEM 8.
 FINANCIAL INFORMATION .............................................................................................................................. . ..... 82
 
 8A.
 Consolidated statements And Other Financial Information ......................................................................................... 82
 8B.
 Significant
 Changes
 ........................................................................................................................................................ 82
 ITEM 9.
 THE OFFER AND LISTING ....................................................................................................................................... 82
 
 9A.
 Offer And Listing Details ............................................................................................................................................. 82
 9B.
 Plan
 Of
 Distribution
 ........................................................................................................................................................ 84
 9C.
 Markets
 .......................................................................................................................................................................... 84
 9D.
 Selling
 Shareholders
 ....................................................................................................................................................... 84
 9E.
 Dilution..........................................................................................................................................................................84
 
 9F.
 Expenses Of The Issue .................................................................................................................................................
 ITEM 10.
 ADDITIONAL INFORMATION ............................................................................................................................. . ... 84
 10A.
 Share
 Capital
 .................................................................................................................................................................. 84
 
 10B.
 Memorandum of Incorporation ....................................................................................................................................
 10C.
 Material
 Contracts
 .......................................................................................................................................................... 87
 10D.
 Exchange
 Controls
 ......................................................................................................................................................... 88
 10E.
 Taxation
 ........................................................................................................................................................................
 
 10F.
 Dividends And Paying Agents .....................................................................................................................................94
 
 10G.
 Statement By Experts .................................................................................................................................................. 94
 10H.
 Documents
 On
 Display
 .................................................................................................................................................. 94
 10I.
 Subsidiary
 Information
 .................................................................................................................................................. 94
 ITEM 11.
 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ............................................ 95
 ITEM 12.
 DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES ..........................................................
 12A.
 Debt Securities ............................................................................................................................................................ 96
 12B.
 Warrants and Rights .................................................................................................................................................... 96
 12C.
 Other Securities .......................................................................................................................................................... .96
 12D
 American Depositary Shares ....................................................................................................................................... 96


TABLE OF CONTENTS
 PART II
 ITEM 13.
 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES ...................................................................... 97
 ITEM 14.
 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS ....... 97
 ITEM 15.
 CONTROLS AND PROCEDURES ............................................................................................................................ 97
 ITEM 16A.
 AUDIT COMMITTEE FINANCIAL EXPERT .......................................................................................................... 98
 ITEM 16B.
 CODE OF ETHICS ...................................................................................................................................................... 98
 ITEM 16C.
 PRINCIPAL ACCOUNTANT FEES AND SERVICES .......................................................................................... . .. 98
 ITEM 16D.
 EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES ............................................ 99
 ITEM 16E.
 PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS ...................... 99
 ITEM 16F
 CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT ............................................................................. 99
 ITEM 16G.
 CORPORATE GOVERNANCE .................................................................................................................................. 99
 ITEM 16H.
 MINE SAFETY DISCLOSURES ................................................................................................................................ 100
 PART III
 ITEM 17.
 FINANCIAL STATEMENTS ...................................................................................................................................... 100
 ITEM 18.
 FINANCIAL STATEMENTS .......................................................................................................................................
 F1
 ITEM 19.
 EXHIBITS ..................................................................................................................................................................... 101


1
 Preparation of Financial Information
   Accordingly, our books of account are maintained in South African Rand. Our financial statements included in our corporate filings in South Africa were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB) for the financial years ended June 30, 2014, 2013 and 2012. All references to “dollars” or “$” herein are to United States Dollars and references to “rand” or “R” are to South African Rands.
      Annual Report contains translations of certain rand amounts into dollars at specified rates. These rand amounts do not representactual dollar amounts, nor could they necessarily have been converted into dollars at the rates indicated. Unless otherwise indicated, rand amounts have been translated into dollars at the rate of 11.3055 per $1.00, which was the noon buying rate in NewYork City on September 30, 2014.
   per kilogram”, “all-in sustaining costs per kilogram” and “all-in costs per kilogram” which have been determined using industryguidelines promulgated by the World Gold Council and “capital expenditure (cash)”, which we use to determine costs associated with producing gold, cash generating capacities of the mines and to monitor performance of our mining operations. An investor should not consider these items in isolation or as alternatives to cash and cash equivalents, operating costs, profit/(loss) attributable to equity owners of the parent, profit/(loss) before taxation and other items or any other measure of financial performance presented in accordance with IFRS or as an indicator of our performance. While the World Gold Council has provided definitions for the calculation of cash operating costs, the calculation of cash operating costs per kilogram, all-in sustaining costs and all-in costs per kilogram may vary significantly among gold mining companies, and these definitions by themselves do not necessarily provide a basis for comparison with other gold mining companies. See “Glossary of Terms and Explanations” and Item 5A.: “Operating Results - Cash operating costs, all-in sustaining costs and all-in costs per kilogram- Reconciliation of cash operating costs per kilogram, all-in sustaining costs per kilogram, all-in costs per kilogram and capitalexpenditure (cash).”
 DRDGOLD Limited
    Special Note Regarding Forward-Looking Statements
   regarding future events or other future financial performance and information relating to us that are based on the beliefs of our management, as well as assumptions made by and information currently available to our management. Some of these forward-looking statements include phrases such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “should,” or “will continue,” or similar expressions or the negatives thereof or other variations on these expressions, or similar terminology, or discussions of strategy, plans or intentions. These statements also include descriptions in connection with, among other things:
 **·** estimated future throughput capacity and production; **·** expected trends in our gold production as well as the demand for and the price of gold; **·** our anticipated commitments; **·** our ability to fund our operations in the next 12 months; and **·** estimated production costs, cash operating costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce.
  assumptions. Many factors could cause our actual results, performance or achievements to be materially different from any futureresults, 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 South Africa; **·** regulatory developments adverse to us or difficulties in maintaining necessary licenses or other governmental approvals; **·** changes in our competitive position; **·** changes in business strategy; **·** changes in our gold production as well as the demand for and the price of gold; **·** any major disruption in production at our key facilities; or **·** adverse changes in foreign exchange rates and various other factors.


2
  results, causing these results to differ materially from these expressed in any forward-looking statements. These factors are notnecessarily all of the important factors that could cause our results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results.
   thereof. We do not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Annual Report or to reflect the occurrence of unanticipated events.
 Imperial units of measure and metric equivalents
   Metric
 Imperial
 Imperial
 Metric
                                         Glossary of Terms and Explanations
 All-in sustaining costs per kilogram ..................................
 All-in sustaining costs is a measure on which guidance were provided by the World Gold Council and include cash operating costs of production plus, on-site general and administrative costs, royalties and production taxes, sustaining capital, sustaining exploration, the accretion of rehabilitation costs, but excludes depreciation, retrenchment costs, finance costs, depletion and amortization, reclamation and closure costs. All-in sustaining costs per kilogram are calculated by dividing all-in sustaining costs by kilograms of gold produced. This is a non-IFRS financial measure and should not be considered a substitute measure of costs and expenses reported by us in accordance with IFRS.
  total operating costs, plus all-in sustaining costs, non-sustaining capital costs relating to projects, retrenchment costs, capital recoupment relating to non-sustaining capital, ongoing rehabilitation expenditure, and non-operating costs, but exclude taxation, minority interest, finance costs, profit or loss from associates and the cumulative effect of accounting adjustments. All-in costs per kilogram are calculated by dividing all-in costs by kilograms of gold produced. This is a non-IFRS financial measure and should not be considered a substitute measure of costs and expenses reported by us in accordance with IFRS.
 Assaying ...............................The chemical testing process of rock samples to determine mineral content. 
$/oz ........................................US dollar per ounce.
Care and maintenance ............Cease active mining activity at a shaft, but continue to incur costs to ensure that the Ore Reserves are
  Cash operating costs per kilogram ..................................
 Cash operating costs are operating costs incurred directly in the production of gold and include labor costs, contractor and other related costs, inventory costs and electricity costs. Cash operating costs per kilogram are calculated by dividing cash operating costs by kilograms of gold produced. Cash operating costs per kilogram have been calculated on a consistent basis for all periods presented. This is a non-IFRS financial measure and should not be considered a substitute measure of costs and expenses reported by us in accordance with IFRS.
 Conglomerate .........................A coarse-grained sedimentary rock consisting of rounded or sub-rounded pebbles. 
Cut-off grade ..........................The minimum in-situ grade of ore blocks for which the cash operating costs per ounce, excluding
  Depletion ...............................The decrease in the quantity of ore in a deposit or property resulting from extraction or production. 
Deposition .............................Deposition is the geological process by which material is added to a landform or land mass. Fluids
 such as wind and water, as well as sediment flowing via gravity, transport previously eroded sediment, which, at the loss of enough kinetic energy in the fluid, is deposited, building up layers of sediment. Deposition occurs when the forces responsible for sediment transportation are no longer sufficient to overcome the forces of particle weight and friction, creating a resistance to motion.


3
       g/t ......................................... Grams per ton. 
Horizon ................................ A plane indicating a particular position in a stratigraphic sequence. This may be a theoretical surface
  Life of mine ........................... Projected life of a mining operation based on the Proven and Probable Ore Reserves. 
Metallurgical plant ................ A processing plant (mill) erected to treat ore and extract the contained gold. 
Mine call factor ..................... This is the gold content recovered expressed as a percentage of the gold content called.
Mt .......................................... Million  tons. 
Opening up ............................ The potential that previously abandoned shafts and mining or developed areas, have to be reopened
    Ore Reserves ....................... Attributable total ore reserves of subsidiaries. 
Pay-limit .............................. The minimum in-situ grade of ore blocks or sites for which cash operating costs, including all
   workings or drill holes; grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth, and mineral content of Ore Reserves are well-established.
  used for Proven Ore Reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for Proven Ore Reserves, is high enough to assume continuity between points of observation.
 oz/t ........................................ Ounces per ton. 
Reef ...................................... A  gold-bearing  sedimentary horizon, normally a conglomerate band that may contain economic levels
  Refining ............................... The final purification process of a metal or mineral. 
Rehabilitation ...................... The process of restoring mined land to a condition approximating its original state. 
Reserves ............................... That part of a mineral deposit which could be economically and legally extracted or produced at the
     also used for ventilation and as an auxiliary exit. It is equipped with a hoist system that lowers and raises a cage in the shaft, transporting equipment, personnel, materials, ore and waste. A shaft generally has more than one compartment.
   Sloughing ............................. The localized failure of part of the slimes dam wall caused by a buildup of water within the dam.
Stope .................................... Underground production working area on the Ore Horizon. 
Stoping ................................. The removal of the wanted ore from an underground mine leaving behind an open space known as a
 stope. Stoping is used when the country rock is sufficiently strong not to cave into the stope, although in most cases artificial support is also provided.
 t’000 ..................................... Tons in thousands. 
Tailings ................................ Finely ground rock from which valuable minerals have been extracted by milling, or any waste rock,
     reserves of gold-bearing material in-situ or quantities of ore and waste material mined, transported or milled.
 Tpm ...................................... Tonne  per  month. 
Waste rock ............................ Non-auriferous rock. 
Yield ..................................... The amount of recovered gold from production generally expressed in ounces or grams per tonne of


PART I
 ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
 Not
 applicable.
 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
 Not
 applicable.
 ITEM 3. KEY INFORMATION
 3A. SELECTED FINANCIAL DATA
 The following selected consolidated financial data as at June 30, 2014, 2013 and 2012 and for the years ended June 30,
 2014, 2013 and 2012 are derived from our consolidated financial statements set forth elsewhere in this Annual Report, which havebeen prepared in accordance with IFRS, as issued by the IASB. These consolidated financial statements have been audited by KPMG Inc.  The selected consolidated financial data as at June 30, 2011 and 2010, and for the years ended June 30, 2011 and 2010 is derived from audited consolidated financial statements not appearing in this Annual Report which have been prepared in accordancewith IFRS as issued by the IASB and restated for new accounting policies adopted. The selected consolidated financial data set forth below should be read in conjunction with Item 5.: “Operating and Financial Review and Prospects” and with the consolidated financial statements and the notes thereto and the other financial information appearing elsewhere in this Annual Report.


5
 Selected Consolidated Financial Data
 (in thousands, except share, per share and ounce data)
 Year ended June 30,
 2014
 1
 2014
 20132
 Restated
 20122
 Restated
 20112
 Restated
 20102
       Profit or loss Data
                                equity owners of the parent from continuing operations ....................................
       Per Share Data
                                            1
             Statement of financial position data
                      Month
 2014
 2014
 2014
 2014
 2014
 2014
 September
 August
 July
 June
 May
 April
 Exchange Rate Data
                      
 1
 Translations into Dollars in this table are for convenience only and are computed at the noon buying rate in New York City at September 30,
 2014 of R 11.3055 per $1.00, or the annual average as noted. You should not view such translations as a representation that such amounts represent actual Dollar amounts. All other translations in this document are based on exchanges rates quoted by local financial service providers.  2 Comparatives have been restated for the reclassification of Blyvooruitzicht Gold Mining Company Limited (Blyvoor) as a discontinued operation (disposed June 1, 2012) and the adoption of newly effective accounting policies where relevant. 3 Ordinary share capital is stated after the deduction of R44.2 million (2013: R44.4 million and 2012: R44.8 million) share capital relating to treasury shares held within the Group.


6
 3B. CAPITALIZATION AND INDEBTEDNESS
  3C. REASONS FOR THE OFFER AND USE OF PROCEEDS
  3D. RISK FACTORS
  our operational processes, while others relate to our business environment. It is important to understand the nature of these risks and the impact they may have on our business, financial condition and operating results.
   **·** Risks related to our business and operations; **·** Risks related to the gold mining industry; **·** Risks related to doing business in South Africa; and **·** Risks related to ownership in our ordinary shares or American Depositary Shares, or ADSs.
 Risks related to our business and operations
 Changes in the market price for gold, which in the past has fluctuated widely, and exchange rate fluctuations affect the
 profitability of our operations and the cash flows generated by those operations.
   financial condition have been and could be materially harmed in the future by an appreciation in the value of the rand. Due to the marginal nature of our operations any sustained decline in the market price of gold, would adversely affect us, and any decline in the price of gold below the cost of production could result in the closure of some or all of our operations which would result in significant costs and expenditure, for example, incurring retrenchment costs earlier than expected.  Accordingly, any sustaineddecline in the price of gold would negatively and adversely affect our business, operating results and financial condition.
   rate movements of the rand. We sell our gold and trade our foreign currency at the spot price in the market on the date of trade. If the dollar gold price should fall and/or the rand should strengthen against the dollar, this would adversely affect us and we may experience losses, and if these changes result  in revenue below our cost of production and remain at such levels for any sustained period, we may be forced to curtail or suspend some or all of our operations. We might not be able to recover any losses we mayincur during that period or maintain adequate gold reserves for future exploitation.
   dollar by 7.2%, 19.3% and 21.1% respectively (based on exchange rates at June 30 of each year). From December 2001, when the exchange rate reached R13.44 = $1.00, the rand has appreciated by 21.3%. against the dollar to R10.58= $1.00 at June 30, 2014 (based on closing rates). At September 30, 2014 the rand traded at R 11.28 = $1.00 (based on closing rates), a 6.6% weakening relative to the Dollar from June 30, 2014.
   in a decrease in our profitability. In fiscal 2014, 2013 and 2012 all of our production was from South Africa providing significant exposure to the strengthening of the rand and a decrease in profitability. If the rand were to appreciate against the dollar for a continued time, our operations could experience a reduction in cash flow and profitability and this would adversely affect our business, operating results and financial condition.
 Inflation may have a material adverse effect on our results of operations.
   our future operational costs in rand, unless such inflation is accompanied by a concurrent devaluation of the rand against the dollar or an increase in the dollar price of gold.   Significantly higher and sustained inflation in the future, with a consequent increase in operational costs could have a material adverse effect on our results of operations and our financial condition, and could result in operations being discontinued or reduced or rationalized.


7
 We have incurred losses in the past and may incur losses in the future
      kilogram and a decline of 9.2 % in gold produced from continuing operations. It also includes an impairment of R56.6 million relating to R12.4 million against property, plant and equipment and R46.9 million against available-for-sale financial assets which was offset by a reversal of an impairment of R2.7 million on equity accounted investments.
   per kilogram and an 8% increase in gold produced from continuing operations, which was partly offset by an impairment of R187.9million relating to R61.0 million against property, plant and equipment, R101.3 million against available-for-sale financial assets and R25.6 million against investments. It also included a share of losses of equity accounted investment of R50.1 million relating impairments of exploration assets recognized at Chizim Gold level.
       We may not be able to meet our cash requirements because of a number of factors, many of which are beyond our
 control and cannot guarantee that alternative financing would be available.
   volumes, recovered grades and costs. If we are unable to meet our cash requirements out of cash flows generated from our operations, we would need to fund our cash requirements from alternative financing and we cannot guarantee that any such financing would bepermitted under the terms of our existing financing arrangements, or would be available on acceptable terms, or at all.  In the absence of sufficient cash flows or adequate financing, our ability to respond to changing business and economic conditions, make futureacquisitions, react to adverse operating results, meet our debt service obligations and fund required capital expenditures or increased working capital requirements may be adversely affected.
 The failure to discover or acquire new Ore Reserves could negatively affect our cash flow, results of operations and
 financial condition.
  and acquisition efforts in South Africa and any new regions that we identify for future growth opportunities. Our Ore Reserves for fiscal 2014 decreased by 10.0% due to ongoing mining activities, in 2013 it decreased by 8%, also in main due to depletion frommining activities. Our Ore Reserves for fiscal 2012 decreased by 75%, mainly due to the disposal of Blyvoor which represented 73% of our Ore Reserves on June 30, 2011.
  increase our Ore Reserves. A failure to discover or acquire new Ore Reserves in sufficient quantities to maintain or grow the current level of our reserves will negatively affect our future cash flow, results of operations and financial condition. In addition, if we are unable to identify Ore Reserves that have reasonable prospects for economic extraction while maintaining sufficient controlson production and other costs, this will have a material influence on the future viability of our operations.
 
 We may need to improve our internal controls over financial reporting and our independent auditors may not be able to
 attest to their effectiveness because of inherent limitations.
  to the effectiveness of these controls, as required by Section 404 of the United States Sarbanes-Oxley Act of 2002. Management has determined that these controls were effective for the 2014, 2013 and 2012 fiscal years respectively and did not identify any material weaknesses within our internal controls surrounding the financial reporting process. These internal controls over financial reporting may not be sufficient to prevent significant deficiencies or material weaknesses in the future, and we may also identify other conditions that could result in significant deficiencies or material weaknesses. In this event, we could experience a negative reaction in the financial markets and incur additional costs in improving the condition of our internal controls. For a detailed discussion of controls and procedures, see Item 15: “Controls and Procedures.”


8
 Single point of failure due to one operating segment
   processing plants, pump stations and deposition site of this business are linked through pipeline infrastructure. The Ergo plant is now our major processing plant and we have one deposition site. The pipeline infrastructure relating to the Ergo plant and Brakpan Tailings Storage Facility ("Brakpan TSF") are exposed to numerous risks, including operational down time due to unplanned maintenance, destruction of infrastructure, spillages, higher than expected operating costs, or lower than expected production each of which could have a material adverse effect on our business, operating results and financial condition.
 
 Increased production costs could have an adverse effect on our results of operations.
    **·** labor stability, lack of productivity and increases in labor costs; **·** increases in electricity and water prices; **·** increases in crude oil and steel prices; **·** unforeseen changes in ore grades and recoveries; **·** unexpected changes in the quality or quantity of reserves; **·** technical production issues; **·** environmental and industrial accidents; **·** gold theft; **·** environmental factors; and **·** pollution.
   oil and petroleum based products. The production costs incurred at our operations have in the past, and could in the future, increase at rates in excess of our annual expected inflation rate and result in the restructuring of these operations at substantial cost. The majority of our South African labor force is unionized and their wage increase demands are usually above the then prevailing rates of inflation. Ergo and ERPM signed a two year wage settlement agreement with effect from July 1, 2013, with the National Union of Mineworkers of South Africa, or NUMSA and United Association of South Africa, or UASA, on October 9, 2013, which provides for average annual compensation increases in year one of 10% for categories 4 – 5, 9% for categories 6 – 7 and 8% for categories8 – 15; and in year two 8% for categories 4 – 5 and 7.5% for categories 6 – 15. On September 4, 2014,  Ergo and ERPM extended the two year wage settlement agreement with effect from July 1, 2015 to June 30, 2016, with NUMSA and UASA, which provides for average annual compensation increases in year one of 10% for categories 4 – 5, 9% for categories 6 – 7 and 8% for categories8 – 15.
   parastatal entities which supply us with electricity and water. Increases in steel, electricity or water prices combined with theincreases in labor costs, could result in our costs of production increasing above the gold price received. Discussions with steel suppliers and parastatal entities to moderate price increases have been unsuccessful in the past.  A wage strike by NUMSA duringJuly 2014 caused a delay in the delivery of certain steel products to our operations.
   driven by them in South Africa during 2013 and 2014 in the gold and platinum industry have resulted in extended strikes. In certain instances wage settlements that were reached with other representative labor unions were challenged by AMCU and increased uncertainty in the labor market resulted. As at September 30, 2014 AMCU had no representation at any of our operations nor havethere been demands for recognition. We cannot guarantee that no such demands will be made in the future.
   weakening of the exchange rate with the cost of crude oil in global markets remaining relatively flat to slightly lower. In the event that crude oil prices increase, this could have a significant impact on our production costs.
   price increases for consumables and cost controls, may not be sufficient to offset the increases affecting our operations and could adversely affect our business, operating results and financial condition.
 Our operations are subject to extensive environmental regulations which could impose significant costs and liabilities.
   various state, provincial and local laws, which regulate air and water quality, hazardous waste management and environmental rehabilitation and reclamation. Our mining and related activities impact the environment, including land, habitat, streams and environment near the mining sites. Failure to comply with environmental laws or delays in obtaining, or failures to obtain


9
 government permits and approvals may adversely impact our operations. In addition, the regulatory environment in which we operate could change in ways that could substantially increase costs of compliance, resulting in a material adverse effect on our profitability.
 We have incurred, and expect to incur in the future, expenditures to comply with these environmental laws and regulations. We have estimated our aggregate group Rehabilitation, Reclamation and Closure cost provision at R471.7 million which is included in ourstatement of financial position as at June 30, 2014 (Consisting of provision for environmental rehabilitation: R451.2 million and liabilities held-for-sale R20.5 million). However, the ultimate amount of rehabilitation costs may in the future exceed the currentestimates due to factors beyond our control, such as changing legislation, higher than expected cost increases, or unidentifiedrehabilitation costs. We fund these environmental rehabilitation costs by making contributions over the life of the mine to environmental trust funds or funds held in insurance instruments established for our operations. If any of the operations are prematurely closed, the rehabilitation funds may be insufficient to meet all the rehabilitation obligations of those operations. The closure of mining operations, without sufficient financial provision for the funding of rehabilitation liabilities, or unacceptable damage to the environment, including pollution or environmental degradation, may expose us and our directors to prosecution, litigation and potentially significant liabilities.
 
 Flooding at our discontinued underground operations may cause us to incur liabilities for environmental damage.
   could potentially rise and come into contact with naturally occurring underground water or decant into surrounding underground mining areas and could ultimately also rise to surface. Progressive flooding of these abandoned underground mining areas and surrounding underground mining areas could eventually cause the discharge of polluted water to the surface and to local water sources.
   to the surface, we may face, together with all other mining companies in those areas, claims relating to environmental damage as a result of pollution of ground water, streams and wetlands. These claims may have a material adverse effect on our business, operating results and financial condition.
 
 Damage to tailings dams and excessive maintenance and rehabilitation costs could result in lower production and health,
 safety and environmental liabilities.
  of such a facility. These may include sabotage, failure by our employees to adhere to the codes of practice and natural disasters such as excessive rainfall, any of which could force us to stop or limit operations. In addition, the dams could overflow and the health and safety of our employees and communities living around these dams could be jeopardized. In the event of damage to our tailings facilities, our operations will be adversely affected and this in turn could have a material adverse effect on our business, operating results and financial condition.
 Due to the nature of our business, our operations face extensive health and safety risks.
  personal injury, to employees. Regrettably one person died in a work-related incident during fiscal 2012. The employee died after he lit a fire in a closed shelter while on duty. According to section 54 of the Mine, Health and Safety Act of 1996, if an inspector believes that any occurrence, practice or condition at a mine endangers or may endanger the health or safety of any person at the mine, the inspector may give any instruction necessary to protect the health or safety of persons at the mine. These instructions could include the suspension of operations at the whole or part of the mine. These incidents could lead to mine operations being halted and that will increase our unit production costs, due to loss of production. This could have a material adverse effect on our business, operating results and financial condition.
 
 Events may occur for which we are not insured which could affect our cash flows and profitability.
   are unable to insure, including those in respect of past mining activities. Our existing property, business interruption and otherinsurance contains certain exclusions and limitations on coverage. We have insured property, including loss of profits due to business interruption in the amount of approximately R6.4 billion. Claims for each and every event are limited by the insurers to R500 million. Business interruption is only covered from the time the loss actually occurs and is subject to time and amount deductibles that vary between categories.
   pollution related accidents, for which coverage is not available. If we are required to meet the costs of claims, which exceed our insurance coverage, this could have a material adverse effect on our business, operating results and financial condition.


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 If we are unable to attract and retain key personnel our business may be harmed.
   technical personnel including the positions of Chief Executive Officer and Chief Financial Officer. In addition, we compete withmining and other companies on a global basis to attract and retain key human resources at all levels with appropriate technical skills and operating and managerial experience necessary to operate the business. Factors critical to retaining our present staff and attracting additional highly qualified personnel include our ability to provide these individuals with competitive compensationarrangements, and other benefits. If we are not successful in retaining or attracting highly qualified individuals in key management positions, our business may be harmed. We do not maintain “key man” life insurance policies on any members of our executive team. The loss of any of our key personnel, could delay the execution of our business plans, which may result in decreased production,increased costs and decreased profitability.
 Our flotation and fine-grind (FFG) project faces the risk of a start-up project.
   gold contained within the sulfides of the tailings material by subjecting the treated material to a flotation circuit, further regrinding and a leach circuit. This project was commissioned during the second and third quarters of fiscal 2014 and came into full operation in the third quarter.
 Production was temporarily suspended on 2 April 2014 due to unsatisfactory gold recoveries and low carbon absorption efficiencies.The established Low Grade Section was brought back to steady state and gold production stabilized during the last quarter of FY2014. The main causes for the unsatisfactory recoveries included carbon management in the Low Grade Section, thickener availability and management of the water balance. Apart from rectifying the main causes, the operational team also implemented atwin streaming process by isolating the Crown and City material from the main Elsburg material. By implementing this change thegold content in the individual feed supply streams can be measured before the product goes into the leach tanks. By comparing theseassays with the final recoveries, management will be able to identify and correct, much earlier, any possible negative impacts whilst it will also improve the allocation of gold from different sources. A number of smaller engineering upgrades are also being made duringthis “time-out” period.
 In late August 2014 the FFG was restarted and currently treats one third of the Ergo plant throughput. Once the FFG shows steady,acceptable recoveries, the remainder of the Ergo plant throughput will also be treated through the FFG. Provided that these required levels are achieved, we plan to put the full Ergo throughput through the FFG by the end of the 1st quarter of calendar 2015.
 The flotation and fine-grind project remains exposed to numerous risks associated with similar start-up projects,  including operational down time due to unplanned maintenance, destruction of infrastructure, spillages, higher than expected operating costs, or lower than expected production which could have a material adverse effect on our business, operating results and financial condition.
 
 Conditions precedent for completion of the Blyvoor sale were not met before the due date.
   See Item 5A.: “Operating Results - Recent developments” for a more detailed discussion. The conditions precedent for Part A weresatisfied and Part A was completed on June 1, 2012. However, the Part B conditions for the mining right conversion did not occurprior to the deadline. On July 30, 2013, Village Main Reef Limited ("Village") suspended financial assistance to Blyvoor and onAugust 6, 2013, Blyvoor was placed into provisional liquidation. A legal dispute has now ensued to test whether the conditions for Part B were not met because of a breach of the agreement on the part of Village Main Reef Limited. Pending the outcome of the above (which will confirm the ownership of the shares), the 20,000,000 ordinary shares in Village remained in escrow.


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 Risks related to the gold mining industry
 
 A change in the price of gold, which in the past has fluctuated widely, is beyond our control.
   **·** the physical supply of gold from world-wide production and scrap sales, and the purchase, sale or divestment by central   banks of their gold holdings; **·** the demand for gold for investment purposes, industrial and commercial use, and in the manufacturing of jewelry; **·** speculative trading activities in gold; **·** the overall level of forward sales by other gold producers; **·** the overall level and cost of production of other gold producers; **·** international or regional political and economic events or trends; **·** the strength of the dollar (the currency in which gold prices generally are quoted) and of other currencies; **·** financial market expectations regarding the rate of inflation; **·** interest rates; **·** gold hedging and de-hedging by gold producers; and **·** actual or expected gold sales by central banks and the International Monetary Fund.
    
 Current economic conditions may adversely affect the profitability of the Group’s operations.
  down from previous highs. During fiscal 2014 the gold price came off a high of U$1,426 per ounce to a low of U$1,192. The uncertainty in the outlook of resources generally and of gold in particular resulted in tightened credit markets, reduced liquidity and extreme volatility in fixed income, credit, currency and equity markets. These conditions may adversely affect the Group’s business. For example, tightening credit conditions may make it more difficult for the Group to obtain financing on commercially acceptable terms or make it more likely that one or more of our key suppliers may become insolvent and lead to a supply chain breakdown. Inaddition, general economic indicators have still not shown signs of sustained recovery - consumer sentiment remains bearish, unemployment remains high, economic growth is marginal and corporate earnings are uncertain and volatile. To the extent that thecurrent economic climate worsens or the economic environment in which the Group operates does not recover, the Group could experience a material adverse effect on its business, results of operations and financial condition.
 The exploration of mineral properties is highly speculative in nature, involves substantial expenditures, and is frequently
 unproductive.
   bodies in order to quantify the extent of the gold reserve. Many gold exploration programs, including some of ours, do not result in the discovery of mineralization and any mineralization discovered may not be of sufficient quantity or quality to be mined profitably. If we discover a viable deposit, it usually takes several years from the initial phases of exploration until production is possible. During this time, the economic feasibility of production may change.
   determining whether to commence or continue mining. These estimates generally rely on scientific and economic assumptions, which in some instances may not be correct, and could result in the expenditure of substantial amounts of money on a deposit before it can be determined with any degree of accuracy whether or not the deposit contains economically recoverable mineralization. Uncertainties as to the metallurgical recovery of any gold discovered may not warrant mining on the basis of available technology.
   on the costs and results of our continued exploration and development programs. Our business focuses mainly on the extraction ofgold from tailings, which is a volume driven exercise. Only significant deposits within close proximity of services and infrastructure that contain adequate gold content to justify the significant capital investment associated with plant, reclamation and deposition infrastructure are suitable for exploitation in terms of our model. There is a limited supply of these deposits which may inhibit growth prospect, especially in a declining gold price environment.


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   Probable Ore Reserves in sufficient quantities to justify commercial operations in any of our operations. Our mineral explorationrights may also not contain commercially exploitable reserves of gold. The costs incurred on unsuccessful exploration activitiesare, as a result, not likely to be recovered and therefore likely to be impaired.
 
 There is uncertainty with our Ore Reserve estimates.
   stated and are reported in accordance with the requirements of Industry Guide 7 of the SEC. These estimates may not reflect actual reserves or future production.
   examinations, reserve estimates may have to be adjusted and mining plans may have to be altered in a way that might ultimately cause our reserve estimates to decline. Moreover, if the price of gold declines, or stabilizes at a price that is lower than recent levels, or if our production costs, and in particular our labor, water, steel and electricity costs, increase or recovery rates decrease, it may become uneconomical to recover Ore Reserves containing relatively lower grades of mineralization. Under these circumstances, wewould be required to re-evaluate our Ore Reserves. Short-term operating factors relating to the ability to reclaim our Ore Reserves, at the required rate, such as an interruption or reduction in the supply of electricity or a shortage of water may have the effect that we are unable to achieve critical mass, which may render the Ore Reserve, or parts of the Ore Reserve no longer feasible, which could negatively affect production rate and costs and decrease our profitability during any given period. These factors have and couldresult in reductions in our Ore Reserve estimates, which could in turn adversely impact upon the total value of our mining assetbase and our business, operating results and financial condition.
 
 Gold mining is susceptible to numerous events that could have an adverse impact on a gold mining business.
   personal injury to, employees, the loss of mining and reclamation equipment, damage to or destruction of mineral properties or production facilities, monetary losses, delays in production, environmental damage, loss of the license to mine and potential legal claims. The risks and events associated with the business of gold mining include:
 **·** environmental hazards and pollution, including dust generation, toxic chemicals, discharge of metals, pollutants, radioactive    materials and other hazardous material into the air and water; **·** flooding, landslides, sinkhole formation, ground subsidence, ground and surface water pollution, and waterway    contamination; **·** a decrease in labor productivity due to labor disruptions, work stoppages, disease, slowdowns or labor strikes; **·** unexpected decline of ore grade; **·** metallurgical conditions and gold recovery; **·** failure of unproven or evolving technologies; **·** mechanical failure or breakdowns and ageing infrastructure; **·** energy and electrical power supply interruptions; **·** availability of water; **·** injuries to employees or fatalities resulting from falls from heights and accidents relating to mobile machinery or    electrocution; **·** activities of illegal or artisanal miners; **·** material and equipment availability; **·** legal and regulatory restrictions and changes to such restrictions; **·** social or community disputes or interventions; **·** accidents caused from the collapse of tailings dams; **·** pipeline failures and spillages; **·** safety-related stoppages; and **·** corruption, fraud and theft including gold bullion theft.


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 Risks related to doing business in South Africa
 
 Political or economic instability in South Africa may reduce our production and profitability.
   economic risks relating to South Africa could have a significant effect on our production and profitability. Large parts of the South African population are unemployed and do not have access to adequate education, health care, housing and other services, including water and electricity. Government policies aimed at alleviating and redressing the disadvantages suffered by the majority of citizens under previous governments may increase our costs and reduce our profitability. In recent years, South Africa has experienced high levels of crime. These problems may impede fixed inward investment into South Africa and cause emigration of skilled workers. Asa result, we may have difficulties retaining qualified employees.
 Inflation can adversely affect us.
   high by comparison with developed countries, and foreign currency reserves have been low relative to other emerging market countries.  The inflation rate in South Africa is relatively high compared to developed, industrialized countries. As of June 2014, the Consumer Price Inflation Index, or CPI, stood at 6.6% compared to 5.5% in June 2013 which remained flat at 5.5% from June 2012.The inflation rate slowed to 5.9% as at September 30, 2014. Continuing high levels of inflation in South Africa for prolonged periods, without a concurrent devaluation of the rand or increase in the price of gold, could result in an increase in our costs which could reduce our profitability.
 
 Power stoppages or increases in the cost of power could negatively affect our results and financial condition.
  As a result of insufficient generating capacity, owing to poor maintenance and lagging capital infrastructure investment, South Africa has faced significant disruptions in electricity supply in the past and Eskom has warned that the country could continue to facedisruptions in electrical power supply in the foreseeable future. Whilst Eskom did manage to contain the number and severity ofpower supply stoppages to the extent of not having a material impact on our production, the country’s current reserve capacity remains insufficient and the risk of electricity stoppages may continue through 2014. Supply interruptions due to cable theft is also on the increase and may pose a significant risk to the operations.
   agreement for the supply of temporary power generation equipment and services during fiscal 2014 to drive certain key installations associated with the disposal of tailings. The lease term will commence during October 2014 for a term of five years at a fixed monthly payment. The group has the option to acquire the equipment at the termination of the lease. There is no assurance that the measures will be sufficient to mitigate the risk of power stoppages.
   average tariff increase of 8.0% and from April 1, 2014 an average tariff increase of 10.79%. These increases have had an adverseaffect on our production costs and future increases of this nature could have a material adverse effect on our business, operatingresults and financial condition.
 The treatment of occupational health diseases and the potential liabilities related to occupational health diseases may
 have an adverse effect on the results of our operations and our financial condition.
  occupational lung diseases (OLD) and tuberculosis (TB). We provide occupational health services to our employees, we provide training and protective gear and continue to improve preventive occupational hygiene initiatives. The costs associated with providing such occupational health services could increase significantly.
  lung diseases to sue their current or former employers for damages outside the statutory compensation scheme, we could be subject to claims against us from previous or current employees, including a potential class action or similar group claim. In January 2013, DRDGOLD, ERPM and 23 other mining companies were served with a court application for a class action issued in the South Gauteng High Court by alleged former mineworkers and dependents of deceased mineworkers. In the pending application, the applicants allege that DRDGOLD, ERPM and other mining companies conducted underground mining operations in such a negligent manner that resulted in the former mineworkers contracting silicosis and other related diseases. We will assess all such claims, if and when filed, on their merits. Liability associated with such claims and expenses of dealing with them could have a material adverseeffect on our business, operating results and financial condition.


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 Increased theft at our sites, particularly of copper, may result in greater risks to employees or interruptions in production.
   increased theft of copper cable. Our operations experience high incidents of copper cable theft despite the implementation of securitymeasures. In addition to the general risk to employees’ lives in an area where theft occurs, we may suffer production losses and incur additional costs as a result of power interruptions caused by cable theft and theft of bolts used for the pipeline.
 Possible scarcity of water may negatively affect our operations.
  were 4% lower than estimated in 1995 which may lead to the revision of water usage strategies by several sectors in the South African economy, including electricity generation and municipalities. This may result in rationing or increased water costs in the future. Such changes would adversely impact our surface retreatment operations, which use water to transport the slimes or sand from reclaimed areas to the processing plant and to the tailings facilities. In addition, as our gold plants and piping infrastructure were designed to carry certain minimum throughputs, any reductions in the volumes of available water may require us to adjust production at these operations.
  our water circuit. This water will be used both to reclaim and carry production materials and also, ultimately, to irrigate rehabilitation vegetation at a significantly lower cost than that of potable water. In addition, as part of the Heads of agreement signed between EMO, Ergo, ERPM and Trans-Caledon Tunnel Authority (TCTA) in December 2012, Ergo has the right to purchase up to 30 Ml of treated water per day from TCTA at cost price for use in its production circuits. There is no assurance that the measures will be sufficient to alleviate all the water scarcity issues.
 Government Regulation
 
 Government policies in South Africa may adversely impact our operations and profits.
   government’s administrative bodies. These involve directives in respect of health and safety, the mining and exploration of minerals, and managing the impact of mining operations on the environment. A variety of permits and authorities are required to mine lawfully, and the government enforces its regulations through the various government departments. The formulation or implementation of government policies may be discretionary and unpredictable on certain issues, including changes in conditions for the issuance of licenses insofar as social and labor plans are concerned, transformation of the workplace, laws relating to mineral rights, ownership of mining assets and the rights to prospect and mine, additional taxes on the mining industry and in extreme cases, nationalization. A change in regulatory or government policies could adversely affect our business.
 New order rights obtained under the Mineral and Petroleum Resources Development Act, 2002 may not be equivalent to
 our old mining rights.
   places all mineral and petroleum resources under the custodianship of the state. Private title and ownership in minerals, or the “old order rights,” are to be converted to “new order rights,” essentially the right to mine.
   new order rights may be reduced by the Department of Mineral Resources, or DMR, if it finds that the prospecting or mining workprogram submitted by an applicant does not substantiate the need to retain the area covered by the old order rights. The duration of the new order rights will no longer be perpetual but rather, in the case of new order mining rights, for a maximum of 30 years with renewals of up to 30 years each and, in the case of prospecting rights, up to five years with one renewal of up to three years.
   prospecting must commence within one year or 120 days, respectively, of the mining right or prospecting right becoming effective, and must be conducted continuously and actively thereafter. The new rights can be suspended or cancelled by the Minister of Mineral Resources in the event of a breach or, in the case of mining rights, non-optimal mining in accordance with the mining work program. The MPRD Act states that the conversions must be granted by the minister if all requirements are completed but it does not stipulate any time frame. The MPRD Act also provides for holders of old order rights to continue to operate under the terms and conditions of such rights until conversions under the MPRD Act have been completed. See Item 4B. “Business Overview”.
   lodged applications to convert all of our old order rights, however, to the extent that we are unable to convert some of our old order rights to new order rights, and that the exclusive rights to minerals we enjoyed under the previous statutory regime are diminished, this will result in significant adjustments to our property ownership structure, which in turn could have a material adverse effect on the underlying value of our operations. As at September 30, 2014, all of our old order mining rights have been converted into neworder rights under the terms of the MPRD Act with only 1 new order right awaiting registration at the Mineral and Petroleum Titles


15
 Mining royalties and other taxation reform could have an adverse affect on the business, operating results and financial
 condition of our operations.
    in the South African Government Gazette on November 24, 2008. The Mineral and Petroleum Resources Royalty Act (Administration), No.29 of 2008, published on November 26, 2008, became effective from March 1, 2010. These acts provide for thepayment of a royalty, calculated through a royalty rate formula (using rates of between 0.5% and 5.0%) applied against gross revenue per year, payable half yearly with a third and final payment thereafter. The royalty is tax deductible and the cost after tax amounts to a rate of between 0.33% and 3.3% at the prevailing marginal tax rates applicable to the taxed entity. The royalty is payable on old unconverted mining rights and new converted mining rights. Based on a legal opinion the Company obtained, mine dumps created before the enactment of the MPRD Act fall outside the ambit of this royalty and consequently the Company does not pay any royaltyon any dumps created prior to the MPRD Act. Introduction of further revenue based royalties or any adverse future tax reforms would have an adverse effect on the business, operating results and financial condition of our operations.
 Ring-fencing of unredeemed capital expenditure for South African mining tax purposes could have an adverse affect on
 the business, operating results and financial condition of our operations.
   different mines regarding the deduction of certain capital expenditure and the carry over thereof to subsequent years. After therestructuring of the surface operations, effective July 1, 2012, Ergo is treated as one taxpaying operation pursuant to the relevant ring-fencing legislation. In the event that we are unsuccessful in confirming our position or should the South African Receiver of Revenue have a different interpretation of section 36 of the ITA, it could have an adverse effect on the business, operating results and financial condition of our operations.
 The implementation of carbon or other climate change related to taxes might have a direct or indirect negative cost
 impact on our operations.
   greenhouse gas, or GHG, emissions. The United Nations Framework Convention on Climate Change is the main global response to climate change. The associated Kyoto Protocol is an international agreement that classifies countries by their level of industrialization and commits certain countries to GHG emission reduction targets. Although South Africa is not one of these countries identified, it ranked among the top 20 countries measured by absolute carbon dioxide emissions. During the 2009 Copenhagen climate change negotiations, South Africa voluntarily announced that it would act to reduce domestic GHG emissions by 34% by 2020 and 42% by 2025, subject to the availability of adequate financial, technological and other support. The two main economic policy instrumentsavailable for setting a price on carbon and curbing GHG emissions are carbon taxation and emissions trading schemes. In a discussion paper on carbon taxation by the National Treasury of the South African Government released in June 2013 different methods of carbon taxation were discussed.  The implementation of these carbon taxes have been postponed. Should these taxes be implemented, they might have a direct or indirect negative cost impact on our operations which could have an adverse effect on thebusiness, operating results and financial condition.
 Failure to comply with the requirements of the Broad Based Socio-Economic Empowerment Charter could have an
 adverse affect on our business, operating results and financial condition of our operations.
   (effective from May 1, 2004), established certain numerical goals and timeframes to transform equity participation in the miningindustry in South Africa. The goals set by the Mining Charter include that each mining company must achieve 15% ownership by historically disadvantaged South Africans, or HDSA, of its South African mining assets within five years and 26% ownership within ten years, in each case, from May 1, 2004. This is to be achieved by, among other methods, the sale of assets to historically disadvantaged persons on a willing seller/willing buyer basis at market value.
   Mining Charter was to clarify certain ambiguities and uncertainties which existed under the Mining Charter and to provide more specific targets. However, there are a number of matters that still require clarification and discussions in respect of interpretations of the requirements are in progress with the DMR. The goals set by the amendments to the Mining Charter include: minimum 26% HDSA ownership by March 2015; procurement of a minimum 40% of capital goods, 50% of consumer goods and 70% of services from Black Economic Empowerment, or BEE, entities by March 2015; minimum 40% HDSA representation at each of executive management level, senior management level, middle management level, junior management level and core and critical skills levels;minimum 3% investment of annual payroll in skills training; investment in community development; and attain an occupancy rate ofone person per room in on-site accommodation.


16
   approach, evaluating the commitments of each company to the different facets of promoting the objectives of the Mining Charter.Failure on our part to comply with the requirements of the Mining Charter and the “scorecard” could subject us to negative consequences. There is also no guarantee that any steps we might take to comply with the Mining Charter would ensure that we could successfully acquire new order mining rights in place of our existing rights. In addition, the terms of such new order rights may not be as favorable to us as the terms applicable to our existing rights. In addition, we may incur expenses in giving additional effect to the Mining Charter and the “scorecard”, including costs which we may incur including the risk of losing ourmining rights if we do not comply with the requirements stipulated in facilitating the financing of initiatives towards ownership by historically disadvantaged persons. Any of the foregoing could have an adverse affect on our business, operating results and financial condition.
 
 Since our South African labor force has substantial trade union participation, we face the risk of disruption from labor
 disputes and new South African labor laws.
   June 30, 2014, we employed and contracted 2,329 people, of whom approximately 80% are members of trade unions or employee associations. We have entered into various agreements regulating wages and working conditions at our mines. Unreasonable wage demands could increase production costs to levels where our operations are no longer profitable. This could lead to accelerated mine closures and labor disruptions. In addition, we are subject to strikes by workers from time to time, which result in disruptions to our mining operations.
   that provide for mandatory compensation in the event of termination of employment for operational reasons and that impose largemonetary penalties for non-compliance with the administrative and reporting requirements of affirmative action policies could result in significant costs to us. In addition, future South African legislation and regulations relating to labor may further increase our costs or alter our relationship with our employees. Labor cost increases could have an adverse effect on our business, operating results and financial condition.
 Labor unrest could affect production.
   Africa and events related to these strikes resulted in 45 people being killed. During February to June 2014, the platinum industry had a wage strike that lasted for five months. Above inflation wage increases and changes to working conditions were agreed to in order to bring the strike to an end.
   
 Our financial flexibility could be materially constrained by South African currency restrictions.
  Monetary Area, including South Africa. The Exchange Control Department of the South African Reserve Bank, or SARB, is responsible for the administration of exchange control regulations. In particular, South African companies:
 **·** are generally not permitted to export capital from South Africa or to hold foreign currency without the approval of SARB; **·** are generally required to repatriate, to South Africa, profits of foreign operations; and **·** are limited in their ability to utilize profits of one foreign business to finance operations of a different foreign business.
   how it will further relax or abolish exchange control measures in the future. For further information see Item 10D.: “Exchange Controls.”
 Risks related to ownership of our ordinary shares or ADSs
 Sales of large volumes of our ordinary shares or ADSs or the perception that these sales may occur, could adversely
 affect the prevailing market price of such securities.
  our stockholders, or there is the perception in the marketplace that such sales could occur. Current holders of our ordinary sharesor ADSs may decide to sell them at any time. Sales of our ordinary shares or ADSs, if substantial, or the perception that thesesales may occur to be substantial, could exert downward pressure on the prevailing market prices for our ordinary shares or ADSs,causing their market prices to decline. Trading activity of hedge funds and the ability to borrow script in the market place willincrease trading volumes and may place our share price under pressure.


17
 Dividend tax, which is a withholding tax, will reduce the amount of dividends received by beneficial owners.
  withholding tax on dividends and other distributions payable to shareholders. Although this may reduce the tax payable by the Company or our subsidiaries, the withholding tax will reduce the amount of dividends or other distributions received by our shareholders.
 Your rights as a shareholder are governed by South African law, which differs in material respects from the rights of
 shareholders under the laws of other jurisdictions.
  rights of holders of our ordinary shares, and therefore many of the rights of our ADS holders, are governed by our memorandum of incorporation and by South African law. These rights differ in material respects from the rights of shareholders in companiesincorporated elsewhere, such as in the United States. In particular, South African law significantly limits the circumstances under which shareholders of South African companies may institute litigation on behalf of a company.
 It may not be possible for you to effect service of legal process, enforce judgments of courts outside of South Africa or
 bring actions based on securities laws of jurisdictions other than South Africa against us or against members of our board.
  addition, our cash producing assets are located outside the United States and a major portion of the assets of members of our board of directors and executive officers are either wholly or substantially located outside the United States. As a result, it may not be possible for you to effect service of legal process, within the United States or elsewhere including in South Africa, upon most of our directors or officers, including matters arising under United States federal securities laws or applicable United States state securities laws.
   officers judgments obtained in courts outside South Africa, including the United States, based on the civil liability provisions of the securities laws of those countries, including those of the United States. A foreign judgment is not directly enforceable in South Africa, but constitutes a cause of action which will be enforced by South African courts provided that:
 **·** the court which pronounced the judgment had jurisdiction to entertain the case according to the principles recognized by    South African law with reference to the jurisdiction of foreign courts; **·** the judgment is final and conclusive (that is, it cannot be altered by the court which pronounced it); **·** the judgment has not lapsed; **·** the recognition and enforcement of the judgment by South African courts would not be contrary to public policy, including    observance of the rules of natural justice which require that no award is enforceable unless the defendant was duly served    with documents initiating proceedings, that he was given a fair opportunity to be heard and that he enjoyed the right to be    legally represented in a free and fair trial before an impartial tribunal; **·** the judgment was not obtained by fraudulent means; **·** the judgment does not involve the enforcement of a penal or revenue law; and **·** the enforcement of the judgment is not otherwise precluded by the provisions of the Protection of Business Act, 1978 (as    amended), of South Africa.
   whom the compensation is awarded. Although the award of punitive damages is generally unknown to the South African legal systemthat does not mean that such awards are necessarily contrary to public policy. Whether a judgment was contrary to public policydepends on the facts of each case. Exorbitant, unconscionable, or excessive awards will generally be contrary to public policy. South African courts cannot enter into the merits of a foreign judgment and cannot act as a court of appeal or review over the foreign court. South African courts will usually implement their own procedural laws and, where an action based on an international contract isbrought before a South African court, the capacity of the parties to the contract will usually be determined in accordance with South African law. It is doubtful whether an original action based on United States federal securities laws may be brought before SouthAfrican courts. A plaintiff who is not resident in South Africa may be required to provide security for costs in the event of proceedings being initiated in South Africa. Furthermore, the Rules of the High Court of South Africa require that documents executed outside South Africa must be authenticated for the purpose of use in South African courts. It is not possible therefore for an investor to seek to impose criminal liability on us in a South African court arising from a violation of United States federal securities laws.


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 ITEM 4. INFORMATION ON THE COMPANY
 4A. HISTORY AND DEVELOPMENT OF THE COMPANY
 Introduction
   including exploration, extraction, processing and smelting. Our main subsidiary is Ergo Mining Operations Proprietary Limited, orEMO, in which we hold a 74% interest. Our black economic empowerment partners are Khumo Gold SPV Proprietary Limited, or Khumo Gold and an employee trust (known as the DRDSA Empowerment Trust), which hold 20% and 6% respectively in EMO.  On June 1, 2012, we sold our entire interest and claims against Blyvoor to Business Venture Investment No 1557 Proprietary Limited, a wholly owned subsidiary of Village Main Reef Limited, or Village.
   the surface assets and liabilities of East Rand Proprietary Mines Limited, or ERPM, and ErgoGold (formerly called Elsburg Gold Mining joint venture), were restructured into Ergo Mining Proprietary Limited, or Ergo Mining. As at June 30, 2013, EMO wholly owned and operated Crown, Ergo Mining, and ERPM. Ergo Mining, Crown, ErgoGold and ERPM’s Cason operation are collectively referred to as Ergo.
      shares were listed on the Johannesburg Stock Exchange ("JSE") in that same year. In 1898, our milling operations commenced with30 stamp mills and in that year we treated 38,728 tons of ore and produced 22,958 ounces of gold. On December 3, 2004, the company changed its name from Durban Roodepoort Deep Limited to DRDGOLD Limited. Our operations have focused on South Africa's West Witwatersrand Basin, which has been a gold producing region for over 100 years.
   the Brussels Bourse in the form of International Depository Receipts, the Over The Counter, or OTC, market in Berlin and Stuttgartand the Regulated Unofficial Market on the Frankfurt Stock Exchange.
   st
  Constantia Kloof Ext. 28, Roodepoort, South Africa. The postal address is P.O. Box 390, Maraisburg 1700, South Africa. Our telephone number is (+27 11) 470-2600 and our facsimile number is (+27 11) 470-2618. We are registered under the South African Companies Act, 1973 (as amended) under registration number 1895/000926/06. The South African Companies Act, 1973 has been superseded by the South African Companies Act 71, 2008 which had been promulgated as from May 1, 2011. For our ADSs, the Bank of New York Mellon, at 101 Barclay Street, New York, NY 10286, United States, has been appointed as agent.
 South African operations
 Ergo
   million tonnes (Mt) of surface tailings contained in the Elsburg Tailings Complex for gold. As a second-phase development, in conjunction with a new pipeline linking Ergo with Crown, the Ergo plant’s second carbon-in-leach (CIL) circuit was refurbished during September 2011 at an aggregate cost of R 44,8 million to increase capacity from 1.2 million tonnes per month (Mtpm) to 1.8Mtpm. Ergo Mining is licensed to produce uranium and sulphuric acid. A desktop feasibility study to assess the potential of these by-products from the Ergo resource suggests that it is not financially viable in the current climate. On July 1, 2012, Ergo Miningacquired the mining assets and certain liabilities of Crown and all the surface assets and liabilities of ERPM as part of the restructuring of our surface operations. Also as part of this restructuring, Ergo Mining acquired DRDGOLD's 35% interest in ErgoGold for R200 million.
   within the Witwatersrand Basin, exploits various surface sources, including sand and slime tailings deposited as part of previousmining operations. On July 1, 2012, Crown sold its mining assets, mining and prospecting rights and certain liabilities to Ergo Mining in exchange for shares in Ergo Mining as part of the restructuring of our surface operations.


19
   retreatment operation and ERPM Extension 1 and 2 exploration tenements, were acquired on October 10, 2002. Underground mining at ERPM was halted in October 2008. On July 1, 2012, ERPM sold its surface mining assets, and its 65% interest in ErgoGold to Ergo Mining in exchange for shares in Ergo Mining as part of the restructuring of our surface operations. In line with the group’s strategy to exit underground mining operations, on July 24, 2014 EMO and ERPM entered into an agreement with ERPM South Africa Holding Proprietary Limited, the nominee of Australian based Walcot Capital for the disposal of certain of the underground mining and prospecting rights held by ERPM including the related liabilities subsequent to fiscal 2014. This agreement is subject to a number of conditions, including that the Purchaser is to secure funding to pay the purchase consideration within sixty days of the Signature Date, as well as a number of regulatory consents and permission, most notably consent to thesale by the Minister of Minerals.
 Blyvoor (discontinued operation)
   underground operating mine located within the Witwatersrand Basin, exploiting gently to moderately dipping gold bearing quartz pebble conglomerates in addition to certain surface sources. In June 2012 we sold our entire interest in Blyvoor to Village.
   concerned, after Village failed to attend to certain administrative steps associated with the registration of Blyvoor’s New Order Mining Rights. Blyvoor was also placed under provisional liquidation by the Village controlled Blyvoor board in August 2013 andhas since been under the control of the provisional liquidators that were appointed by the High Court of South Africa.
 Zimbabwe exploration
 Chizim Gold
   Investments, to conduct feasibility studies on certain gold exploration tenements in Zimbabwe’s Greenstone Belt extending over anarea of more than 21,000 hectares. On June 7, 2013 DRDGOLD reduced its holding to 49%. On June 30, 2013 the entity stopped conducting feasibility studies on all exploration tenements in Zimbabwe. This company is currently dormant after DRDGOLD withdrew support for its activities during 2013. As underground mining is not in line with DRDGOLD’s strategy, we intend to dispose of our exploration assets in Zimbabwe.
 Important Events in Our Development Generally and in the Current Year
 Restructuring of the BEE participation
  partners in EMO for a consideration of R191,100,000, to be paid by issuing to them an aggregate 45.5 million ordinary shares inDRDGOLD.  Upon completion of the transaction, Khumo Gold will be issued 35.0 million shares and the DRDSA Empowerment Trust 10.5 million.
  at Johannesburg on June 27, 2014. The transaction remains subject to consent by the Minister of Minerals by not later than March
  17, 2015.
   Ergo Mining and Ekhuruleni City Council agree terms to access and use treated sewerage water
  period of twelve years commencing on June 14, 2014 draw up to 10 mega litres of processed sewerage water from the Ronderbult Waste Water Treatment Works. Ergo will pay the council a monthly management fee of 68c per kiloliter consumed. The fee escalates annually at a rate equal to the South African Consumer Price Index.


20
 4B. BUSINESS OVERVIEW
  extraction, processing and smelting. Our surface tailings retreatment operations, including the requisite infrastructure and metallurgical processing plants, are located in South Africa.  Our operating footprint is unique, in that it involves some of thelargest concentration of  gold tailings deposits in the world, situated within the city boundaries of Johannesburg and its suburbs.
  surface resources and to expand our reach and create growth opportunities through the improvement and development of innovative technologies.
  human, financial, intellectual and manufactured – to extract gold from extensive surface resources in the safest and most efficient manner, thus ensuring the sustainability of our social and environmental capital whilst contributing to sustainable societies in and around our footprint.
   **·** the use of technology and continuing research and development to improve reclamation efficiency and effectiveness; **·** acquiring additional surface resources on the Witwatersrand and, possibly, other areas; **·** using existing expertise and skills to expand into the reclamation of other minerals from waste material.
  Gold Mining Company Limited, or Blyvoor on June 1, 2012. Blyvoor has therefore been classified as a discontinued operation in fiscal 2012 in the comparative periods in this Annual Report.
  through a joint venture in which we currently own 49%. The initial feasibility studies in Zimbabwe indicated potential underground mining assets, which does not fit with our current strategy of surface gold tailings retreatment. We have thereforedecided not to continue with our Zimbabwe exploration activities.
   Description of Our Mining Business
 Surface tailings retreatment
   underground gold mining activities. This is done by reprocessing sand dumps and slimes dams along the reefs that stretch from east to west just to the south of Johannesburg’s central business district (CBD). Sand dumps are the result of the less efficient stamp-milling process employed in earlier times. They consist of coarse-grained particles which generally contain higher quantities of gold. Sand dumps are reclaimed mechanically using front end loaders that load sand onto conveyor belts. The sand is fed onto a screenwhere water is added to wash the sand into a sump, from where it is pumped to the plant. Most sand dumps have already been retreated using more efficient milling methods. Lower grade slimes dams are also the result of the old treatment methods but do not require milling. This material has become economically more viable to process owing to improved treatment methods. The materialfrom the slimes dams is broken down using monitor guns that spray jets of high pressure water at the target area. The resulting slurry is then pumped to a treatment plant for processing.
 Underground mining
   and the principal mining method used was the extraction of Ore Reserves from previously mined-out areas, which required a high degree of opening up, development and retreatment of these Ore Reserves.


21
 Exploration
   existing sites and at undeveloped sites. Once a potential ore body has been discovered, exploration is extended and intensified in order to enable clearer definition of the ore body and the portions with the potential to be mined. Geological techniques are constantly refined to improve the economic viability of exploration and exploitation.
 Our Metallurgical Plants and Processes
    Market
   dollars. Physical demand for gold is primarily for manufacturing purposes, and gold is traded on a world-wide basis. Refined gold has a variety of uses, including jewelry, electronics, dentistry, decorations, medals and official coins. In addition, central banks, financial institutions and private individuals buy, sell and hold gold bullion as an investment and as a store of value (due to the tendency of gold to retain its value in relative terms against basic goods and in times of inflation and monetary crises).
  have meant that historically the potential total supply of gold has been far greater than demand. Thus, while current supply anddemand play some part in determining the price of gold, this does not occur to the same extent as in the case of other commodities. Instead, the gold price has from time to time been significantly affected by macro-economic factors such as expectations of inflation, interest rates, exchange rates, changes in reserve policy by central banks, and global or regional political and economic crises. In times of inflation and currency devaluation, gold is often seen as a safe haven, leading to increased purchases of gold and support for its price.
  per ounce during the fiscal year 2014 and by 4% from $1,673 per ounce to $1,606 per ounce during the fiscal year 2013. The average gold price received by us for fiscal 2014 was R432,775 per kilogram which was 5.5% lower than the previous year at R458,084 per kilogram.
  debt, economic volatility and the oversupply of fiat currency, will again make gold attractive to investors. The drop in gold price has squeezed out a number of high cost gold producers and caused investment in exploration and strategic capital to tumble. The supplyof gold has shrunk and is likely to shrink even more due to the significantly reduced capital expenditure and development occurring in the sector. This coupled with the unimpressive state of the global economy and generally weak economic policies, are likely toprovide significant support to the gold price in the long term.
     refining agreement entered into in October 2001. The gold bars which we produce consist of approximately 85% gold, 7-8% silver and the balance comprises copper and other common elements. The gold bars are sent to Rand Refinery for assaying and final refining where the gold is purified to 99.9% and cast into troy ounce bars of varying weights. Rand Refinery then usually sells the gold on the same day as delivery, for the London afternoon fixed Dollar price, with the proceeds remitted to us in rand within two days. In exchange for this service, we pay Rand Refinery a variable refining fee plus fixed marketing, loan and administration fees. We currently own 11% (fiscal 2013: 11% and fiscal 2012: 4%) of Rand Refinery.
 Ore Reserves
    Guide 7. Accordingly, as of the date of reporting, all reserves are planned to be mined out under the life of mine business plans within the period of our existing rights to mine, or within the time period of assured renewal periods of our rights to mine. Inaddition, as of the date of reporting, all reserves are covered by required permits and governmental approvals. See Item 4D.: “Property, Plant and Equipment” for a description of the rights in relation to each mine.


22
  South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, or SAMREC Code. The SEC’s Industry Guide 7 does not recognize Mineral Resources. Accordingly, we do not include estimates of Mineral Resources in this Annual Report.
  calculations included in the geological models and input parameters of the reserve estimation procedures, were checked. In addition, visual inspection of the planning to deliver an individual block to the metallurgical plant, and the recovery, and deposition of the tailings, took place. A check is also made of the financial input into the costs and revenue to affirm that they are within reasonable limits.
   Reserve tons, grade and content are quoted as delivered to the gold plant. There are two types of methods available to select ore for mining. The first is pay-limit, which includes cash operating costs, including overhead costs, to calculate the pay-limit grade. The second is the cut-off grade which includes cash operating costs, excluding fixed overhead costs, to calculate the cut-off grade,resulting in a lower figure than the full pay-limit grade. The cut-off grade is based upon direct costs from the mining plan, taking into consideration production levels, production efficiencies and the expected costs. We use the pay-limit to determine which areas to mine, as an overhead inclusive amount that is indicative of the break-even position.
   includes all overhead costs, including head office charges, are equal to a three-year historical average gold price per ounce for that year. This calculation also considers the previous three years’ mining and milling efficiencies, which includes metallurgical and other mining factors and the production plan for the next twelve months. Only areas above the pay-limit grade are considered for mining. The pay-limit grade is higher than the cut-off grade, because this includes overhead costs, which indicates the break-even position of the operation.
   **·** The potential ore to be mined is well defined by an externally verified and approved geological model created using our    mining software; **·** The potential ore, which is legally allowed to be mined, is also confined by the mine's lease boundaries; and **·** A full life of mine business plan (physical 5 year plan) is prepared to mine the ore from existing infrastructure.
   figures in accordance with industry practice, converting mineral deposits to an Ore Reserve through the preparation of a mining plan. The Ore Reserve estimates contained herein inherently include a degree of uncertainty and depend to some extent on statistical inferences which may ultimately prove to have been unreliable.
   mineralization or formations different from those predicted by past drilling, sampling and similar examinations, reserve estimates may have to be adjusted and mining plans may have to be altered in a way that might adversely affect our operations. Moreover, if the price of gold declines, or stabilizes at a price that is lower than recent levels, or if our production costs increase or recovery rates decrease, it may become uneconomical to recover Ore Reserves containing relatively lower grades of mineralization.
   significant increase in gold prices, since fiscal 2006 the Company prepares its life of mine business plans using the prevailing gold price at the time of the reserve determination, which is at the end of the fiscal year.
  2014
 2013
                     1.5 million ounces at June 30, 2014, primarily as a consequence of mining activity (depletion). Based on the life of mine business plans, the life of mine for our operations at June 30, 2014, are set out below.
 Surface
 Mine
 2014
 2013


23
 DRDGOLD's Attributable Ore Reserves as of June 30, 2014 and 2013 are set forth in the tables below.
 Ore Reserves: Imperial
 At June 30, 2014
 At June 30, 2013
 Proven Ore Reserves
 Probable Ore Reserves
 Proven Ore Reserves
 Probable Ore Reserves
 Tons
 Grade
 Gold
 Content
 Tons
 Grade
 Gold
 Content
 Tons
 Grade
 Gold
 Content
 Tons
 Grade
 Gold
 Content
 (mill)
 (oz/ton)
 ('000 ozs)
 (mill)
 (oz/ton)
 ('000 ozs)
 (mill)
 (oz/ton)
 ('000 ozs)
 (mill)
 (oz/ton)
 ('000 ozs)
 
 
 
 
 
 
 
 
 
 
 
 
 
  1
      
 
 
 
 
 
 
              Total
 2
 109,564
   39.57
 0.01
 488
 123.296
 
 
 0.01
 1,181
 37.69
 0.01
 495
 Ore Reserves: Metric
 At June 30, 2014
 At June 30, 2013
 Proven Ore Reserves
 Probable Ore Reserves
 Proven Ore Reserves
 Probable Ore Reserves
 Tonnes
 Grade
 Gold
 Content
 Tonnes
 Grade
 Gold
 Content
 Tonnes
 Grade
 Gold
 Content
 Tonnes
 Grade
 Gold
 Content
 (mill)
 (g/tonne)
 (tonnes)
 (mill)
 (g/tonne)
 (tonnes)
 (mill)
 (g/tonne)
 (tonnes)
 (mill)
 (g/tonne)
 (tonnes)
              1
       
 
 
 
 
 
               Total
 2
  99,397
 0.32
 32.198
 35.898
 0.42
 15.191
 111.854
 0.33
 36.739
 34.192
 0.45
 15.388
 
 1
   2


24
  the gold price. If we had used different gold prices than the three-year average prices at the time of reserve determination, as of June 30, 2014 and 2013 respectively, we would not have had significantly different reserves as of those dates. Using the same methodology and assumptions as were used to estimate Ore Reserves but with different gold prices, our attributable Ore Reserves as of June 30, 2014 and 2013 would be as follows:
 Year ended June 30, 2014
 Three-year
 average price
 Business Plan
 at prevailing
 price
 10% Below
 prevailing
 price
 10% Above
 prevailing
 price
                      Year ended June 30, 2013
 Three-year
 average price
 Business Plan
 at prevailing
 price
 10% Below
 prevailing
 price
 10% Above
 prevailing
 price
                 Surface
 Mine
 
 
 
 Mine Call Factor
 (%)
 Metallurgical and
 recovery factor
 (%)
            
 Surface
 Mine
 Mine Call Factor
 (%)
 Metallurgical and
 recovery factor
 (%)
                  Mine
 Proven
 Reserves
 Probable
 Reserves
      Surface
 Mine
 Pay-limit grade
 (g/t)
 Costs used to
 determine pay-
 limit grade (R/t)


25
  Surface
 Mine
 Pay-limit grade
 (g/t)
 Costs used to
 determine pay-
 limit grade (R/t)
            Governmental regulations and their effects on our business
 Common Law Mineral Rights and Statutory Mining Rights
   mineral rights in South Africa could be acquired through the common law or by statute. With effect from May 1, 2004, all minerals have been placed under the custodianship of the South African government under the provisions of the MPRD Act, and old order proprietary rights were required to be converted to new order rights of use within certain prescribed periods, as dealt with in more detail below.
 Old Order Rights - Mining Authorizations
   same land which is the subject of the old order right. By way of example, holders of unused old order rights had for a period of one year from the effective date of the MPRD Act the exclusive right to apply for an appropriate right in terms of item 8 of Schedule II. Once an old order right is lodged for conversion at the Department of Mineral Resources (DMR), it remains in force until it is converted.
 Conversion of Rights under the Mineral and Petroleum Resources Development Act, 2002
   mineral for which rights existed at the time of the enactment of the MPRD Act. In respect of used old order mining rights, the DMR is obliged to convert the rights if the applicant complies with certain statutory criteria. These include the submission of a mining works program, demonstrable technical and financial capability to give effect to the program, provision for environmental management and rehabilitation, and compliance with certain black economic empowerment criteria and a social and labor plan. Theseapplications had to be submitted within five years after the promulgation of the MPRD Act on May 1, 2004. Similar procedures applywhere we hold prospecting rights and a prospecting permit and conduct prospecting operations. Under the MPRD Act, mining rightsare not perpetual, but endure for a fixed period, namely a maximum period of thirty years, after which they may be renewed for afurther period of thirty years. Prospecting rights are limited to five years, with one further period of renewal of three years.Applications for conversion of our old order rights were submitted to the DMR within the requisite time periods. During this period, we are permitted to continue to operate under the terms and conditions of the old order rights which we hold. As at September 30,2014, a substantial portion of our old order mining rights have been converted into new order rights under the terms of the MPRD Act but await registration at the Mineral and Petroleum Titles Registration Office of the DMR.
 Amendment Bill to the MPRDA
   effect once signed by the State President.  Some of the more important changes introduced by the Bill is to allow the holder of a Mining Right to also mine “associated minerals” not specifically included in the Mining Right; it addresses anti-competitive conduct by requiring the Minister of Minerals to refuse an application for exploration rights if it will cause a “concentration of rights” as defined in the Bill; historic and old mine dumps are to be included in the definition of “residue stockpiles” and certain rehabilitation obligations are created in respect of the discarded mines to which they pertain; and liability for rehabilitation will extend beyond the issuance of a closure certificate and financial provision for closed sites will be required to be maintained for a period of 20 years after a site is closed.  Should the amendment bill to the MPRDA be enacted in its currently proposed form, the latter three amendmentsreferred to above may have a fundamental impact on the group's estimated environmental provisions.


26
 Mining royalties
  Mineral and Petroleum Resources Royalty Act, or the Royalty Act. The most significant feature of the Royalty Act is that the royalty is to be determined in accordance with a formula based system and no longer to be a predetermined specific rate for thedifferent types of minerals. The royalty is deductible for normal income tax purposes.
  The final product can be either the “refined” or “unrefined” mineral depending on the nature of the mineral in question. There has been general consensus that a formula derived mineral royalty rate regime is more equitable and provides the necessary relief for mines during times of difficulties, e.g. low commodity prices and mines that become marginal due to low grades. The formula-based mineral royalty rate regime also ensures that the State shares in the benefits of higher commodity prices. The State thusshares in the downside risks, when mines become marginal, and in the upside benefits during times of high commodity prices. Based on comments received, the formulae were adjusted to take into account the capital intensive nature of certain mining operations, especially Gold mining and Oil and Gas. The formulae use earnings before income tax, or EBIT, with 100 percent capital expensing.
   **·** For refined minerals: Y (%) = 0.5 + [(EBIT divided by (Gross Sales multiplied by 12.5)) multiplied by 100]. This rate is 
     capped at a maximum of 5.0% with a minimum of 0.5%.
 **·** For unrefined minerals: Y (%) = 0.5 + [(EBIT divided by (Gross Sales multiplied by 9.0)) multiplied by 100]. This rate is    capped at a maximum of 7.0% with a minimum of 0.5%.
  The Broad Based Socio-Economic Empowerment Charter
   developed by the Minister within six months of commencement of the MPRD Act, beginning May 1, 2004. The Mining Charter was initially published in August 2004 and was subsequently amended in September 2010. Its objectives include:
 **·** increased direct and indirect ownership of mining entities by qualifying parties as defined in the Mining Charter; **·** expansion of opportunities for persons disadvantaged by unfair discrimination under the previous political dispensation; **·** expansion of the skills base of such persons, the promotion of employment and advancement of the social and economic    welfare of mining communities; and **·** promotion of beneficiation.
  historically disadvantaged South Africans of South African mining assets. It recommends that these are achieved by, among othermethods, disposal of assets by mining companies to historically disadvantaged persons on a willing seller, willing buyer basis at fair market value. The goals set by the Mining Charter require each mining company to achieve 15 percent ownership by historically disadvantaged South Africans of its South African mining assets within five years and 26 percent ownership by May 1, 2014. It alsosets out guidelines and goals in respect of employment equity at management level with a view to achieving 40 percent participation by historically disadvantaged persons in management and ten percent participation by women in the mining industry, each within fiveyears from May 1, 2004. Compliance with these objectives is measured on the weighted average “scorecard” approach in accordancewith a scorecard which was first published in or around August 2010.
   the DMR places significant emphasis on the compliance therewith. The Mining Charter and scorecard, have a decisive effect on administrative action taken under the MPRD Act.
   people in the industry to reflect the country’s population demographics, to empower and enable them to meaningfully participatein and sustain the growth of the economy, thereby advancing equal opportunity and equitable income distribution, we have achieved our commitment to ownership compliance with the MPRD Act through our existing black economic empowerment structure with Khumo Gold and the DRDSA Empowerment Trust. Our black economic empowerment partners, Khumo Gold and the DRDSA Empowerment Trust, hold 20% and 6%, respectively, in our operating subsidiary, EMO. (See Item 4A.: “History and Development of the Company”).


27
 Mine Health and Safety Regulation
   January 1997. The principal object of the Mine Health and Safety Act is to improve health and safety at South African mines and to this end, imposes various duties on us at our mines, and grants the authorities broad powers to, among other things, close unsafe mines and order corrective action relating to health and safety matters. In the event of any future accidents at any of our mines,regulatory authorities could take steps which could increase our costs and/or reduce our production capacity. The 2009 amendments to the Act dealt with inter alia the stoppage of production and increase punitive measures including increased financial fines and legal liability of mine management. Some of the more important new provisions in the 2009 amendment bill are the insertion of a new section 50(7A) that obliges an inspector to impose a prohibition on the further functioning of a sitewhere a person’s death, serious injury or illness to a person, or a health threatening occurrence has occurred; a new section 86A(1) creating a new offence for any person who contravenes or fails to comply with the provisions of the Mine Health and Safety Act thereby causing a person’s death or serious injury or illness to a person. Subsection (3) further provides that (a) the “fact that the person issued instructions prohibiting the performance or an omission is not in itself sufficient proof that all reasonable steps were taken to prevent the performance or omission”; and that (b) “the defense of ignorance or mistake by any person accused cannot bepermitted”; or that (c) “the defense that the death of a person, injury, illness or endangerment was caused by the performance or an omission of any individual within the employ of the employer may not be admitted”; a new section 86A(2) creating an offence of vicarious liability for the employer where a Chief Executive Officer, manager, agent or employee of the employer committed an offence and the employer either connived at or permitted the performance or an omission by the Chief Executive Officer, manager, agent or employee concerned; or did not take all reasonable steps to prevent the performance or an omission. The maximum fines have also been increased. Any owner convicted in terms of section 86 or 86A may be sentenced to “withdrawal or suspension of the permit” or to a fine of R3 million or a period of imprisonment not exceeding five years or to both such fine and imprisonment, while the maximum fine for other offences and for administrative fines have all been increased, with the highest being R1 million. The President assented to the amendment bill in April 2009. The amendment Act was proclaimed and came into law in May 2009.
   employers are required to contribute to a fund specifically created for the purpose of compensating employees or their dependants for disability or death arising in the course of their work. Employees who are incapacitated in the course of their work have no claim for compensation directly from the employer and must claim compensation from the COID Act fund. Employees are entitled to compensation without having to prove that the injury or disease was caused by negligence on the part of the employer, although if negligence is involved, increased compensation may be payable by this fund. The COID Act relieves employers of the prospect of costly damages, but does not relieve employers from liability for negligent acts caused to third parties outside the scope of employment. In fiscal 2014, we contributed approximately R2.8 million under the COID (2013: R2.2 million) Act to a multi-employer industry fund administered by Rand Mutual Assurance Limited.
   employer fund pays compensation to employees of mines performing “risk work,” usually in circumstances where the employee is exposed to dust, gases, vapors, chemical substances or other working conditions which are potentially harmful, or if the employeecontracts a “compensatable disease,” which includes pneumoconiosis, tuberculosis, or a permanent obstruction of the airways. Noemployee is entitled to benefits under the Occupational Diseases Act for any disease for which compensation has been received or is still to be received under the COID Act. Currently the Group is compliant with these payment requirements, which are based on acombination of the employee costs and claims made during the fiscal year.
   potential risks for radiation exposure of workers at those operations and the public to radiation in the nearby vicinity. We monitor our uranium and radon emissions and believe that we are currently in compliance with all local laws and regulations pertaining to uranium and radon management and that we are within the current legislative exposure limits prescribed for workers and the public, under the Nuclear Energy Act, 1999 (as amended) and Regulations from the National Nuclear Regulator.
 Environmental Regulation
  enactments set compliance standards both generally, in the case of the National Environmental Management Act, and in respect ofspecific areas of environment impact, as in the case of the Air Quality Act 2004, the National Water Act (managing effluent), and the Nuclear Regulator Act 1999. Liability for environmental damage is also extended beyond the corporate veil to impose personal liability on managers and directors of mining corporations that are found to have violated applicable laws.
  onerous provisions for personal liability of directors of companies whose mining operations have an unacceptable impact on the environment.


28
  environmental management program, or EMP, and achieve ultimate rehabilitation, the particulars of which are to be incorporated in an EMP. This program is required to be submitted and approved by the DMR as a prerequisite for the issue of a new order mining right. Various funding mechanisms are in place, including trust funds, guarantees and concurrent rehabilitation budgets, to fund the rehabilitation liability.
     key environmental issues have been prioritized and are being addressed through active management input and support as well as progress measured in terms of activity schedules and timescales determined for each activity.
      group's estimated environmental provisions due to the inclusion of historic and old mine dumps in the definition of “residue stockpiles” which creates certain rehabilitation obligations for the discarded mines to which they pertain as well the extension of the liability for rehabilitation beyond the issuance of a closure certificate and the requirement to maintain financial provision for closed sites for a period of 20 years after a site is closed.
 Financial Provision for Rehabilitation
   monitoring once the mining operations cease. We have funded these environmental rehabilitation costs by making contributions overthe life of the mine to environmental trust funds established for each operation and funds held in insurance instruments. Funds are irrevocably contributed to trusts that function under the authority of trustees that have been appointed by, and who owe a statutory duty of trust, to the Master of the High Court of South Africa. The funds held in these trusts are invested primarily in interest bearing debt securities. As of June 30, 2014, we held a total of R90.9 million (2013:R86.4 million) in trust, the balance held in each fund being, R82.8 million (2013: R78.6 million) for Ergo, R8.1 million (2013: R7.7 million) for ERPM. Trustee meetings are held as required, and quarterly reports on the financial status of the funds, are submitted to our board of directors.
   Wits financial provision has been derecognized as at June 30, 2011, 2012, 2013 and 2014 and the Durban Deep financial provision as at June 30, 2013 and 2014, because it will be transferred along with the rehabilitation liability over the West Wits mining rights which have been disposed of.
   the proceeds from the sale of redundant mining equipment at the end of the life of the mine and gold from mine cleanup. If any of the operations are prematurely closed, the rehabilitation funds may be insufficient to meet all the rehabilitation obligations of those operations.
   MPRD Act assumes a fully compliant fund at any given time in the production life of a mine. The DMR appears to have taken a practical approach in dealing with this change, and has indicated that the traditional ring fencing of funds may, for investmentpurposes be relaxed, and that insurance instruments may also be received subject to the DMR’s consent, to make up the shortfall in available cash funds. The Company has subsequently made use of approved insurance products for a portion of its rehabilitation liabilities. As of June 30, 2014, we held a total of R93.7 million (2013: R88.6million) in funds held in insurance instruments. As at June 30, 2014 guarantees amounting to R305.7 million (2013: R305.7 million) were issued to the DMR. Subsequent to June 30, 2014an additional guarantee amounting to R98.2 million was issued to the DMR.
   to R524.3 million at June 30, 2013. This has been included in the provision for environmental rehabilitation (R451.2 million) as well as assets held for sale (R20.5 million) in our financial statements as at June 30, 2014.


4C. ORGANIZATIONAL STRUCTURE
 
 The following chart shows our principal subsidiaries as of September 30, 2014. All of our subsidiaries are incorporated in
 South Africa. Our voting interest in each of our subsidiaries are equal to our ownership interests. We hold the majority of theinvestments directly or indirectly as indicated below. Refer to Exhibit 8.1 for a list of our significant subsidiaries. DRDGOLD holds a 49% ownership interest (50% voting interest) in the Chizim Gold the joint venture in which is incorporated in Zimbabwe.
 4D. PROPERTY, PLANT AND EQUIPMENT
 DRDGOLD OPERATIONS SEPTEMBER 30, 2014


30
 Description of Significant Subsidiaries' Properties and Mining Operations
 Witwatersrand Basin Geology
   Witwatersrand Basin. Crown exploits various surface sources, including sand and slime tailings deposited as part of historical mining operations. ERPM, halted its underground mining operation in October 2008. Ergo is a surface retreatment operation which is currently processing slime tailings from the Elsburg tailings facility, which were historically deposited by ERPM’s undergroundmining operation.
   Kaapvaal Craton, extending laterally for approximately 186 miles (299 kilometers) East-Northeast and 62 miles (100 kilometers) South-Southeast. The sedimentary rocks generally dip at shallow angles towards the center of the basin, though locally this may vary. The Witwatersrand Basin is Achaean in age and the sedimentary rocks are considered to be approximately 2.7 to 2.8 billion years old.
   goldfields located along the eastern, northern and western margins of the basin. These goldfields are known as the Evander Goldfield, the East Rand Goldfield, the West Rand Goldfield, the Far West Rand Goldfield, the Central Rand Goldfield, the Klerksdorp Goldfield and the Free State Goldfield. As a result of faulting and other primary controls of mineralization, the goldfields are not continuous and are characterized by the presence or dominance of different reef units. The reefs are generally less than 6 feet (1.84 meters) thick but, in certain instances, these deposits form stacked clastic wedges which are hundreds of feet thick.
     agreement to dispose was signed during July 2014 (subject to various suspensive conditions), were predominantly underground operating mines located within the Witwatersrand Basin, exploiting gold bearing reefs in addition to certain surface sources.
 Ergo
 Overview
   the Ergo Mining, Crown, ERPM’s Cason operation and ErgoGold business units which are collectively referred to as Ergo. ERPM’s Cason Dump surface tailings retreatment operation will be depleted in the fourth quarter of calendar 2014. Ergo undertakes the retreatment of surface sources deposited as tailing from non-operating mining sites across central and east Johannesburg. In order to improve synergies, effect cost savings and a simpler group structure, DRDGOLD restructured the group’ssurface operations (Crown, ErgoGold and surface assets of ERPM) into Ergo Mining with effect from July 1, 2012. At June 30, 2014,
Ergo had 2,329 employees, including specialized service providers such as Fraser Alexander Tailings.
 Properties
   the province of Gauteng on land owned by Ergo. Access to the Ergo plant is via the Ergo Road on the N17 Johannesburg-Springs motorway. As of  June 30, 2014 and September 2014, no encumbrances exist on Ergo's property.
   Mines and Knights. The entire mining footprint consists of the mining rights of City Deep, Consolidated Main Reef & Estates, Crown Mines (“3Cs”) and Crown Gold Recoveries (“CGR”). Crown’s mining rights have been converted to new order rights under the MPRD Act and the mining rights in respect of the 3Cs were registered at the Mineral and Petroleum Titles Registration Office inJanuary 2014 . In March 2013, applications for the transfer of the mining rights held by the 3Cs and CGR to ERGO were lodged with the DMR, following the restructure of the company into a single surface retreatment business unit. These applications were successful and were notarially executed in March 2014.
   approximately 6 miles (10 kilometers) west of the Johannesburg central business district in the province of Gauteng. Access is via Xavier Road on the M1 Johannesburg-Kimberley-Bloemfontein highway.
   approximately 3 miles (5 kilometers) south-east of the Johannesburg central business district in the province of Gauteng. Access is via the Heidelberg Road on the M2 Johannesburg-Germiston motorway.


31
 History of Ergo 2005
 Anglo American Corporation commissioned the Ergo plant in Brakpan in 1977. The operation became part of AngloGold Ashanti in 1998 and was closed by that company in 2005.
 2007
 Ergo was founded by EMO (owned by DRDGOLD at the time) and Mintails SA as a joint venture. On August 6, 2007, the joint venture parties entered into an agreement with AngloGold Ashanti, pursuant to which it acquired the remaining assets of the Ergo plant for consideration of R42.8 million. Additional agreements were concluded with AngloGold Ashanti on November 14, 2007 for the acquisition by Ergo of additional tailings properties and the Withok deposition complex for consideration of R45.0 million.
 2008
 Ergo Phase 1 was launched comprising the refurbishment and recomissioning of the Ergo plant’s first CIL circuit and the retreatment of the Elsburg and Benoni tailings complexes. DRDGOLD acquires Mintails SA’s stake in ErgoGold for R277.0 million.
 2009
 Ergo Phase 1 commissioning continues; first feeder line to the Ergo Plant from Elsburg tailings complex comes into operation. Ergo Phase 2 exploration drilling for gold, uranium and acid completed.
 2010
 DRDGOLD acquired control of Ergo Mining through the acquisition of Mintails SA’s 50% in Ergo for R82.1 million. Ergo Phase 1 production ramp-up nears completion with the installation of the second Elsburg tailings complex feeder line to the Ergo plant. Construction of the Crown/Ergo pipeline commenced.
 2011
 Construction of the Crown/Ergo pipeline continued and the second CIL circuit of the Ergo plant was refurbished as part of the Crown/Ergo pipeline project.
 2012
  2013
 In order to improve synergies, effect cost savings and a simpler group structure DRDGOLD restructured the group’s surface operations into Ergo Mining on July 1, 2012, which consisted of Crown, the surface operations of ERPM and ErgoGold. Construction and commissioning of the Ergo flotation/fine-grind plant was completed in late December 2013.
 2014
 The FFG was suspended in April 2014 after metallurgical efficiencies declined. Test-work recommenced in August. A prospecting right in respect of surface tailings dumps on various portions of the Farm Grootvlei and a portion of the Farm Geduld was registered on May 12, 2014 for a period of 5 years ending on April 21, 2019.
 History of Crown (consolidated into Ergo on July 1, 2012) 1979
 Rand Mines Limited directors approved the formation of the company Rand Mines Milling and Mining Limited (RM3) to treat the surface gold tailings created from the underground section of the original Crown Mines, which had been in operation since the start of gold mining on the Witwatersrand in the late 1800's.
 1982
  1986
  1997
 Randgold Exploration Limited and Continental Goldfields of Australia entered into a joint venture with the intention to establish a company that would acquire dump retreatment operations on the Witwatersrand. This resulted in the formation of Crown Consolidated Gold Recoveries Limited, or CCGR, which was incorporated as a public company in South Africa in May 1997. Crown was a wholly owned subsidiary of CCGR and consists of the surface retreatment operations of Crown Central, City Deep and Knights.
 1998
  2002
 Khumo Bathong Holdings Proprietary Limited (KBH) purchased 60% of Crown. We were appointed as joint manager of the operation with KBH.
 2005
 On July 6, 2005 we signed a Memorandum of Understanding with KBH regarding the acquisition by Khumo Gold of a 15% stake in our then South African operations. On October 27, 2005, our board of directors approved the transaction with Khumo Gold. The new structure resulted in Khumo Gold acquiring a 15% interest in a newly created vehicle, EMO, which included 100% of ERPM, Crown and Blyvoor. As a result we owned an 85% interest in EMO.
 2006
 On December 11, 2006, Khumo Gold, on behalf of itself and an employee trust, exercised the option granted by us pursuant to the option agreement concluded between us and Khumo Gold in October 2005 to acquire a further 11% in EMO. On August 28, 2006, Crown concluded an agreement with AngloGold Ashanti to purchase the Top Star Dump.
 2008
  2009
 The reclamation of the Top Star Dump commenced in December 2008. Crown also commenced with the reduction of volumes to 400,000 tpm to implement the planned Crown Tailings Deposition Facility closure plan.
 2010
 The surface circuit of ERPM was incorporated into Crown for reporting purposes.  Board approval was obtained to construct a pipeline to the Ergo tailings deposition site to enable Crown to restore its deposition capacity to 600,000tpm. Restored deposition capacity provides the operation with the opportunity to bring to account potential new ore reserves.
 2011
 Construction of the pipeline to the Ergo tailings deposition site continued and was scheduled for completion in December 2011.
 2012
  2013
 On July 1, 2012, Crown sold its mining assets, mining and prospecting rights and certain liabilities to Ergo Mining in exchange for shares in Ergo Mining.


32
 Mining and Processing
    sources have generally undergone a complex depositional history resulting in grade variations associated with improvements in plant recovery over the period of time the material was deposited. Archive material is a secondary source of gold bearing material. This material is generally made up of old gold metallurgical plant sites.
   approximately 25.2 million tons of material per year. All of the plants have undergone various modifications during recent yearsresulting in significant changes to the processing circuits. Crown serves as a milling and distribution station, as does City Deep. The Knights and the Ergo plants are still fully operational.
   across the western, central and eastern Witwatersrand; the Crown milling and pump station close to the Johannesburg central business district; a 50km pipeline; and tailings deposition facilities including the significant Brakpan TSF.
   end loaders, re-pulped with water and pumped to the plant. Slime is reclaimed using high pressure water monitoring guns. The re-pulped slime is pumped to the plant and the reclaimed material is treated using screens, cyclones, ball mills and Carbon-in-Leach, or CIL, technology to extract the gold.
  Ergo Plant:  The expansion of the gold plant by refurbishing the second CIL circuit has increased the capacity to treat an estimated 21Mt per year. The Ergo flotation/fine-grind ("FFG") plant project is designed to assist in liberating the gold particles currently encapsulated in the sulphides and to achieve a targeted improvement in gold recovery efficiencies of between 16% and 20%. This circuit commenced a three month test phase during August 2014 after it was temporarily suspended in April 2014 following a decline in metallurgical efficiencies and is targeted to be back in full production by January 2015, if test-work is successful.
 City Deep
 Plant:
 secondary and tertiary cycloning in closed circuit milling, thickening, oxygen preconditioning, CIL, elution and zinc precipitation followed by calcining and smelting to doré. Retreatment continued at the City Deep Plant until the plant was decommissioned in August 2013 to operate as a milling and pump station and is pumping material to the Ergo Plant for retreatment.
 Crown Mines
 Plant:
 circuit including screening, primary cycloning, open circuit milling, thickening, oxygen preconditioning, CIP and CIL, elution, zinc precipitation followed by calcining and smelting to doré. In June 2012, the gold extraction portion of the Crown plant was discontinued and all material is now only screened, milled and thickened. This material is then pumped to the Ergo plant for the final extraction of gold.
 Knights Plant:
 cycloning, milling in closed circuit with hydrocyclones, thickening, oxygen preconditioning, CIL, elution, electro-winning and smelting to doré. The Knights plant, although historically part of the Crown operation, is located further east and considerably closer to the Brakpan TSF. Retreatment of the nearby Cason dump is expected to ceased during Q4 of calendar 2014 and retreatment of the Lycaste dump – one of the last remaining sand dumps in this area - commenced. Due to the location of the Knights plant it is able to access the Brakpan TSF to deposit waste.
 ERPM Plant: A small section of the ERPM plant was refurbished and adapted to treat slurry deposits that had accumulated through run-off in the Angelo pan area. Slurry containing organic material is processed through a scrubber and a variety of screens to remove the oversize organic material prior to the conventional CIL circuit. This plant treats approximately 10,000 tonnes of material per month.
  storage facilities. The plant is supplied from the national power grid via a secured source from the Ekurhuleni Council of 11,000 volts. Plant sub stations are stepped down to 6,600 volts before being further reduced to 525 volts for the motor control purposes. For the Ergo plant the average annual power consumption is about 149 GWHr and the maximum demand is about 32.0MVA.


33
  15 Shaft Crown Mines, and for Knights by the Ekhuruleni Town Council. Electricity is supplied directly from the national power grid to the substation and town council at 44,000 volts. Substations, located on mine sites, transform the power to 6,600 volts for direct supply to the plants. The power supply is further reduced to 525 volts for smaller devices and equipment. For Crown Minesand City Deep, the average annual power consumption is about 54 GWHr and 80GWHr, respectively and the maximum demand are about 15.0MVA and 13.0MVA, respectively. For Knights the average annual power consumption is about 60 GWHr and the maximum demand is about 14.2MVA.
       Year ended June 30,
 2014
 2013
 2012
 R’000
 R’000
 R’000
                                                                                                                                        Exploration and Development
   gold bearing surface material owned by third parties that could be processed on a full treatment basis or purchased outright by Ergo. Exploration drilling has been done to define the uranium potential of the Elsburg complex. Independent competent person reportson uranium, sulphur and gold for the Elsburg Proven and Probable Ore Reserves have been compiled.


34
 Environmental and Closure Aspects
   development. The major environmental risks are associated with dust from various recovery sites, and effective management of relocated process material on certain tailings dams. The impact of windblown dust on the surrounding environment and community isaddressed through a scientific monitoring and evaluation process, with active input from Professor H. Annagran from the University of Johannesburg and appropriate community involvement. Environmental management programs, addressing a wide range of environmental issues, have been prepared by specialist environmental consultants and applied specifically to each dust sample recovery monitoring site and integrated into Ergo’s internal environmental assessment process. Although Ergo completed a projectfor thickening re-processed tailings, there also remains a risk of localized sloughing which can result in that section of the tailings dam required to be closed temporarily, with repair work being done to the dam wall. Water pollution is controlled by means of acomprehensive system of return water dams which allow for used water to be recycled for use in Ergo’s metallurgical plants. Overflows of return water dams may, depending on their location, pollute surrounding streams and wetlands. Ergo has an ongoing monitoring program to ensure that its water balances (in its reticulation system, on its tailings and its return water dams) aremaintained at levels that are sensitive to the capacity of return water dams.
   chemical and organic dust suppression on recovery sites. Short-term dust control is accomplished through ridge ploughing the topsurface of dormant tailings dams. Additionally, environmentally friendly dust suppressants, such as molasses, are applied. Dust fall-out is also monitored. In the long-term, dust suppression and water pollution is managed through a program of progressive vegetation of the tailings followed by the application of lime, to reduce the natural acidic conditions, and fertilizer to assist in the growth of vegetation planted on the tailings dam.
   life of the mine is in place. The surface reclamation process at Ergo has several environmental merits as it has removed a potentialpollution source and opens up land for development.
  (Compliance Management Tool) that incorporates all existing EIA's, EMP's, Mining Right Conversions, Performance Assessments and SLPs associated with each mining right. The existing and most recent studies are used to supplement the management components with regards to the mining right boundaries and its required compliance parameters. The individual management items are integrated to provide a holistic overview of the state of each of the mining right areas. Spatial data pertaining to the mining right boundaries is stored onto a central database. Spatial data is utilised to create a live map which illustrates the mining right area and various environmental monitoring systems. This map depicts the mining right boundaries, roads, rails, mine dumps, plants, rivers, pipeline routes, servitudes, way leaves, municipal services and other spatial data relevant to our mining operations.
  cost for Ergo, in current monetary terms as at June 30, 2014 is approximately R451.2 million. As at June 30, 2014, a total of R82.8 million has been contributed to the Crown Rehabilitation Trust Fund, while a total of R44.6 million has been contributed by Ergo to funds held in insurance instruments. The Crown Rehabilitation Trust Fund is an irrevocable trust, managed by specific responsible people who we nominated and who are appointed as trustees by the Master of the High Court of South Africa.
 Ore Reserves and Life of Mine
   our 74% of the Proven and Probable Ore Reserves was 1.7 million ounces. A Mineral Resource competent person is appointed at each operation to review our Ore Reserve calculations for accuracy. For Ergo, Mr. Vivian Labuschagne is the appointed Mineral Resource competent person. The current life of mine business plan is estimated to be eight years.
 Production
   firstly the late commissioning of the FFG and then as a consequence of significant metallurgical inefficiencies experienced during initial production coupled with incessant rains over a period of three weeks over this time. We decided to suspend the new circuit early in April 2014 in order to stabilize the lower grade CIL circuit prior to the commencement of electricity winter tariffs kicking in in June 2014. Testwork on the FFG commenced in August 2014. Volume throughput for the year was steady at 23,908,000 tonnes while recovery grades decreased from 0.196g/t to 0.173g/t.


35
   2014
 2013
 Restated
 2012
 Restated
 Production (imperial)  Ore mined ('000 tons) ..................................................................................................
            Results of Operations Revenue (R‘000)  ...........................................................................................................
         1
                   ERPM
 Overview
   consists of an underground section and the Cason Dump surface retreatment operation. Underground mining at ERPM was halted in October 2008 and the financial results and assets and liabilities of these  operations are included in ‘Corporate office and otherreconciling items’ in the financial statements for segmental reporting purposes for all three years preserved. The retreatment of Ergo’s Lycaste Dump will commence as the retreatment of the Cason Dump is completed. These are included under Ergo in the financial statements for segmental reporting purposes.
     nominee of Australian based Walcot Capital for the disposal of certain of the underground mining and prospecting rights held byERPM including the related liabilities during FY2014. This agreement is subject to a number of suspensive conditions including regulatory consent and permission which had not been fulfilled at the date of this report.
 Property
  in the town of Boksburg, 20 miles (32 kilometers) east of Johannesburgon land owned by ERPM. Access is via Jet Park Road on the N12 Boksburg-Benoni highway. Historically underground mining and recovery operations comprised relatively shallow remnant pillar mining in the central area and conventional longwall mining in the south-eastern area. Surface reclamation operations including the treatment of sand from the Cason Dump, is conducted through the Knights metallurgical plant, tailings deposition facilities and associated facilities. Until underground mining was halted in October 2008, the mine exploited the conglomeratic South Reef, Main Reef Leader and Main Reef in the central area and the Composite Reef in the south-eastern area. ERPM operates under mining license ML5/1997 in respect of statutory mining and mineral rights. As of  June 30, 2014 and September 2014, no encumbrances exist on ERPM's property.
    History
 1895
  1991
  1999
 East Rand Proprietary Mines Limited was liquidated in August 1999. The mine was run by a small number of employees during liquidation. Underground flooding continued during liquidation.
 2000
 KBH took over control of the mine in January 2000. Operating as Enderbrooke Investments Proprietary Limited, or Enderbrooke, and employing an outside contractor, the mine re-commenced mining operations in February 2000.
 
 1
 Cash operating cost, cash operating cost per ounce, all-in sustaining cost per ounce and all-in cost per ounce of gold are financial measures of
 performance that we use to determine cash generating capacities of the mines and to monitor performance of our mining operations. For a reconciliation of operating costs see Item 5A.: “Operating Results.”


36
 2002
  2003
 An underground fire occurred at FEV Shaft, in February 2003. There was also the loss of Hercules Shaft in June 2003 and the loss of a secondary outlet at the FEV shaft in November 2003.
 2004
 In July 2004 it was determined that the underground section would undergo a controlled closure program ending March 2005. The closure program was prevented by a reduction in costs and improved productivity at the mine.
 2005
 Central Shaft placed on care and maintenance. On July 6, 2005, we signed a Memorandum of Understanding with KBH regarding the acquisition by Khumo Gold of a 15% stake in our South African operations. On October 27, 2005, our board of directors approved the transaction with Khumo Gold. The new structure resulted in Khumo Gold acquiring a 15% interest in a newly created vehicle, EMO, which includes 100% of ERPM, Crown and Blyvoor. We owned an 85% interest in EMO.
 2006
 On December 11, 2006, Khumo Gold, on behalf of itself and an employee trust, exercised the option granted by us pursuant to the option agreement concluded between us and Khumo Gold in October 2005 to acquire a further 11% in EMO.A prospecting right covering an area of 1,252 hectares (3,093 acres) of the neighboring Sallies lease area, referred to as ERPM Extension 1 was granted by the DMR.
 2007
 A prospecting right, incorporating the southern section of the old Van Dyk mining lease area and a small portion of Sallies, was granted by the DMR. Known as ERPM Extension 2, the additional area is 5,500ha (13,590 acres).
 2008
 On April 25, 2008, ERPM gave notice of intention to restructure the work force due to operational requirements and 239 employees were retrenched during June 2008.  On October 23, 2008, ERPM announced the suspension of drilling and blasting operations underground, following the cessation of pumping of underground water at the South West Vertical shaft on October 6, 2008 for safety reasons following the deaths of two employees. On November 19, 2008, we announced our intention to place on care and maintenance the underground operations of ERPM, and to proceed with a consultation process in terms of Section 189A of the Labor Relations Act to determine the future of the mine’s 1,700 employees.
 2009
 In January 2009, consultations in terms of Section 189A of the Labor Relations Act regarding the future of employees affected by the placing on care and maintenance of the underground operations were concluded and 1,335 employees were retrenched.
 2010
  2013
 On July 1, 2012, ERPM sold all of its surface mining assets (excluding its 50% interest in Ergo) and its 65% interest in ErgoGold to Ergo Mining in exchange for shares in Ergo Mining.
 2014
 During July 2014 EMO and ERPM entered into an agreement with ERPM South Africa Holding Proprietary Limited, the nominee of Australian based Walcot Capital for the disposal of certain of the underground mining and prospecting rights held by ERPM including the related environmental liabilities. This agreement is subject to a number of suspensive conditions including regulatory consent and permission which had not been fulfilled at the date of this report.
 Mining and Processing
   There were also three additional shafts namely the South East Vertical Shaft, or SEV Shaft, used for the transport of employees and materials and the hoisting of rock, the South West Vertical, or SWV, Shaft and the Hercules Shaft that were used for water pumping only. The Cason Dump was used for the retreatment of surface material mined from the defunct Cason shaft.
    ERPM, and to proceed with a consultation process in terms of Section 189A of the Labor Relations Act to determine the future ofthe mine’s 1,700 employees. In January 2009, the consultations were concluded and 1,335 employees were retrenched.
  proximity to the mine in Boksburg. Transmission is at the rate of 88,000 volts. The Simmer Pan substation, located approximately10 miles (16 kilometers) away from the mine site in Germiston, supplies the SWV and Hercules Shafts. Transmission is at the rateof 44,000 volts. The two substations, located on mine site, transform the power to 6,600 volts for direct supply to the shaft winder and air compressors. The power supply is further reduced to 525 volts for smaller devices and equipment used on the mine. The average annual power consumption has reduced to about 105 GWHr and the maximum demand to about 24 MW. The on-mine substations are older in nature and undergo annual infrared testing to identify hot connections which are potential fire hazards and are subject to regular maintenance which includes the inspection of the settings, blades and changing the transformer oil in thecircuit breakers.


37
 Exploration and Development
   Extension 1. The regional geology of the area indicates that there will be a strike change due to faulting associated with an East-West trending sinistral tear fault. In order to confirm the anticipated change in the geological structure and hence payshoot orientation, it is envisaged that prospecting will take place through development situated 50m in the footwall. Owing to high induced stress experienced at depth, there will be concurrent over-stoping (that is stoping taking place concurrently with development) on the reef plane for safety reasons. Prior to this prospecting right in respect of ERPM Ext. 1 lapsing, an application for a mining right in respect of the same prospecting footprint was made in terms of the provisions of the MPRDA. The said mining right was approved and granted and the registration thereof took place in March 2012. The mining right expires in January 2042.
   incorporating the southern section of the old Van Dyk mining lease area and a small portion of Sallies, was granted by the DMR infiscal 2007. Known as ERPM Extension 2, the additional area is 5,500ha (13,590 acres). This prospecting right was initially granted for a period of 4 years and expired in March 2011. An application for renewal thereof was made in terms of the provisions of theMPRDA. The renewal in respect thereof was refused by the DMR in December 2013. An appeal against the refusal of the DMR to grant the renewal of the prospecting right was lodged with the Legal Services Directorate of the DMR in January 2014. These rights, ERPM Ext 1 and ERPM Ext 2, both form part of the sale assets of the transaction with Walcot Capital.
 Environmental and Closure Aspects
   from the underground section. Studies on the estimates of the probable rate of rise of water have been inconsistent, with certaintheories suggesting that the underground water might reach a natural subterranean equilibrium, whilst other theories maintain that the water could decant or surface. A program is in place to routinely monitor the rise in water level in the various underground compartments and there has been a substantial increase in the subsurface water levels.
      following the death of two employees at the shaft on September 19, 2008. Management concluded that the project to upgrade the totalpumping capacity at South West Vertical Shaft with a more efficient system as part of an Eskom-funded demand-side management project was not economically viable.
   (neutralisation plant) to prevent the ground water being contaminated. TCTA completed the construction of the neutralisation plantfor the Central Basin and commenced treatment during July 2014. As part of the Heads of agreement signed in December 2012 between EMO, Ergo, ERPM and TCTA, sludge emanating from this plant is co-disposed onto the Brakpan TSF. Partially treated water is then discharged by TCTA into the Elsburg Spruit. This agreement includes the granting of access to the underground waterbasin through one of ERPM shafts and the rental of a site onto which it constructed its neutralisation plant. In exchange, Ergo and its associate companies including ERPM have a set-off against any future directives to make any contribution toward costs or capital of up to R250 million, and Ergo has the right to purchase up to 30 Ml (million litres) of treated water per day from TCTA at cost price for use in its production circuits.
   30, 2014 the present discounted value of the total cost of rehabilitation for ERPM is approximately R20.5 million. A total of R8.1 million has been contributed to the ERPM Rehabilitation Trust Fund and R41.8 million in insurance instruments. This is an irrevocable trust, managed by specific responsible people who we nominated and who are appointed as trustees by the Master of the High Court of South Africa.
 Ore Reserves and Life of Mine
   surface Ore Reserves comprise 0.039 million ounces from the Cason Dump and 1.11 million ounces from the Elsburg and Benoni tailings complexes, which will be processed over the next one and eight years, respectively. A Mineral Resource competent person is appointed at each operation to review our Ore Reserve calculations for accuracy. For ERPM, Mr. Vivian Labuschagne is the appointed Mineral Resource competent person.
 Current Production


38
 Blyvoor (Discontinued operation)
 Overview
   Proprietary Limited, a wholly owned subsidiary of Village, we owned 74% of Blyvoor, which in turn owns 100% of the Doornfontein Gold Mining Company Limited. The consolidated mining operation, referred to as Blyvoor, consists of the adjacent mines of Blyvooruitzicht and Doornfontein which are located within the Far West Rand Goldfield on the northwestern edge of the Witwatersrand Basin. Blyvoor was the first mine in the “West Wits” line. Together, these two operations produced over 38 millionounces of gold since inception in 1937.
   Village, in August of 2013 following a number of work stoppages due to labor action and seismicity. This mine remains under thecontrol of the provisional liquidators. The information set our below are based upon information available to us up to the time of our sale of Blyvoor in June 2012.
 Property
   Basin, near the town of Carletonville, Gauteng Province, about 50.0 miles (80.5 kilometers) south-west of Johannesburg and is reached via the R528 road to Carletonville on the N12 Johannesburg-Potchefstroom-Kimberly highway.
   offices for the managerial, administrative, financial and technical disciplines, extensive workshops and consumable stores, themetallurgical plants, tailings dams and waste rock dumps. Prior to its liquidation Blyvoor also housed the majority of its employees in Blyvoor-owned houses on the property and in the town of Carletonville.
    History
 1937
 Blyvooruitzicht Gold Mining Company Limited was incorporated and registered as a public company in South Africa on June 10, 1937.
 1942
  1995
  1996
  1997
  2001
  2003
  2004
 On June 28, 2004, we entered into a 60-day review period on Blyvoor. The 60-day review was extended to September 13, 2004. By October 5, 2004, 1,619 employees had been retrenched at a cost of approximately R19.0 million.
 2005
 In August 2005, our Board of Directors approved No. 2 Sub-Shaft Project (now called the WAP Project) and the Slimes Dam Project to establish mining operations from the No. 2 Shaft and expansion to further improve plant efficiency, respectively.  On July 6, 2005, we signed a Memorandum of Understanding with Khumo Bathong Holding Proprietary Limited, or KBH, regarding the acquisition by Khumo Gold SPV Proprietary Limited, or Khumo Gold, of a 15% stake in our then South African operations. On October 27, 2005, our Board of Directors approved the transaction with Khumo Gold. The new structure resulted in Khumo Gold acquiring a 15% interest in a newly created vehicle, EMO, which owns ERPM, Crown and Blyvoor. We owned an 85% interest in EMO.
 2006
 On December 11, 2006, Khumo Gold, on behalf of itself and an employee trust, exercised the option granted by us pursuant to the option agreement concluded between us and Khumo Gold in October 2005 to acquire a further 11% in EMO.
 2007
 After completion of a drilling program to define the uranium resource in Blyvoor’s slimes dam material, a 17.5 million pound uranium and 0.8 million ton sulphur resource was declared in November 2007.
 2008
 In January 2008, electricity supply to the mine was interrupted by the South African electricity company Eskom which is government owned and production suspended for a week due to safety concerns.
 2009
 In January 2009, a direct lightning strike to No. 5 shaft Eskom sub-station interrupted production at No. 5 shaft and other areas drawing power from this supply. Employees underground at the time remained in the underground refuge bays until hoisted to safety once the shaft feeder power had been restored. No injuries were recorded. In May and June 2009, three seismic events in excess of 3.5 magnitude took place at No. 5 shaft. As these events affected the highest grade carbon leader mining area, production from these areas was expected to resume in the third quarter of the


39
 2010 fiscal year and was back in full production since May 2010. On November 9, 2009, we announced that, in a bid to save our Blyvoor mine from liquidation, we intended applying to the High Court of South Africa for a provisional judicial management order over the operation. A provisional judicial management order was granted by the High Court of South Africa on November 10, 2009. In December 2009, Aurora Empowerment Systems Proprietary Limited proposed a transaction to purchase 60% of Blyvoor for R295 million.
 2010
 In April 2010, the High Court of South Africa agreed to lift, with immediate effect, the provisional judicial management order in place since November 10, 2009. By mutual agreement between DRDGOLD and Aurora, Aurora’s offer to purchase 60% of Blyvoor was withdrawn.
 2011
 In June 2011, DRDGOLD's Board of Directors decided to suspend financial assistance to Blyvoor.  The Blyvoor Board of Directors, in response to the DRDGOLD Board’s decision, resolved to begin business rescue proceedings for Blyvoor in terms of Chapter 6 of the South African Companies Act.
 2012
 On June 1, 2012, we sold our entire interest and claims against Blyvoor to Business Venture Investment No 1557 Proprietary Limited a wholly owned subsidiary of Village.
 2013
  Geology and Mineralization
   Goldfields, the Carbon Leader, which is one of the principal ore bodies in the goldfield, and the Middelvlei Reef horizons whichoccur in discrete channels over parts of the lease area approximately 246 feet (75 meters) vertically above the Carbon Leader Reef horizon.
 Mining and Processing
   situated at the Blyvoor and Doornfontein mines. The average mining depth at Blyvoor and Doornfontein is 10,541 feet (3,213 meters) and 5,292 feet (1,613 meters) below mean sea level respectively. Mining of the reef took place in stope panels through drilling and blasting. Blasted rock was removed from the stope panels and conveyed by shaft to the surface , and transported to the metallurgical plant for gold extraction. Blyvoor used a cyanide leaching Carbon-in-Pulp, or CIP, process for the extraction of gold.
   financial support from Blyvoor, it applied to be placed under Chapter 6 of the Companies Act business rescue protection when itbecame apparent that the high costs of electricity charged during the winter months and the then lower price of gold would causeBlyvoor to experience financial distress. Following a term payment arrangement with Eskom, the state owned electricity supplierof South Africa and an increase in the gold price, the Business Rescue Practitioner who was appointed in terms of Chapter 6 terminated the business rescue proceedings with effect from November 10, 2011. This followed his conclusion that there were no longer grounds to believe that Blyvoor was financially distressed. At the beginning of February 2012, Blyvoor suspended mining from its Number 4 and 6 shafts as part of a process to reduce costs. On June 1, 2012, DRDGOLD sold its entire interest and claims against Blyvoor and effectively transferred control to a wholly owned subsidiary of Village. DRDGOLD ceased consolidation of Blyvoor from this date while Village commenced consolidating Blyvoor from said date. Refer to Item 4A.: “History and Development of the Company” for a more detailed discussion. Following the provisional liquidation of Blyvoor during August 2013,it remains under the control of the provisional liquidators.
  2012
 R’000


40
 Environmental and Closure Aspects
   level of underground workings (approximately 2 million gallons (8 million liters) per day). Water not used in the operations wasdischarged into the Wonderfontein Spruit (a stream adjacent to the Blyvoor mine). In order to address the risk of contamination of ground water, streams and wetlands, Blyvoor took samples and monitored the level of contaminants in accordance with a water management plan.
  catchment area. This group was formed to coordinate efforts and studies in the Wonderfontein Spruit and to liaise with government departments to determine what action if any is required in cleaning the stream. The government has also established aspecialist task team to determine what needs to be done. At the time of its sale no clear solution had been reached.
   causing a collapse in the rock structure. Dolomitic rock could be dissolved, resulting in an increased risk of sinkholes and possible pollution of fresh water resources stored in the dolomitic formations. At the time of its sale Blyvoor maintained close monitoring of water leaks  and ground subsidence to timely identify the formation of any possible sinkholes.
   programs. Short-term dust control was accomplished through ridge ploughing the top surface of dormant tailings dams. Environmentally friendly dust suppressants, such as molasses, were also applied when deemed necessary. In the long-term, dust suppression and water pollution was  managed through a program of progressive vegetation of the tailings complexes followed by the application of lime, to neutralize the natural acidic conditions, and fertilizer as the organic growth medium.
   Production in fiscal 2012
   73,048 ounces from underground areas and 23,597 ounces from surface areas. This represented 42% of our total production from operations for fiscal 2012 of 232,353 ounces.
    
 Year ended June 30,
 2012
 Production (imperial) Surface Operations   Ore mined ('000 tons) ....................................................................................
        Underground Operations   Ore mined ('000 tons) ....................................................................................
          Results of Operations Revenue (R'000) ..............................................................................................
     1
    1
       
 1
 Cash operating costs, cash operating cost per ounce, all-in sustaining costs per ounce and all-in cost per ounce of gold are financial measures of
 performance that we use to determine cash generating capacities of the mines and to monitor performance of our mining operations.


41
 Durban Roodepoort Deep
 Overview
  Witwatersrand Basin immediately to the west of Johannesburg. Mining took place within the lease area since the discovery of theWitwatersrand Goldfield in 1886 at nearby Langlaagte.
   of our underground pumping subsidy, the deeper sections of the mine were flooded. On a combined basis, Durban Deep produced more than 37 million ounces of gold prior to the cessation of operations.
   Developments Proprietary Limited
  against payment of a non-refundable fee of R1.5 million, was granted an option to acquire Durban Deep’s mine village for R15.0 million. On the exercising of the option the option fee would be deemed part payment of the purchase consideration. If not, the option fee would be forfeited to us.
   transfer occurring, we were notified by Rand Leases Properties Limited (formerly JCI Properties Limited) of an alleged pre-emptive right in respect of the property in terms of an agreement dated December 1996, pursuant to which the property should be sold to them on similar terms. We subsequently repudiated our agreement with M5 and notified Rand Leases Properties Limited that we did not intend offering the property to them. Both parties instituted legal proceedings for the sale and transfer of the property. On December 12, 2006, Rand Leases Properties Limited issued a summons against us and we filed an Appearance to Defend. DRDGOLD entered into an agreement with Rand Leases Properties Limited ("Rand Leases Properties") and purchased the pre-emptive right for an amount of R21.8 million. A sale agreement was concluded with Dino Properties Proprietary Limited ("Dino Properties" previously called M5) and the transfer of the property into the name of Dino Properties was effected on October 18, 2012. Both cases were subsequently withdrawn by Dino Properties and Rand Leases Properties respectively.
 Environmental and Closure Aspects
   been taken over by DRD Proprietary Limited, which is owned by a subsidiary of Mintails South Africa Proprietary Limited (“Mintails SA”). A liability transfer on the prescribed form in terms of section 43(2) of the MRPDA was submitted to the DMR inJuly 2010. We are still awaiting approval of the transfer of environmental liabilities from the DMR.
   Durban Deep mining license area which was disposed of to the purchaser of the mining rights . A total of R25.6 million previously contributed to the Environmental Trust Fund has been relinquished to DRD Proprietary Limited as a result of the transfer of theliability during fiscal 2013. DRDGOLD therefore still has a contingent liability until such legal transfer is effected, amounting to R63.4 million less the trust fund amount of R26.8 million.
 West Wits
   Mines Limited, or West Wits. We acquired the entire share capital of WWGH, as well as Consolidated Mining Corporation Limited'sloan to WWGH, on April 1, 1996. We also acquired the entire issued share capital and the shareholders' claim and loan account ofEast Champ d'Or Gold Mine Limited, a gold mining company with mining title in the West Rand. The mining assets were sold to Bophelo Trading Proprietary Limited, subsequently renamed, Mogale Gold Proprietary Limited, or Mogale, during fiscal 2004, effectively leading to the closure of the mining operation.
 Environmental and Closure Aspects
  Mintails although the legal transfer thereof would be dependent on the DMR's assessment of Mintails' financial capability. DRDGOLD therefore still has a contingent liability until such legal transfer is affected. Management of the West Rand Consolidated Mines' tailings dams have been taken over by Mintails which plans to reprocess them. An EMP for the balance of the area has beensubmitted to the DMR as part of the conversion process of ML9/2000. The Old Order Mining Licence was converted to a New Order Mining Right and ceded same to West Wits Monarch Proprietary Limited (“the Cessionary”).
  gold fields’ area. The government has appointed Trans-Caledon Tunnel Authority to propose solutions for the various basins. Theyhave also provided funding for the interim solution in the Western and Central Basins.


42
  Wits mining license area which was disposed of. A total of R19.9 million previously contributed to the Environmental Trust Fund has been relinquished to Mintails as a result of the transfer of the liability.
 Ongoing Legal Proceedings
 Litigation regarding environmental issues
  under the MPRD Act by the Legal Resources Centre on behalf of the residents of two communities, Davidsonville and Kagiso, who reside adjacent to tailings deposition sites of the now dormant Durban Roodepoort Deep mine and the West Witwatersrand mine, respectively. While no financial compensation is sought, the communities are seeking orders for the revision of the environmentalmanagement programs of both sites, and for the sites to be rehabilitated and closed in accordance with the standards of the MPRDAct. In fiscal 2014, DRDGOLD has filed its Appearance to Defend and Answering Affidavits in respect of both matters in the HighCourt of South Africa. The responsibility rests with the respondent's attorneys to either apply to the High Court for a date of hearing or file replying affidavits.
 Dispute with the Ekurhuleni Municipality
   outstanding rates and taxes which are allegedly owing. As at June 30, 2014, the difference between the invoiced amount and ERPM’s calculations amounted to R55.8 million. ERPM has employed experts to investigate the allegations and believes that this claim is unfounded. ERPM is defending this action on the belief that there are sufficient defences to repel the claim, therefore an outflow of resources is remote.
 Appeal hearing against valuation of properties by the Ekurhuleni Municipality
  freehold properties of which ERPM is the registered owner. The aggregate valuation of these properties is approximately R400 million. ERPM has appealed against these valuations in terms of the provisions of the Local Government: Municipal Property RatesAct, 6 of 2004 on the basis of inter alia the calculation methodology employed by the Municipal Valuer on behalf of the Municipality. The hearings in respect of the appeal were heard in June 2013. ERPM’s challenge of the valuations was successful when Valuation Appeal Board set aside the valuations during March 2014.
 Silicosis Litigation
  lung diseases to sue their current or former employers for damages outside the statutory compensation scheme, we could be subject to claims against us from previous or current employees, including a potential class action or similar group claim.
   action issued in the South Gauteng High Court by alleged former mineworkers and dependants of deceased mineworkers. In the pending application the applicants allege that DRDGOLD, ERPM and other mining companies conducted underground mining operations in such a negligent manner that the former mineworkers contracted silicosis. The applicants have not yet quantified the amounts which they would like the mining companies to pay as damages.
      DRDGOLD or any of its subsidiaries in future, those claimants would need to provide evidence proving that silicosis was contracted while in the employment of the company and that it was contracted due to negligence on the company’s part. The link between the cause (negligence by the company while in its employ) and the effect (the silicosis) will be an essential part of any case. It is therefore uncertain as to whether the company will incur any costs related to silicosis claims in the future and due to the limited information available on any claims and potential claims and the uncertainty of the outcome of these claims, no reliableestimation can be made for the possible obligation.
 ITEM 4A. UNRESOLVED STAFF COMMENTS


43
 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
  that have affected the Company's financial condition and results of operations for the historical period covered by the financial statements and management's assessment of factors and trends which are anticipated to have a material effect on the Company's financial condition and results in future periods. This section is provided as a supplement to, and should be read in conjunction with, our audited financial statements and the other financial information contained elsewhere in this Annual Report. Our financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Our discussion contains forward looking information based on current expectations that involve risks and uncertainties, such as our plans, objectives and intentions. Our actual results may differ fromthose indicated in such forward looking statements.
 ·
   Business overview
  Key drivers of our operating results and principal factors affecting our operating results, a general description of the principal uncertainties and variables facing our business and the primary factors that have a significant impact on our operating performance.
  Recent developments, a description of the recent acquisitions, disposals and other transactions that have impacted, or will impact, our performance.
  Key financial and operating indicators, a presentation of the key financial measures we use to track our operating performance.
  Application of critical accounting policies, a discussion of accounting policies that require critical judgments and estimates.
  Operating results, an analysis of our group results of operations during the three fiscal years presented in our financial statements. The analysis is presented both on a group basis, and by operating segment.
 **·** Liquidity and capital resources, an analysis of our cash flows, borrowings and our anticipated funding requirements and    sources.
 **·**
 **·**
 **·**
 **·**
 **·**


44
 5A. OPERATING RESULTS
 Business overview
  extraction, processing and smelting. Our surface tailings retreatment operations, including the requisite infrastructure and metallurgical processing plants, are located in South Africa.  Our operating footprint is unique, in that it involves some of thelargest concentration of  gold tailings deposits in the world, situated within the city boundaries of Johannesburg and its suburbs.
  on-surface resources and to expand our reach and create growth opportunities through the improvement and development of innovative technologies.
  human, financial, intellectual and manufactured – to extract gold from extensive surface resources in the safest and most efficient manner, thus ensuring the sustainability of our social and environmental capital whilst contributing to sustainable societies in and around our footprint.
   **·** the use of technology and continuing research and development to improve reclamation efficiency and effectiveness; **·** acquiring additional surface resources on the Witwatersrand and, possibly, other areas; and **·** using existing expertise and skills to expand into the reclamation of other minerals from waste material.
  Gold Mining Company Limited, or Blyvoor on June 1, 2012. Blyvoor has therefore been classified as a discontinued operation in fiscal 2012 in the comparative periods in this Annual Report.
  through a joint venture in which we currently own 49%. The initial feasibility studies in Zimbabwe indicated potential underground mining assets, which does not fit with our current strategy of surface gold tailings retreatment. We have thereforedecided not to continue with our Zimbabwe exploration activities.
    Ergo (Continuing operations):
 **·** Ergo Mining Proprietary Limited (the entity is referred to as Ergo Mining, however the operating segment is called Ergo) – surface tailings retreatment; and **·** East Rand Proprietary Mines Limited (ERPM) – ERPM Extension 1 and 2 exploration tenements. ERPM’s underground    mining operation has been discontinued and is included under ‘Corporate office and other reconciling items’ in our    financial statements’ operating segments. On July 25, 2014, DRDGOLD announced that its subsidiaries Ergo Mining    Operations Proprietary Limited (EMO) and ERPM collectively had entered into an agreement to dispose of certain    underground mining and prospecting rights held by ERPM, and certain other assets on the related mining areas, for an    agreed consideration of R220 million. This agreement is subject to a number of suspensive conditions including    regulatory consent and permission which had not been fulfilled at the date of this report.
 Blyvoor (discontinued operation):
 **·** Blyvooruitzicht Gold Mining Company Limited (Blyvoor) – underground mining and surface tailings retreatment    disposed on June 1, 2012.


45
 Key drivers of our operating results and principal factors affecting our operating results
  **·** The price of gold, which fluctuates both in terms of dollars and rands; **·** The production tonnages and gold content thereof, impacting on the amount of gold we produce at our operations; **·** The cost of producing gold, including the effects of mining efficiencies; and **·** General economic factors, such as exchange rate fluctuations and inflation, and factors affecting mining operations in    South Africa.
 Gold price
  result, our operating results are directly related to the price of gold, which can fluctuate widely and is affected by numerousfactors beyond our control, including industrial and jewelry demand, expectations with respect to the rate of inflation, the strength of the U.S. dollar (the currency in which the price of gold is generally quoted) and of other currencies, interest rates, actual or expected gold sales by central banks, forward sales by producers, global or regional political or economic events, and production and cost levels in major gold-producing regions such as South Africa. In addition, the price of gold is often subject to rapid short-term changes because of speculative activities. The demand for and supply of gold may affect gold prices, but not necessarily inthe same manner that supply and demand affect the prices of other commodities. The supply of gold consists of a combination of new production from mining and existing stocks of bullion and fabricated gold held by governments, public and private financialinstitutions, industrial organizations and private individuals. As a general rule we sell the gold produced at market prices to obtain the maximum benefit from prevailing gold prices and we do not hedge against changes in gold prices.
  2014 fiscal year
 2013 fiscal year
 % change
                         2013 fiscal year
 2012 fiscal year
 % change
                     2012 fiscal year
 2011 fiscal year
 % change
                      is significant to our operating results. The average gold price in rand (based on average spot prices for the year) increased fromR12,970 per ounce in 2012 (a 36% increase from fiscal 2011) to R14,185 per ounce in 2013 (a 9% increase from fiscal 2012) with a decrease to R13,614 per ounce in 2014, a 4% decrease from fiscal 2013.
  received will increase our forecast profit for the year by R188.5 million and a 10% decrease in the rand gold price received will decrease our profit for the year by R188.1 million.


46
 Gold production and operating costs
   milled at an average yield of 0.173g/t) from 146,381 ounces in fiscal 2013 (produced from 23.3 million tonnes milled at an average yield of 0.20g/t) and 232,353 ounces in fiscal 2012 (produced from 24.9 million tonnes milled at an average yield of 0.29g/t).
   tonnes milled at an average yield of 0.173g/t) from 146,381 ounces in fiscal 2013 (produced from 23.3 million tonnes milled at an average yield of 0.20g/t). In fiscal 2013 the production increased from 135,708 ounces (from 21.6 million tonnes milled at an average yield of 0.20g/t) in fiscal 2012.
   lower than expected recoveries in the FFG circuit as well as production in the FFG being temporarily suspended to introduce a number of engineering upgrades and to revisit the plant's carbon management regime.
   from the Crown/Ergo pipeline being fully operational during fiscal 2013 while the decrease in total production was due to the Blyvoor being sold in late fiscal 2012. Our discontinued operation, Blyvoor produced 96,645 ounces (from 3.3 million tonnes milled at an average yield of 0.91g/t) during fiscal 2012 before its disposal on June 1, 2012.
   service providers, stores, electricity and other related costs, incurred in the production of gold. ‘Consumables and other’ and'specialized services' are the largest components of operating costs, constituting respectively, 52% and 15% of the operating cost for fiscal 2014, compared to 46% and 19% of operating costs for fiscal 2013. "Consumables and other" and 'labor' constituted 48% and 18%, respectively, of our operating costs from continuing operations for fiscal 2012.
   (2013: 2%, 2012: 21%) mainly due to lower gold production as well as above inflation increases in prices of key consumables, labor and electricity.
   General economic factors
  profitability, such as exchange rate fluctuations, inflation and other risks relating to South Africa. In conducting mining operations, we recognize the inherent risks and uncertainties of the industry, and the wasting nature of the assets.
 Effect of exchange rate fluctuations
  operating costs were denominated in rand and we derived all of our revenues in dollars. As the price of gold is denominated in dollars and we realize our revenues in dollars, the appreciation of the dollar against the rand increases our profitability, whereas the depreciation of the dollar against the rand reduces our profitability.
    gold price. This resulted in a decrease in the Rand gold price received of 6% in fiscal 2014 and a 9% increase in fiscal 2013.  The weakening of the rand against the dollar in fiscal 2012 was accompanied by a strengthening of the gold price and resulted in anincrease in the Rand gold price received of 36%.
  fluctuations in the dollar gold price or the exchange rate movements. If revenue from gold sales falls for a substantial periodbelow our cost of production at our operations, we could determine that it is not economically feasible to continue commercial production at any or all of our plants or to continue the development of some or all of our projects.


47
  R310,763, per kilogram of gold produced in fiscal 2013 and R304,912 per kilogram of gold produced in fiscal 2012. Our cash operating costs per kilogram for our continuing operation was R372,671 per kilogram of gold produced in fiscal 2014, R310,763 per kilogram of gold produced in fiscal 2013 and R272,778 per kilogram of gold produced in fiscal 2012. For fiscal 2012, our cash operating costs per kilogram for our discontinued operation was R350,032 per kilogram of gold produced.
 Effect of inflation
  inflation in South Africa without a concurrent devaluation of the rand or an increase in the price of gold, our costs will increase, negatively affecting our operating results.
  annual inflation rate for the periods presented, as measured by the South African Consumer Price Index, or CPI, are set out in the table below:
            Fiscal year ended
 Year ended June 30,
 2014
 (%)
 2013
 (%)
 2012
 (%)
         South African political, economic and other factors
  subject to various economic, fiscal, monetary and political factors that affect South African companies generally, including exchange control regulations. Governmental officials have from time to time stated their intentions to lift South Africa’s exchange control regulations when economic conditions permit such action. Over the last few years, certain aspects of exchange controls for companies and individuals have been incrementally relaxed. It is, however, impossible to predict when, if ever, the South African Government will remove exchange controls in their entirety. South African companies remain subject to restrictions on their ability to export and deploy capital outside of the Southern African Common Monetary Area, unless dispensation has been granted by the South African Reserve Bank. For a detailed discussion of exchange controls, see Item 10D.: “Exchange controls.”
  introduction of the MPRD Act, private ownership in mineral rights and statutory mining rights in South Africa could be acquiredthrough the common law or by statute. Now, all mineral rights have been placed under the custodianship of the South African Government under the provisions of the MPRD Act, and "old order" proprietary rights need to be converted to "new order" rights of use within certain prescribed periods. We have submitted certain applications in this regard. This process is described in more detail under Item 4B.: “Business Overview – Governmental regulations and their effects on our business - South Africa - Common Law Mineral Rights and Statutory Mining Rights.”


48
 Recent developments
 Ergo (includes Ergo Mining, ErgoGold, Crown and ERPM’s Cason dump)
  affect cost savings and implement a simpler group structure. Ergo Mining is a wholly-owned subsidiary of Ergo Mining Operations Proprietary Limited, or EMO. EMO is 74% held by DRDGOLD, 20% by its black economic empowerment (BEE) partner, Khumo Gold SPV Proprietary Limited (Khumo Gold) and 6% by the DRDSA Empowerment Trust.
  **·**DRDGOLD sold its 35% direct interest in the ErgoGold unincorporated partnership to Ergo Mining for R200    million on loan account; **·** Crown Gold Recoveries Proprietary Limited, or Crown sold its mining assets (excluding its 50% interest in Ergo    Mining), mining and prospecting rights and certain liabilities to Ergo Mining for shares in Ergo Mining; **·** ERPM sold all of its surface mining assets (excluding its 50% interest in Ergo Mining) and its 65% interest in    ErgoGold to Ergo Mining in exchange for shares in Ergo Mining; and **·** Crown and ERPM will distribute their entire holdings in Ergo Mining to sole shareholder EMO.
  applications in terms of section 11 of the MPRD Act to obtain Ministerial consent were lodged by ERPM and Crown in March 2013. We are still awaiting the procurement of the approval of the Minister.
 Blyvoor
  No 1557 Proprietary Limited (a wholly owned subsidiary of Village) (Purchaser) entered into a sale of shares and claims agreement. Pursuant to terms of the Agreement, DRDGOLD agreed to sell its entire shareholding in Blyvoor (which amounts to 74% of the total issued ordinary share capital of Blyvoor) (Sale Shares) and its working capital and shareholder loan claims against Blyvoor, or the  Sale Claims to the Purchaser, the Transaction. The Transaction is divided into the Part A Sale and the Part B Sale. In terms of the Part A Sale, the Sale Claims are sold to the Purchaser, and in terms of the Part B Sale, the Sale Shares are sold to the Purchaser. The purchase consideration payable in respect of the Sale Claims and the Sale Shares shall be discharged by Village through the issue of 85,714,286 new ordinary shares in Village (Village Shares) to DRDGOLD and an amount of R1 payable in cash by Village, respectively.
      **·** by not later than the second anniversary of the signature date of the Agreement, the Department of Mineral    Resources (DMR) has granted the conversion of Blyvoor's old order mining right and the new order mining right has    been notarially executed and registered in the Mining Titles Office or Conversion; and **·** by not later than the third anniversary of the signature date of the Agreement, the DMR has unconditionally    approved the transfer of DRDGOLD's interest in Blyvoor to the Purchaser in terms of section 11 of the Mineral &    Petroleum Resources Development Act, No 28 of 2002 or conditionally approved it on terms and conditions which    each of DRDGOLD and the Purchaser confirms to be acceptable (Section 11 Approval).
      Approval is not obtained, and unless it did not occur as a consequence of a Prejudicial Act on the part of either of the Parties, any one, or more, of the following may occur:
 **·** the sale of the Sale Shares is implemented and the Sale Shares are transferred to the Purchaser; **·** a portion of the Sale Claims revert to DRDGOLD; **·** the Escrow Shares together with any accrued dividends thereon are released to DRDGOLD or to the Purchaser; **·** the appointment of the Purchaser as DRDGOLD’s agent to render corporate services on behalf of DRDGOLD to Blyvoor    continues or is terminated; and/or **·** the DRDGOLD’s right to receive dividends in respect of the Sale Shares is reinstated.
   concerned, after Village failed to attend to certain administrative steps associated with the registration of Blyvoor’s New Order Mining Rights. DRDGOLD is alleging that this constituted a breach of contract and a Prejudicial Act on the part of Village, which brings about a deemed compliance and entitles DRDGOLD to relief.


49
    Key financial and operating indicators
  the years ended June 30, 2014, 2013 and 2012 below are stated in accordance with IFRS as issued by the IASB. The table also includes the key performance measures for the growth of our business and its profitability, which are gold revenue, production,operating costs, cash operating costs per kilogram, all-in sustaining costs per kilogram and all-in costs per kilogram, capitalexpenditure and Ore Reserves.
 Operating data
 Year ended June 30,
 2014
 2013
 2012
 Total operations
                                 1
                     Continuing operationsRevenue (R'000) ...........................................................................................................
                                                Discontinued operationRevenue (R'000) ...........................................................................................................
                                                
  Cash operating costs, all-in sustaining costs and all-in costs are non-IFRS financial measures of performance that we use to determine cash
 generating capacities of the mines and to monitor performance of our mining operations. For a reconciliation of those measures to operating costs, see Item 5A.: “Operating Results” - “Reconciliation of cash cost per kilogram, all-in sustaining costs per kilogram, all-in costs per kilogram and capital expenditure (cash).”


50
 Revenue
   Year ended June 30,
 2014
 R'000
 2013
 R'000
 2012
 R'000
 Continuing operations
       Discontinued operation
        Total 1,809,434
 2,076,496
 3,004,264
  production and a 6% drop in the average gold price received. The increase in revenue from continuing operations in fiscal 2013 was due to an 8% increase in throughput from the Crown/Ergo pipeline which was operational for the whole of fiscal 2013 and a 9% increase in the rand dollar gold price.
 Gold production
  Year ended June 30
 2014
 2013
 2012
 Ounces
 Kilograms
 Ounces
 Kilograms
 Ounces
 Kilograms
 Continuing operations
              Discontinued operation
                                 Total production
 132,909
 4,134
 146,381
 4,553
 232,353
 7,227
  ounces, or 9%, to 132,909 ounces from 146,381 ounces produced in fiscal 2013 due to lower than expected recoveries in the FFG circuit as well as production in the FFG being temporarily suspended to introduce a number of engineering upgrades and to revisit its carbon management regime.
  produced in fiscal 2012 due to the Blyvoor being sold in late fiscal 2012. At Ergo, total gold production was 10,673 ounces or 8% higher at 146,381 ounces (fiscal 2012: 135,708 ounces). This reflected a 8% rise in throughput to 23,254,000 tonnes (fiscal 2012:21,603,000 tonnes) resulting from the completion of the Crown/Ergo pipeline and transport of increased volumes of ore to the plant.


51
 Cash operating costs
 1
 , all-in sustaining costs and all-in costs per kilogram1
  gold from R310,763 per kilogram of gold in fiscal 2013. All-in sustaining costs per kilogram increased to R401,691 per kilogramof gold in fiscal 2014 from R362,599 per kilogram of gold in fiscal 2013. All-in costs per kilogram increased to R436,503 per kilogram of gold in fiscal 2014 from R433,669 per kilogram of gold in fiscal 2013. The increase in cash operating costs and all-in sustaining costs per kilogram were due to lower gold production and above inflation increases in prices of key consumables, labor and electricity. The increase in the all-in sustaining costs was lower than the increase in cash operating costs reflecting thedecrease in corporate costs. The total all-in costs per kilogram increased despite the decrease in non-sustaining capital relating to the completion of the flotation and fine-grind project primarily due to the foregoing as well as the R26.5 million capital recoupment that was  in recognised by the head office fiscal 2013 that did not recur in fiscal 2014.
  gold from R304,912 per kilogram of gold in fiscal 2012. All-in sustaining costs per kilogram increased to R362,599 per kilogramof gold in fiscal 2013 from R355,571 per kilogram of gold in fiscal 2012. All-in costs per kilogram increased to R433,669 per kilogram of gold in fiscal 2013 from R391,732 per kilogram of gold in fiscal 2012. The increase in cash operating costs and all-in sustaining costs per kilogram of gold produced in fiscal 2013 was due to above inflation increases in prices of key consumables,labor and electricity and, for all-in sustaining costs, the increase in corporate costs relating to a new business unit aimed specifically at researching new business opportunities.. The increase in all-in costs per kilogram was primarily due to the foregoing and the non-recurring increase in non-sustaining capital relating to the flotation and fine-grind project, offset by a         R26.5 million capital recoupment.
  in fiscal 2013. All-in sustaining costs per kilogram increased to R395,278 per kilogram of gold in fiscal 2014 from R359,166 perkilogram of gold in fiscal 2013. All-in costs per kilogram decreased to R425,001 per kilogram of gold in fiscal 2014 from R426,546 per kilogram of gold in fiscal 2013. The increase in cash operating costs and all-in sustaining costs per kilogram were due to lower gold production and above inflation increases in prices of key consumables, labor and electricity. The increase in the all-in sustaining costs was lower than the increase in cash operating costs reflecting the decrease in corporate costs. The all-in costs per kilogram decreased despite the increased outlined above due to the significant decrease in non-sustaining capital relating to the completion of the flotation and fine-grind project.
  in fiscal 2012. All-in sustaining costs per kilogram increased to R359,166 per kilogram of gold in fiscal 2013 from R317,884 perkilogram of gold in fiscal 2012. All-in costs per kilogram increased to R426,546 per kilogram of gold in fiscal 2013 from R360,466 per kilogram of gold in fiscal 2012. The increase in cash operating costs and all-in sustaining costs per kilogram were due to above inflation increases in prices of key consumables, labor and electricity and, for all-in sustaining costs, the increase in corporate costs relating to a new business unit aimed specifically at researching new business opportunities. The increase in all-in costs per kilogram was primarily due to the foregoing and to the non-recurring increase in non-sustaining capital expenditure relating to the flotation and fine-grind project.
 Reconciliation of cash operating costs per kilogram, all-in sustaining costs per kilogram, all-in costs per kilogram and capitalexpenditure (cash)
  depreciation, depletion and amortization, rehabilitation, retrenchment costs and corporate administration costs. Cash operatingcosts per kilogram are calculated by dividing cash operating costs by kilograms of gold produced. Cash operating costs per kilogram have been calculated on a consistent basis for all periods presented.
  include cash operating costs of production plus, on-site general and administrative costs, royalties and production taxes, sustaining capital, sustaining exploration, the accretion of rehabilitation costs, but excludes depreciation, retrenchment costs, finance costs, depletion and amortization, reclamation and closure costs. All-in sustaining costs per kilogram are calculated by dividing all-insustaining costs by kilograms of gold produced. All-in sustaining costs per kilogram have been calculated on a consistent basis for all periods presented.
 
 1
 Cash operating costs, all-in sustaining costs and all-in costs per kilogram are non-IFRS financial measures of performance that we use to
 determine cash generating capacities of the mines and to monitor performance of our mining operations.


52
  operating costs, plus all-in sustaining costs, non-sustaining capital costs relating to projects, retrenchment costs, capital recoupment relating to non-sustaining capital, ongoing rehabilitation expenditure, and non-operating costs, but exclude taxation,minority interest, finance costs, profit or loss from associates and the cumulative effect of accounting adjustments. All-in costs per kilogram are calculated by dividing all-in costs by kilograms of gold produced. All-in costs per kilogram have been calculated ona consistent basis for all periods presented.
  financial measures that should not be considered by investors in isolation or as alternatives to operating costs, net profit/(loss)attributable to equity owners of the parent, profit/(loss) before tax and other items or any other measure of financial performance presented in accordance with IFRS or as an indicator of our performance. While the World Gold Council provided guidance for the calculation of cash operating costs, the calculation of cash operating costs per kilogram, all-in sustaining costs and all-in costs per kilogram may vary significantly among gold mining companies, and these definitions by themselves do not necessarily provide a basis for comparison with other gold mining companies. However, we believe that cash operating costs per kilogram, all-in sustaining costs per kilogram and all-in costs per kilogram are useful indicators to investors and our management of an individual mine's performance and of the performance of our operations as a whole as they provide:
 **·**an indication of a mine’s profitability and efficiency; **·** trends in costs; **·** a measure of a mine's margin per kilogram, by comparison of the cash operating costs per kilogram by mine to the price    of gold; and **·** a benchmark of performance to allow for comparison against other mines and mining companies.
    costs for each of the years ended June 30, 2014, 2013 and 2012 is presented below. We have also provided below details of the amount of gold produced by each mine for each of those periods.


53
 For the year ended June 30, 2014(in R'000, except as otherwise noted)
 Continuing Operations
 Discontinued
 operation
 1
 Ergo
 ERPM
 2
 Other
 2
 Total
 
 Total
     1,598,300
  1,598,300
     (29,973)
  (29,973)
     (15,364)
  (15,364)
     (12,341)
  (12,341)
 Cash operating costs
 3
     1,540,622
  1,540,622
     8,828
  8,828
 Net operating costs
    1,549,450
  1,549,450
 Plus:
     91,446
  91,446
 Movement in provision for environmental  rehabilitation ............................................................................
    (86,605)
  (86,605)
     38,019
  38,019
     68,279
  68,279
 All-in sustaining costs
    1,660,589
  1,660,589
 Plus:
     6,748
  6,748
     15,364
  15,364
     29,973
  29,973
     (1,276)
  (1,276)
     93,106
  93,106
 All-in costs
    1,804,504
  1,804,504
     132,909
  132,909
     4,134
  4,134
     372,671
  372,671
     401,691
  401,691
     436,503
  436,503
 
 1
 In fiscal 2014 we had no discontinued operations.
 2
 Relates to other non-core operating entities within the Group and is included under ‘Corporate office and other reconciling items’ in our segmental reporting.
 3
 Cash operating costs equate to cash operating costs of production.


54
 For the year ended June 30, 2013(in R'000, except as otherwise noted)
 Continuing Operations
 Discontinued
 operation
 1
 Ergo
 ERPM
 2
 Other
 2
 Total
 
 Total
     1,497,439
  1,497,439
     (45,444)
  (45,444)
     (20,251)
  (20,251)
     (16,480)
  (16,480)
 Cash operating costs
 3
     1,414,904
  1,414,904
     (17,727)
  (17,727)
 Net operating costs
    1,397,177
  1,397,177
 Plus:
     100,657
  100,657
 Movement in provision for environmental  rehabilitation ............................................................................
    15,334
  15,334
     33,537
  33,537
     104,209
  104,209
 All-in sustaining costs
    1,650,914
  1,650,914
 Plus:
     565
  565
     20,251
  20,251
     45,444
  45,444
     (26,487)
  (26,487)
     283,807
  283,807
 All-in costs
    1,974,494
  1,974,494
     146,381
  146,381
     4,553
  4,553
     310,763
  310,763
     362,599
  362,599
     433,669
  433,669
 
 1
 In fiscal 2013 we had no discontinued operations.
 2
 Relates to other non-core operating entities within the Group and is included under ‘Corporate office and other reconciling items’ in our segmental reporting.
 3
 Cash operating costs equate to cash operating costs of production.


55
 For the year ended June 30, 2012(in R'000, except as otherwise noted)
 Continuing Operations
 Discontinued
 operation
 Ergo
 1
 ERPM
 2
 Other
 2
 Total
 Blyvoor
 3
 
 Total
     1,231,020
  2,292,790
     (47,295)
  (48,285)
     (29,299)
  (29,299)
     (3,026)
  (11,609)
 Cash operating costs
 4
     1,151,400
  2,203,597
     (9,427)
  (14,710)
 Net operating costs
    1,141,973
  2,188,887
 Plus:
     109,680
  135,293
 Movement in provision for environmental  rehabilitation ............................................................................
    59,486
  59,185
     6,081
  7,292
     96,116
  179,055
 All-in sustaining costs
    1,413,336
  2,569,712
 Plus:
     -
  43,747
     29,299
  29,299
     47,295
  48,285
     (287)
  (287)
     140,294
  140,294
 All-in costs .................................................................................
    1,629,937
  2,831,050
     135,708
  232,353
     4,221
  7,227
     272,779
  304,912
     334,834
  355,571
     386,149
  391,732
 
 1
 Ergo include Ergo, ErgoGold, Crown and ERPM’s surface Cason operation.
 2
 Relates to other non-core operating entities within the Group and is included under ‘Corporate office and other reconciling items’ in our segmental reporting.
 3
 Blyvoor was sold on June 1, 2012, and has been classified as a discontinued operation. Comparable prior year numbers have been adjusted to distinguish between continuing- and discontinued operations where
 relevant.
 4
 Cash operating costs equate to cash operating costs of production.


56
 Capital expenditure (cash)
  R368.5 million in fiscal 2013, a decrease of 57%. Additions to property, plant and equipment decreased primarily as a result of the construction of the new flotation and fine-grind project being completed. In fiscal 2014, Ergo spent R89.5 million on the flotation and fine-grind project, R32.4 million on Reclamation site 4A6, R6.2 million on rehabilitation of the Brakpan Tailings Dam and R26.7 million on other capital items.
  R319.1 million in fiscal 2012, an increase of 15%. Additions to property, plant and equipment increased primarily as a result ofthe new flotation and fine-grind project. In fiscal 2013, Ergo spent R261.5 million on the flotation and fine-grind project, R11.7 million on the Brakpan TSF, R20.5 million on the Cason high grade plant, R30.4 million on the Angelo Pan reclamation and pipeline, R26.3 million on infrastructure upgrades and R5.5 million on other equipment. For a detailed summary of capital expenditure, see Item 4D.: “ Property, Plant and Equipment”.
   **·** The Rondebult sewerage water project amounting to R4.4 million, the Knights residue line amounting to R2.2 million, the    refurbishment of the No. 3 tailings thickener amounting to R3.6 million, residue linear screens amounting to R1.7 million    and various other capital items amounting to R4.2 million.
 Ore Reserves
   June 30, 2013, representing a 9% decrease. The decrease was mainly due to depletion. As at June 30, 2012, our Ore Reserves wereestimated at 1.8 million ounces resulting in a 6% decrease during fiscal 2013 due to depletion.
   Year ended June 30,
 2014
 2013
 2012
 Ounces
 Kilograms
 Ounces
 Kilograms
 Ounces
 Kilograms
 ‘000
 ‘000
 ‘000
      Continuing operations
             Discontinued operation
             Total Ore Reserves
 1,524
 47,389
 1,676
 52,127
 1,825
 56,961
 
 
 
 
 
 
 
      at the time of reserve determination for each year presented. For purposes of our financial statements, depreciation and impairment of property, plant and equipment is determined based upon our "recoverable minerals", which means Proven and Probable Ore Reserves, which are calculated using our life of mine business plans and the gold price at the end of each financial year.


57
 Application of critical accounting policies
   appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty and are based on our historical experience, terms of existing contracts, management's view on trends in the gold mining industry and information from outside sources.
   in the preparation of our consolidated financial statements and could potentially impact our financial results and future financialperformance:
 **·**Property, plant and equipment **·** Impairment of property, plant and equipment **·** Deferred income and mining taxes **·** Future environmental rehabilitation costs **·** Financial instruments
  Directors and the Audit Committee, both of which have approved and reviewed the disclosure of these policies. Our significant accounting policies relating to our accounting estimates and judgments are described in more detail in note 1 to the consolidated financial statements. Refer to Item 18 “Financial statements’’. This discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included in Item 18 “Financial statements’’.
 Property, plant and equipment
   capitalized to the specific mine to which the cost relates. Depreciation is calculated on a mine-by-mine basis using the units ofproduction method. Other assets are depreciated using the straight-line method over the expected life of these assets. Under the units of production method, we estimate the depreciation rate based on actual production over total Proven and Probable Ore Reserves ofthe particular mine, which are calculated using our life of mine business plans and a gold price at the end of each financial year. This rate is then applied to actual costs capitalized to date to arrive at the depreciation expense for the period. Proven and Probable Ore Reserves of the particular mine reflect estimated quantities of economically and legally recoverable reserves. Changes in management’s estimates of the quantities of economically recoverable reserves impact depreciation on a prospective basis. The estimate of the total reserves of our mines could be materially different from the actual gold mined due to changes in the factors used in determining our Ore Reserves, such as the gold price, foreign currency exchange rates, labor costs, engineering evaluations of assay values derived from sampling of drill holes and other openings. Any change in management’s estimate of the total Proven and Probable Ore Reserves would impact the depreciation charges recorded in our consolidated financial statements. The prevailing market price of gold at the end of the financial year was R408,381, R378,158 and R447,235 per kilogram for the fiscal years ended June 30, 2012, 2013 and 2014, respectively.
 Impairment of property, plant and equipment
  determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Future cash flows are estimated based on quantities of recoverable minerals, expected gold prices, production levels and cash operating costs of production, all based on life of mine business plans. Refer to Item 4B Business Overview “Ore Reserves’’. For the purpose of impairment testing, assets are grouped together into the smallest group of assets which generates cash inflows from continuing use that is largely independent of the cash inflows of other assets or groups of assets, or the cash-generating unit. An impairment loss is recognized directly against the carrying amount of the asset whenever the carrying amount of an asset, or its cash generating unit, exceeds its recoverable amount. Impairment losses are recognized in profit or loss.
  also consider such factors as our market capitalization, the quality of the individual ore body and country risk in determining the recoverable amount. During fiscal 2014, R12.4 million (fiscal 2013: R61.0 million and fiscal 2012: Rnil) was recorded as an impairment at a specific asset level.


58
  of R453,121 per kilogram in year one escalating at 7.2% per annum, and a discount rate of 26.3%. With a 10% reduction in the goldprice an impairment of R894.2 million would be raised, or at an increase in the discount rate of 4.7 percentage points (18%) to 31.0%, the group would begin impairment of the mining assets.
  R61.0 million impairment in fiscal 2013, consisted of R52.4 million against Ergo's property, plant and equipment (R40.0 million for surface dumps and R12.4 million for plant equipment) and R8.6 million against ERPM’s plant equipment.
 Deferred income and mining taxes
   financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences, based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, and based on the laws that have been enacted or substantively enacted by the reporting date.
   all factors that could possibly affect the probability that future taxable profit will be available against which unused tax credits can be utilized. These factors included profitability of the operations and an estimate of the gold price. The amount recognized as a deferred tax asset is sensitive to the current gold spot price. As at June 30, 2014 we recognized a deferred tax asset of R1.4 million (June 30, 2013: R2.9 million and 2012: R38.3 million).
 Future environmental rehabilitation costs
   caused before production commenced. Accordingly an asset is recognized and included within mining properties. Provisions for environmental rehabilitation are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. The unwinding of the obligation is included in profit or loss. Estimated future costs of environmental rehabilitation are reviewed regularly and adjusted as appropriate for new circumstances or changes in law or technology. Changes in estimates are capitalized or reversed against the related asset but taken to profit or loss if there is no related asset left. Gains or losses from the expected disposal of assets are not taken into account when determining the provision.
   based on our environmental management plans in compliance with current technological, environmental and regulatory requirements.An average discount rate of 8.3%, average inflation rate of 6.0% and expected life of mines according to the life-of-mine plans were utilized in the calculation of the estimated net present value of the rehabilitation liability (fiscal 2013: average discount rate of 7.6%, average inflation rate of 5.4% and fiscal 2012: average discount rate of 7.3%, average inflation rate of 5.4%). During fiscal 2014 there was a net increase in the provision of R10.2 million which was capitalized to property, plant and equipment for Ergo, and a reduction amounting to R14.2 million for rehabilitation costs incurred. During fiscal 2013 there was a net decrease in the provision of R6.4 million which was credited to property, plant and equipment for Ergo, and a reduction amounting to R22.5 million for rehabilitation costs incurred. During fiscal 2012 there was a net increase in the provision of R13.4 million which was capitalized to property, plant and equipment for Ergo, representing an increase in its respective footprints and a reduction amounting to R19.8million for rehabilitation costs incurred). As a result of the disposal of Blyvoor the provision for environmental rehabilitation decreased by R46.0 million in fiscal 2012.
  production. Increases in the provision are recognized in profit or loss as a cost of production. Gross restoration liabilities areestimated at the present value of the expenditures expected to settle the obligation.
   rehabilitate. This is based on the implementation of a different technique to vegetate the Crown complex as well as the increased use of “grey water” in rehabilitation. An updated survey and work performed during the year resulted in a decrease of the area to bevegetated. Charges to profit or loss for the environmental rehabilitation of R15.3 million and R59.2 million were raised in fiscal 2013 and 2012 respectively. Unwinding of the provisions amounting to R38.0 million, R33.5 million and R7.3 million were recorded in fiscal 2014, 2013 and 2012, respectively.
   insurance instruments, which are to be used to fund the estimated cost of rehabilitation during and at the end of the life of the relevant mine.


59
 Financial instruments
  cash and cash equivalents, long- and short-term interest-bearing borrowings, trade and other payables, and bank overdrafts. Financial instruments are initially recognized at fair value and include any directly attributable transaction costs, except those financial instruments measured at fair value through profit or loss.
  valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis and option pricing models, refined to reflect the issuer’s specific circumstances. Listed shares are measured at fair value based on the market close price at the reporting date and applying a discount factor for liquidity constraints pertaining to the relevant listed shares.
   implementation difficulties which led to a difference between the actual inventory and the accounting records of approximately 87000oz of gold. Due to the uncertainty around Rand Refinery’s inventory and the time it is taking to resolve this matter, the group has assumed that the 87 000oz gold shortfall will not be recovered. The shareholders of Rand Refinery have offered financial support in the form of an irrevocable subordinated loan of up to R1.2 billion (the “facility”). Rand Refinery can only draw on the Facility when there is confirmation that an actual gold shortfall exists. For the time being, DRDGOLD declined the option to provide funding on a pro-rate basis with other shareholders. Should it elect not provide such funding, its shareholding will bediluted, if other shareholders provide funding. Management therefore estimated the fair value of the investment in Rand Refineryshares as zero. The accumulated revaluations recognised in Other Comprehensive Income (R53.2 million) has been derecognised and the initial cost of the investment (R40.2 million) has been recognised as an impairment in profit or loss for the year.
 Operating results
 Comparison of financial performance for the fiscal year ended June 30, 2014 with fiscal year ended June 30, 2013
 Revenue
   
 Impact of change in volume
 
 
 
 R’000
 Total
 revenue
 2013
 Disposals
 Internal
 growth/
 (decline)
 Impact of
 change in
 price
 Net change
 Total
 revenue
 2014
  1
        Total Operations
 2,076,496
 -
 (161,244)
 (105,817)
 (267,062)
 1,809,434
  due to a 6% decrease in the average rand gold price received amounting to R432,775 per kilogram and a 9% decrease in gold produced from continuing operations.
 Net operating costs
   Impact of change in volume
 R’000
 Net
 operating
 costs
 2013
 Disposals
 Internal
 growth/
 (decline)
 Impact of
 change in
 costs
 Net change
 Net
 operating
 costs
 2014
  1
        Total
 1,397,177
 -
 (128,578)
 280,851
 152,273
 1,549,400
   increased by 11% to R1,549.4 million compared to operating costs of R1,397.2 million in fiscal 2013 due to lower gold production and above inflation increases in prices of key consumables, labor and electricity.
 
 1
 Due to the restructuring on July 1, 2012 ErgoGold, Ergo Mining, Crown and the surface retreatment operation of ERPM have all been
 transferred into Ergo Mining. However, this did not result in a change in the Ergo operating segment.


60
  Years ended June 30,
 Costs
 2014
 2013
             Rehabilitation provision and amounts contributed to environmental trust funds
  R471.7 million as compared to R524.3 million at June 30, 2013. The decrease in the provision for environmental rehabilitation infiscal 2014 was due a R14.2 million reduction in the provision resulting from rehabilitation work conducted during fiscal 2014,changes in discount and inflation rate assumptions as well as changes in the planned rehabilitation techniques to be applied supplemented by the increased use of "grey water" in rehabilitation. These decreases were offset by additional environmental damage incurred due to continuing operations. In fiscal 2014, a benefit of R86.6 million (fiscal 2013: expense of R15.3 million) and the unwinding of the provision of R38.0 million (fiscal 2013: R33.5 million) was recorded in profit / loss.
  to R86.4 million for fiscal 2013. The increase is attributable to R4.6 million interest received on these funds during fiscal 2014. A total of R93.7 million are invested in funds held in insurance instruments to provide financial guarantees provided to the DMR through an insurance cell captive company, the Guardrisk Cell Captive. As at June 30, 2014 guarantees amounting to R305.7 million were issued to the DMR. Subsequent to June 30, 2014 an additional guarantee amounting to R98.2 million was issued to theDMR. The shortfall between the invested funds and the estimated provisions is expected to be financed by ongoing contributions to the Guardrisk Cell Captive, over the remaining production life of the respective mining operations, the proceeds on the disposal of remaining assets and gold from plant clean-up.
 Depreciation
   Retrenchment costs
   due to the restructure of the executive and senior management with a view to right-sizing the corporate footprint and reducing costs.
 Impairments
  against property, plant and equipment at a specific asset level, R46.9 million against our investment in Rand Refinery and Village Main Reef. These were offset by a reversal of impairment of R2.7 million on equity accounted investments.
 Administration expenses and general costs
  2013, an increase of R13.6 million. In fiscal 2014 administration expenses and general costs included a non-recurring gain on disposal of property amounting to R0.9 million (2013: R19.2 million).
 Finance income
  due to dividends received from available-for-sale financial assets in fiscal 2013, amounting to R32.5 million and a decrease ofR8.3 million in interest received on lower cash balances.


61
 Finance expenses
  attributable to the unwinding of the rehabilitation provision amounting to R38.0 million in fiscal 2014 compared to R33.5 million in fiscal 2013 and a decrease in borrowing costs capitalized from R10.9 million in fiscal 2013 to R3.5 million in fiscal 2014. In addition, the interest paid on the Domestic Medium Term Note Program (see Item 5B. “Liquidity and Capital Resources – Borrowings and Funding”) decreased with the decrease in borrowings from R167.6 million in fiscal 2013 to R148.7 million in fiscal 2014.
 Share of losses of equity accounted investments
   recognised at Chizim Gold level. On June 30, 2013 Chizim Gold (Pvt) Limited stopped conducting feasibility studies on certain exploration tenements in Zimbabwe. On this date the group impaired its non-current exploration assets in full through its share of the equity accounted losses of the investee amounting to R50.1 million.
 Income tax
  mining income earned by the group, and a deferred tax charge of R11.1 million, mostly relating to mining income despite the lossbefore tax due to significant non-deductable expenditure in the form of impairments recognised as well as losses incurred for which no deferred tax can be recognised.
  non-mining income earned by the group, and a deferred tax charge of R56.7 million relating to mining income which was somewhat offset by significant non-deductable expenditure in the form of impairments recognised as well as losses incurred for which no deferred tax can be recognised.
 Comparison of financial performance for the fiscal year ended June 30, 2013 with fiscal year ended June 30, 2012
 Revenue
   Impact of change in volume
 
 R’000
 Total
 revenue
 2012
 Disposals
 Internal
 growth/
 (decline)
 Impact of
 change in
 price
 Net change
 Total
 revenue
 2013
  1
         2
        Total Operations
 3,004,264
 (1,240,073)
 138,761
 173,544
 (927,768)
 2,076,496
  on June 1, 2012. The increase in revenue for Ergo was largely due to a 9% increase in the average rand gold price received amounting to R458,084 per kilogram and an 8% increase in gold produced from continuing operations.
 Net operating costs
   
 Impact of change in volume
 
 
 
 R’000
 Net
 operating
 costs
 2012
 Disposals
 Internal
 growth/
 (decline)
 Impact of
 change in
 costs
 Net change
 Net
 operating
 costs
 2013
  1
         2
        Total
 2,188,887
 (1,046,914)
 89,821
 165,383
 (791,710)
 1,397,177
 
 1
 Due to the restructuring on July 1, 2012 ErgoGold, Ergo Mining, Crown and the surface retreatment operation of ERPM have all been
 transferred into Ergo Mining. However, this did not result in a change in the Ergo operating segment.
 2
 Blyvoor was sold on June 1, 2012.


62
  decreased by 36% to R1,397.2 million compared to operating costs of R2,188.9 million in fiscal 2012. This decrease was mainly as a result of the disposal of Blyvoor on June 1, 2012.
  Years ended June 30,
 Costs
 2013
 2012
             Rehabilitation provision and amounts contributed to environmental trust funds
  R524.3 million as compared to R504.3 million at June 30, 2012. The increase in the provision for environmental rehabilitation infiscal 2013 was due to changes in discount and inflation rate assumptions, changes in estimates resulting from changes to the life-of-mines and additional environmental damage incurred which was off-set by a R22.5 million reduction in the provision resulting fromrehabilitation work conducted during fiscal 2013. In fiscal 2013, an expense of R15.3 million (fiscal 2012: R59.2 million) and the unwinding of the provision of R33.5 million (fiscal 2012: R7.3 million) was recorded in profit or loss.
  to R104.5 million for fiscal 2012. The decrease is attributable to the derecognition of the DRDGOLD rehabilitation trust fund, amounting to R25.6 million, due to the relinquishment of the fund to the buyer of the relating mining rights over the Durban Roodepoort Deep mine area. The decrease was partially offset by a R5.6 million increase for interest received on these funds during fiscal 2013. A total of R88.6 million was invested in funds held in insurance instruments to provide financial guarantees to the DMR through an insurance cell captive company, the Guardrisk Cell Captive. As at June 30, 2013 guarantees amounting to R305.7 million were issued to the DMR. The shortfall between the invested funds and the estimated provisions is expected to be financed by ongoing contributions to the Guardrisk Cell Captive, over the remaining production life of the respective mining operations, the proceeds on the disposal of remaining assets and gold from plant clean-up.
 Depreciation
  mainly attributable to the completion of the Crown/Ergo pipeline project during May 2012, which was depreciated for a full yearin fiscal 2013.
 Retrenchment costs
   Impairments
  against property, plant and equipment at a specific asset level, R101.3 million against our investment in Village and R25.6 million for the derecognition of the DRDGOLD rehabilitation trust fund.
 Administration expenses and general costs
  2012, a decrease of R69.1 million. In fiscal 2013, administration expenses and general costs included a non-recurring gain on disposal of property amounting to R19.3million. In fiscal 2012, administration expenses and general costs included a non-recurring loss of approximately R9.6 million relating to the loss on the sale of property, plant and equipment.
 Finance income


63
 Finance expenses
  attributable to the unwinding of the rehabilitation provision amounting to R33.5 million in fiscal 2013 compared to R7.3 millionin fiscal 2012. In addition, the interest paid on the Domestic Medium Term Note Program (see Item 5B. “Liquidity and Capital Resources – Borrowings and Funding”) increased with the increase in borrowings from R30.7 million in fiscal 2012 to R167.6 million in fiscal 2013.
 Share of losses of equity accounted investments
   Zimbabwe. On this date the group recognised the impairment of the non-current exploration assets through its share of the equityaccounted losses of the investee amounting to R50.1 million.
 Income tax
  non-mining income earned by the group, and a deferred tax charge of R56.7 million relating to mining income which was somewhat offset by the decrease in deferred tax liability resulting from the impairments recognised and non-deductible expenses.
  a deferred tax benefit of R6.5 million and secondary tax on companies amounting to R4.5 million. The year-on-year increase in the net tax charge was mainly due to the increased profitability of Ergo.
 5B. LIQUIDITY AND CAPITAL RESOURCES
 Cash flows from operating activities
   activities for fiscal 2014. During fiscal 2014, the net working capital movement represented an outflow of cash of R39.4 million,compared to an outflow of R55.8 million in fiscal 2013 and an inflow of R75.4 million in fiscal 2012. Cash generated from operating activities decreased largely due to the increase in cash operating costs per kilogram due to lower gold production and above inflation increases in prices of key consumables, labor and electricity. Cash generated from operating activities for fiscal 2013 decreased largely due to the disposal of Blyvoor on June 1, 2012, which represented R137.1 million of the cash generated from operating activities in fiscal 2012.
 Cash flows from investing activities
    equipment and R14.2 million spent on environmental rehabilitation payments, offset by R1.0 million proceeds on the disposal of property, plant and equipment.
  development, new infrastructure and new mining equipment at our operations. Significant capital projects for Ergo during fiscal 2014 included:
  R89.5 million on the flotation and fine-grind project, R32.4 million on Reclamation Site 4A6, R6.2 million on rehabilitation of the Brakpan Tailings Dam and R26.7 million on other capital items.
  equipment, R58.3 million in acquisition of investments (mainly due to R 27.4 million contributions to rehabilitation obligation funds, R 26.9 million additions to unlisted investments), R13.9 million advance to equity accounted investments and R22.5 million spent on environmental rehabilitation payments, offset by R32.0 million proceeds on the disposal of property, plant and equipment and R 1.8 million on the disposal of investments.
    Ergo spent R261.5 million on the flotation and fine-grind project, R11.7 million on the Brakpan TSF, R20.5 million on the Cason high grade plant, R30.4 million on the Angelo Pan reclamation and pipeline, R26.3 million on infrastructure upgrades equipment, and R5.5 million on other equipment.
  equipment, R55.5 million in acquisitions of investments(R 45.9 million contributions to rehabilitation obligation funds and R 9.6 million additions to unlisted investments), R14.5 million advance to equity accounted investments and R19.8 million spent on


64
 environmental rehabilitation payments, offset by R12.5 million proceeds on the disposal of property, plant and equipment. A cashoutflow on disposal of subsidiaries of R9.6 million was also realised.
    Ergo spent R33.9 million on the Crown/Ergo pipeline project, R50.7 million on the extension of the Brakpan TSF, R15.5 million on the refurbishment of the Ergo plant, R38.5 million on the new flotation and fine-grind project, R49.0 million on infrastructure upgrades and equipment, R14.2 million on the tailings facilities and R16.1 million to replace old equipment and acquire new equipment.
  Blyvoor for opening up and development amounting to R50.3 million, equipment replacement amounting to R23.3 million and R9.3 million for other equipment and the tailings facilities.
   2014. We expect to incur R102.5 million on additions to property, plant and equipment for mining equipment, upgrading of current metallurgical plants and tailings facilities as follows:
 **·**Ergo – R100.5 million; and **·** Other – R2.0 million.
 Cash flows from financing activities
      which was offset by R30.7 million repayments of loans and borrowings, R24.1 million share option buy-out and a dividend paymentof R103.1 million.
  for the acquisition of treasury shares and a dividend payment of R28.9 million, which were offset by proceeds of R13.5 million ondisposal of treasury shares.
 Cash and cash equivalents
   2013 and R298.0 million at the end of fiscal 2012. This included $1.9 million as at June 30, 2014, $0.6 million as at June 30, 2013 and $1.1 million as at June 30, 2012 which were all sold forward resulting in zero exposure to currency volatility at these dates. The remainder of the cash and cash equivalent balances were denominated in South African rand. Surplus cash is held in low-risk, high interest bearing products with various large financial institutions.
 Borrowings and funding
    which it could from time to time issue notes. On October 1, 2010, EMO issued R108 million in notes under the DMTN Program and maturity dates of 12 and 24 months from the date of issue and interest set at the three month JIBAR rate plus a margin rangingfrom 4% to 5% per annum. The loan notes with a 12 month maturity, amounting to R78.0 million, were repaid on October 3, 2011. The remaining loan notes with a 24 month maturity, amounting to R30.0 million, were repaid on October 3, 2012. The EMO DMTN Program was cancelled and has been replaced by the DRDGOLD DMTN Program below.
  notes. This DMTN Program replaces the DMTN Program established by EMO on October 1, 2010. In July and September 2012, DRDGOLD issued R165 million in notes under the DMTN Program and maturity dates of 12, 24 and 36 months from the date of issue and bearing interest at the three month JIBAR rate plus a margin ranging from 4% to 5% per annum. The loan notes with a 12 and 24 month maturity, amounting to R20.0 million and R69.5 million respectively, were repaid on October 3, 2013 and July 3, 2014 respectively. The remaining loan notes with a 36 month maturity, amounting to R75.5 million, are repayable on July 3, 2015.


65
 Anticipated funding requirements and sources
   assets less current liabilities) of R162.9 million, compared to cash and cash equivalents of R376.6 million and positive workingcapital of R361.7 million at June 30, 2013 and cash and cash equivalents of R298.0 million and positive working capital of R209.7 million at June 30, 2012.
        **·** our operations fail to generate forecasted net cash flows from operations; **·** there is an adverse variation in the price of gold or foreign currency exchange rates in relation to the US dollar,    particularly with respect to the rand; or **·** our operating results or financial condition are adversely affected by the uncertainties and variables facing our business 
   discussed under Item 5A.: “Operating Results” or the risk factors described in Item 3D.: “Risk Factors.”
   business, which would have an adverse impact on our financial position and our ability to continue operating as a going concern.We would need to reassess our operations, consider further restructuring and/or obtain additional debt or equity funding. Therecan be no assurance that we will obtain this additional or any other funding on acceptable terms or at all.
 5C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.
   responses of gold encapsulated in sulphides, we constructed the fine grind and flotation circuit at a total cost of R 389 million. The team remains active with an ongoing focus on improving extraction efficiencies, including the test work associated with the recommencement of the FFG circuit in August 2014.
   5D. TREND INFORMATION
   operations. Gold production from our operations for the second quarter of fiscal 2015 is expected to be in line with the first quarterresults. Cash operating costs for the second quarter of fiscal 2015 are expected to be slightly lower due to winter tariffs for electricity applying for the first two months of the first quarter of fiscal 2015 only. Normal tariffs apply for the whole of the second quarter.
   operating costs of approximately R361,000 per kilogram, based on an exchange rate assumption of approximately $1.00/R11.04. Ourability to meet the full year’s production target could be impacted by, amongst other factors, lower grades, failure to achieve the targets set at Ergo and failure to timely restart full production at the flotation and fine-grind project. We are also subject to cost pressures due to above inflation increases in labor costs, electricity and water prices; increases in crude oil, steel, unforeseen changes in ore grades and recoveries; unexpected changes in the quality or quantity of reserves; technical production issues; environmentaland industrial accidents; gold theft; environmental factors; and pollution, which could adversely impact the cash operating costs for fiscal 2015.
 5E. OFF-BALANCE SHEET ARRANGEMENTS


66
 5F. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
 
 Estimated and actual payments due by period
 Total
 Less than
 1 year
 Between
 1-3 years
 Between
 3-5 years
 More than 5
 years
 R’000
 R’000
 R’000
 R’000
 R’000
        1
       Environmental rehabilitation, reclamation and closure costs
 2
                   Total contractual cash obligations
 672,129
 101,645
 89,995
 112,495
 367,994
 5G. SAFE
 HARBOR
   ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
 6A. DIRECTORS AND SENIOR MANAGEMENT
 Directors and Executive Officers
      comprising the board of directors, on a rotating basis, are subject to re-election at each annual general shareholders’ meeting.Additionally, all directors are subject to election at the first annual general meeting following their appointment. Retiring directors normally make themselves available for re-election.
    Executive Directors
 Daniël Johannes Pretorius (47)
 Designate on August 21, 2008. On January 1, 2009 he succeeded Mr. John William Cornelius Sayers as Chief Executive Officer. Mr.Pretorius holds a B Proc, LLB degree and was appointed Group Legal counsel for the Company in September 2004, he was appointed as Chief Executive Officer of Ergo Mining Operations in July 2006. He has 21 years of experience in the mining industry.
 
 Craig Clinton Barnes (44)
 Accountant. A Chartered Accountant, he has a B Com degree from the University of the Witwatersrand, or Wits University, and a BCom Honors degree from the University of South Africa, or Unisa. Prior to joining the Company, he was head of financial reportingfor Liberty Group Limited and he has over 20 years financial experience. He was appointed as Chief Financial Officer of Ergo Mining Operations in July 2006 and as Chief Financial Officer of DRDGOLD in May 2008. Mr. C.C. Barnes has resigned as executive director and Chief Financial Officer with effect December 31, 2013.
 
 Francois van der Westhuizen  (34)
 Westhuizen joined DRDGOLD in May 2009 as group financial accountant. His most recent responsibilities have included local and foreign financial reporting and the group treasury function. He is also head of the tax department. A qualified chartered accountant (South Africa), Mr F D van der Westhuizen has a BCom (Hons) from the University of Pretoria and a Magister Commercii (specializing in taxation). He has an Associate Chartered Management Accountant qualification from the Chartered Institute of Management Accountants (United Kingdom). Mr. F D van der Westhuizen's appointment as Chief Financial Officer was terminated by mutual agreement and he resigned as executive director with effect July 18, 2014.
 
 1
 Represents planned capital expenditure for which contractual obligations exist.
 2
 Operations of gold mining companies are subject to extensive environmental regulations in the various jurisdictions in which they operate. These
 regulations establish certain conditions on the conduct of our operations. Pursuant to environmental regulations, we are also obliged to close our operations and reclaim and rehabilitate the lands upon which we have conducted our mining and gold recovery operations. The estimated closure costs at existing operating mines and mines in various stages of closure are reflected in this table. For more information on environmental rehabilitation obligations, see Item 4D.: “Property, Plant and Equipment” and Note 17 “Provision for environmental rehabilitation, reclamation and closure costs” under Item 18.: “Financial Statements”.


67
 
 Anthon Tobias Meyer (60)
 25 years of experience in the fields of auditing, accounting and strategic financial management and is a member of the SA Institute of Chartered Accountants and the Public Accountants and Auditors Board. Anthon has approximately 10 years of experience in the mining industry and has served on the boards of listed and public companies for more than 15 years.
 Non-Executive Directors
 
 Geoffrey Charles Campbell (53).
 Independent Non-Executive Director in December 2003 and as Non-Executive Chairman in October 2005. A qualified geologist, he has worked on gold mines in Wales and Canada. He then spent 15 years first as a stockbroker and afterwards as a fund manager, during which time he managed the Merrill Lynch Investment Manager’s Gold and General Fund, one of the largest gold mining investment funds. He was also Research Director for Merrill Lynch Investment Managers. Mr. G.C. Campbell is also a director of Oxford Abstracts.
 
 Robert Peter Hume (74).
 the field of auditing, including 18 years as a partner in the East London (South Africa) office of KPMG. Since retiring from KPMG in 1999, he has been an Investment Manager at Nvest Securities Proprietary Limited (formerly Sasfin Frankel Pollak) in East London.Mr. R.P. Hume will retire at the forthcoming annual general meeting. He has not offered himself for re-election.
 
 James Turk (67).
 GoldMoney Network Limited, formerly G.M. Network Limited (also known as GoldMoney.com), the operator of a digital gold currency payment system. Since graduating from George Washington University with a BA degree in International Economics in 1969, he has specialized in international banking, finance and investments. After starting his career with Chase Manhattan Bank (now J.P. Morgan Chase) he joined RTB Inc., a private investment and trading company of a prominent precious metals trader in 1980. Hemoved to the United Arab Emirates in 1983 as Manager of the Commodity Department of the Abu Dhabi Investment Authority. Since resigning from this position in 1987, he has written frequently on money and banking.
 Edmund Jeneker (52)
 November 1, 2007. He trained as an accountant and has over 22 years’ experience in finance, taxation, business strategy and general management at Grant Thornton, SwissReSA, World Bank Competitiveness Fund and Deloitte. He is active in community development and serves as a member of the Provincial Development Commission of the Western Cape Provincial Government. He currently holds the position of Managing Director – Absa AllPay Consolidated Investment Holdings at Absa Group Limited.
 Johan Holtzhausen (68)
 April 25, 2014. He has more than 42 years’ experience in the accounting profession, having served as a senior partner at KPMG, andheld the highest Generally Accepted Accounting Principles (United States), Generally Accepted Auditing Standards and Sarbanes-Oxley Act accreditation required to service clients listed on stock exchanges in the United States of America. His clients included major corporations listed in South Africa, Canada, the United Kingdom, Australia and the United States of America.
   risk committee on a voluntary basis. This South African non-profit company is a leading small business development agency fundedby a public-private partnership. He chairs the audit and risk committee of Tshipi é Ntle Manganese Mining Proprietary Limited, an emerging South African manganese miner. He is a non-executive director of Caledonia Mining Corporation, a Canadian corporation listed in the United States of America, Canada and the United Kingdom, and he chairs its audit and risk committee.
 Senior Management
 
 Wilhelm Jacobus Schoeman (40)
 Analytical Chemistry) joined DRDGOLD on October 1, 2011 to focus on expanding the group’s surface retreatment business and extracting maximum value from existing resources. Mr Schoeman previously held the position Executive Officer: Business Development. In July 2014 this role and the role of COO were phased out and replaced with the position of Operations Director: Ergo Mining Operations Proprietary Limited, and Mr Schoeman was appointed to this new position.
  
 Themba John Gwebu (50)
 LLM) is a qualified attorney who worked as a magistrate prior to joining the Company in April 2004 as Assistant Legal Advisor. Hewas appointed to the position of Company Secretary in April 2005 and Executive Officer: Legal, Compliance and Company Secretary on January 1, 2007.


68
 
 Henry Gouws (45)
 National Higher Diploma in Extraction Metallurgy in 1991. He completed a Management Development Programme ("MDP") in 2003 through Unisa School of Business Leadership. He was appointed Operations Manager of Crown in January 2006 and General Manager in July 2006. He was appointed to this current position with effect from October 1, 2011. He has 27 years experience in the mining industry.
 Mark Burrell (52)
 M. Burrell joined DRDGOLD in 2004 on a consulting basis and later that year was appointed as Financial Manager of the Blyvooruitzicht operation. He was appointed as Financial Director of Ergo Mining in January 2012 and has 16 years experience inthe mining sector.
 Charles Methley Symons (60)
 Mr. C.M. Symons commenced his career in the mining industry in February 1977 and joined Crown in January 1986 where he was appointed General Manager in 1995. He holds a Masters degree in Business Leadership and a B Comm degree from Unisa, and he also has a National Diploma in Extractive Metallurgy. He was appointed Executive Officer: Surface Operations on January 1, 2008,Executive Officer: Operations on May 11, 2010 and Chief Operating Officer with effect from October 1, 2011. Following the restructuring of senior management in July 2014, Charles Symons assumed the role of Chairman: Oversight Committee: Ergo Mining Operations Proprietary Limited.
 
 Reneiloe Masemene (33)
 Company in January 2009 as Legal Advisor. She was appointed to the position of Senior Legal Advisor in October 2011 and Prescribed Officer of Ergo on June 29, 2012. She was appointed to the position of group legal counsel in August 2014.
  understandings between any of our directors or executive officers and any other person by which any of our directors or executive officers has been so elected or appointed.
 6B. COMPENSATION
   Non-Executive Directors. The total amount of directors' remuneration paid and or accrued for the year ended June 30, 2014 was R15.0 million. Non-Executive Directors receive the following fees:
 **·** Base fee as Non-Executive Chairman of R1,309,923 per annum; **·** Base fee as Non-Executive Directors of R582,188 per annum; **·** Annual fee for Audit Committee Chairman of R29,110 (excluding fee received as a committee member); **·** Annual fee for Audit Committee member of R29,110; **·** Annual fee for Nominations Committee Chairman of R10,916 (excluding fee received as a committee member); **·** Annual fee for Nominations Committee member of R10,916; **·** Annual fee for the chairman of Remuneration Committee, Risk Committee, and Social and Ethics Committee of R 21,832    (excluding fee received as a committee member); **·** Annual fee for members of Remuneration Committee, Risk Committee and Social and Ethics Committee of R21,832 each; **·** Daily fee of R21,832 and hourly rate of R2,911; **·** Half-day fee for participating by telephone in special board meetings; and **·** The Chairman of the board to receive committee fees.


69
  Directors
 Basic
 salary/board
 fees
 (R'000)
 Retirement fund
 contributions/
 bonus and
 performance
 related payments
 1
 (R'000)
 Termination of
 contract
 payments
 (R'000)
 Share option
 scheme gains
 (R'000)
 Total
 (R'000)
 ExecutiveD.J. Pretorius ............................
              4
    5
  Subtotal
 8,122
 2,745
 -
 308
 11,175
 Non-ExecutiveG.C. Campbell .........................
                              Subtotal
 3,869
 -
 -
 -
 3,869
 Prescribed officers
 2
  3
       T.J. Gwebu....................... W.J. Schoeman.................
 2,2093,081
   --
 191 125
 3,3844,389
 Subtotal
 7,655
 3,519
 3,263
 499
 14,936
 Total
 19,646
 6,264
 3,263
 807
 29,980
  Compensation of senior management
  Listing Rules we are not required to, and we do not otherwise, disclose compensation paid to individual senior managers other than executive directors, non-executive directors and prescribed officers. However, the aggregate compensation paid to senior management, excluding compensation paid to Executive Directors, in fiscal 2014 was R31.4 million (fiscal 2013: R26.4 million and fiscal 2012: R22.4 million), representing eleven executive officers in fiscal 2014 and eleven executive officers in fiscal 2013.
   Executive Director meet all the targets set in terms of such predetermined key performance indicators, he will be entitled to a bonus of up to 50%, 75% or 100% of his remuneration package, depending on his particular agreement. Should an Executive Director not meet all the targets set in terms of the predetermined key performance indicators, he will be entitled to a lesser bonus as determined by the Remuneration Committee in its discretion.
 Service Agreements
      us, on January 1, 2009 and July 29, 2014, respectively. These agreements regulate the employment relationship with Messrs. D.J.Pretorius and A.T. Meyer.
 
 1
 Earned in respect of F13 KPI assessment
 2
 The Companies Act, 2008 (Act 71 of 2008), under section 30, requires the remuneration of prescribed officers, as defined in regulation 38 of
 Company Regulations 2008, to be disclosed with that of directors of the Company. A person is a prescribed officer if they have general executive authority over the company, general responsibility for the financial management or management of legal affairs, general managerial authority over the operations of the company or directly or indirectly exercise or significantly influence the exercise of control over the general management and administration of the whole or a significant portion of the business and activities of the company.
 3
 Continues to render services to the group on a contract basis.
 4
 Earned in capacity of a director only
 5
 Exercised prior to appointment as director


70
  under his employment agreement, for an incentive bonus of up to 100% of his annual remuneration package in respect of one bonus cycle per annum over the duration of his appointment, on condition that DRDGOLD achieves certain key performance indicators. He is not eligible to participate in the DRDGOLD Phantom Scheme. In addition, Mr. D.J. Pretorius’ employment agreement requires DRDGOLD to issue to Mr. D.J. Pretorius 100,000 ordinary DRDGOLD shares as a mining right conversion bonus. DRDGOLD issued 50,000 of these shares on the signing of the agreement, and the remaining tranche in November 2013 on the conversion of the mining rights of DRDGOLD’s South African operations.
  under his employment agreement, for an incentive bonus of up to 75% of his annual remuneration package in respect of one bonus cycle per annum over the duration of his appointment, on condition that DRDGOLD achieves certain key performance indicators. He was also be eligible to participate in the DRDGOLD Phantom Scheme.
  Westhuizen was eligible under his employment agreement, for an incentive bonus of up to 75% of his annual remuneration package in respect of one bonus cycle per annum over the duration of his appointment, on condition that DRDGOLD achieves certain key performance indicators. He will also be eligible to participate in the DRDGOLD Phantom Scheme.
     until September 30, 2014, October 31, 2014,  October 31, 2014 and May 1, 2016 respectively. After expiration of the initial two year periods, the agreements continue indefinitely until terminated by either party on not less than three months prior written notice. Mr. G.C. Campbell has a service agreement which continues indefinitely until terminated by either party on not less than three monthsprior written notice.
     terminated by us in the case of our executive officers, except where terminated as a result of certain action on the part of the director, upon the director reaching a certain age, or by the director upon the occurrence of a change of control. A termination of a director's employment upon the occurrence of a change of control is referred to as an “eligible termination.” Upon an eligible termination, the director is entitled to receive a payment equal to at least one year's salary or fees, but not more than three years salary for Executive Directors or two years fees for Non-Executive Directors, depending on the period of time that the director has been employed.
 6C. BOARD PRACTICES
 Board of Directors
  Meyer), and five Non-Executive Directors (Messrs. G.C. Campbell, R.P. Hume, J. Turk,  E.A. Jeneker and J.A. Holtzhausen). The Non-Executive Directors are independent under the New York Stock Exchange, or NYSE, requirements (as affirmatively determined by the Board of Directors) and the South African King III Report.
  in accordance with the United Kingdom Combined Code, the responsibilities of Chairman and Chief Executive Officer are separate. Mr. G.C. Campbell is the Non-Executive Chairman, Mr. D.J. Pretorius is the Chief Executive Officer and Mr. A.T Meyer is the Acting Chief Financial Officer. The board has established a nominations committee, and it is our policy for details of a prospective candidate to be distributed to all directors for formal consideration at a full meeting of the board. A prospective candidate would be invited to attend a meeting and be interviewed before any decision is taken. In compliance with the NYSE rules a majority of independent directors will select or recommend director nominees.
  Company’s strategic objectives and to ensure that the necessary financial and other resources are made available to management to enable them to meet those objectives. The board retains full and effective control over the Company, meeting on a quarterly basis with additional ad hoc meetings being arranged when necessary, to review strategy and planning and operational and financial performance. The board further authorizes acquisitions and disposals, major capital expenditure, stakeholder communication and other material matters reserved for its consideration and decision under its terms of reference. The board also approves the annual budgets for the various operational units.
  decisions on material matters are referred to the board. The board approves all the terms of reference for the various subcommittees of the board, including special committees tasked to deal with specific issues. Only the executive directors are involved with the day-to-day management of the Company.


71
  materials, meetings with senior management, presentations by the Company’s advisors and site visits. The directors are assessedannually, both individually and as a board, as part of an evaluation process, which is driven by an independent consultant. In addition, the Remuneration and Nominations Committees formally evaluate the executive directors on an annual basis, based on objective criteria.
  shareholders. In addition, all directors are subject to election by shareholders at the first annual general meeting following their appointment by directors. The appointment of new directors is approved by the board as a whole. The names of the directors submitted for re-election are accompanied by sufficient biographical details in the notice of the forthcoming annual general meeting to enable shareholders to make an informed decision in respect of their re-election.
  ensuring compliance with procedures and regulations of a statutory nature. Directors are entitled to seek independent professional advice concerning the affairs of the Company at the Company’s expense, should they believe that course of action would be in thebest interest of the Company.
  the Company’s share option scheme of which the remaining balance were bought out during the year by the Company through a general share option buy-out. We do not believe that this compromised their independence. No new share options have been issuedto Non-Executive Directors since June 2005.
  meetings, which are scheduled over two or three days, allows adequate time for the Non-Executive Directors to interact without the presence of the Executive Directors. The board meetings include the meeting of the Risk Committee, Audit Committee, Remuneration Committee, Nominations Committee and Social and Ethics Committee which act as subcommittees to the board. Each subcommittee is chaired by one of the Independent Non-Executive Directors, except for the Risk Committee which is chaired by the Chief Executive Officer, each of which provides a formal report back to the board. Each subcommittee meets for approximately half a day. Certain senior members of staff are invited to attend the subcommittee meetings.
  Ethics and Conduct, a copy of which is available on our website at www.drdgold.com. The Code of Ethics and Conduct applies to all directors, officers and employees, including the principal executive, financial and accounting officers, in accordance withSection 406 of the US Sarbanes-Oxley Act of 2002, the related US securities laws and the NYSE rules. The Code contains provisions under which employees can report violations of Company policy or any applicable law, rule or regulation, including US securities laws.
   Directors' Terms of Service
    Director
 Title
 Year first appointed
 Term of
 current
 office
 Unexpired
 term of
 current office
       1
       2
       3
                         1Mr. D.J. Pretorius’s service contract has been renewed for another three years, effective January 1, 2012, in the Remuneration Committee meeting held in
 February 2012. Three months notice applies thereafter.
 2
 Mr. C.C. Barnes’ service contract has been renewed for another three years, effective from May 5, 2011 in the Remuneration Committee meeting held in August 2011.
 Mr. C.C. Barnes resigned as Chief Financial Officer with effect December 31, 2014.
 3
 Mr. F.D. van der Westhuizen's appointment as Chief Financial Officer was terminated by mutual agreement and he resigned as executive director with effect July 18,
 2014.


72
 Executive Committee
     consideration by the board of directors. Members of the Executive Committee, who are unable to attend the meetings in person, areable to participate via teleconference facilities, to allow participation in the discussion and conclusions reached.
 Board Committees
  responsibilities and to effectively fulfill its decision-making process. Each committee acts within written terms of reference which have been approved by the board and under which specific functions of the board are delegated. The terms of reference for all committees can be obtained by application to the Company Secretary at the Company’s registered office. Each committee has defined purposes, membership requirements, duties and reporting procedures. Minutes of the meetings of these committees are circulated to the members of the committees and made available to the board. Remuneration of Non-Executive Directors for their services on the committees concerned is determined by the board. The committees are subject to regular evaluation by the board with respect to their performance and effectiveness.
  Committees of the Board of Directors
 Remuneration Committee
  directors. The committee meets quarterly, but may meet more often on an ad hoc basis if required.  As  at  June  30,  2014  the Remuneration Committee consisted of Mr. E.A. Jeneker (Chairman), Mr. G.C. Campbell, Mr. R.P. Hume and Mr J. Turk.
  policies of the Company, the terms and conditions of employment, and the eligibility and performance measures of the DRDGOLD Phantom Share Scheme and DRDGOLD (1996) Share Option Scheme applicable to executive directors and senior management.
  executives of the highest caliber and encourage and reward superior performance. The committee also aims to ensure that criteriaare in place to measure individual performance. The committee approves the performance-based bonuses of the executive directors based on such criteria. The General Manager Corporate Services provides the committee with access to comparative industry surveys, which assist in formulating remuneration policies. As and when required the committee may also engage the services of independent consultants to evaluate and review remuneration policies and related issues and brief members on pertinent issues.
   **·** Basic remuneration, as benchmarked against industry norms; **·** Bonuses or incentives, which are measured against agreed outcomes or Key Performance Indicators, or KPIs; **·** Short-term rewards for exceptional performance; and **·** Long-term retention of key employees based on scarcity of skill and strategic value, using phantom share options granted    under the DRDGOLD Phantom Share Scheme.


73
 Nominations Committee
  directors. The committee meets quarterly, but may meet more often on an ad hoc basis if required. As at June 30, 2014, the Nominations and Remuneration Committee consisted of Mr. G.C. Campbell (Chairman), Mr. R.P. Hume and Mr. E.A. Jeneker.
   **·** making recommendations to the board on the appointment of new Executive and Non-Executive directors, including    making recommendations on the composition of the board generally and the balance between Executive and Non-   Executive directors appointed to the board; **·** regular reviewing of the board structure, size and composition and making recommendations to the board with regard to    any adjustments that are deemed necessary; **·** identifying and nominating candidates for the approval of the board to fill board vacancies as and when they arise as well   as putting in place plans for succession, in particular for the Chairman and Chief Executive Officer; and **·** making recommendations on directors who are retiring by rotation to be put forward for re-election.
 Nomination and Remuneration Committee
   committee called the Nomination and Remuneration Committee. All the members of this committee are independent Non-Executive Directors.
      Audit Committee
     “Corporate Governance”. The primary responsibilities of the Audit Committee, as set out in the Audit Committee charter, is to assist the board in carrying out its duties relating to accounting policies, internal financial control, financial reporting practices and the preparation of accurate financial reporting and financial statements in compliance with all applicable legal requirements and accounting standards. A copy of the charter is available by application to the Company Secretary at the Company’s registered office.
  Financial Officer and the Internal Audit and Compliance Manager to review the audit plans of the internal auditors, to ascertainthe extent to which the scope of the internal audits can be relied upon to detect weaknesses in the internal controls and to review the annual and interim financial statements prior to approval by the board. The Audit Committee reviews our annual results, theeffectiveness of our system of internal financial controls, internal audit procedures and legal and regulatory compliance. The committee also reviews the scope of work carried out by our internal auditors and holds regular discussions with the external auditors and internal auditors.
  engagement of the external auditors. The committee is required to pre-approve, and has pre-approved, non-audit services providedby our external auditors. The Company’s external audit function is currently being undertaken by KPMG Inc.
  where necessary, to the Chairman of the board and Chief Executive Officer. All important findings arising from audit proceduresare brought to the attention of the committee and, if necessary, to the board.


74
 Risk Committee
     issues, health, safety and environmental compliance, and the monitoring and reporting of all these matters. The Risk Committee facilitates communication between the board, the Audit Committee, internal auditors and other parties engaged in risk management activities. The terms of reference of the Risk Committee can be obtained by application to the Company Secretary at the Company’s registered office.
 The Risk Committee’s role is to ensure that: **·** an effective risk management program is implemented and maintained; **·** risk management awareness is promoted amongst all employees; **·** risk programs (financing/insurance) adequately protect the Company against catastrophic risks; **·** regular risk assessments are conducted; **·** total cost of risk in the long term is reduced; **·** the protection of the Group's assets is promoted throughout the Group; **·** the health and safety and well being of all stakeholders is improved; and **·** the Company’s activities are carried out in such a way so as to ensure the safety and health of employees.
  required. Certain members of executive management are occasionally invited to attend Risk Committee meetings, such as the Internal Audit and Compliance Manager, the Group Risk Manager, the Group Financial Manager, the Operational Managers and the Group Legal Counsel.
  achievement of business objectives and undermine the preservation of shareholder value. The significant risks facing the Group including those at operations have been identified and have been included in Item 3D.: “Risk factors.” Individuals have been appointed to address each risk and the results thereof are reviewed by senior management through regular risk meetings. The aimof the internal control systems is for management to provide reasonable assurance that the objectives will be met. In addition to the above initiatives the Group also employs third party consultants to benchmark our operations against other mining operationsthroughout South Africa and worldwide.
  disaster. We have embarked on a program to ensure that our major assets and potential business interruption and liability claimsare covered by group insurance policies that encompass our operations. The majority of the cover is through reputable insurancecompanies in London and continental Europe and the insurance programs are renewed on an annual basis. A cell captive insurance company has been established to enable further reduction in annual insurance premiums.
 Audit and Risk Committee
  meetings. The members meet and the business of each committee is handled in joint deliberations taking place on the issues raised. The Audit and Risk Committee is chaired by Mr. R.P. Hume. The reason for the joint sittings is that there is a great deal of overlap between the financial risks discussed at Audit Committee level and at Risk Committee level. The joint sittings of the Committees bring about better disclosure and ensure that the Company conforms more closely to the process prescribed by the US Sarbanes-Oxley Act of 2002.
   Committee consisting independent non executive directors only namely, Mr. R.P. Hume (Chairman), Mr. J. Turk, J.A. Holtzhausen, G.C. Campbell and Mr. E.A. Jeneker.


75
 Social and Ethics Committee
  Mr F van der Westhuizen. As at September 30, 2014, the Social and Ethics Committee consisted of Mr. E.A. Jeneker (Chairman), Mr. D.J. Pretorius and Mr W.J Schoeman.
  bottom line espoused in the King III Report and in order to reach the empowerment goal to which it is committed, establishing acommittee, the focus of which will be transformation and sustainable development. The terms of reference were approved by the board at the August 2008 meeting. The board resolved to convert the Transformation and Sustainable Development Committee into the Social and Ethics Committee which the Company is required to set up in terms of the Companies Act, 2008 of South Africa. The objectives of this committee are:
 **·** promoting transformation within the company and the economic empowerment of previously disadvantaged    communities, particularly within areas where the company conducts business; **·** striving towards achieving the goal of equality as the South African constitution and other legislation require within the   context of the demographics of the country at all levels of the company and its subsidiaries; and **·** conducting business in a manner which is conducive to internationally acceptable environmental and sustainability    standards.
 Terms of Reference of combined committees
    6D. EMPLOYEES
 Employees
    
 Year ended June 30
 2014
 2013
 2012
       who are directly employed by us and our subsidiary companies. As of September 30, 2014, we had 2,323 employees (including 1,340contract employees).
  
 Year ended June 30,
 Category of Activity
 2014
 2013
 2012


76
 Labor Relations
   employees are members of trade unions or employee associations. South Africa's labor relations environment remains a platform forsocial reform. The National Union of Mineworkers, or NUM, the main South African mining industry union, is influential in the tripartite alliance between the ruling African National Congress, the Congress of South African Trade Unions, or COSATU, and theSouth African Communist Party as it is the biggest affiliate of COSATU. The relationship between management and labor unions remains cordial. The DRDGOLD and NUM coordinating forum meets regularly to discuss matters pertinent to both parties at a EMO level, while operations level forums continue to deal with local matters.
  categories 6 – 15 for Ergo and ERPM. The NUM also rejected the 10% increases in the living out allowances for fiscal 2013 and fiscal 2014. The NUM was granted strike certificates in respect of the two operations and strike action started with the morningshift on Tuesday, October 8, 2013.
  NUM and UASA, which provides for average annual compensation increases in year one of 10% for categories 4 – 5, 9% for categories 6 – 7 and 8% for categories 8 – 15; and in year two 8% for categories 4 – 5 and 7.5% for categories 6 – 15.
  to June 30, 2016, with NUM and UASA, which provides for average annual compensation increases in year one of 10% for categories 4 – 5, 9% for categories 6 – 7 and 8% for categories 8 – 15.
  appropriate projects that give effect to the ideals of the Mining Charter and good corporate governance. We recognize the need for transformation and have put structures in place to address this at both management and board level.
  our operations, a severance package of not less than one week’s remuneration for every completed year of service. In specific agreements with organized labor we undertook, as in the past, to pay packages equal to two weeks basic pay for every completed year of service as part of a balancing compromise with the labor unions between the high additional costs of non-financial itemsand incentive payments (which are deemed part of remuneration), and an additional one week benefit based on basic pay. These employees were provided with counseling services and the opportunity to undergo skills training to be able to find employment outside the mining industry.
 Safety statistics
    (Per million man hours)
 Year ended June 30,
 2014
 2013
  1
     1
     1
       
 1
 Calculated as follows: actual number of instances divided by the total number of man hours worked multiplied by one million.


77
 6E. SHARE OWNERSHIP
  Directors
 Options at
 June 30,
 2013
 Average
 strike
 price
 (R)
 Options
 bought back
 during the
 year
 Average
 Gain on
 buy
 back
 (R)
 Options
 lapsed
 during
 the
 year
 Options at
 June 30,
 2014
 Average
 Strike
 price
 (R)
 Expiration
 Dates
 1
    ExecutiveC.C. Barnes ..............
                    Prescribed
 Officers
                                         become or could potentially become aware of material price sensitive information, such as information relating to an acquisition, quarterly results etc., which is not in the public domain. When these employees have access to this information an embargo is placed on share trading for those individuals concerned. The embargo need not involve the entire Company in the case of an acquisition and may only apply to the board of directors, executive committee, and the financial and new business teams, but inthe case of quarterly results the closed-period is group-wide.
   one percent of the Company’s issued ordinary share capital. For details of share ownership of directors and prescribed officers see Item 7A.: “Major Shareholders.”
 DRDGOLD (1996) Share Option Scheme, or the Scheme
   experience are recognized as being essential to the Company’s performance. Two of our Non-Executive Directors (Messrs. G.C. Campbell and R.P. Hume) had share options under the Scheme which has all been bought out by the Company through a general buy-out; no new share options have been issued to Non-Executive Directors since December 2004. In compliance with JSE Listing Requirements, options awarded to an individual employee are subject to a cumulative upper limit of 2.0 million options,which is lower than the previous 2% of the Company’s issued share capital. In addition, a maximum of 40.0 million options are available for utilization under the share option scheme, which is lower than the previous 15% of the issued ordinary shares. As at September 30, 2014, the number of issued and exercisable share options was approximately 0.3% of our issued ordinary share capital, representing 1.2 million share options. In November 2012 the Remuneration Committee suspended the share option scheme and approved a share buyback. A general offer was made to all participant of the Scheme to buy-back all then vested shareoptions as part of the transition to the new DRDGOLD Phantom Share Scheme. Not all share options were bought back and at June 30, 2014, 279,778 vested share options remained outstanding. The participants in the Scheme are fully taxed based on individualtax directives obtained from the South African Revenue Service on any gains realized on the exercise of share options.
 
 1
 Certain Directors hold options which expire at various times. For those directors, a range is provided indicating the earliest and latest expiration
 dates.


78
   weighted average price of a share on the JSE for the seven days on which the JSE is open for trading, preceding the day on which the employee is granted the option. The allocation date will be the date when the directors approve allocation of share options. Each option remains in force for five years after the date of grant (ten years if issued prior to 2009), subject to the terms of the option plan. Options granted under a plan vest primarily according to the following schedule over a maximum of a three year period:
 Percentage vested in each period
 Period after the original date of the option grant
           expire and may not thereafter be exercised. The previous bi-annual allocation of options was changed in April 2006 to an annualallocation.
   purchase ordinary shares were currently exercisable. In fiscal 2014, a total of 36 employees and 1 ex-employee participated in the Scheme, including Executive Directors and other senior employees. The outstanding options are exercisable at purchase prices that range from R5.12 to R10.93 per share and expire five years (issued prior to 2009: ten years) from the date of issue to the participants.
   phantom share scheme was approved by the board of directors in October 2012. In November 2012 the Remuneration Committee suspended the Scheme and approved the share option buy back. The advantages presented by the suspension of the Scheme and shareoption buy back are inter alia:
     DRDGOLD Phantom Share Scheme
  Share Option Scheme, which is part of the long-term retention strategy intended to grow the company. The phantom share scheme is operated as an incentive tool for our executive directors, excluding the CEO, and senior employees whose skills and experience are recognized as being essential to the Company’s performance. For details regarding the remuneration structure of the CEO refer to Item 6B. The scheme is cash settled. In terms of the phantom share scheme rules, 50% of the phantom shares granted willbe valued based on the Group meeting certain pre-determined performance criteria and the remaining 50% to defined retention periods. The maximum incentive pay-out per annum to any single employee may not exceed 75% of that employee’s gross remuneration package. The participants in the scheme are fully taxed at their marginal rate on any gains realized on the exercise of their phantom shares.
  Committee is determined by the price in respect of each share which is the subject of the phantom share, the volume weighted average price of a share on the JSE for the seven days on which the JSE is open for trading, preceding the day on which the employee is granted a phantom share. The allocation date will be the date when the directors approve allocation of the phantom shares. Each phantom share remains in force until the date of vesting, subject to the terms of the scheme rules. Phantom sharesgranted under the phantom share scheme vest primarily according the following schedule over a maximum of a three year period:
                               phantom shares were granted in the current financial year, (2013: 3,019,549). 3,706,102 phantom shares were outstanding on June 30, 2014 (2013: 3,019,549).


79
 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
 7A. MAJOR SHAREHOLDERS
   **·** 385,383,767 ordinary shares of no par value; and **·** 5,000,000 cumulative preference shares.
      **·** there were 5,339 record holders of our ordinary shares in South Africa, who held approximately 90,940,607 or    approximately 23.6% of our ordinary shares; **·** there was one record holder of our cumulative preference shares in South Africa, who held 5,000,000 or 100% of our    cumulative preference shares; **·** there were no US record holders of our ordinary shares, excluding those shares held as part of our ADR program; and **·** there were 786 registered holders of our ADRs in the United States, who held approximately 213,066,460 (21,306,646    ADRs) or approximately 55.43% of our ordinary shares.
    **·** each of our directors and prescribed officers; and **·** any person whom the directors are aware of as at September 30, 2014 who is interested directly or indirectly in 5% or more    of our ordinary shares. There was significant change in the percentage ownership of the major shareholders over the    preceding three years.
 Shares
 Beneficially
 Owned
 Holder
 Number
 Percent of
 outstanding
 ordinary
 shares
               *
   *
   *
                Bank of New York Mellon ADRs ..........................................................................................................101 Barclay Street New York, NY 10011
   1
 *
 
 1
 Includes the following:
 o
 a shareholding acquired by Van Eck Associates Corporation ("Van Eck"). According to a Schedule 13-G filed by Van Eck with the SEC on October 9, 2014, Van Eck Associates Corporation held 16.07% of the total issued ordinary share capital of the Company at this date. At Subsequently this shareholding increased to 16.99% of the total issued ordinary share capital of the Company; and
 o
 a shareholding held by Skagen AS ("Skagen") amounting to 9.66% of the total issued ordinary share capital of the Company.


80
   power with respect to securities. Ordinary shares issuable pursuant to options, to the extent the options are currently exercisable or convertible within 60 days of September 30, 2014, are treated as outstanding for computing the percentage of any other person. As of September 30, 2014, we are not aware of anyone owning 5% or more of our ordinary shares other than the Bank of New York Mellon which holds 55.15% of our issued ordinary shares through our ADR program as described. During fiscal 2014 the Public InvestmentCorporation disposed of its 5.0% shareholding that it held as at the end of fiscal 2013 and Investec Asset Management reduced itsshareholding of 7.05% held as at the end of fiscal 2013 to 3.08% as at September 30, 2014. Both of the above were in the normalcourse of business. Unless otherwise noted, each person or group identified possesses sole voting and investment power with respect to the shares, subject to community property laws where applicable. No shareholder has voting rights which differ from the voting rights of any other shareholder. Unless indicated otherwise, the business address of the beneficial owner is: DRDGOLD Limited, 50Constantia Boulevard, Constantia Kloof Ext. 28, Roodepoort, 1709, South Africa.
 Cumulative Preference Shares
      than six months. The terms of issue of the cumulative preference shares are that they carry the right, in priority to the Company'sordinary shares, to receive a dividend equal to 3% of the gross future revenue generated by the exploitation or the disposal of the Argonaut mineral rights acquired from Randgold in September 1997. Additionally, holders of cumulative preference shares may voteon resolutions which adversely affect their interests and on the disposal of all, or substantially all, of our assets or mineral rights. There is currently no active trading market for our cumulative preference shares. Holders of cumulative preference shares will only obtain their potential voting rights once the Argonaut Project becomes an operational gold mine, and dividends accrue to them. The prospecting rights have since expired and the Argonaut Project terminated. . The Department of Mineral Resources (DMR) granted DRDGOLD a prospecting right over an area which was going to be too small to mine. When an application for a greater area was lodged, the DMR stated that the additional area is in an urban location and an application for a prospecting right cannot be granted. We are in the process, together with Randgold, of cancelling these preference shares.
 7B. RELATED PARTY TRANSACTIONS
 Rand Refinery Proprietary Limited (Rand Refinery) agreement
   Africa. Under the agreement, Rand Refinery performs the final refining of the group’s gold and casts it into troy ounce bars. RandRefinery then sells the gold on the same day as delivery, for the London afternoon fixed price on the day the gold is sold. In exchangefor this service, the group pays Rand Refinery a variable refining fee plus fixed marketing, loan and administration fees. Mr Gwebu,executive: legal, compliance and company secretary of DRDGOLD, was a director of Rand Refinery and a member of its Remuneration Committee and chairman of the Social and Ethics Committee until 3 September 2014 when he resigned as director. Mr Charles Symons has been nominated to replace him as director of Rand Refinery. Mr Mark Burrell who is the financial director ofErgo is an alternate director of Rand Refinery and a member of Rand Refinery’s Audit Committee. The Company currently owns 11.3% (Fiscal 2013: 11.3%) of Rand Refinery (which is jointly owned by South African mining companies). Other balances and transactions include:
    Guardrisk Insurance Cell Captive (Guardrisk)
   Guardrisk issued environmental guarantees to the DMR amounting to R305.7 million (2013: R305.7 million) relating to the environmental liabilities. These guarantees are funded by the assets in Guardrisk Insurance Company Limited (Cell Captive).
 Consultancy agreement
  which owns 20% of EMO and Blyvoor, to provide guidance and participate in the Company’s transformation initiatives set by the Mineral and Petroleum Resources Development Act of South Africa. The agreement provides for a monthly retainer of R0.3 million (2013: R 0.2 million, 2012: R 0.2 million)
 .


81
 Corporate Service Agreements and interest
   ERPM (until July 1, 2012 when Crown and the surface assets included in ERPM were restructured into Ergo) under corporate serviceagreements entered into with each of them. These services include financial management, treasury services, gold administration,technical and engineering services, mineral resource services and other corporate and governance related services. We own a 74%interest in the issued share capital of EMO and until June 1, 2012 owned 74% of the issued share capital of Blyvoor. Ergo, Crownand ERPM are wholly-owned subsidiaries of EMO. These arrangements allow us to monitor and provide input on the management of these companies in which we have an investment.
    restructured into Ergo on July 1, 2012. EMO’s fee for services performed in fiscal 2014 at Ergo was R55.0 million (2013: R53.7 million), Crown Rnil (2013: Rnil) and ERPM Rnil (2013: Rnil).
   Ergo Mining Proprietary Limited amounting to R28.5 million (2013: R32.2 million and 2012: Rnil) and from Blyvoor amounting 
  to Rnil (2013: Rnil and 2012: R2.6 million), respectively.
 Treasury shares
  year ended June 30, 2014, EMO acquired no (2013: nil, 2012: 9,852,800) treasury shares. During fiscal 2014, none (2013: 62,614,2012: 3,584,627) of the treasury shares held by EMO were used to settle share options exercised by key management personnel.
 Subordination agreements and letters of support to subsidiaries
  EMO amounting to R649.5 million as at June 30, 2014 (2013: R544.7 million), for the benefit of EMO’s third party creditors. Consecutively, DRDGOLD Limited issued a letter of support to EMO committing to support EMO financially for 367 days from July 1, 2013, or until all other liabilities are paid, or the total assets of EMO, fairly valued, exceeds its total liabilities, fairly valued, and that DRDGOLD Limited will not call for the repayment of its loan within that period. This agreement was renewed during October 2014.
 Sale of shares
   Executive directors
   7C. INTERESTS OF EXPERTS AND COUNSEL


82
 ITEM 8. FINANCIAL INFORMATION
 8A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
         8B. SIGNIFICANT CHANGES
  statements included in this Annual Report, please see Note 28 “Subsequent Events” under Item 18.: "Financial Statements," whichdescribes post balance sheet (statement of financial position) events.
 ITEM 9. THE OFFER AND LISTING
 9A. OFFER AND LISTING DETAILS
   volumes of our ordinary shares on the JSE and ADSs on the New York Stock Exchange and Nasdaq Capital Market. On December 29, 2011, we transferred our listing from the Nasdaq Capital Market to the New York Stock Exchange.
 Price
 Per
 Ordinary Share
 R
 Price Per
 ADS
 1
 $
 Average Daily
 Trading
 Volume
 Year Ended
 High
 Low
 High
 Low
 Ordinary
 Share
 ADSs
 1
                                    
 1
 Note that with effect from July 23, 2007, we changed our ADS ratio to reflect one ADS for ten of our ordinary shares.


83
 Price
 Per
 Ordinary Share
 R
 Price Per
 ADS
 1
 $
 Average Daily
 Trading
 Volume
 Quarter
 High
 Low
 High
 Low
 Ordinary
 Share
 ADSs
 1
                                                                Price
 Per
 Ordinary Share
 R
 Price Per
 ADS
 $
 Average Daily
 Trading Volume
 Month Ended
 High
 Low
 High
 Low
 Ordinary
 Share
 ADSs
                                              June 30, 2014, nor have there been any trading suspensions with respect to our ADRs on the Nasdaq Capital Market from June 30, 2010 until December 29, 2011 and the New York Stock Exchange since our listing on that market.


84
 9B. PLAN OF DISTRIBUTION
  9C. MARKETS
 Nature of Trading Markets
   Stock Exchange (symbol: DRD). Our ordinary shares also trade on the Marche Libre on the Paris Bourse (symbol: DUR) and Brussels Bourse (symbol: DUR) in the form of International Depository Receipts. The ordinary shares also trade on the over the counter markets in Berlin, Stuttgart and the Regulated Unofficial Market on the Frankfurt Stock Exchange. The ADRs are issued byThe Bank of New York Mellon, as depositary. Each ADR represents one ADS and each ADS represents ten of our ordinary shares. Until July 23, 2007, each ADS represented one of our ordinary shares. Prior to December 29, 2011, our ADSs traded on the NasdaqNational Market.
 9D. SELLING SHAREHOLDERS
  9E. DILUTION
  9F. EXPENSES OF THE ISSUE
  ITEM 10. ADDITIONAL INFORMATION
 10A. SHARE CAPITAL
  10B. MEMORANDUM OF INCORPORATION
   600,000,000), and 5,000,000 cumulative preference shares of R0.10 par value (as of September 30, 2014: 5,000,000). On this date we had issued 385,383,767 ordinary shares (as of September 30, 2014: 385,383,767) and 5,000,000 cumulative preference shares (as ofSeptember 30, 2014: 5,000,000).
   Act of South Africa and the JSE Listings Requirements, all as in effect on September 30, 2014. The summary does not purport to be complete and is subject to and qualified in its entirety by reference to the full text of the MOI, the Companies Act, and the JSE Listings Requirements.
    Borrowing Powers
   payment or repayment of any such sums, or any other sum, as they think fit, whether by the creation and issue of securities, mortgage or charge upon all or any of the property or assets of the company. The directors shall procure that the aggregate principal amount at any one time outstanding in respect of monies so borrowed or raised by the company and all the subsidiaries for the time being of the company shall not exceed the aggregate amount at that time authorized to be borrowed or secured by the company or the subsidiaries for the time being of the company (as the case may be).
 Share Ownership Requirements


85
 Voting by Directors
   appointed by him is present. Any director so authorized shall, in addition to his own vote, have a vote for each director by whom he is authorized.
      financial interest in respect of a matter to be considered at a meeting of the board he or she must disclose the interest and its nature, any material information relating to the matter and thereafter leave the meeting immediately after making the disclosure. Such director must not take part in consideration of the matter. He is not to be regarded as being present for the purpose of determining whether a resolution has sufficient support to be adopted.
   sets out guidelines to promote the highest standards of corporate governance among South African companies. The board of directors believes that our business should be conducted according to the highest legal and ethical standards. In accordance with the board practice, all remuneration of executive directors is approved by the Remuneration Committee, and the shareholders approve remuneration of non-executive directors.
      exercise proper care and skill in discharging their responsibilities. These common law duties have now been codified by the Companies Act.
 Age Restrictions
   Election of Directors
   of company (“elected director (s)”) and no appointment of a director by way of a written circulated shareholders resolution in termsof section 60 of the Companies Act shall be competent.
   meeting. Retiring directors usually make themselves available for re-election. An amendment to the MOI which is intended to subject executive directors to re-election by rotation will be proposed at the 2014 annual general meeting.
 General Meetings
   right of voting at general meetings, we shall issue a notice to shareholders convening a general meeting for a date not less than 15 days  from the date of the notice. Directors may convene general meetings at any time.
   by giving 15 days advance written notice of that meeting. For any other general meeting of our shareholders, 15 days advance written notice is required.
   minutes after the time selected for the meeting, such meeting shall be postponed for one week. However the chairman has the discretion to extend the fifteen minutes for a reasonable period on certain grounds. The necessary quorum is three members present with sufficient voting powers in person or by proxy to exercise in aggregate 25% of the voting rights.


86
 Voting Rights
   per person and on a poll have one for every share held. The holders of our cumulative preference shares are not entitled to vote at a general meeting unless any preference dividend is in arrears for more than six months at the date on which the notice convening the general meeting is posted to the shareholders. Additionally, holders of cumulative preference shares may vote on resolutions which adversely affect their interests and on resolutions regarding the disposal of all or substantially all of our assets or mineral rights. When entitled to vote, holders of our cumulative preference shares are entitled to one vote per person on a show of hands and that portion of the total votes which the aggregate amount of the nominal value of the shares held by the relevant shareholder bears to the aggregate amount of the nominal value of all shares issued by us.
 Dividends
   proportion to the number of shares they each hold. No dividend shall be declared except out of our profits. Dividends may be declared either free or subject to the deduction of income tax or duty in respect of which we may be charged. Holders of ordinaryshares are entitled to receive dividends as and when declared by the directors.
 Ownership Limitations
    Winding-up
   liquidation, shall be applied to repay to the shareholders the amount paid up on our issued capital and thereafter the balance shall be distributed to the shareholders in proportion to their respective shareholdings. On a winding up, our cumulative preference shares rank, in regard to all arrears of preference dividends, prior to the holders of ordinary shares. As of September 30, 2014, no such dividends have been declared. Except for the preference dividend and as described in this Item our cumulative preference shares are not entitled to any other participation in the distribution of our surplus assets on winding-up.
 Reduction of Capital
   without limitation, any stated capital, capital redemption reserve fund and share premium account by making distributions and buying back our shares.
 Amendment of the
   amend the MOI by increasing or decreasing the number of authorized shares, classifying or reclassifying shares, or determining the terms of shares in a class. A special resolution is passed when the shareholders holding at least 25% of the total votes of all the members entitled to vote are present or represented by proxy at a meeting and, if the resolution was passed on a show of hands, at least 75% of those shareholders voted in favor of the resolution and, if a poll was demanded, at least 75% of the total votes to which those shareholders are entitled were cast in favor of the resolution.
 Consent of the Holders of Cumulative Preference Shares
   issue shares ranking, regarding rights to dividends or on winding up, in priority to or equal with our cumulative preference shares, or dispose of all or part of the Argonaut mineral rights without the consent in writing of the registered holders of our cumulativepreference shares or the prior sanction of a resolution passed at a separate class meeting of the holders of our cumulative preference shares.
 Distributions
   Companies Act and other consents required by law from time to time. We may, for example, in a general meeting, upon recommendation of our directors, resolve that any surplus funds representing capital profits arising from the sale of any capital assets and not required for the payment of any fixed preferential dividend, be distributed among our ordinary shareholders. However, nosuch profit shall be distributed unless we have sufficient other assets to satisfy our liabilities and to cover our paid up share capital. We also need to consider the solvency and liquidity requirements stated in the Companies Act of South Africa.


87
 Directors’ power to vote compensation to themselves
   Company in general meeting. The Companies Act requires that remuneration to non-executive directors may be paid only in accordance with a special resolution approved by shareholders within the previous two years.
 Time limit for dividend entitlement
   lawfully claimed by such shareholder/s, subject to the Prescription Act, 1968 as amended or any other law which governs the law of prescription.
 Staggered director elections & cumulative voting
   Sinking fund provisions and liability to further capital calls
    Provision that would delay/prevent change of control
   setting out the terms thereof. They must prove that upon implementation of the amalgamation or merger each will satisfy the solvency and liquidity test. Companies involved in disposals, amalgamations or mergers, or schemes of arrangement must obtain acompliance certificate from the Takeover Regulation Panel, pass special resolutions and in some instances they must obtain an independent expert report.
 10C. MATERIAL CONTRACTS
 
 ZAR2,000,000,000 Domestic Medium Term and High Yield Note Programme (“DMTN Programme”) agreement
 entered into between DRDGOLD Limited (“Issuer”), Crown Gold Recoveries Proprietary Limited (“Crown”), East Rand Proprietary Mines Limited (“ERPM”), Ergo Mining Operations Proprietary Limited (“EMO”), Ergo Mining Proprietary Limited (“Ergo”) and ABSA Bank Limited (“ABSA”) dated June 30, 2012.
   nominal amount of all such notes from time to time outstanding under the DMTN Programme may not exceed R2,000,000,000 (two billion South African Rand). Crown, ERPM, EMO and Ergo (“Guarantors”) are joint and several guarantors in favour of the Issuer. The Guarantors guarantee to the holders of the notes the due and punctual performance by the Issuer of its payment obligations under the DMTN Programme. The notes may be listed on the JSE Limited. ABSA Capital, a division of ABSA Bank Limited, has been appointed dealer and arranger of the notes.
 
 Sale of Shares and Claims Agreement entered into by Village Main Reef Limited (“Village”), DRDGOLD Limited
 (“DRDGOLD”) (“Seller”), Business Venture Investments No 1557 Proprietary Limited (“Purchaser”) and Blyvooruitzicht Gold Mining Company Limited (“Blyvoor”) dated February 11, 2012.
   loan claims against Blyvoor to the Purchaser. The purchase consideration is discharged by Village through the issue of 85,714,286 new ordinary shares in Village. Refer to Item 5A.: “Operation Results - Recent developments” for a more detailed discussion.
 
 Sale of Interest Agreement between DRDGOLD Limited (“DRDGOLD”) and Ergo Mining Proprietary Limited
 (“Ergo Mining”) dated June 29, 2012.
   and liabilities of the unincorporated joint venture, called ErgoGold (previously called the Elsburg JV), between DRDGOLD and East Rand Proprietary Mines Limited. The purchase price payable is R200,000,000 (two hundred million South African rand). The purchase price was advanced by DRDGOLD to Ergo on loan account.


88
 Heads of Agreement entered into by Trans-Caledon Tunnel Authority (“TCTA’), Ergo Mining Operations Proprietary
 Limited (“EMO”), East Rand Proprietary Mines Limited (“ERPM”) and Crown Gold Recoveries Proprietary Limited (“CGR”) (collectively CGR, EMO and ERPM are called “the Ergo Group”) dated  November 28, 2012.
   to the South West Vertical Shaft of ERPM to construct and operate a pump station to pump the acid mine drainage (“AMD”) to surface, the right to construct a sludge pipeline using servitudes owned by the Ergo Group members, shared use of an Ergo Groupresidue pipeline and partial use of the Ergo tailings dams for the deposition of up to 4 167m3 of sludge per day, emanating fromthe water treatment plant. EMO has an option to acquire from TCTA, for its operations up to 30 mega litres of untreated or partially treated AMD per day.
 Share Sale and Subscription Agreement between DRDGOLD Limited ("DRDGOLD"), Khumo Gold SPV Proprietary
 Limited ("Khumo") and DRDSA Empowerment Trust (the Trust), dated March 17, 2014
   and Subscription Agreement in respect of which DRDGOLD agreed to acquire all of the shares in and claims against EMO, held by Khumo, subject to the fulfilment of certain conditions. On the same day, the Trustees of the DRDSA Empowerment Trust and DRDGOLD entered into the Share Sale and Subscription Agreement in respect of which DRDGOLD agreed to acquire all of the shares in and claims against EMO held by the Trust, subject to the fulfilment of certain conditions. The consequence of the proposed acquisitions contemplated in the proposed transaction is that, on fulfilment of the conditions stated in these agreements, DRDGOLD will acquire Khumo’s 20% interest in EMO in exchange for 35 000 000 new DRDGOLD ordinary shares; and DRDGOLD will acquire the Trust’s 6% interest in EMO in exchange for 10 500 000 new DRDGOLD ordinary shares, thereby amounting to a change of shareholding in EMO and DRDGOLD (the ultimate majority holding company).
 10D. EXCHANGE CONTROLS
   publicly available documents. The following summary is not a comprehensive description of all the exchange control regulations.The discussion in this section is based on the current law and positions of the South African Government. Changes in the law mayalter the exchange control provisions that apply, possibly on a retroactive basis.
 Introduction
   exchange control matters in South Africa are regulated by the South African exchange control regulations, or the Regulations. The Regulations form part of the general monetary policy of South Africa. The Regulations are issued under Section 9 of the Currencyand Exchanges Act, 1933 (as amended). In terms of the Regulations, the control over South African capital and revenue reserves, as well as the accruals and spending thereof, is vested in the Treasury (Ministry of Finance), or the Treasury.
   African Reserve Bank, or SARB, which is responsible for the day to day administration and functioning of exchange controls. SARBhas a wide discretion. Certain banks authorized by the Treasury to co-administer certain of the exchange controls, are authorized by the Treasury to deal in foreign exchange. Such dealings in foreign exchange by authorized dealers are undertaken in accordance with the provisions and requirements of the exchange control rulings, or Rulings, and contain certain administrative measures, as well as conditions and limits applicable to transactions in foreign exchange, which may be undertaken by authorized dealers. Non-residentshave been granted general approval, in terms of the Rulings, to deal in South African assets, to invest and disinvest in South Africa.
   Namibia, and the Kingdoms of Lesotho and Swaziland. Transactions between residents of the Common Monetary Area are not subject to these exchange control regulations.
   encountered in the application of monetary policy, detrimental effects on inward foreign investment and administrative costs associated therewith. The South African Finance Minister has indicated that all remaining exchange controls are likely to be dismantled as soon as circumstances permit. Since 1998, there has been a gradual relaxation of exchange controls. The gradual approach to the abolition of exchange controls adopted by the Government of South Africa is designed to allow the economy to adjust more smoothly to the removal of controls that have been in place for a considerable period of time. The stated objective of the authorities is equality of treatment between residents and non-residents with respect to inflows and outflows of capital. The focus of regulation, subsequent to the abolition of exchange controls, is expected to favor the positive aspects of prudential financialsupervision.


89
   companies are not permitted to maintain foreign bank accounts without SARB approval and, without the approval of SARB, are generally not permitted to export capital from South Africa or hold foreign currency. In addition, South African companies are required to obtain the approval of SARB prior to raising foreign funding on the strength of their South African statements of financial position, which would permit recourse to South Africa in the event of defaults. Where 75% or more of a South African company's capital, voting power, power of control or earnings is directly or indirectly controlled by non-residents, such a corporation isdesignated an “affected person” by SARB, and certain restrictions are placed on its ability to obtain local financial assistance. We are not, and have never been, designated an “affected person” by SARB.
   SARB, South African companies are generally required to repatriate to South Africa profits of foreign operations and are limited in their ability to utilize profits of one foreign business to finance operations of a different foreign business. South African companies establishing subsidiaries, branches, offices or joint ventures abroad are generally required to submit financial statements on these operations as well as progress reports to SARB on an annual basis. As a result, a South African company's ability to raise and deploycapital outside the Common Monetary Area is restricted.
 ·
 ·
 ·
 ·
 ·
 ·
  at this stage. Some of the more salient changes to the South African exchange control provisions over the past few years have been as follows:
 corporations wishing to invest in countries outside the Common Monetary Area, in addition to what is set out below, apply for permission to enter into corporate asset/share swap and share placement transactions to acquire foreign investments. The latter mechanism entails the placement of the locally quoted corporation's shares with long-term overseas holders who, in payment for the shares, provide the foreign currency abroad which the corporation then uses to acquire the target investment; corporations wishing to establish new overseas ventures are permitted to transfer offshore up to R500 million to finance approved investments abroad and up to R500 million to finance approved new investments in African countries on an annual bases. Approval from SARB is required in advance for investments in excess of R500 million. On application to SARB, corporations are also allowed to use part of their local cash holdings to finance up to 10% of approved new foreign investments where the cost of these investments exceeds the current limits; as a general rule, SARB requires that more than 10% of equity of the acquired off-shore venture is acquired within a predetermined period of time, as a prerequisite to allowing the expatriation of funds. If these requirements are not met, SARB may instruct that the equity be disposed of. In our experience SARB has taken a commercial view on this, and has on occasion extended the period of time for compliance; and remittance of directors' fees payable to persons permanently resident outside the Common Monetary Area may be approved by authorized dealers, in terms of the Rulings.
      allowance. The balance of the emigrant's funds will be blocked and held under the control of an authorized dealer. These blockedfunds may only be invested in:
 blocked current, savings, interest bearing deposit accounts in the books of an authorized dealer in the banking sector;  securities quoted on the JSE and financial instruments listed on the Bond Exchange of South Africa which are deposited with an authorized dealer and not released except temporarily for switching purposes, without the approval of SARB. Authorized dealers must at all times be able to demonstrate that listed or quoted securities or financial instruments which aredematerialized or immobilized in a central securities depository are being held subject to the control of the authorized dealerconcerned; or mutual funds.
   declared out of capital gains or out of income earned prior to emigration remain subject to the blocking procedure. It is not possible to predict when existing exchange controls will be abolished or whether they will be continued or modified by the South African Government in the future.


90
 Sale of Shares
   the Common Monetary Area between non-residents of the Common Monetary Area. In addition, the proceeds from the sale of ordinary shares on the JSE on behalf of shareholders who are not residents of the Common Monetary Area are freely remittable tosuch shareholders. Share certificates held by non-residents will be endorsed with the words “non-resident,” unless dematerialized.
 Dividends
      dividends payable in respect of the shares underlying the ADSs, subject to the terms of the deposit agreement entered on August 12, 1996, and as amended and restated, between the Company and The Bank of New York, as the depository. Subject to exceptions provided in the deposit agreement, cash dividends paid in rand will be converted by the depositary to dollars and paid by the depositary to holders of ADSs, net of conversion expenses of the depositary, in accordance with the deposit agreement. The depositary will charge holders of ADSs, to the extent applicable, taxes and other governmental charges and specified fees and other expenses.
 Voting rights
    10E. TAXATION
 Material South African Income Tax Consequences
   with respect to the consequences to any particular purchaser of our securities is made hereby. Prospective purchasers are urged to consult their tax advisers with respect to their particular circumstances and the effect of South African or other tax laws to which they may be subject.
    Income Tax and withholding tax on dividends
   within) South Africa. Interest earned by a non-resident on a debt instrument issued by a South African company will be regarded as being derived from a South African source but will be regarded as exempt from taxation in terms of Section 10(1)(i) of the SouthAfrican Income Tax Act, 1962 (as amended), or the Income Tax Act. This exemption applies to so much of any interest and dividends (which are not otherwise exempt) received from a South African source not exceeding (a) R34,500 if the taxpayer is 65years of age or older or (b) R23,800 if the taxpayer is younger than 65 years of age at the end of the relevant tax year.
    STC. If the election was made, a higher tax rate would apply for both mining and non-mining income. With the introduction of dividends tax at a rate of 15% which replaced STC with effect from April 1, 2012, the election on STC is not applicable anymore.These amendments are set out in Part VIII in Chapter II of the Income Tax Act. Section 64F of the amendments, sets out beneficialowners who are exempt from the dividend tax, which includes, resident companies receiving a dividend after the effective date, being April 1, 2012. The Convention between the United States of America and the Republic of South Africa for the Avoidance of DoubleTaxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, or the Tax Treaty, would limit the rate of this tax with respect to dividends paid on ordinary shares or ADSs to a US resident (within the meaning of the Tax Treaty) to 5% of the gross amount of the dividends if such US resident is a company which holds directly at least 10% of our voting stock and15% of the gross amount of the dividends in all other cases.
  South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed base situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base.


91
   respectively. The Company, is subject to 34% tax on mining income and 28% for non-mining income. The formula for determining the South African gold mining tax rate for FY2014 and FY2013 is: Y = 34 – 170/X. Where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of any qualifying capital expenditure that bears to mining income derived, expressed as a percentage.
 Capital Gains Tax
 ·
 ·
   immovable property owned by the non-residents situated in South Africa, or any interest or right in or to immovable property. A non-resident will have an interest in immovable property if it has a direct or indirect shareholding of at least 20% in a company, where 80% or more of the net assets of that company (determined on a market value basis) are attributable directly or indirectly to immovable property; or  any asset of a permanent establishment of a non-resident in South Africa through which a trade is carried on.
    Material United States Federal Income Tax Consequences
   purchase, ownership and disposition of ordinary shares or ADSs. It deals only with US holders who hold ordinary shares or ADSs as capital assets for US federal income tax purposes. This discussion is based upon the provisions of the Internal Revenue Code of 1986, as amended, or the Code, published rulings, judicial decisions and the Treasury regulations, all as currently in effect and all of which are subject to change, possibly on a retroactive basis. This discussion has no binding effect or official status of any kind; we cannot assure holders that the conclusions reached below would be sustained by a court if challenged by the Internal Revenue Service.
   particular circumstances and does not address special classes of US holders subject to special treatment (such as dealers in securities or currencies, partnerships or other pass-through entities, banks and other financial institutions, insurance companies, tax-exemptorganizations, certain expatriates or former long-term residents of the United States, persons holding ordinary shares or ADSs as part of a “hedge,” “conversion transaction,” “synthetic security,” “straddle,” “constructive sale” or other integrated investment, personswho acquired the ordinary shares or ADSs upon the exercise of employee stock options or otherwise as compensation, persons whosefunctional currency is not the US dollar, or persons that actually or constructively own ten percent or more of our voting stock). This discussion addresses only US federal income tax consequences and does not address the effect of any state, local, or foreign tax laws that may apply, the alternative minimum tax, the Medicare tax  or the application of the federal estate or gift tax.
 ·
 ·
 ·
 ·
  a citizen or resident of the US;  a corporation or other entity subject to tax as a corporation that is created or organized under the laws of the US or any political subdivision thereof;  an estate, the income of which is subject to US federal income tax without regard to its source; or  a trust, if a court within the US is able to exercise primary supervision over the administration of the trust and one or more US persons have the authority to control all substantial decisions of the trust or if the trust has made a valid election to betreated as a US person.
   the tax treatment of a partner will generally depend on the status of the partner and on the activities of the partnership. Partners in partnerships holding any ordinary shares or ADSs are urged to consult their tax advisors.
 
 Because individual circumstances may differ, US holders of ordinary shares or ADSs are urged to consult their tax
 advisors concerning the US federal income tax consequences applicable to their particular situations as well as any consequences to them arising under the tax laws of any foreign, state or local taxing jurisdiction.


92
 Ownership of Ordinary Shares or ADSs
   ordinary shares represented by those ADSs. Exchanges of ordinary shares for ADSs and ADSs for ordinary shares generally will notbe subject to US federal income tax.
   ordinary shares or ADSs, other than distributions in liquidation and distributions in redemption of stock that are treated as exchanges,will be taxed to US holders as ordinary dividend income to the extent that the distributions do not exceed our current and accumulated earnings and profits. For US federal income tax purposes, the amount of any distribution received by a US holder willequal the dollar value of the sum of the South African rand payments made (including the amount of South African income taxes, if any, withheld with respect to such payments), determined at the “spot rate” on the date the dividend distribution is includable in such US holder's income, regardless of whether the payment is in fact converted into dollars. Generally, any gain or loss resulting from currency exchange fluctuations during the period from the date a US holder includes the dividend payment in income to the date such holder converts the payment into dollars will be treated as ordinary income or loss. Distributions, if any, in excess of our current and accumulated earnings and profits will constitute a non-taxable return of capital and will be applied against and reduce the holder'sbasis in the ordinary shares or ADSs. To the extent that these distributions exceed the US holder's tax basis in the ordinary shares or ADSs, as applicable, the excess generally will be treated as capital gain, subject to the discussion below under the heading “Passive Foreign Investment Company”. We do not intend to calculate our earnings or profits for US federal income tax purposes. US holders should therefore assume that any distributions with respect to our ordinary shares or ADSs will constitute dividend income.
   at a maximum US federal income tax rate applicable to capital gains. This reduced rate generally would apply to dividends paid by us if, at the time such dividends are paid, either (i) we are eligible for benefits under a qualifying income tax treaty with the US or (ii) our ordinary shares or ADSs with respect to which such dividends were paid are readily tradable on an established securitiesmarket in the US. However, this reduced rate is subject to certain important requirements and exceptions, including, without limitation, certain holding period requirements and an exception applicable if we are treated as a passive foreign investment company as discussed under the heading “Passive Foreign Investment Company”. US holders are urged to consult their tax advisors regarding the US federal income tax rate that will be applicable to their receipt of any dividends paid with respect to the ordinary shares and ADSs.
   the public for currency under a “spot contract” in a free market and involving representative amounts. A “spot contract” is a contract to buy or sell a currency on or before two business days following the date of the execution of the contract. If such a spot rate cannot be demonstrated, the US Internal Revenue Service has the authority to determine the spot rate.
   deduction generally allowed to a US corporation under Section 243 of the Code. Dividend income will be treated as foreign sourceincome for foreign tax credit and other purposes. In computing the separate foreign tax credit limitations, dividend income shouldgenerally constitute “passive category income,” or in the case of certain US holders, “general category income.”
 Disposition of Ordinary Shares or ADSs
   taxable disposition of ordinary shares or ADSs, a US holder will recognize gain or loss in an amount equal to the difference between the US dollar value of the amount realized on the sale or exchange and such holder's adjusted tax basis in the ordinary shares orADSs. Subject to the application of the “passive foreign investment company” rules discussed below, such gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if the US holder has held the ordinary shares or ADSs for more than one year. The deductibility of capital losses is subject to limitations. Gain or loss recognized by a US holder on the taxable disposition of ordinary shares or ADSs generally will be treated as US-source gain or loss for US foreign tax credit purposes.
   ADSs, the amount realized will be based on the spot rate as determined on the settlement date of such exchange. A US holder whoreceives payment in rand and converts rand into US dollars at a conversion rate other than the rate in effect on the settlement date may have a foreign currency exchange gain or loss that would be treated as ordinary income or loss.
   disposition of ordinary shares or ADSs, provided that the election is applied consistently from year to year. Such election may not be changed without the consent of the Internal Revenue Service. In the event that an accrual basis holder does not elect to be treated as a cash basis taxpayer, such US holder may have a foreign currency gain or loss for US federal income tax purposes because of the differences between the US dollar value of the currency received prevailing on the trade date and the settlement date. Any suchcurrency gain or loss will be treated as ordinary income or loss and would be in addition to gain or loss, if any, recognized by such US holder on the disposition of such ordinary shares or ADSs.


93
 Passive Foreign Investment Company
   investment company, or PFIC. We would be a PFIC for US federal income tax purposes if for any taxable year either (i) 75% or moreof our gross income, including our pro rata share of the gross income of any company in which we are considered to own 25% or more of the shares by value, were passive income or (ii) 50% or more of our average total assets (by value), including our pro rata share of the assets of any company in which we are considered to own 25% or more of the shares by value, were assets that produced or were held for the production of passive income. If we were a PFIC, US holders of the ordinary shares or ADSs would be subject to special rules with respect to (i) any gain recognized upon the disposition of the ordinary shares or ADSs and (ii)  any receipt of an excess distribution (generally, any distributions to a US holder during a single taxable year that is greater than 125% of the average amount of distributions received by such US holder during the three preceding taxable years in respect of the ordinary shares orADSs or, if shorter, such US holder's holding period for the ordinary shares or ADSs). Under these rules:
 **·** the gain or excess distribution will be allocated ratably over a US holder's holding period for the ordinary shares or ADSs, as   applicable; **·** the amount allocated to the taxable year in which a US holder realizes the gain or excess distribution will be taxed as    ordinary income; **·** the amount allocated to each prior year (other than a pre-PFIC year), with certain exceptions, will be taxed at the highest tax   rate in effect for that year; and **·** the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each    such year (other than a pre-PFIC year).
   holding period, if we cease to satisfy the requirements for PFIC classification, the US holder may avoid PFIC classification forsubsequent years if such holder elects to recognize gain based on the unrealized appreciation in the ordinary shares or ADSs through the close of the tax year in which we cease to be a PFIC.
      avoid the imposition of the special tax and interest charge described above by making a mark-to-market election. Pursuant to thiselection, the US holder would include in ordinary income or loss for each taxable year an amount equal to the difference as of the close of the taxable year between the fair market value of the ordinary shares or ADSs and the US holder's adjusted tax basis in such ordinary shares or ADSs. Losses would be allowed only to the extent of net mark-to-market gain previously included by the US holder under the election for prior taxable years. If a mark-to-market election with respect to ordinary shares or ADSs is in effect on the date of a US holder's death, the tax basis of the ordinary shares or ADSs in the hands of a US holder who acquired them from a decedent will be the lesser of the decedent's tax basis or the fair market value of the ordinary shares or ADSs. US holders desiring to make the mark-to-market election are urged to consult their tax advisors with respect to the application and effect of making theelection for the ordinary shares or ADSs.
   special tax and interest charge described above will not apply if such holder makes an election to treat us as a “qualified electing fund” in the first taxable year in which such holder owns the ordinary shares or ADSs and if we comply with certain reporting requirements. However, we do not intend to supply US holders with the information needed to report income and gain pursuant to a“qualified electing fund” election in the event that we are classified as a PFIC.
  and assets are require to be measured and classified in accordance with US federal income tax principles. Our analysis is based on our financial statements as prepared in accordance with IFRS, which may substantially differ from US federal income tax principles.Therefore, no assurance can be given that we were not a PFIC for our 2014 fiscal year ended June 30, 2014. Furthermore, the  ctestsfor determining whether we would be a PFIC for any taxable year are applied annually and it is difficult to make accurate predictions of future income and assets, which are relevant to this determination. In addition, certain factors in the PFIC determination, such as reductions in the market value of our capital stock, are not within our control and can cause us to become a PFIC. Accordingly, there can be no assurance that we will not become a PFIC.
 The rules relating to PFICs are very complex. US holders are urged to consult their tax advisors regarding the application of the PFIC rules to their investments in our ordinary shares or ADSs.


94
 Information Reporting and Backup Withholding
   the sale or other disposition of our ordinary shares or ADSs may be subject to information reporting and US federal backup withholding if the recipient of such payment is not an “exempt recipient” and fails to supply certain identifying information, such as an accurate taxpayer identification number, in the required manner. Generally, individuals are not exempt recipients, whereas corporations and certain other entities generally are exempt recipients. The backup withholding tax rate is currently 28%. Paymentsmade with respect to our ordinary shares or ADSs to a US holder must be reported to the Internal Revenue Service, unless the USholder is an exempt recipient or otherwise establishes an exemption. Any amount withheld from a payment to a US holder under thebackup withholding rules is refundable or allowable as a credit against the holder's US federal income tax, provided that the required information is furnished to the Internal Revenue Service.
   date of enactment, a US holder may be required to submit to the Internal Revenue Service certain information with respect to such US holder's beneficial ownership of ordinary shares or ADSs, if such ordinary shares or ADSs are not held on such US holder's behalf by a financial institution. This new law also imposes penalties if a US holder is required to submit such information to the Internal Revenue Service and fails to do so.
    10F. DIVIDENDS AND PAYING AGENTS
   Dividends tax is 15% of the dividend paid, lower rates can apply for foreign beneficial owners and there are also certain exemptions that apply. The dividends tax, where relevant, will be withheld from the dividend payment. There are no dividend restrictions.
                            10G. STATEMENT BY EXPERTS
   10H. DOCUMENTS ON DISPLAY
   DRDGOLD Limited, P.O. Box 390, Maraisburg, Johannesburg, South Africa 1700. Attn: Group Company Secretary. Tel No. +27-11-470-2600. A copy of each report submitted in accordance with applicable United States law is available for public review at ourprincipal executive offices.
   executive offices at DRDGOLD Limited, Quadrum Office Park, Building 1, 50 Constantia Boulevard, Constantia Kloof Ext.28, South Africa 1709.
 10I. SUBSIDIARY INFORMATION


95
 ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 General
   and credit risks. We do not hold or issue derivative financial instruments for speculative purposes, nor do we hedge forward goldsales.
    Commodity price risk
   pay dividends and undertake capital expenditures, and the market price of our ordinary shares or ADSs. Historically, gold prices have fluctuated widely and are affected by numerous industry factors over which we have no control. The aggregate effect of these factors on the gold price is impossible for us to predict. The price of gold may not remain at a level allowing us to economically exploit our reserves. It is our policy not to hedge this commodity price risk.
 Concentration of credit risk
     banks and financial institutions located in South Africa after evaluating the credit ratings of the representative financial institutions. Furthermore, our trade receivables and loans are regularly monitored and assessed for recoverability. Where it is appropriate, an impairment loss is raised. In addition, our South African operations deliver their gold to Rand Refinery Proprietary Limited (Rand Refinery), which refines the gold to saleable purity levels and then sells the gold, on behalf of the South African operations, on the bullion market. Any potential shortfall in inventory in Rand Refinery is secured by the loan arrangement and to the extent of thisfacility, between it and its shareholders (refer Item 5A.: “Financial instruments”). The gold is sold by Rand Refinery usually on the same day as it is delivered and settlement is made within two days.
 Foreign currency risk
   this into rands. We are thus exposed to fluctuations in the US dollar/ rand exchange rate. Foreign exchange fluctuations affect the cash flow that we will realize from our operations as gold is sold in US dollars, while production costs are incurred primarily in rands. Our results are positively affected when the US dollar strengthens against the rand and adversely affected when the US dollar weakens against the rand. Our cash and cash equivalent balances are held in US dollars and rands; holdings denominated in othercurrencies are relatively insignificant.
 Long-term debt
   
 
 Total
 
 R'000
 Interest rateVariable rate ...........................................................................................................
             Repayment period2015 ........................................................................................................................


96
 ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
 12A. DEBT SECURITIES
  12B. WARRANTS AND RIGHTS
  12C. OTHER SECURITIES
  12D. AMERICAN DEPOSITARY SHARES
 Depositary Fees and Charges
  the New York Stock Exchange, or NYSE under the symbol “DRD” (until December 29, 2011 our ADSs were traded on the Nasdaq Capital Market under the symbol “DROOY”). The ADSs are evidenced by American Depository Receipts, or ADRs, issued by The Bank of New York Mellon, as Depository under the Amended and Restated Deposit Agreement dated as of August 12, 1996, as amended and restated as of October 2, 1996, as further amended and restated as of August 6, 1998, as further amended and restated July 23, 2007, among DRDGOLD Limited, The Bank of New York Mellon and owners and beneficial owners of ADRs from time to time. ADR holders may have to pay the following service fees to the Depositary:
 Service
 Fees (USD)
 Issuance of ADSs, including issuances resulting from a distribution of ordinary shares or rights ..............................................................................................................
   1
 Cancellation of ADSs for the purpose of withdrawal, including if the Deposit Agreement terminates ...................................................................................................
   1
   2
 Distribution of securities distributed to holders of deposited securities which are distributed by the Depositary to ADS registered holders
   2
  (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, (3) such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement, and (4) such expenses as are incurred by the Depositary in the conversion of foreign currency to U.S. Dollars.
  for the purpose of withdrawal or from intermediaries acting for them. The Depositary, collects fees for making distributions toinvestors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The Depositary may collect its annual fee for depositary services by deductions from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The Depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.
 Depositary Payments
  consisting of accumulated contributions towards the Company’s investor relations activities (including investor meetings, conferences and fees of investor relations service vendors).
 
 1
 These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary
 or delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
 2
 In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR
 holder.


PART II
 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
 There have been no material defaults in the payment of principal, interest, a sinking or purchase fund installment, or any
 other material defaults with respect to any indebtedness of ours.
 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
 Not applicable.
 
 ITEM 15. CONTROLS AND PROCEDURES
 15A. Disclosure Controls and Procedures
 As of June 30, 2014, our management, with the participation of our Chief Executive Officer and Acting Chief Financial
 Officer has evaluated the effectiveness of our disclosure controls and procedures (as this term is defined under the rules of theSEC). Our management, including the Chief Executive Officer and Acting Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of June 30, 2014.
 Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be
 disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms and that such information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Acting Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.
 There are inherent limitations in the effectiveness of any system of disclosure controls and procedures. These limitations
 include the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, any suchsystem can only provide reasonable assurance of achieving the desired control objectives.
 15B. Management’s Annual Report on Internal Control Over Financial Reporting
 Our management is responsible for establishing and maintaining adequate internal control over financial reporting.
 Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, our Chief Executive Officer and Acting Chief Financial Officer andeffected by our board, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Under Section 404 of the Sarbanes Oxley Act of 2002, management is required to assess our internal controls surrounding the financial reporting process asat the end of each fiscal year. Based on that assessment, management is to determine whether or not our internal controls over financial reporting are effective.
 Internal control over financial reporting includes those policies and procedures that:
 **·** pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and   dispositions of our assets; **·** provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements   in accordance with IFRS, and that our receipts and expenditures are being made only in accordance with   authorizations of our management and board; and **·** provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition   of our assets that could have a material effect on our financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
 Instead, it must be noted that even those systems that management deems to be effective can only provide reasonable assurance with respect to the preparation and presentation of our financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or the degree of compliance with the policies and procedures.
 Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2014. In
 making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1992) in Internal Control-Integrated Framework. Based on our assessment and those criteria, our management concluded that as of June 30, 2014 our internal control over financial reporting was effective.


98
 15C. Independent Auditor’s Attestation Report
   15D. Changes in Internal Control Over Financial Reporting
  reporting during the period covered by the annual report, need to be identified and reported as required by paragraph (d) of Rule13a-15.
   ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
   financial expert within the meaning of the Sarbanes-Oxley Act, in accordance with the Rules of the New York Stock Exchange, or NYSE, and rules promulgated by the SEC and independent both under the New York Stock Exchange Rules and the South African Johannesburg Stock Exchange Rules. The board is satisfied that the skills, experience and attributes of the members of the auditand risk committee are sufficient to enable those members to discharge the responsibilities of the audit and risk committee.
 ITEM 16B. CODE OF ETHICS
  Chairman, the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and the Group Financial Manager and Financial Manager at each mining operation as well as all other employees. The Code of Ethics was last updated on February 9, 2012. The Code of Ethics and Conduct can be accessed on the Company’s website at www.drdgold.com.
 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
       Auditors' remuneration
 Year ended June
 30,
 2014
 2013
 R’000
 R’000
 Audit fees ............................................................................................................................................................... 5,712          6,702 Audit-related fees ...................................................................................................................................................      75
  Tax fees .................................................................................................................................................................          -                 - All other fees .........................................................................................................................................................          -
    Audit Fees
  provide, include the company audit; statutory audits; comfort letters and consents; attest services; and assistance with and review of documents filed with the SEC.
 Audit-Related Fees
   financial information included in a circular issued by the company on May 6, 2014 in connection with the acquisition by the Company of Khumo Gold SPV Proprietary Limited’s 20% interest in Ergo Mining Operations Proprietary Limited in exchange for 35 000 000 new DRDGOLD ordinary shares; and • the proposed acquisition by the Company of the DRDSA Empowerment Trust’s 6% interest in Ergo Mining Operations Proprietary Limited in exchange for 10 500 000 new DRDGOLD ordinary shares.
  Tax Fees


99
 All Other Fees
   fiscal 2013, which is an annual report required by King III and provides an account of our operational, financial, economic, social and environmental performance, as well our governance, and limited assurance on specified items contained in our Sustainable Development Report for fiscal 2013, which is an annual report in line with the Global Reporting Initiative and provides an account of our economic, social and environmental performance. There were no such fees billed for in fiscal 2014 at June 30, 2014. Subsequent to June 30, 2014 KPMG was engaged to provide limited assurance on specified items contained in our Integrated Report for fiscal 2014 that will be billed during fiscal 2015.
   of the external auditors as well as the remuneration and terms of engagement of the external auditors. The committee pre-approves, and has pre-approved, all non-audit services provided by the external auditors. The Audit and Risk Committee considered all of the fees mentioned above and determined that such fees are compatible with maintaining KPMG Inc.’s independence.
 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
  ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
  ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
  ITEM 16G. CORPORATE GOVERNANCE
  NYSE. Under section 303A.11 of the NYSE Listing Standards, a foreign private issuer such as us may follow its home country corporate governance practices in lieu of certain of the  NYSE Listing Standards on corporate governance. The following paragraphs summarize the significant differences between these various requirements and how it is implemented by DRDGOLD:
 Independence of audit and risk committee members
  members. A foreign private issuer may be exempted from the requirement that all members of the audit committee qualify as independent under NYSE Listing Standards Rules provided, among other requirements, that the members of the audit committee are independent under Exchange Act Rule 10A-3. As at June 30, 2014 all of our audit committee members were and as at September 30, 2014 all of our audit and risk committee members are independent both under the NYSE Listing Standards and the South African Johannesburg Stock Exchange Rules.
 Shareholder meeting quorum requirements
  stock should be sufficiently high to insure a representative vote. Consistent with the practice of companies incorporated in South Africa, our Memorandum of Incorporation requires a quorum of three members present with sufficient voting powers in person or byproxy to exercise in aggregate 25% of the voting rights and we have elected to follow country rule.
 Executive Sessions
  at regularly scheduled executive sessions in the absence of management. The JSE Listings Requirements makes no provision for such meetings, however the non-executive directors of DRDGOLD do meet without management on a regular basis but in an informal setting and no minutes are prepared.


100
 Nominations Committee
  committee composed entirely of independent directors. The JSE Listings Requirements only require that the members of such a committee be non-executive directors, the majority of whom must be independent. DRDGOLD has such a nominations committee whose members are independent under both the NYSE Listings Standards and the JSE Listings Requirements.
 ITEM 16H. MINE SAFETY DISCLOSURES
  PART III
 ITEM 17. FINANCIAL STATEMENTS
  ITEM 18. FINANCIAL STATEMENTS
  Page


F-1
 Report of the Independent Registered Public Accounting Firm
  We have audited the accompanying consolidated statements of financial position of DRDGOLD Limited and its subsidiaries as of June 30, 2014 and 2013, and the related consolidated statements of profit or loss and other comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended June 30, 2014. We also have audited DRDGOLD Limited’s internal control over financial reporting as of June 30, 2014, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). DRDGOLD Limited’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financialreporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanyingManagement’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on DRDGOLD Limited’s internal control over financial reporting based on our audits.
 We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Thosestandards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
 A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability 
    of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles , and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of DRDGOLD Limited and its subsidiaries as of June 30, 2014 and 2013, and the results of their operations and cash flows for each ofthe years in the three-year period ended June 30, 2014, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, DRDGOLD Limited maintained, in all material respects, effective internal control over financial reporting as of June 30, 2014, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
 /s/ KPMG Inc
  KPMG IncJohannesburg, Republic of South Africa October 30, 2014


F-2
 DRDGOLD Limited   CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME   for the year ended June 30, 2014
 Continuing operations
 Discontinued operations
 1
 Total operations
 2014
 2013
 Restated
 2012
 Restated
 2014
 2013
 Restated
 2012
 2014
 2013
 Restated
 2012
 Restated
 Note
 R'000
 R'000
 R’000
 R'000
 R'000
 R’000
 R'000
 R'000
 R'000
   1,809,434
   -
 -
  1,809,434
    (1,687,270)
   -
 -
  (1,687,270)
    (1,598,300)
   -
 -
  (1,598,300)
     (159,999)
   -
 -
  (159,999)
     (6,748)
   -
 -
  (6,748)
   Movement in provision for environmental rehabilitation
  86,605
   -
 -
  86,605
    (8,828)
 122,164
   -
 -
  (8,828)
   Gross profit from operating 
  activities
   -
 -
  122,164
     (56,591)
   -
 -
  (56,591)
   Administration expenses and general costs
 (78,120)
   -
 -
  (78,120)
   Results from operating activities
  (12,547)
   -
 -
  (12,547)
     27,980
   -
 -
  27,980
     (52,295)
   -
 -
  (52,295)
   Share of losses of equity accounted investments
 (313)
  -
 -
 -
 -
 (313)
  -
 (Loss)/profit before taxation
 (37,175)
   -
 -
  (37,175)
     (17,548)
 (54,723)
   -
 -
  (17,548)
   (Loss)/profit before loss on disposal of discontinued 
  operation
   -
 -
  (54,723)
   Loss on disposal of discontinued operations
  -
   -
 -
  -
   (Loss)/profit for the year
 (54,723)
   -
 -
  (54,723)
   Attributable to:Equity owners of the parent
 (45,808)
   -
 -
  (45,808)
    (8,915)
   -
 -
  (8,915)
   (Loss)/profit for the year
 (54,723)
   -
 -
  (54,723)
   1
 The discontinued operations relate to the disposal of Blyvooruitzicht Gold Mining Company Limited (Blyvoor) on June 1, 2012.


F-3
 DRDGOLD Limited   CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued)   for the year ended June 30, 2014
 Continuing operations
 Discontinued operations
 1
 Total operations
 2014
 2013
 Restated
 2012
 Restated
 2014
 2013
 Restated
 2012
 2014
 2013
 Restated
 2012
 Restated
 Note
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 Other comprehensive income, net of tax Items that are or may be reclassified to profit or loss
  -
 9,134
 (3,999)
 -
 -
 -
 -
 9,134
 (3,999)
  -
 9,134
 (3,999)
 -
 -
 -
 -
 9,134
 (3,999)
 Net fair value adjustment on available-for-sale investment
 (51,626)
 34,570
 16,480
 -
 -
 2,703
 (51,626)
 34,570
 19,183
 Fair value adjustment on available-for-sale investment
 (49,872)
 (72,113)
 20,572
 -
 -
 2,328
 (49,872)
 (72,113)
 22,900
 Impairment of available-for-sale investment reclassified to profit or loss
 -
 101,261
 -
 -
 -
 -
 -
 101,261
 -
 Non-controlling interest in fair value adjustment on available-for-sale investment
 (1,754)
 951
 379
 -
 -
 375
 (1,754)
 951
 754
  -
 4,471
 (4,471)
 -
 -
 -
 -
 4,471
 (4,471)
 Net gain on disposal of available-for-sale financial assets reclassified to profit or loss
 -
 -
 -
 -
 -
 (6,656)
 -
 -
 (6,656)
 Net gain on disposal of available-for-sale financial assets
 -
 -
 -
 -
 -
 (4,925)
 -
 -
 (4,925)
 Non-controlling interest in net gain on disposal of available-for-sale financial assets
 -
 -
 -
 -
 -
 (1,731)
 -
 -
 (1,731)
  -
 -
 -
 -
 -
 -
 -
 -
 -
 Total comprehensive income for the year
 (106,349)
 141,362
 263,288
 -
 -
 120,042
 (106,349)
 141,362
 383,330
 Attributable to:Equity owners of the parent
 (95,680)
 92,173
 215,040
 -
 -
 88,777
 (95,680)
 92,173
 303,817
  (10,669)
 49,189
 48,248
 -
 -
 31,265
 (10,669)
 49,189
 79,513
 Total comprehensive income for the year
 (106,349)
 141,362
 263,288
 -
 -
 120,042
 (106,349)
 141,362
 383,330
 Earnings per share attributable to equity owners of the parent
  8
 (12)
 13
 53
 -
 -
 24
 (12)
 13
 77
 Diluted (loss)/earnings per share (cents)
 8
 (12)
 13
 53
 -
 -
 24
 (12)
 13
 77
  1
 The discontinued operations relate to the disposal of Blyvooruitzicht Gold Mining Company Limited (Blyvoor) on June 1, 2012.


F-4
 DRDGOLD LimitedCONSOLIDATED STATEMENT OF FINANCIAL POSITION at June 30, 2014
 2014
 2013
 Restated
 Note
 R’000
 R’000
 ASSETS Non-current assets
 1,970,344
    1,755,503
    213,417
    -
    1,424
  Current assets
 470,402
    147,189
    99,523
   5,885
    208,932
    8,873
  Total assets
 2,440,746
  EQUITY AND LIABILITIES Equity
 1,481,211
    1,249,071
    232,140
  Non-current liabilities
 652,062
    451,203
    9,275
    116,084
    75,500
  Current liabilities
 307,473
    211,790
    73,195
    1,958
    20,530
  Total liabilities
 959,535
  Total equity and liabilities
 2,440,746


F-5
 DRDGOLD Limited CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended June 30, 2014
 Number
 of
 ordinary
 shares
 Number of
 cumulative
 preference
 shares
 Share capital
 R’000
 Cumulative
 preference
 share
 capital
 R’000
 Revaluation
 and other
 reserves
 1
 R’000
 Retained
 earnings
 R’000
 Equity of the
 owners of the
 parent
 R’000
 Non-
 controlling
 interest
 R’000
 Total equity
 R’000
 Balance at June 30, 2011 reported previously
 384,884,379
 5,000,000
 4,132,604
 500
 203,349
 (3,089,215)
 1,247,238
 (28,072)
 1,219,166
      Balance at July 1, 2011 restated
 384,884,379
 5,000,000
 4,132,604
 500
 203,349
 (3,091,250)
 1,245,203
 (26,037)
 1,219,166
                                        Balance at June 30, 2012 Restated
 385,383,767
 5,000,000
 4,089,117
 500
 205,075
 (2,813,898)
 1,480,794
 150,972
 1,631,766
                                 Balance at June 30, 2013 Restated
 385,383,767
 5,000,000
 4,089,287
 500
 224,942
 (2,913,866)
 1,400,863
 242,809
 1,643,672
  (1,060)
 (1,060)
 (1,060)
  520
 520
 520
  (2,734)
 (2,734)
 (2,734)
  247
 247
 247
  (53,085)
 (53,085)
 (53,085)
  (49,872)
 (45,808)
 (95,680)
 (10,669)
 (106,349)
 Balance at June 30, 2014
 385,383,767
 5,000,000
 4,088,474
 500
 172,856
 (3,012,759)
 1,249,071
 232,140
 1,481,211
 The accompanying notes are an integral part of these consolidated financial statements.
 
 1


F-6
 DRDGOLD Limited CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended June 30, 2014
 2014
 2013
 Restated
 2012
 Restated
 Note
 R’000
 R’000
 R’000
 CASH FLOWS FROM OPERATING ACTIVITIESCash received from sales of precious metals
 1,814,219
    (1,726,835)
   Cash generated by operations
  87,384
    16,359
    -
    (16,838)
    (6,214)
   Net cash inflow from operating activities
 80,691
   CASH FLOWS FROM INVESTING ACTIVITIESAcquisition of non-current investments and other assets
 (7)
    -
    (158,593)
    -
    992
    (14,170)
     -
   Net cash outflow from investing activities
 (171,778)
   CASH FLOWS FROM FINANCING ACTIVITIESProceeds from the issue of shares
 -
    (1,060)
    -
    247
    -
    (20,000)
    (2,734)
    (53,085)
   Net cash (outflow)/inflow from financing activities
 (76,632)
   NET (DECREASE)/INCREASE IN CASH AND CASH 
  EQUIVALENTS
    376,651
 (167,719)
    -
   Cash and cash equivalents at the end of the year
  208,932


F-7
 NOTES TO THE FINANCIAL STATEMENTSfor the year ended June 30, 2014
 1. ACCOUNTING POLICIES
 REPORTING ENTITY
 DRDGOLD Limited (the company) is domiciled in South Africa. These consolidated financial statements comprise the company, its subsidiaries (collectively the “group” and individually “group companies”) and interest in equity accounted investments.
 BASIS OF ACCOUNTING
 The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB), SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council as well as the requirements of the Companies Act of South Africa.
   FUNCTIONAL AND PRESENTATION CURRENCY
 The consolidated financial statements are presented in South African rands, which is the company's functional currency. All financial information presented in South African rands has been rounded to the nearest thousand, unless otherwise stated.
 USE OF ESTIMATES AND JUDGMENTS
 The preparation of the consolidated financial statements in conformity with the IFRS, requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.
 The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assetsand liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
 The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and futureperiods if the revision affects both current and future periods.
 Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements is outlined below:
 (a) Recoverable amount of mining assets and depreciation
 The recoverable amounts of mining assets are determined using discounted future cash flows. Management also considers such factors as the market capitalisation of the group, the quality of the individual ore body and the country risk in determining the recoverable amount. During the year under review, the group calculated a recoverable amount based on updated life-of-mine plans, a gold price of R453 121 a kilogram (2013: R410 473 a kilogram) in year one escalating at an average of 7.2% (2013: 6.7%) a year, and a discount rate of 26.3%. At a 10% lower gold price received, a R894.2 million impairment would be recognised and at a 4.7 percentage points (18%) increase in the discount rate to 31.0%, the group would begin impairment of the mining assets (refer to note 9).
 The calculation of the units-of-production rate of depreciation could be affected if actual production in the future is different from current forecast production based on proved and probable mineral reserves. This would generally arise when there are significant changes in any of the factors or assumptions used in estimating mineral reserves.
 Factors could include: • changes in proved and probable mineral reserves; • the grade of mineral reserves may vary significantly from time to time; • differences between actual commodity prices and commodity price assumptions; • unforeseen operational issues at mine sites; • changes in capital, operating, mining processing and reclamation costs, discount rates and foreign exchange rates; and • changes in mineral reserves which could similarly affect the useful lives of assets depreciated on the straight-line basis,


F-8
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 USE OF ESTIMATES AND JUDGMENTS (continued)
 (b) Valuation of financial instruments
 If the value of a financial instrument cannot be obtained from an active market, the group has established fair value by using valuation techniques. These include the use of net asset values of investees, recent arm’s-length transactions, reference to other instruments that are substantially the same and discounted cash flow analysis and option pricing models, refined to reflect the issuer’s specific circumstances.
 (c) Estimate of exposure and liabilities with regard to rehabilitation costs
 Estimated provisions for environmental rehabilitation, comprising pollution control rehabilitation and mine closure, are based on the group’s environmental management plans in compliance with current technological, environmental and regulatory requirements.
 An average discount rate of 8.3% (2013: 7.6%), average inflation rate of 6.0% (2013: 5.4%) and expected life-of-mine according to the life-of-mine plans were used in the calculation of the estimated net present value of the rehabilitation liability (refer to note 17).
 (d) Estimate of tax
 The group is subject to income tax in South Africa and Zimbabwe. Significant judgement is required in determining income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The group recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will have an impact on the income tax and deferred tax provisions in the period in which such determination is made.
 (e) Fair value of share-based compensation
 The fair value of options granted is determined using the Black-Scholes option pricing model. The significant inputs into the model are: vesting period and conditions, risk-free interest rate, volatility, market price on date of grant and issue price of grant. Other inputs are: performance criteria and employee retention rate (refer to note 18 for detail on the share option scheme and phantom share scheme).
 (f) Gold in lock-up
 Gold in lock-up in certain plants is estimated based on the metallurgist’s best estimate of the gold content and grade thereof.
 (g) Assessment of contingencies
 Contingencies will realize only when one or more future events occur or fail to occur. The exercise of significant judgment and estimates of the outcome of future events are required during the assessment of the impact of such contingencies.
 (h) Mineral Reserves estimates
 At the end of each financial year, the estimate of proved and probable Mineral Reserves is updated.  Depreciation of mining assets is prospectively adjusted, based on these changes.
 Mineral Reserves are estimates of the amount of product that can be economically and legally extracted from the group’s properties.  In order to calculate mineral reserves, estimates and assumptions are required about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates.


F-9
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 USE OF ESTIMATES AND JUDGMENTS (continued)
 (h) Mineral Reserves estimates (continued)
 Estimating the quantity and/or grade of mineral reserves requires the size, shape and depth of ore bodies to be determined by analyzing geological data such as the logging and assaying of drill samples. This process may require complex and difficult geological judgments and calculations to interpret the data.
   Because the economic assumptions used to estimate mineral reserves change from period to period and because additional geological data is generated during the course of operations, estimates of mineral reserves may change from period to period.  Changes in reported mineral reserves may affect the group’s financial results and financial position in a number of ways including the following:
 **·** asset carrying values may be affected due to changes in estimated future cash flows; **·** depreciation, depletion and amortization charged in profit or loss may change where such charges are determined   by the units-of-production method, or where the useful economic lives of assets change; **·** decommissioning, site restoration and environmental provisions may change where changes in estimated mineral   reserves affect expectations about the timing or cost of these activities; and **·** the carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax   benefits.
  (i) Estimate of deferred tax
 The amount recognised as a deferred tax asset is generally determined using discounted future cash flows aligned to estimates used in the calculation of depreciation and rehabilitation liabilities. Management considers all factors that could possibly affect the probability that future taxable profit will be available against which unused tax credits can be utilised. These factors include profitability of operations and an estimate of the gold price. The amount recognised as a deferred tax asset is sensitive to the current gold spot price. The amount recognised at June 30, 2014 is based on a future gold price received of R453 121 a kilogram (2013: R410 473 a kilogram) in year one, escalating at an average of 7.2% (2013: 6.7%) a year.
 (j) Measurement of fair values


F-10
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 USE OF ESTIMATES AND JUDGMENTS (continued)
    BASIS OF MEASUREMENTThe financial statements are prepared on the historical cost basis, unless otherwise stated.
 CHANGES IN ACCOUNTING POLICIESExcept for the changes below, the group has consistently applied the accounting policies set out below to all periods presented in these consolidated financial statements.
 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS NOT APPLICABLEThe following new standards, amendments to standards and interpretations with a date of initial application of July 1, 2013 arenot applicable to the group:
 IAS 28 – investments in associates and joint venturesIAS 28 (2012) supersedes IAS 28 (2008) and makes the following amendments: • IFRS 5 applies to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be
    Amendments to IFRS 7 – financial instruments: disclosures: offsetting financial assets and financial liabilitiesThe amendments contain new disclosure requirements for financial assets and financial liabilities that are offset in the statement of financial position, or are subject to enforceable master netting arrangements or similar agreements. Where the group appliesoffsetting in the financial statements, it will be required to provide additional disclosures in this regard.
 IFRIC 20 – stripping costs in the production phase of a surface mineThe interpretation sets out principles for the recognition of production stripping costs in the statement of financial position. It is recognised that some production stripping in surface mining activity will benefit production in future periods and sets out criteria for capitalising such costs.
 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS ADOPTEDThe group adopted the following new standards, amendments to standards and interpretations, which are applicable to the group, with a date of initial application of July 1, 2013:
 IFRS 10 (2011) – consolidated financial statements, IFRS 11 – joint arrangements, IFRS 12 – disclosures of interests in other entitiesIFRS 10 (2011) introduces a single control model to determine whether an investee should be consolidated. The new standard changes the definition of control such that an investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to control those returns through its power over the investee.
 Under IFRS 11, the structure of the joint arrangement, although still an important consideration, is no longer the major factor in determining the type of joint arrangement and therefore the subsequent accounting. • The group’s interest in a joint operation, which is an arrangement in which the parties have rights to the assets and obligations
    IFRS 12 brings together in a single standard all the disclosure requirements about an entity’s interests in subsidiaries, jointarrangements, associates and unconsolidated structured entities. IFRS 12 requires the disclosure of information about the nature, risks and financial effects of these interests. As a result of IFRS 12, the group has expanded its disclosure about its interests in subsidiaries (refer note 11) and equity accounted investments (refer note 12).


F-11
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS ADOPTED (continued)
 IFRS 13 – fair value measurementIFRS 13 establishes a single framework for measuring fair value and making disclosures about fair value measurements when such measurements are required or permitted by other IFRSs. It unifies the definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It replaces and expands the disclosure requirements about fair value measurements in other IFRSs, including IFRS 7. As a result, the group has included additional disclosures in this regard (refer note 26).
 In accordance with the transitional provisions of IFRS 13, the group has applied the new fair value measurement guidance prospectively and has not provided any comparative information for new disclosures. Notwithstanding the above, the change had no impact on the measurements of the groups’ assets and liabilities.
 IAS 19 amended 2012 – employee benefitsThe amended IAS 19 includes the following requirements: • actuarial gains and losses are recognised immediately in other comprehensive income; this change will remove the corridor
 method and eliminate the ability for entities to recognise all changes in the defined benefit obligation and in plan assets in profit or loss, which currently is allowed under IAS 19; and
   No actuarial gains or losses were recognised by the group in the current or preceding financial year due to no actuarial valuation being performed. Future actuarial gains or losses that may result from future actuarial valuations will be recognised immediatelyin other comprehensive income.
 Impact of changes in accounting policiesOther than outlined below, these standards, amendments to standards and interpretations did not have any effect on the financialposition or financial performance of the group.
 i) The group has adopted IFRS11 – Joint Arrangements with an effective date of July 1, 2013. The group’s previous accounting policy was to proportionately consolidate investments in joint arrangements. With the adoption of IFRS 11 – Joint Arrangements the group applies equity accounting and have retrospectively restated the comparative information. The group re-evaluated its involvement in its joint arrangement and the investee continues to be classified as a joint venture.
 ii) The group has adopted IFRS 10 Consolidated Financial Statements and has reassessed the control conclusion for its investeesat July 1, 2013. The group’s previous accounting policy was to consolidate the Guardrisk Cell Captive as a special purpose entity(SPE) on a line by line basis. With the adoption of IFRS 10 Consolidated Financial Statements the Guardrisk Cell Captive is notconsidered to be controlled by the group and is therefore not consolidated with an effective date of July 1, 2013.
 The Cell Captive cell # 170, to which DRDGOLD is a shareholder, holds funds that may be applied only towards the settlement of the DRDGOLD group’s environmental rehabilitation obligations under financial guarantees issued by Guardrisk Insurance Company Limited to the Department of Mineral Resources (DMR). The group is therefore considered to have a right to the funds held in the Guardrisk Cell Captive and therefore recognised a reimbursive right to these funds in the hands of Ergo under IFRIC 5 Interest arising from Decommissioning, Restoration and Environmental Rehabilitation Funds.
 The consolidated statement of financial position at June 30, 2013, the statements of profit or loss and other comprehensive 
income, statements of changes in equity and statements of cash flows for the 2 years then ended respectively, have been restatedwith the effects of IFRS 10, IFRIC 5 and IFRS 11 where relevant.


F-12
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS ADOPTED (continued)
 Impact of changes in accounting policies (continued
  As stated
 previously
 IFRS 10 and
 IFRIC 5
 IFRS 11
 Restated
 R’000
 R’000
 R’000
 R’000
 At June 30, 2013
                          Total assets
 2,671,145
 (1,940)
 (205)
 2,669,000
                Total liabilities
 1,022,876
 2,657
 (205)
 1,025,328
            Equity
 1,648,269
 (4,597)
 
 –
 1,643,672
 At June 30, 2012
                               Total assets
 2,492,289
 (2,517)
 (766)
 2,489,006
                Total liabilities
 858,368
 (362)
 (766)
 857,240
            Equity
 1,633,921
 (2,155)
 
 –
 1,631,766
 At July 1, 2011
                Total assets
 2,288,661
 –
 –
 2,288,661
           Equity
 1,219,166
 –
 –
 1,219,166


F-13
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS ADOPTED (continued)
 Impact of changes in accounting policies (continued
  Year ended June 30, 2013
 Year ended
 June 30, 2013
 as stated
 previously
 IFRS 10
 IFRS 11
 Year ended
 June 30, 2013
 Restated
 and
 IFRIC 5
 R’000
 R’000
 R’000
 R’000
                                         Profit for the year
 100,100
 (2,442)
 –
 97,658
 Attributable to:
           Total comprehensive income for the year
 143,804
 (2,442)
 –
 141,362
 Attributable to:
           Earnings per share attributable to equity owners of the parent
            Year ended June 30, 2013
 Year ended
 June 30, 2013
 as stated
 previously
 IFRS 10
 IFRS 11
 Year ended
 June 30, 2013
 Restated
 and
 IFRIC 5
 R’000
 R’000
 R’000
 R’000
                               Net increase in cash and cash equivalents
 78,577
 –
 (47)
 78,530
           Cash and cash equivalents at the end of the year
 377,169
 –
 (518)
 376,651


F-14
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued
 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS ADOPTED (continued)
 Impact of changes in accounting policies (continued
  Year ended June 30, 2012
 Year ended
 June 30, 2012
 as stated
 previously
 IFRS 10
 IFRS 11
 Year ended
 June 30, 2012
 Restated
 and
 IFRIC 5
 R’000
 R’000
 R’000
 R’000
                                 Profit for the year
 376,957
 (2,155)
 –
 374,802
 Attributable to:
           
 
 
 
 
 Total comprehensive income for the year
 385,485
 (2,155)
 –
 383,330
 Attributable to:
              Earnings per share attributable to equity owners of the parent
            Year ended June 30, 2012
 Year ended
 June 30, 2012
 as stated
 previously
 IFRS 10
 IFRS 11
 Year ended
 June 30, 2012
 Restated
 And
 IFRIC 5
 R’000
 R’000
 R’000
 R’000
                                                    Net increase in cash and cash equivalents
 39,336
 7,729
 (471)
 46,594
           Cash and cash equivalents at the end of the year
 298,506
 –
 (471)
 298,035


F-15
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 BASIS OF CONSOLIDATION
 Non-controlling interests (NCI)NCI are measured at their proportionate share of the acquiree’s identifiable net assets at the acquisition date.
 Changes in the group’s interest in a subsidiary which do not lead to loss of control are accounted for as equity transactions with equity owners in their capacity as equity owners and no profit or loss is recognised.
 In the absence of an agreement with non-controlling interest shareholders, losses in subsidiaries are allocated to non-controlling interests even if doing so causes the non-controlling interest to have a deficit balance.
 SubsidiariesSubsidiaries are entities controlled by the group. The group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Thefinancial statements of subsidiaries are included in the consolidated financial statements from the date that control commencesuntil the date that control ceases.
 Loss of controlWhen the group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the formersubsidiary is measured at the fair value when control is lost, which is deemed to be the cost price, and, depending on the nature of the remaining investment, is either recognised as an associate, joint venture or as a financial instrument.
 Interest in equity accounted investmentsThe group’s interest in equity accounted investments comprises interests in an associate and a joint venture.
 Associates are those entities in which the group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the group has joint control, whereby the group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
 Interest in associates and joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the group’s share ofprofit or loss and OCI of equity accounted investees, until the date on which significant influence or joint control ceases. Anylosses from associates and joint ventures are brought to account in the consolidated financial statements until the interest in such associates and joint ventures are written down to zero. Thereafter, losses are accounted for only insofar as the group is committed to providing financial support to such associates and joint ventures.
  Transactions eliminated on consolidationIntra-group balances, transactions and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions withequity accounted investments are eliminated against the investment to the extent of the group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
 Acquisitions from entities under common controlBusiness combinations arising from transfers of interests in entities that are under the control of the shareholder which controls the group are accounted for as if the acquisitions had occurred at the beginning of the earliest comparative year presented or, if later, at the date that common control was established. For this purpose comparatives are restated. The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the group controlling shareholder’s consolidated financial statements. Any excess (shortfall) of the purchase consideration over the net asset value acquired is recognised in equity as a notional distribution to (contribution by) owners.


F-16
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 FOREIGN CURRENCY
 Foreign currency transactions
 Transactions in foreign currencies undertaken by group entities are translated to the functional currency at the exchange ratesruling at the dates of these transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at historical cost are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies, measured at fair value, are translated at foreign exchange rates ruling at the date that the fair value wasdetermined. Foreign exchange differences arising on translation are recognised in profit or loss.
 Foreign currency differences arising from the translation of available-for-sale equity investments (except on impairment in whichcase the foreign currency differences that have been recognised in OCI are reclassified to profit or loss) are recognised in OCI.
 Foreign operations
 The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into South African rands at the exchange rates at the reporting date. The income and expenses of foreign operations are translated to South African rands at exchange rates at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised in other comprehensive income and accumulated within equity in the foreign currency translation reserve. When a foreign operation is disposed of, the relevant amount in the foreign currency translation reserve is transferred to profit or loss as part of the profit or loss on disposal. On partial disposal of a subsidiary that includes a foreign operation, the relevant portion of such cumulative amount is reattributed to non-controlling interest.
 Net investment in foreign operations
 Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlementof which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income and presented within equity in the foreign currency translation reserve in the consolidated financial statements.
 FINANCIAL INSTRUMENTS
 The entity classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets.
  (i) Non derivative financial assets and financial liabilities – recognition and derecognition
 The entity initially recognises loans and receivables on the date when they are originated. All other financial assets and financial liabilities are initially recognised on the trade date.
 Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire or to the extent that the group transfers substantially all the risks and rewards of ownership of the financial asset. Any interest in such derecognisedfinancial assets that is created or retained by the entity is recognised as a separate asset or liability.
 Financial liabilities are derecognised when the obligation specified in the contract is discharged or cancelled or has expired. Any gain or loss on derecognition is taken to profit or loss.
 Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the entity has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
 (ii) Non derivative financial assets – measurement
 Loans and receivables
 These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method less any impairment losses.


F-17
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 FINANCIAL INSTRUMENTS (continued)
 Cash and cash equivalents
 Cash and cash equivalents comprise cash on hand, demand deposits, and highly liquid investments which are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Subsequent to initial recognition, cash and cashequivalents are measured at amortised cost, which is equivalent to their fair value. Bank overdrafts that are repayable on demandand form an integral part of the group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
 Cash and cash equivalents include restricted cash and are short-term in nature. Restricted cash which is long-term in nature isclassified as non-current and is similar in nature to rehabilitation trust funds. Restricted cash would typically be long-term innature when it is expected not to be able to be utilised for at least 12 months after the reporting date.
 Available-for-sale financial assets
   Subsequent to initial recognition they are measured at fair value and changes therein, other than impairment losses are recognised in other comprehensive income and accumulated in the fair value reserve. When these assets are derecognised, the gain or loss accumulated in equity is reclassified to profit or loss.
 (iii) Non-derivative financial liabilities – measurement
 Non-derivative financial liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
 PROPERTY, PLANT AND EQUIPMENT
 Recognition and measurement
 The group’s property, plant and equipment consist mainly of mining assets which comprise mining properties (including mineral rights), mine development costs, mine plant facilities, exploration assets and vehicles.
  Development costs, which are capitalised, consist primarily of expenditure that gives access to proved and probable mineral reserves.
 Capitalised development costs include expenditure incurred to develop new ore bodies, to define future mineralisation in existing ore bodies and to expand the capacity of a mine. Mine development costs to maintain production are expensed as incurred. Where funds have been borrowed specifically to finance a project, the amount of interest capitalised represents the actual borrowing costs incurred (refer to accounting policy on borrowing costs capitalised). Mine development costs capitalised, include acquiredproved and probable mineral reserves at the acquisition date.
 Exploration and evaluation costs, including the costs of acquiring licences, property and qualifying borrowing costs, are capitalised as exploration assets on a project-by-project basis, pending determination of the technical feasibility and commercialviability of the project. The capitalised costs are presented as tangible assets according to the nature of the assets acquired. When a licence is relinquished or a project is abandoned, the related costs are recognised in profit or loss immediately. Pre-licence costs are recognised in profit or loss as incurred.
 Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable to bringing an asset to a working condition for itsintended use, as well as the costs of dismantling and removing an asset and restoring the site on which it is located.
 Where parts of an item of property, plant and equipment, with costs that are significant in relation to the total cost of the item, have different useful lives, they are accounted for as separate items of property, plant and equipment.


F-18
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 PROPERTY, PLANT AND EQUIPMENT (continued)
 Any gains or losses on disposal of an item of property, plant and equipment are determined by comparing the net proceeds from disposal with the carrying amount of property, plant and equipment and are recognised in profit or loss. When assets are sold which have been revalued on acquisition for consolidation purposes, the amounts included in the revaluation reserve are transferred to retained earnings (refer to note 16).
 Subsequent expenditure
 The group recognises in the carrying amount of an item of property, plant and equipment, the cost of replacing part of an item when that cost is incurred, if it is probable that the future economic benefits embodied within the part will flow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other costs are recognised in profit or loss as an expense as incurred.
 Depreciation
 Depreciation of mining properties (including mineral rights), mine development and mine plant facilities are computed using theunits-of-production method based on estimated proved and probable mineral reserves, which are calculated using the group’s life-of-mine business plans and a gold price at the end of each financial year. Proved and probable mineral reserves reflect estimated quantities of economically recoverable reserves which can be recovered in the future from known mineral deposits.
 Exploration assets that are available for use are depreciated over their estimated useful lives. Changes in management’s estimates of the quantities of the economically recoverable reserves impact depreciation on a prospective basis.
 Other assets are depreciated using the straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their estimated useful lives, unless it is reasonably certain that the group will obtain ownership by the end of the lease term. Land is not depreciated.
          Leased assets
 Leases in terms of which the group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset and liability are measured at amounts equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in thesame manner as owned property, plant and equipment.
 IMPAIRMENT
 Financial assets
 A financial asset is assessed at each reporting date to determine whether there is any objective evidence (e.g. delinquency of adebtor and indications that a debtor will enter bankruptcy) that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.
 Financial assets measured at amortized cost
 An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate, that is, theeffective interest rate computed at initial recognition of these financial assets.


F-19
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 IMPAIRMENT (continued)
 Available-for-sale financial assets
 An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value. When a decline in the fair value of an available-for-sale financial asset has been recognized directly in other comprehensive income, and there isobjective evidence (e.g. significant or prolonged decline in the fair value below the cost of the investment) that the asset isimpaired, the cumulative loss that had been recognized in other comprehensive income is recognized in profit or loss even thoughthe financial asset has not been derecognized. The amount of the cumulative loss that is recognized in profit or loss is the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized in profit or loss. Financial assets that are individually significant are tested for impairment on an individual basis. The  remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment losses are recognized in profit or loss.
 An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. For financial assets measured at amortized cost and available-for-sale financial assets that are debt securities, the reversal is recognized in profit or loss. For available-for-sale financial assets that are equity securities, the reversal is recognized in other comprehensive income.
 Non-financial assets
 The carrying amounts of the group’s assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount is estimated.
 The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate thatreflects current market assessments of the time value of money and the risks specific to the asset. For purposes of impairment testing, assets are grouped together into the smallest group of assets which generates cash flows from continuing use that is largely independent of the cash inflows of other assets or groups of assets (cash-generating units).
 An impairment loss is recognised directly against the carrying amount of the asset whenever the carrying amount of an asset, orits cash generating unit, exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
 Impairment losses recognised in respect of cash-generating units are allocated to the carrying amounts of the assets in the unit(group of units) on a pro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for anyindications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carryingamount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised.
 Exploration assets
 Exploration assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For purposes of impairment testing, exploration assets are allocated to cash-generating units consistent withthe determination of reportable segments.
 The technical feasibility and commercial viability of extracting a Mineral Resource is considered to be determinable when provenreserves are determined to exist. Upon the determination of proven reserves, exploration assets attributable to those Reserves are first tested for impairment and then reclassified from exploration assets to a separate category within tangible assets. Expenditure deemed to be unsuccessful is recognized in profit or loss immediately.
 INVENTORIES
 Gold in process is stated at the lower of cost and net realisable value. Costs are assigned to gold in process on a weighted average cost basis. Costs comprise all costs incurred to the stage immediately prior to smelting, including costs of extraction and processing as they are reliably measurable at that point. Selling, refining and general administration costs are excluded from inventory valuation.
 Consumable stores are stated at the lower of cost and net realisable value. Cost of consumables is based on the weighted averagecost principle and includes expenditure incurred in acquiring inventories and bringing them to their existing location and condition.


F-20
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 INVENTORIES (continued)
  Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion andselling expenses.
 INCOME TAX
 Income tax expense comprises current and deferred tax. Income tax is recognised in profit or loss except to the extent that it relates to business combinations, or to items recognised directly in equity or other comprehensive income.
 Current tax
 Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted, or substantively enacted, at the reporting date, and any adjustment to tax payable in respect of previous years.
 Deferred tax
 Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recognised for tax purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; and differences relating to investments in subsidiaries and joint ventures to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporarydifferences arising on the initial recognition of goodwill.
 Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences, based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, and based on the laws that have been enacted or substantively enacted by the reporting date.
 Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, if these relate to income taxes levied by the same tax authority on the same taxable entity or on different tax entities, if the companyintends to settle current tax liabilities and assets on a net basis, or if their tax assets and liabilities will be realised simultaneously.
 A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
 Dividends Withholding tax
 Dividends withholding tax is a tax on certain shareholders receiving dividends and is applicable to all dividends declared on orafter April 1, 2012.
 The company withholds dividends tax on behalf of certain of its shareholders at a rate of 15% on dividends declared. Amounts withheld are not recognised as part of the company’s tax charge but rather as part of the dividend paid recognised directly in equity. Where withholding tax is withheld on dividends received, the dividend is recognised at the gross amount with the relatedwithholdings tax recognised as part of tax expense unless it is otherwise reimbursable in which case it is recognised as an asset.
 SHARE CAPITAL
 Ordinary share capital
 Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effect.
 Preference share capital
 Preference share capital is classified as equity if it is non-redeemable, or redeemable only at the company's option, and any dividends are discretionary. Dividends on preference share capital classified as equity are recognized as distributions within equity. Preference share capital is classified as a liability if it is redeemable on a specified date or at the option of the shareholders, or if dividend payments are not discretionary. Dividends thereon are recognized as interest expense in profit or loss as accrued.


F-21
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 SHARE CAPITAL (continued)
 Dividends
  EMPLOYEE BENEFITS
 Defined contribution plans
 A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Pension plans, which are multi-employer plans in thenature of defined contribution plans, are funded through monthly contributions to these defined contribution plans. Obligationsfor contributions are recognised as an employee benefit expense in profit or loss as incurred.
 Long-service benefits
 The group makes long-service bonus payments (long-service awards) for certain eligible employees under the Chamber of Mines of South Africa Long Service Award Scheme. The amount of the award is based on both the employee’s skill level and years of service with gold mining companies that qualify for the scheme. The obligation is accrued over the service life of the employeesand is calculated using a projected unit credit method. Any actuarial gains or losses are recognised in other comprehensive income in the period in which they arise.
 Post-retirement medical benefits
 Post-retirement medical benefits in respect of qualifying employees are recognised over the expected remaining service lives ofrelevant employees and the remaining life expectancies of retirees. The group has an obligation to provide medical benefits to certain of its pensioners and dependants of ex-employees. These liabilities are provided in full, calculated on an actuarial basis and discounted using the projected unit credit method. The discount rate is the yield at the reporting date on corporate bonds that have maturity dates approximating the terms of the group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Periodic valuation (currently every three years) of these obligations is carried out by independent actuaries using appropriate mortality tables, long-term estimates of increases in medical costs and appropriate discount rates. The fair value of any plan assets is deducted. Actuarial gains and losses are recognised immediately in other comprehensive income. When the calculation results in a benefit to the group, the recognised asset is limited to the net total of any unrecognised past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
 When the benefits of a plan are changed, the portion of the changed benefit relating to past service by employees is recognised in profit or loss on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately in other comprehensive income.
 Termination benefits
 Termination benefits are recognised as an expense when the group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide terminationbenefits as a result of an offer made to encourage voluntary redundancy.
 Termination benefits for voluntary redundancies are recognised as an expense if the group has made an offer for voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, they are discounted to their present value.
 Share-based payment transactions
 Equity settled share based payment awardsThe group grants share options to certain employees under an employee share plan to acquire shares of the company. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options.
 The fair value of the options granted is measured using the Black-Scholes option pricing model, taking into account the terms andconditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number ofshare options that vest, except where forfeiture is only due to market conditions such as share prices not achieving the thresholdfor vesting.


F-22
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 EMPLOYEE BENEFITS  (continued)
 Cash settled share based payment awardsThe fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognised as an expense with a corresponding increase in liabilities, over the period that the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the share appreciation rights. Any changes in the liability are recognised as employee benefit expenses in profit or loss. The fair value of the optionsgranted is measured using the Black-Scholes option pricing model at each reporting date.
 PROVISIONS
 A provision is recognized in the statement of financial position when the group has present legal or constructive obligations resulting from past events that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
 Decommissioning liabilities
 The provision for decommissioning represents the cost that will arise from rectifying damage caused before production commenced. Accordingly, an asset is recognized and included within mining properties. Decommissioning liabilities are measured at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on currentprices. The unwinding of the decommissioning obligation is included in profit or loss. Estimated future costs of decommissioningobligations are reviewed regularly and adjusted as appropriate for new circumstances or changes in law or technology. Changes inestimates are capitalized or reversed against the relevant asset. Gains or losses from the expected disposal of assets are not taken into account when determining the provision.
 Restoration liabilities
 The provision for restoration represents the cost of restoring site damage after the start of production. Increases in the provision are recognized in profit or loss as a cost of production. Gross restoration liabilities are estimated at the present value of the expenditures expected to settle the obligation.
 Rehabilitation obligation funds
 Rehabilitation obligation funds are used to cover the estimated cost of rehabilitation at the end of the life of the relevant mine. These contributions are recognised as a right to receive a reimbursement from the fund and measured at the lower of the amount of the decommissioning obligation recognised and the fair value of the fund assets. Changes in the carrying value of the fund assets, other than contributions to and payments from the fund, are recognised in profit or loss.
 REVENUE RECOGNITION
 Gold bullion and by-products
 The group recognizes revenue from the sale of gold bullion and by-products at the fair value of the consideration received or receivable. Revenue is recognized in profit or loss when the significant risks and rewards of ownership have been transferred tothe buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. These criteria are usually met when Rand Refinery sells the refined gold (refer note 26).
 Government grants
 Government grants are not recognized until there is reasonable assurance that the entity will comply with the conditions attaching to them and the grant will be received. Grants that compensate the group for expenses incurred are recognized in profit or loss as a deduction against the related expense.
 Finance income
 Finance income includes dividends received, interest received, growth in the environmental rehabilitation obligation funds, netgains on financial instruments measured at amortised cost, net foreign exchange gains, and other profits and losses arising on disposal of investments. Dividends are recognised when the group’s right to receive payment is established. Interest is recognised on a time proportion basis, taking account of the principle outstanding and the effective rate to maturity on the accrual basis.


F-23
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 EXPENSES
 Operating lease payments
  Finance lease payments
 Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remainingbalance of the liability.
 Finance expenses
 Finance expenses comprise interest payable on borrowings calculated using the effective interest method, unwinding of the discount of the provision for environmental rehabilitation, net foreign exchange losses, net losses on financial instruments measured at amortized cost, and interest on finance leases.
 Borrowing costs capitalized
 Interest on borrowings relating to the financing of qualifying major capital projects under construction is capitalized during the construction phase as part of the cost of the project. Such borrowing costs are capitalized over the period during which the asset is being acquired or constructed and borrowings have been incurred. Capitalization ceases when construction is interrupted for an extended period or when the asset is substantially complete. Other borrowing costs are expensed as incurred.
 SEGMENT REPORTING
 Operating segments are identified on the basis of internal reports that the group’s chief operating decision maker (CODM) reviews regularly in allocating resources to segments and in assessing their performance. The CODM for the group has been identified as the group’s executive committee. Reportable segments are identified based on quantitative thresholds of revenue, profit or loss, and assets. The amounts disclosed for each reportable segment are the measures reported to the CODM, which are not necessarily based on the same accounting policies as the amounts recognized in the financial statements. Aggregation of operating segments is implemented where disclosure of information enables users of the group’s financial statements to evaluatethe nature and effects of the business activities in which it engages and the economic environment in which it operates, where the operating segments have characteristics so similar that they can be expected to have essentially the same future prospects and where they are similar in the following respects:
 **·** the nature of products and services; **·** the nature of the production process; **·** the type or class of customer for their products and services; **·** the methods used to distribute their products or provide their services; and **·** if applicable, the nature of the regulatory environment.
 ASSETS HELD-FOR-SALE AND DISCONTINUED OPERATIONS
 Non-current assets, or disposal groups comprising asset and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than continuing use.
 Such assets, or disposal groups are generally measured at lower of their carrying amount and fair value less cost to sell. Any impairment loss on disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets and investment property, which continue to be measured in accordance with the group’s other accounting policies. Impairment losses on initial application as held-for-sale and subsequent gains and losses on remeasurement are recognised in profit or loss.
 Once classified as held-for-sale, intangible assets and property, plant and equipment, are no longer amortised or depreciated, andany equity accounted investee is no longer equity accounted.
 A discontinued operation in the group is a component of the group's business that represents a separate major line of business, a geographical area of operations which has been disposed of or is held-for-sale, or a subsidiary acquired exclusively for resale.When an operation is classified as a discontinued operation, the comparative statement of profit or loss and other comprehensiveincome is restated as if the operation had been discontinued from the start of the comparative period.


F-24
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 EARNINGS OR LOSS PER SHARE
 The group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings or loss per share is calculated based on the net profit or loss after taxation for the year attributable to ordinary shareholders of the company, divided by theweighted average number of ordinary shares in issue during the year. Diluted earnings or loss per share is presented when the inclusion of ordinary shares that may be issued in the future, which comprise share options granted to employees, has a dilutiveeffect on earnings or loss per share.
 NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED
 At the date of authorisation of these financial statements, the following relevant standards and amendments to accounting standards that may be applicable to the business of the entity were in issue but not yet effective and may therefore have an impact on future financial statements. These new standards and amendments to accounting standards have not been early adopted by the group and a reliable estimateof the impact of the adoption thereof for the group is yet to be determined. The group expects to adopt the standards and amendments to accounting standards when effective.
 Standard/interpretation
 
 Effective date
                                     IAS 32 – offsetting financial assets and financial liabilitiesThe amended IAS 32 requires disclosure of the actual and potential effects of netting arrangements on the entity’s financial positioning, clarifies current offsetting criteria and addresses inconsistencies in their application.
 IAS 36 amendment – recoverable amount disclosures for non-financial assetsThe amendments reverse the unintended requirement in IFRS 13 fair value measurement to disclose the recoverable amount of every cash-generating unit to which significant goodwill or indefinite-lived intangible assets have been allocated. Under the amendments, the recoverable amount is required to be disclosed only when an impairment loss has been recognised or reversed.
 IAS 19 – Defined Benefit Plans: employee contributionsThe amendments introduce relief that will reduce the complexity and burden of accounting for certain contributions from employees or third parties. Such contributions are eligible for the practical expedient if they are: • set out in the formal terms of the plan; • linked to service; and • independent of the number of years of service.
 When contributions are eligible for the practical expedient, a company is permitted (but not required) to recognise them as a reduction of the service cost in the period in which the related service is rendered. The group’s defined benefit plan meets these requirements and consequently the group intends to apply this amendment and will recognise the contributions as a reduction of the service costs in the period in which the related service is rendered. The amendments apply retrospectively for annual periodsbeginning on or after July 1, 2014 with early adoption permitted.


F-25
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED (continued)
 IAS 24 Related Party Disclosures – Definition of ‘related party’The definition of a ‘related party’ is extended to include a management entity that provides key management personnel (KMP) services to the reporting entity, either directly or through a group entity.
 For related party transactions that arise when KMP services are provided to a reporting entity, the reporting entity is required to separately disclose the amounts that it has recognised as an expense for those services that are provided by a management entity; however, it is not required to ‘look through’ the management entity and disclose compensation paid by the management entity to the individuals providing the KMP services. The reporting entity will also need to disclose other transactions with the management entity under the existing disclosure requirements of IAS 24 – e.g. loans.
 IFRS 2 Share-based payments – Meaning of ‘vesting condition’IFRS 2 has been amended to clarify the definition of ‘vesting condition’ by separately defining ‘performance condition’ and ‘ service condition’.
 For a condition to be a performance condition, it needs to meet both of the following criteria: • The counterparty has to complete a specified period of service – i.e. a service condition, which can be either explicit or implicit;
   The period for achieving the performance target(s) cannot extend beyond of the service period, but it may start before the service period – provided that the commencement of the performance target is not substantially before the commencement of the service period. As such, performance targets achieved after the requisite service period would not be accounted for as a performance condition, but would instead be accounted for as a non-vesting condition.
 A performance target need to be defined with reference to the entity’s own operations or activities, or with reference to the price or value of the entity’s equity instruments. In this context, ‘entity’ includes entities within the same group.
 The amendment also clarifies both: • How to distinguish between a market and a non-market performance condition; and 
  • The basis on which a performance condition can be differentiated from a non-vesting condition.
 For example, a share market index target would be a non-vesting condition – even if an entity’s shares form part of that index –because such and index reflects not only the performance of the entity, but also the performance of the other entities outside the group.
 Any failure to complete a specified service period – even due to the entity terminating an employee’s employment – would represent failure to satisfy a service condition.
 IFRS 3 : Business Combinations – Classification and measurement of contingent considerationThese amendments clarify the classification and measurement of contingent consideration in a business combination. • When contingent consideration is a financial instrument, its classification as a liability or equity is determined by reference to
    Consequential amendments are also made to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 9 Financial Instruments to prohibit contingent consideration from subsequently being measured at amortised cost. In addition, IAS 37 Provisions, Contingent Liabilities and Contingent Assets is amended to exclude provisions related to contingent consideration.
 Scope exclusion for the formation of joint arrangements
 IFRS 3 has also been amended to clarify that the standard does not apply to the accounting for the formation of all types of joint arrangements in IFRS 11 Joint Arrangements – i.e. including joint operations – in the financial statements of the joint arrangements themselves.


F-26
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 1. ACCOUNTING POLICIES (continued)
 NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED (continued)
 IFRS 8 Operating segments – Disclosures on the aggregation of operating segmentsIFRS 8 has been amended to explicitly require the disclosure of judgements made by management in applying the aggregation criteria. The disclosures include: • A brief description of the operating segments that have been aggregated; and • The economic indicators that have been assessed in determining that the operating segments share similar economic
  In addition, this amendment clarifies that the reconciliation of the total of the reportable segments’ assets to the entity’s assets is required only if this information is regularly provided to the entity’s chief operating decision maker. This change aligns the disclosure requirements with those for segment liabilities.
 IFRS 13 Fair Value Measurement – Measurement of short-term receivables and payablesThe IASB has clarified that, in issuing IFRS 13 and making consequential amendments to IAS 39 and IFRS 9, it did not intend to prevent entities from measuring short-term receivables and payables that have no stated interest rate at their invoiced amountswithout discounting, if the effect of not discounting is immaterial.
 Scope of portfolio exceptionThe scope of the IFRS 13 portfolio exception – whereby entities are exempted from measuring the fair value of a group of financial assets and financial liabilities with offsetting risk positions on a net basis if certain conditions are met – has been aligned with the scope of IAS 39 and IFRS 9.
 IFRS 13 has been amended to clarify that the portfolio exception potentially applies to contracts in the scope of IAS 39 and IFRS9 regardless of whether they meet the definition of a financial asset or a financial liability under IAS 32 – e.g. certain contracts to buy or sell non-financial items that can be settled net in cash or another financial instrument
 IFRS 15 Revenue from contracts with customersThe standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how muchand when revenue is recognised.
 IFRS 9 – financial instruments (2010), IFRS 9 Financial Instruments (2009)IFRS 9 (2009) introduces new requirements for the classification and measurements of financial assets. Under IFRS 9 (2009) financial assets are classified and measured based on the business model in which they are held and the characteristics of theircontractual cash flows. IFRS 9 (2010) introduces additional changes relating to the financial liabilities. The IASB currently has an active project to make limited amendments to the classification and measurement requirements of IFRS 9 and add new requirements to address the impairment of financial assets and hedge accounting.
 IFRS 9 (2010) and (2009) are effective for annual periods beginning on or after January 1, 2018, with early adoption permitted.The adoption of these standards is expected to have an impact on the group’s financial assets, but no impact on the group’s financial liabilities.
 2. OPERATING SEGMENTS
  **·** Ergois a surface retreatment operation and treats old slime and sand dumps to the south of Johannesburg’s central   business district as well as the east and central Rand goldfields. The operation comprises four plants. Brakpan and   Knights continues to operate as metallurgical plants but Crown and City Deep have been converted to pump/milling   stations. **·** Corporate office and other reconciling items  are taken into consideration in the strategic decision-making process of   the CODM and are therefore included in the disclosure here, even though they do not earn revenue. They do not   represent a separate segment. **·** Blyvoor: incorporates the Doornfontein mine, situated on the north-western edge of the Witwatersrand basin. The mine   has underground and surface operations. Blyvoor was disposed of during the year ended June 30, 2012 and the segment   therefore reflect the results of Blyvoor until the effective date of June 1, 2012 (refer to note 11).
 The reportable segments, as described below, are the group’s strategic divisions. The strategic divisions reflect different operational locations reported on separately to the executive committee (chief operating decision maker or CODM). The group’s revenue stream consists of the sale of gold bullion.


F-27
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2014
 Ergo
 R’000
 Corporate office
 and other
 reconciling items
 R’000
 Total
 R’000
 Financial performanceSegmental revenue
 1,809,434
 -
 1,809,434
 Cash operating costs
 (1,540,622)
 -
 (1,540,622)
 Movement in gold in process
 (8,828)
 -
 (8,828)
 Operating profit
 259,984
 -
 259,984
 Finance income
 1,011
 17,279
 18,290
 Finance expense
 (270)
 (17,540)
 (17,810)
 Retrenchment costs
 (1,074)
 (5,674)
 (6,748)
 Administration expenses and general costs
 (3,236)
 (74,884)
 (78,120)
 Income tax (1)
 (439)
 (5,982)
 (6,421)
 Working profit/(loss) before additions to non-current assets
 255,976
 (86,801)
 169,175
 Additions to property, plant and equipment
 (158,548)
 (45)
 (158,593)
 Additions to listed investments
 -
 (5,246)
 (5,246)
 Additions to unlisted investments
 -
 (7)
 (7)
 Working profit/(loss) after additions to non-current assets
 97,428
 (92,099)
 5,329
 (1) The income tax excludes deferred tax.


F-28
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2014
 Ergo
 Corporate office
 and other
 reconciling items
 Total
 Operating results (1)Ore milled
   23,908                               -
 23,908
    0.17                               -
 0.17
    4,134                               -
 4,134
   132,909                               -
 132,909
    372,671                               -
 372,671
   1,118                               -
 1,118
   401,691
  1,205
   436,503
  1,309
    432,775                               -
 432,775
   1,298                               -
 1,298
 R’000
 R’000
 R’000
 Reconciliation of assetsProperty,plant and equipment
 1,729,521
 25,982
 1,755,503
  345,329
 339,914
 685,243
  2,074,850
 365,896
 2,440,746
 Reconciliation of liabilities
  637,098
 206,354
 843,452
  116,084
 -
 116,084
  753,182
 206,354
 959,536


F-29
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2014
 Ergo
 R’000
 Corporate office
 and other
 reconciling items
 R’000
 Total
 R’000
 Other material information
 Depreciation
 (159,836)
 (163)
 (159,999)
 Impairment of assets
 (14,788)
 (41,803)
 (56,591)
 Reconciliation of revenuesTotal revenues for reportable segments
 1,809,434
 -
 1,809,434
 Statement of cash flowsCash flows from operating activities
 211,270
 (130,579)
 80,691
 Cash flows from investing activities
 (171,727)
 (51)
 (171,778)
 Cash flows from financing activities
 -
 (76,632)
 (76,632)
 Reconciliation of profit/(loss)Segment working profit/(loss) before additions to non-current assets
 255,976
 (86,801)
 169,175
 - Depreciation
 (159,836)
 (163)
 (159,999)
 - Movement in provision for environmental rehabilitation
 82,281
 4,324
 86,605
 - Impairments
 (14,788)
 (41,803)
 (56,591)
 - Growth in environmental rehabilitation trust funds and reimbursive rights
 6,423
 3,266
 9,689
 - Profit on disposal of property, plant and equipment
 90
 902
 992
 - Unwinding of provision for environmental rehabilitation
 (36,300)
 (1,719)
 (38,019)
 - Borrowing costs capitalized
 3,534
 -
 3,534
 - Ongoing rehabilitation expenditure
 (29,973)
 (14)
 (29,987)
 - Share of losses of equity accounted investments
 -
 (313)
 (313)
 - Net other operating costs
 (15,005)
 (13,677)
 (28,682)
 - Deferred tax
 (9,662)
 (1,465)
 (11,127)
 Profit/(loss) for the year
 82,740
 (137,463)
 (54,723)
 2014
 Revenues
 Property, plant
 and equipment
 R’000
 R’000
 Geographical informationSouth Africa
 1,809,434
 1,755,503
 Zimbabwe
 -
 -
 Total
 1,809,434
 1,755,503
 Information about major customers
 Due to regulatory authority, the group has only one major gold ore customer in each geographical area.


F-30
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2013 Restated
 Ergo
 R’000
 Corporate office
 and other
 reconciling items
 R’000
 Total
 R’000
 Financial performanceSegmental revenue
 2,076,496
 -
 2,076,496
 Cash operating costs
 (1,414,904)
 -
 (1,414,904)
 Movement in gold in process
 17,727
 -
 17,727
 Operating profit
 679,319
 -
 679,319
 Finance income
 3,187
 53,310
 56,497
 Finance expense
 (175)
 (19,209)
 (19,384)
 Retrenchment costs
 -
 (565)
 (565)
 Administration expenses and general costs
 (10,558)
 (53,991)
 (64,549)
 Income tax (1)
 (87)
 (4,125)
 (4,212)
 Working profit/(loss) before additions to non-current assets
 671,686
 (24,580)
 647,106
 Additions to property, plant and equipment
 (368,306)
 (89)
 (368,395)
 Contributions to environmental obligation funds
 (14,592)
 (12,818)
 (27,410)
 Advance to equity accounted investments
 -
 (13,946)
 (13,946)
 Additions to unlisted investments
 -
 (26,864)
 (26,864)
 Working profit/(loss) after additions to non-current assets
 288,788
 (78,297)
 210,491
 (1) The income tax excludes deferred tax.


F-31
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2013 Restated
 Ergo
 Corporate office
 and other
 reconciling items
 Total
 Operating results (1)Ore milled
    23,254
 -                       23,254
    0.20
 -                           0.20
    4,553
 -                         4,553
   146,381
 -                     146,381
    310,763
 -                     310,763
   1,094
 -                         1,094
   362,599
  1,192
   433,669
  1,442
    458,084
 -                     458,084
   1,613
 -                         1,613
 R’000
 R’000
 R’000
 Reconciliation of assetsProperty, plant and equipment
 1,729,482
 26,851
 1,756,333
  -
 313
 313
  380,716
 531,638
 912,354
  2,110,198
 558,802
 2,669,000
 Reconciliation of liabilities
  682,034
 236,872
 918,906
  106,422
 -
 106,422
  788,456
 236,872
 1,025,328


F-32
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2013 Restated
 Ergo
 R’000
 Corporate office
 and other
 reconciling items
 R’000
 Total
 R’000
 Other material information
 Depreciation
 (143,606)
 (160)
 (143,766)
 Impairment of assets
 (61,043)
 (126,823)
 (187,866)
 Reconciliation of revenues
 Total revenues for reportable segments
 2,076,496
 -
 2,076,496
 Statement of cash flows
 Cash flows from operating activities
 543,234
 (41,018)
 502,216
 Cash flows from investing activities
 (388,424)
 (40,959)
 (429,383)
 Cash flows from financing activities
 -
 5,697
 5,697
 Reconciliation of profit/(loss)Segment working profit/(loss) before additions to non-current assets
 671,686
 (24,580)
 647,106
 - Depreciation
 (143,606)
 (160)
 (143,766)
 - Movement in provision for environmental rehabilitation
 (35,694)
 20,360
 (15,334)
 - Impairments
 (61,043)
 (126,823)
 (187,866)
 - Growth in environmental rehabilitation trust funds and reimbursive right
 4,960
 4,535
 9,495
 - Profit on disposal of property, plant and equipment
 69
 19,198
 19,267
 - Unwinding of provision for environmental rehabilitation
 (31,982)
 (1,555)
 (33,537)
 - Borrowing costs capitalized
 10,946
 -
 10,946
 - Ongoing rehabilitation expenditure
 (45,444)
 -
 (45,444)
 - Share of losses of equity accounted investments
 -
 (50,135)
 (50,135)
 - Net other operating costs
 (31,857)
 (24,501)
 (56,358)
 - Deferred tax
 (53,979)
 (2,737)
 (56,716)
 Profit/(loss) for the year
 284,056
 (186,398)
 97,658
 2013 Restated
 Revenues
 Equity
 accounted
 investments
 Property, plant
 and equipment
 R’000
 R’000
 R’000
 Geographical information
 South Africa
 2,076,496
 -
 1,756,333
 Zimbabwe
 -
 313
 -
 Total
 2,076,496
 313
 1,756,333
 Information about major customers
 Due to regulatory authority, the group has only one major gold ore customer in each geographical area.


F-33
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2012 Restated
 Blyvoor
 R’000
 Ergo
 R’000
 Corporate office
 and other
 reconciling items
 R’000
 Total
 R’000
 Financial performanceSegmental revenue
 1,240,073
 1,764,191
 -
 3,004,264
 Cash operating costs
 (1,052,197)
 (1,151,400)
 -
 (2,203,597)
 Movement in gold in process
 5,283
 9,427
 -
 14,710
 Operating profit
 193,159
 622,218
 -
 815,377
 Finance income
 732
 777
 14,638
 16,147
 Finance expense
 (817)
 (18)
 (7,497)
 (8,332)
 Retrenchment costs
 (43,747)
 -
 -
 (43,747)
 Administration expenses and general costs
 (10,918)
 (23,859)
 (98,813)
 (133,590)
 Income tax (1)
 -
 (172)
 (4,521)
 (4,693)
 Working profit/(loss) before additions to non-current assets
 138,409
 598,946
 (96,193)
 641,162
 Additions to property, plant and equipment
 (82,938)
 (236,159)
 -
 (319,097)
 Contributions to environmental obligation funds
 -
 (29,575)
 (16,313)
 (45,888)
 Advance to equity accounted investments
 -
 -
 (14,549)
 (14,549)
 Additions to unlisted investments
 -
 -
 (9,609)
 (9,609)
 Working profit/(loss) after additions to non-current assets
 55,471
 333,212
 (136,664)
 252,019
 (1) The tax charge excludes deferred tax.


F-34
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2012 Restated
 Blyvoor
 Ergo
 Corporate office
 and other
 reconciling items
 Total
 Operating results (1)Ore milled
 -   underground
 t000
 569
 -
 -                     569
 -   surface
 t000
 2,725
 21,603
 -                24,328
 -   total
 t000
 3,294
 21,603
 -                24,897
 Average yield
 -   underground
 g/t
 3.99
 -
 -                    3.99
 -   surface
 g/t
 0.27
 0.20
 -                    0.20
 -   total
 g/t
 0.91
 0.20
 -                    0.29
 Gold dispatched
 -   underground
 kg
 2,272
 -
 -                  2,272
 -   surface
 kg
 734
 4,221
 -                  4,955
 -   total
 kg
 3,006
 4,221
 -                  7,227
 -   underground
 oz
 73,048
 -
 -                73,048
 -   surface
 oz
 23,597
 135,708
 -              159,305
 -   total
 oz
 96,645
 135,708
 -              232,353
 Cash operating costs
 -   underground
 R/kg
 416,540
 -
 -              416,540
 -   surface
 R/kg
 144,166
 272,778
 -              253,727
 -   total
 R/kg
 350,032
 272,778
 -              304,912
 -   underground
 $/oz
 1,671
 -
 -                  1,671
 -   surface
 $/oz
 578
 1,096
 -                  1,018
 -   total
 $/oz
 1,404
 1,096
 -                 1,223
 All-in sustaining cost
 R/kg
 355,571
 $/oz
 1,338
 All-in cost
 R/kg
 391,732
 $/oz
 1,572
 Gold price received
 -   revenue
 R/kg
 412,533
 417,956
 -             415,700
 -   revenue
 $/oz
 1,677
 1,682
 -                 1,679
 (1) Unaudited


F-35
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2012 Restated
 Blyvoor
 R’000
 Ergo
 R’000
 Corporate office
 and other
 reconciling items
 R’000
 Total
 R’000
 Reconciliation of assetsReportable segment assets
 -
 1,569,148
 45,425
 1,614,573
 Equity accounted investments
 -
 -
 27,368
 27,368
 Other assets
 -
 313,147
 533,918
 847,065
 Total assets
 -
 1,882,295
 606,711
 2,489,006
 Reconciliation of liabilities
 Reportable segment liabilities
 592,966
 174,700
 767,666
 Tax and deferred tax
 -
 -
 87,748
 1,826
 89,574
 Total liabilities
 -
 680,714
 176,526
 857,240
 Other material information
 Depreciation
 (1,661)
 (117,457)
 (1,732)
 (120,850)
 Impairment of assets
 -
 -
 (1,100)
 (1,100)
 Reconciliation of revenues
 Total revenues for reportable segments
 1,240,073
 1,764,191
 -
 3,004,264
 Statement of cash flows
 Cash flows from operating activities
 137,068
 558,706
 (74,604)
 621,170
 Cash flows from investing activities
 (82,938)
 (285,500)
 (37,585)
 (406,023)
 Cash flows from financing activities
 -
 -
 (168,553)
 (168,553)
 Reconciliation of profit/(loss)
 Segment working profit/(loss) before additions to non-current assets
 138,409
 598,946
 (96,193)
 641,162
 - Depreciation
 (1,661)
 (117,457)
 (1,732)
 (120,850)
 - Movement in provision for environmental rehabilitation
 301
 (48,292)
 (11,194)
 (59,185)
 - Impairments
 -
 -
 (1,100)
 (1,100)
 - Net gain on financial liabilities measured at amortized cost
 6,656
 -
 -
 6,656
 - Growth in environmental rehabilitation trust funds
 1,606
 3,276
 5,861
 10,743
 - Net loss on financial liabilities measured at amortized cost
 -
 -
 (6,372)
 (6,372)
 - Unwinding of provision for environmental rehabilitation
 (1,211)
 (5,153)
 (928)
 (7,292)
 - Borrowing costs capitalized
 -
 4,290
 -
 4,290
 - Loss on disposal of property, plant and equipment
 -
 -
 (9,556)
 (9,556)
 - Actuarial loss on post-retirement and other employee benefits
 -
 (67)
 -
 (67)
 - Loss on disposal of subsidiary
 (10,532)
 -
 -
 (10,532)
 - Ongoing rehabilitation expenditure
 (990)
 (39,445)
 (7,850)
 (48,285)
 - Net other operating (cost) / income
 (8,583)
 (23,931)
 1,229
 (31,285)
 - Deferred tax
 -
 6,541
 (66)
 6,475
 Profit/(loss) for the year
 123,995
 378,708
 (127,901)
 374,802


F-36
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2. OPERATING SEGMENTS (continued)
 2012 Restated
 Revenues
 Equity accounted
 investments
 Property, plant and
 equipment
 R’000
 R’000
 R’000
 Geographical Information
 South Africa
 3,004,264
 -
 1,614,573
 Zimbabwe
 -
 27,368
 -
 Total
 3,004,264
 27,368
 1,614,573
 Information about major customers
 Due to regulatory authority, the group has only one major gold ore customer in each geographical area.
 .


F-37
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 3. REVENUE
   1,807,145
    2,289
   Total revenue
 1,809,434
   4. RESULTS FROM OPERATING ACTIVITIES       include the following:
  (5,787)
    (5,787)
    -
   Management, technical, administrative and secretarial service fees
 (6,996)
   Staff costs Included in staff costs are:
 (306,501)
    (276,205)
    (3,341)
    (6,748)
    (20,207)
    8,813
   Grants received from the Mining Qualifications Authority offset against cost incurred.
  992
    (56,591)
    (12,377)
    (46,914)
    2,700
   Impairment of available-for-sale financial assets reclassified from other comprehensive income
 -
    -
   During FY2014, the group recorded an impairment of R12.4 million (2013: R61 million) against property, plant and equipment based on the recoverable amount (value in use) of these assets being lower than their carrying amount. The full R12.4 million impairment recognised during FY2014 relates to the exploration assets in the Ergo operating segment associated with Ergo phase 2, being the uranium processing plant that is not considered to be economically viable given current uranium prices. The R61 million recognised during FY2013 was due to the reassessment of the viability of these assets and projects (R40 million for surface dumps, R12.4 million for plant and equipment and R8.6 million against shaft and infrastructure).
 The group recorded an impairment of R46.9 million (2013: R101.3 million) against available-for-sale financial assets (refer note10).
 Listed investments (R6.7 million, refer note 10):The recoverable amount (fair value less cost to sell) of the financial asset has remained significantly lower than its original cost price for a prolonged period. This relates to the company’s investment in Village Main Reef Limited (R5.3 million) and West Wits Mining Limited (R1.4 million).
 Unlisted investments (R40.2 million, refer note 10):Following the adoption of a new Enterprise Resource Planning (ERP) system in 2013, Rand Refinery experienced implementation difficulties which led to a difference between the actual inventory and the accounting records of approximately 87 000oz of gold.
 Due to the uncertainty around Rand Refinery’s inventory and the time it is taking to resolve this matter, the group has assumedthat the 87 000oz gold shortfall will not be recovered.


F-38
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 
 4. RESULTS FROM OPERATING ACTIVITIES       include the following: (continued)
 The shareholders of Rand Refinery have offered financial support in the form of an irrevocable subordinated loan of up to R1.2 billion (the “facility”). Rand Refinery can only draw on the Facility when there is confirmation that an actual gold shortfall exists.
 DRDGOLD declined the option to provide funding on a pro-rate basis with other shareholders. Should it elect not provide such funding, its shareholding will be diluted, if other shareholders provide funding.
 Management therefore estimated the fair value of the investment in Rand Refinery shares as zero. The accumulated revaluations recognised in Other Comprehensive Income has been derecognised and the initial cost of the investment has been recognised as an impairment in profit or loss for the year.
 During FY2014, the group recorded a reversal of an impairment of R2.7 million against the investment in West Wits SA Proprietary Limited due to the disposal of the shares for an interest in West Wits Mining Limited at an amount in excess of theoriginal acquisition cost (refer to note 12).
 During FY2013 the group derecognised the DRDGOLD rehabilitation trust fund of R25.6 million due to the relinquishment of the fund to the buyer of the relating mining rights over the Durban Roodepoort Deep mine area.
 During the year ended June 30, 2012, the group derecognised R1.1 million against West Witwatersrand Gold Mines Proprietary Limited’s rehabilitation trust fund due to the relinquishment of the fund to the buyer of the relating mining rights over the West Wits mining lease area.
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
  (2,531)
    (16)
   5. FINANCE INCOME
  -
    15,740
    5
    2,546
   Net gain on disposal of available-for-sale financial asset reclassified from other comprehensive income
 -
    4,618
    5,071
   27,980
   6. FINANCE EXPENSES
  (17,810)
    (38,019)
    -
    -
    3,534
   (52,295)


F-39
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 7. INCOME TAX
  (9,724)
    (7,824)
    -
   (17,548)
   Comprising: South African
  (6,755)
    334
    (11,127)
    -
   (17,548)
   In South Africa, mining tax on mining income is determined based on a formula which takes into account the profit and revenue from a gold mining company during the year. Non-mining income, which consists primarily of interest, is taxed at a standard rate of 28% (2013: 28% and 2012: 28%).
 The tax rates applicable to mining and non-mining income of a gold mining company previously depended on whether the company elected to be exempt from Secondary Tax on Companies (STC). STC was a tax on dividends declared, which  was payable by the company declaring the dividend  of which  the STC  tax rate was equal to 10% of the amount of income declared as a dividend. In 1993, all existing gold mining companies had the option to elect to be exempt from STC. If the election was made, a higher tax rate would apply to both mining and non-mining income. With the exception of Crown, all of the South African subsidiaries elected not to be exempt from STC. On April 1, 2012, STC was replaced by a dividend tax of 15%, which is levied on the beneficial owner of the share. As a result of the new dividends tax there is now a single mining and non-mining tax rate for gold mining companies for the year ended June 30, 2012 onwards.
 The tax rates for taxable mining and non-mining income for companies were 34% and 28%, respectively during FY2013,  FY2014 and FY 2012.
  Where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of any qualifying capital expenditure that bears to mining income derived, expressed as a percentage.
 For deferred tax purposes the group applies the expected average effective tax rate. The average effective tax rates for the respective operations are based on the group’s current estimate when temporary differences will reverse. Depending on the profitability of the operations, the tax rate can consequently be significantly different from year to year.
 If a one percentage point increase in the average effective tax rate is applied it would increase the movement in deferred tax in the statement of profit or loss by R6.3 million to R17.4 million debit.
  All mining capital expenditure is deducted to the extent that it does not result in an assessed loss and depreciation is ignoredwhen calculating the mining income. Capital expenditure not deducted from mining income is carried forward as unredeemed capital expenditure to be deducted from future mining income.


F-40
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 7. INCOME TAX (continued)
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 Estimated unredeemed capital expenditure at year-end (available for deduction against future mining income)
 1,672,506
   Estimated gross capital losses at year end (available to reduce future capitalgains)
 1,392,642
   Estimated assessed tax losses at year-end (available to reduce future taxable income)
 137,803
    3,202,951
   Tax reconciliationMajor items causing the group's income tax provision to differ from the statutory rate were:
  10,409
    5,105
    (4,947)
    (22,012)
    1,276
    -
    725
    -
   Temporary differences including tax losses recognized for which deferred tax assets were previously unrecognized (d)
 475
    (8,579)
    -
   Income tax charge
 (17,548)
    relating to the impairment of available-for-sale financial assets (refer to note 4) and share of losses of equity accounted investments of R0.3 million (2013: R50.1 million).
  – R2.7 million relating to the reversal of the impairment of the investment in West Wits SA Proprietary Limited; and – R0.8 million relating to the R2.54 million profit on disposal of the investment in West Wits SA Proprietary Limited of which 33.3% is excluded for capital gains tax. The 66.6% that has been included for capital gains tax have utilised capital losses that were previously unrecognised.
 Included in the group’s exempt income for the year ended June 30, 2013 were R32.5 million relating to dividends from local companies.
    previously unrecognized for the year ended June 30, 2012, are the assessed losses and unredeemed capital expenditure for Ergo Mining Proprietary Limited which were previously not raised amounting to R26.9 million.


F-41
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 8. EARNINGS PER SHARE
 BasicThe calculation of earnings per ordinary share is based on the following:
  (45,808)
   Basic (loss)/earnings from continuing operations attributable to equity owners of the parent
 (45,808)
   Basic (loss)/earnings from discontinued operations attributable to equity owners of the parent
 -
   Weighted average number of ordinary shares in issue adjusted for treasury shares
 379,209,441
   Diluted
  (45,808)
   Diluted basic (loss)/earnings from continuing operations attributable to equity owners of the parent
 (45,808)
   Diluted basic (loss)/earnings from discontinued operations attributable to equity owners of the parent
 -
   Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary sharesWeighted average number of ordinary shares in issue
 379,209,441
    -
    379,209,441
    (12)
    (12)
    (12)
   Diluted basic (loss)/earnings from continuing operations per ordinary share (cents)
 (12)
    -
   Diluted basic (loss)/earnings from discontinued operations per ordinary share (cents)
 -
   At June 30, 2014, 1.2 million options (2013: 0.7 million and 2012: 17.0 million) were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000


F-42
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 9. PROPERTY, PLANT AND EQUIPMENT
 Total Cost
 2,702,984
   2,532,338
   158,593
   3,534
   (900)
   10,166
   (747)
  Accumulated depreciation and impairment
 (947,481)
   (776,005)
   (159,999)
   (12,377)
   900
  Carrying value
 1,755,503
  Mine property and development Cost
 1,325,761
   1,266,171
   -
   (900)
   -
   61,237
   (747)
  Accumulated depreciation and impairment
 (525,451)
   (427,617)
   (98,734)
   -
   900
  Carrying value
 800,310
  Mine plant facilities (a)
 
 Cost
 1,276,207
   1,093,574
   154,582
   3,534
   14,351
   10,166
  Accumulated depreciation and impairment
 (390,515)
   (332,963)
   (57,552)
   -
  Carrying value
 885,692


F-43
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 9. PROPERTY, PLANT AND EQUIPMENT (continued)
 Equipment and vehicles
 Cost
 24,079
   20,068
   4,011
   -
  Accumulated depreciation and impairment
 (19,138)
   (15,425)
   (3,713)
   -
  Carrying value
 4,941
  Exploration Assets (c) Cost
 76,937
   152,525
   -
   (75,588)
  Accumulated depreciation and impairment losses
 (12,377)
   -
   (12,377)
  Carrying value
 64,560
   The FFG was commissioned in late December 2013 at a cost of R389 million. Depreciation amounting to R10.8 million was recognised from this date up to March 2014 resulting in a carrying amount of R378.2 million at this date. Production was suspended temporarily on April 2, 2014 due to a drop in gold recovery subsequent to the commissioning of the FFG. This was done to restore the established Low Grade Section to steady state in order to isolate the cause(s) of the erratic metallurgical performance. A number of small engineering upgrades are being made during this “time-out”. A depreciation charge of Rnil was recognised from this date up to June 30, 2014 based on zero units being produced (mine plant facilities are depreciated on a units-of-production basis (refer note 1)). The initial estimate of the remaining useful life of the plant (based on a units-of-production basis) has therefore decreased by the amount of lost production during the temporary suspension. The carrying amount of the FFG circuit will be depreciated over the remaining units-of-production when production recommences.
    Ergo project which is currently planned to be utilised in surface gold retreatment. Property and plant associated with phase two of the Ergo project that has been utilised in the construction of the FFG has been transferred to mine development costs and mine plant facilities. The remaining assets that relate to Ergo Phase 2 were impaired.


F-44
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 10. NON-CURRENT INVESTMENTS AND OTHER ASSETS
  34,097
   34,071
   5,246
   (6,734)
   1,514
   171
   93,484
   7
   (40,180)
   (53,140)
   2,592
   93,709
   88,638
   -
   5,071
   82,848
   86,356
   -
   (8,126)
   4,618
   213,417
   Proprietary Limited (a wholly owned subsidiary of Village) entered into a sale of shares and claims agreement, for the acquisition of DRDGOLD’s entire interest in and claims against Blyvooruitzicht Gold Mining Company Proprietary Limited (Blyvoor) for R1 and 85 714 286 new ordinary shares of Village.
 The Agreement consist of two parts. Part A was completed on June 1, 2012 (date of disposal: which is the date control passed to Village). The effective date used for recordal of the disposal was May 31, 2012 – for accounting purposes the end of the financial month. Part B has certain conditions precedent which can be waived in full by Village. These include the successful conversion of Blyvoor’s old order mining right to a new order mining right under the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002), and obtaining the consent of the Department of Minerals and Resources for the sale.
 The first of the Part B conditions precedent being the notarial execution and registration of the new order mining rights after Blyvoor successfully applied for the conversion of the rights, became due during the year ended June 30, 2014 but is in dispute at June 30, 2014. This matter has been referred for simultaneous expert determination and arbitration for which no date has been confirmed to date. Management believes that it is more likely than not, that this process will conclude favourably for the group. Pending the outcome of the above (which will confirm the ownership of the shares), the 20 000 000 ordinary shares in Village remained in escrow (Escrow Shares).
    applied towards the settlement of the DRDGOLD group’s environmental rehabilitation obligations under financial guarantees issued by Guardrisk Insurance Company Limited to the DMR (refer note 17).
  primarily in low-risk interest-bearing debt securities and may only be used for environmental rehabilitation purposes (refer note 17).


F-45
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 10. NON-CURRENT INVESTMENTS AND OTHER ASSETS (continued)
 Fair
 Carrying
 Carrying
 Number
 value
 value
 value
 of
 2014
 2014
 2013
 Restated
 % Held
 shares
 R'000
 R'000
 R'000
 Listed investments consist of
                Unlisted investments consist of
             Guardrisk Insurance Company Limited (Cell Captive 170)*
      Chamber of Mines Building Company Proprietary Limited
 2
        † Represents a less than 1% shareholding. * Class A 170 shares are held in Guardrisk Insurance Company Limited that entitles the holder to 100% of thenet equity of the cell captive 170.


F-46
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 11. INVESTMENT IN SUBSIDIARIES
 Disposal of subsidiary
 Elsburg Gold Mining Joint Venture (ErgoGold)
 During the year ended June 30, 2013, the company disposed of its 35% interest in ErgoGold to Ergo as part of the group restructuring on July 1, 2012 for R200 million. Through the disposal, the non-controlling interest obtained an additional 9.1% effective interest in ErgoGold accounted for as a movement in equity.
 Blyvoor
 On February 11, 2012,  DRDGOLD, Village and Business Venture Investments No  1557  Proprietary Limited (a wholly owned subsidiary of Village) (Purchaser) entered into a sale of shares and claims agreement (the Agreement), for the acquisition of DRDGOLD’s entire interest in and claims against Blyvoor for R1 and 85,714,286  new ordinary shares of Village.
 The Agreement consists of two parts. Part A was completed on June 1, 2012 (date of disposal: which is the date control passed toVillage).  Part B has certain conditions precedent which can be waived in full by Village. These include the successful conversion of Blyvoor’s old order mining right to a new order mining right under the Mineral and Petroleum Resources Development Act (Act No. 28  of 2002),  as well as obtaining the consent of the DMR for the sale.
 Pending the outcome of Part B conditions precedent, 20,000,000 of the newly issued ordinary shares in Village will be kept in escrow.
 The fair value of the proceeds on disposal has been determined after taking into consideration the market close price of Village on June 1, 2012, of R1.61 per share.
 As at
 May 31, 2012
 R’000
 Calculation of loss on disposal of Blyvoor
  135,332
  (138,638)
  (7,226)
  (10,532)


F-47
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 11. INVESTMENT IN SUBSIDIARIES (continued)
 The following information relates to the group’s financial interest in its subsidiaries at June 30:
 SHARES AT
 COST
 LESS
 IMPAIRMENT
 1
 R’000
 INDEBTEDNESS
 2013
 R’000
 IMPAIRMENT
 2013
 R’000
 NUMBER OF
 SHARES
 1
 % HELD
 1
 INDEBTED-
 NESS
 2014
 R’000
 IMPAIR-
 MENT
 2014
 R’000
 Subsidiaries directly held
 Ergo Mining Operations Proprietary Limited
 23
                                                             Total
 113,117
 338,039
 -
 233,288
 -
 Other subsidiaries
  3
                 Total
 -
 -
 -
 743,133
 (143,920)
 806,332
 (143,920)
 1
 As at June 30, 2014 and June 30, 2013
 2
 Ergo Mining Operations Proprietary Limited (EMO) holds the following interests in other entities:100% of East Rand Proprietary Mines Limited (ERPM),
 100% of Crown Gold Recoveries Proprietary Limited (Crown) and 100% of Ergo Mining Proprietary Limited (Ergo). EMO does not hold any ownership interest in the Crown Rehabilitation Trust or the Ergo Business Development Academy NPC, but controls these entities by way of the terms of the constitutingdocuments that grants the EMO group the ability to direct its relevant activities, as well as the group receiving substantially all of the returns related to theiroperation.
 3
 The company has subordinated its claim against these subsidiaries in favour of all other creditors


F-48
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 12. EQUITY ACCOUNTED INVESTMENTS 12.1 JOINT VENTURES
 (Chizim Gold)
 During the year ended June 30, 2011 the group acquired a 50% interest in Chizim Gold, located in Zimbabwe for a nominal cash consideration pursuant to a joint venture agreement entered into on 9 December 2009. On 7 June 2013, a shareholders agreement was entered reducing the company’s shareholding to 49%.
  49%
 49%
 Net investment in joint venture
  313
   50,448
   (50,135)
   -
   (313)
   -
   -
   50,448
   (50,448)
   2013 the entity stopped conducting feasibility studies on certain exploration tenements in Zimbabwe. On this date the group recognised the impairment of the non-current exploration assets through its share of the equity accounted losses of the investee. The remaining net current assets were impaired during the year ended June 30, 2014.


F-49
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 12. EQUITY ACCOUNTED INVESTMENTS (continued)12.2 ASSOCIATES
 West Wits SA Proprietary Limited - percentage held
   During FY2014 DRDGOLD exercised its option under the agreement dated 7 November 2007 with various capital vendors to convert its 28.33% investment in West Wits SA Proprietary Limited into shares in West Wits Mining Limited.
 DRDGOLD therefore reversed the R2.7 million impairment (refer note 4), derecognised the investment West Wits SA Proprietary Limited, and recognised a profit on the disposal of equity accounted investment of R2.5 million (refer note 6), and recognised 38 250 000 shares with a fair value of R5.2 million in West Wits Mining Limited (refer note 10).
 Net investment in associate
  -
   2,700
   (2,700)
   2,700
   (2,700)
   -
   -
   -
   -


F-50
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 13. INVENTORIES      Gold in process
 43,033
   88,541
   15,615
  Total inventories
 147,189
  Inventory includes gold in process carried at net realizable value amounting to R2.4 million (2013: R31.7 million) and finishedstock – bullion amounting to R1.9 million (2013: R21.9 million).
 14. TRADE AND OTHER RECEIVABLES
  25,630
   20,609
   3,088
   2,992
   1,027
   53,158
   (6,981)
  99,523
   15. ASSETS AND LIABILITIES HELD FOR SALE
 In line with the group’s strategy to exit underground mining operations, management committed to a plan to sell certain of the underground mining and prospecting rights held by ERPM including the related liabilities during FY2014. Accordingly these assets and liabilities are presented as a disposal group held-for-sale.
 A sale is expected within 12 months, but regulatory approvals required for transactions of this nature may result in the sale taking place more than 12 months after reporting date.
 As at June 30, 2014 the disposal group was stated at the historic carrying amount being the lower of carrying amount or fair value less costs to sell and was included within corporate office and other reconciling items for operating segment reporting purposes (refer note 2).
  Assets held-for-sale
  747
   8,126
  8,873
  Liabilities held-for-sale
  20,530
  20,530


F-51
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 16. EQUITY  16.1 EQUITY OF THE OWNERS OF THE PARENT
   Authorized share capital
    500
   Issued share capital
  4,132,627
   6,155,559 (2013: 6,205,559, 2012: 6,285,173) treasury shares held within the group
 (44,153)
     500
   4,088,974
   Share capital Unissued sharesIn terms of an ordinary resolution passed at the previous annual general meeting, the remaining unissued ordinary shares in thecompany are under the control of the directors until the next general meeting.
 Cumulative preference sharesThe terms of issue of the cumulative preference shares were that they carried the right, in priority to the company's ordinary shares, to receive a dividend equal to 3% of the gross future revenue generated by the exploitation or the disposal of Argonaut'smineral rights acquired from Randgold and Exploration Company Limited in September 1997. The DMR granted DRDGOLD a prospecting right over an area which was going to be too small to mine. When an application for a greater area was lodged, the DMR stated that the additional area is in an urban location and an application for a prospecting right could not be granted. Thecompany is in the process of consulting with the relevant preference shareholder to cancel these preference shares.
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 Revaluation and other reserves
  5,882
    136,587
    30,387
   172,856


F-52
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 16. EQUITY (continued)16.1 EQUITY OF THE OWNERS OF THE PARENT (continued)
    amount represented the increase in the fair value of ErgoGold's net assets after the acquisition of the group's initial interest,which is attributable to that initial interest.
 The fair value adjustment on available-for-sale investments at June 30, 2014 related to the investment in Village Main Reef Limited amounting to R1.5 million.
 The fair value adjustment on the available-for-sale investments at June 30, 2013 related to the investment in Village Main Reef Limited and amounted to R117.2 million loss. The cumulative fair value adjustment has been reclassified as an impairment through profit or loss amounting to R101.3 million.
 The fair value adjustment on the available-for-sale investments at June 30, 2012 related to the investment in Village Main Reef Limited and amounted to R11.5 million gain.
 The cumulative fair value reserve on the available-for-sale investment relating to the investment in Rand Refinery 
Proprietary Limited for FY2014 amounted to Rnil (2013: R53.2 million, 2012: R8.0 million).
   2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 DividendsThe following dividends were declared and paid by the group: 14 cents per qualifying ordinary share (2013: 24 cents and 2012: 7.5 cents)
 (53,085)
   After June 30, 2014, a dividend of 2 cents per qualifying share (R7.7 million) was approved by the directors as a final dividendfor FY2014. The dividend has not been provided for and does not have any tax impact on the company. Dividend withholding tax is levied at 15% (2013: 15%, 2012: 15%) (certain exemptions apply) and will be withheld from the dividend depending on the classification of the beneficial owner of the relevant share.


F-53
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 16. EQUITY (continued)16.2 NON CONTROLLING INTEREST
   2014
 2013 Restated
 EMO
 1
 Intra-group
 elimination
 Total
 EMO
 1
 Intra-group
 eliminations
 Total
 and
 and
 consolidation
 consolidation
 entries
 entries
 R’000
 R’000
 R’000
 R’000
 R’000
 R’000
 NCI percentage
 26%
   1 940 218
   263 818
   575 498
   1 012 419
   616 119
   160 191
 71 949
 232 140
     1 809 434
   (34 290)
   (6 745)
   (41 035)
   (8 915)
 –
 (8 915)
     (1 754)
 –
 (1 754)
     132 970
   (168 118)
   (17 006)
   (52 154)
   –
  1
 Ergo Mining Operations Proprietary Limited (EMO)
 Roll-up of Non-Controlling InterestKhumo Gold SPV Proprietary Limited (Khumo) and the DRDSA Empowerment Trust, DRDGOLD’s Black Economic Empowerment (BEE) partners, currently hold their respective investments of 20% and 6% in Ergo Mining Operations Proprietary Limited (EMO).
 During March 2014 these BEE partners signed an agreement with DRDGOLD to sell their shares in EMO to DRDGOLD for a total consideration of 45.5 million new shares issued by DRDGOLD at a value of R191.1 million. This agreement was approved at a general meeting of the shareholders on June 27, 2014.
 The transaction will become effective when the last suspensive condition, being the Section 102 approval by the Department of 
Mineral Resources (DMR) has been met.
 The successful implementation of the transaction will result in the streamlining and simplification of DRDGOLD’s corporate and financial reporting structures and EMO will be fully consolidated into DRDGOLD’s financial results.


F-54
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 R’000
 R’000
 17. PROVISION FOR ENVIRONMENTAL REHABILITATION
  524,323
   10,166
   38,019
   (14,170)
   (86,605)
   (20,530)
   451,203
  Amounts have been contributed to irrevocable trusts and guarantees have been provided to the DMR (refer to note 10 and note 26).
 The company intends to fund the ultimate rehabilitation costs from the money invested with the trust funds together with the Guardrisk Cell Captive as well as, at the time of mine closure, the proceeds on sale of remaining assets and gold from plant clean-up. The rehabilitation is expected to occur progressively towards the end-of-life of the respective dumps mined.
 Movement in provision for environmental rehabilitationA benefit to profit or loss amounting to R86.6 million was recognised resulting from a decrease in the estimated cost to rehabilitate. This is based on the implementation of a different technique to vegetate the Crown complex as well as the increased use of “grey water” in rehabilitation. An updated survey and work performed during the year resulted in a decrease of the area to be vegetated.


F-55
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 18. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS
 2014
 2013
 Restated
 R’000
 R’000
 Non-current post-retirement and other employee benefitsLiability for post-retirement medical benefits (a)
 6,657
   2,618
  9,275
  Current post-retirement and other employee benefitsLiability for long term employee incentive scheme (b)
 1,958
  1,958
  Contribution funds
 The group participates in a number of multi-employer, industry-based retirement plans. All plans are governed by the Pension Funds Act, 1956.
 The group pays fixed contributions to external institutions and has no legal or constructive obligation to pay further amounts.
 2014
 2013
 Restated
 R’000
 R’000
    (19,611)
  (a) Post-retirement medical benefits
 A provision for post-retirement medical benefits has been raised, based on the latest calculations using a projected unit creditmethod, of independent actuaries performed as at June 30, 2012. Post-retirement medical benefits are actuarially valued every three years. The obligation is unfunded.
 2014
 2013
 Restated
 R’000
 R’000
   6,322
   84
   (261)
   512
   6,657
    (84)
   (512)
  (596)
  Principal actuarial assumptions at June 30, are:Health care cost inflation
 7.8%
   8.8%
   0.9%
   60
   60.3
   3 years
   100%
   85%


F-56
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 18. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
  Variation
 Health care cost
 inflation
 Mortality
 Resignation
 rate
 100 bp
 R’000
 R’000
 R’000
                      (b) Liability for long term employee incentive scheme
 2014
 2013
 Restated
 R’000
 R’000
  3,349
   2,821
   (1,594)
   4,576
   (1,958)
  Long term portion of employee incentive scheme
 2,618
  DRDGOLD Phantom Share Scheme
 i) Details of the DRDGOLD phantom share schemeThe company operates a phantom share scheme, DRDGOLD Phantom Share Scheme, (the Phantom Share Scheme), as an incentive tool for its executive directors and senior employees whose skills and experience are recognised as being essential to the company’s performance. The Phantom Share Scheme was introduced during FY2013 and is classified as cash settled. In terms of the Phantom Share Scheme rules, 50% of the phantom share granted will be valued based on the group meeting certain pre-determined performance criteria and the remaining 50% to defined retention periods of which the maximum incentive pay-out per annum to any single employee may not exceed 75% of that employee’s gross remuneration package. The participants in the scheme are fully taxed at their marginal tax rate on any gains realised on the exercise of their options.
 The phantom share granted has a zero base value however, the number of options granted is determined by price in respect of each share which is the subject of the option, the volume weighted average price of a share on the JSE for the seven days on which the JSE is open for trading, preceding the day on which the employee is granted the option. The allocation date will be the date when the directors approve allocation of share options. Each option remains in force until the date of vesting, subject to the terms of the option plan.
 Phantom shares granted under the Phantom Share Scheme vest primarily according to the following schedule over a maximum of a three year period:
 Percentage vested in each period grant:
 Period after the original date of grant of the option:


F-57
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 18. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 Phantom share scheme (continued)
 ii) Share option activity: DRDGOLD Phantom Share Scheme
 Outstanding
 Number of
 shares
 Average price
 per share R
 Balance at June 30, 2012
 -
     Balance at June 30, 2013
 3,019,549
 3.90
          Balance at June 30, 2014
 3,706,102
 2.64
 Phantom shares granted are initially measured at fair value on grant date and subsequently on each reporting date. This fair value is recognized as an employee expense over the vesting period, adjusted to reflect actual levels of vesting, with the corresponding credit to an employee benefit liability, which is part of non-current and current liabilities.
 Analysis of phantom share options:
 Year granted
 Years
 Unvested
 to expiry
 June 30, 2015
 June 30, 2016
 June 30, 2017
           Total
 1,368,717
 1,592,821
 744,564
 2014
 2013
 iii) The fair value of the DRDGOLD phantom shares are determined using the Black - Scholes option valuation model
  Market price at date of grant (rand per share)
  6.08
   5.10
  Vesting periods (years)
  3
   3
  Volume weighted average price at date of grant (Rand per share)October 31, 2012 grant
 6.20
   4.98
  Volume weighted average price at financial year end (Rand per share)October 31, 2012 grant
 3.16
   3.16
  Average risk-free rate
  6.27%
   6.68%
  Average volatility
 (1)
  18%
   22%


F-58
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 18. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 Phantom share scheme (continued)
 2014
 2013
 iv) The performance criteria of the phantom shares determined  against the group performance:
 Return on equity (minimum required)
  15%
 15%
  15%
 -
 Headline earnings per share (minimum required) (cent per share)
 
  0.25
 0.64
  0.25
 -
 Share price performance (minimum required) (JSE index)October 31, 2012 grant
 J150
 J150
  J150
 -
 Free cash flow margin (minimum required)
 
  10%
 10%
  10%
 -
 (1)
 The volatility is measured at the standard deviation of the expected share price returns and is based on statistical analysis of daily share prices over the last three years.
 Share option scheme
 i) Details of the DRDGOLD (1996) share scheme
 During FY2013, the company introduced a new incentive tool called the DRDGOLD Phantom Share Scheme which will replace the Share Option Scheme and no new share options will be granted under the replaced scheme.
 During the year ended June 30, 2014 the company made an offer to buy-out only the share options that have vested at the date ofthe offer. This offer was made at fair value based on the Black-Scholes option valuation model amounting to R2.7 million (2013:R24.1 million) and was accepted by all the participants.
 The rules of the DRDGOLD (1996) share scheme do not grant employees the choice of settlement of their vested share options in cash or equity instruments. Communications with the participants regarding the buy-out were unambiguous in stating that no further offer to buy out share options, whether vested or unvested, were promised in the future.
 No intention currently exists to make any further offers to buy out any share options, whether vested or unvested. As a result noconstructive obligation for further buy outs of share options exist for which the recognition of a liability is required. Any options not exercised within a period of five years (issued prior to 2009: 10 years) from the original date of granting theoption will expire and may not thereafter be exercised.


F-59
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 18. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 Share option scheme (continued)
 ii) Share options activity DRDGOLD (1996) Share Scheme:
 Outstanding
 Average  price per
 Number of
 share
 shares
 R
          Balance at June 30, 2013
 3,655,357
 6.68
       Balance at June 30, 2014
 1,238,028
 5.96
 Options to acquire the company’s ordinary shares that were granted post November 7, 2002 and which remain unvested at January 1, 2005, are measured at fair value at grant date. This fair value is recognized as an employee expense over the vestingperiod, adjusted to reflect actual levels of vesting, with the corresponding credit to a revaluation and other reserve, which is part of equity.
 Analysis of share options:
 Range of exercise prices
 Years
 Vested
 Unvested
 to expiry
 June 30, 2014
 June 30, 2015
             Total
 279,778
 958,250
 2014
 2013
 iii) The fair value of the options of the DRDGOLD (1996) share scheme are determined 
  using the Black - Scholes option valuation model.
  Market price at date of grant (rand per share)
  3.66
   5.26
  Vesting periods (years)
  3
   3
  Option strike price (rand per share)October 18, 2010 option grant
 3.69
   5.12
  Risk-free rate
  6.74%
   6.75%
  Volatility
 (1)
  31%
   34%
  (1) The volatility is measured at the standard deviation of the expected share price returns and is based on statistical analysis of daily share prices over the last
 three years.


F-60
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 19. DEFERRED TAX
 2014
 2013
 Restated
 R’000
 R’000
  Deferred tax assetProperty, plant and equipment
        Deferred tax liabilityProperty, plant and equipment
              Reconciliation between deferred taxation opening and closing balancesOpening balance
 (103,533)
   -
   -
   (11,127)
   (937)
   (7,778)
   -
   (2,412)
   (114,660)
  The group provides for deferred tax at the rates which are expected to apply for temporary differences. The group uses the expected average effective tax rates, resulting from the mining tax formula for mining income based on forecasts per individualentity. If a one percentage point increase in the effective tax rate is applied the deferred tax liability would amount to R122.3million compared to the current R116.0 million (refer note 7).
 Deferred tax assets have not been recognised in respect of tax losses of R38.6 million (2013: R24.1 million), unredeemed capitalexpenditure of R292.0 million (2013 Restated: R295.2 million) and capital losses of R258.6 million (2013: R260.3 million).
 The deferred tax relating to the company’s investment in subsidiaries and equity accounted investments is Rnil (2013: Rnil) because these investments are to be realised through dividend distributions which are exempt under current tax legislation. As aresult there are also no temporary differences.


F-61
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 20. LOANS AND BORROWINGS
 2014
 2013
 Restated
 R’000
 R’000
 UnsecuredDomestic Medium Term Note Programme
 148,695
  148,695
   (73,195)
  75,500
  Loans and borrowings expected repayment schedule for capital amounts payable inthe 12 months to:June 30, 2014
 -
   73,195
   75,500
  148,695
  Analysis of gross loans and borrowings by currency:South African Rand
 148,695
  Effective interest rates: Unsecured liabilities
  8.9%-10.6%
  During June 2012 the group entered into a Domestic Medium Term Note Programme (DMTN Programme) with ABSA Capital, a division of ABSA Bank Limited, under which DRDGOLD may from time to time issue notes and R165 million was raised in total during July 2012 and September 2012. The different notes issued mature 12 (R20.0 million), 24 (R69.5 million) and 36 (R75.5 million) months from the date of issue and bear interest at the three-month Johannesburg Inter-bank Acceptance Rate (JIBAR) plus a margin ranging from 4% to 5% a year.
 The DMTN Programme is unsecured but does have certain covenants attached to it regarding acquiring additional indebtedness, significant disposal of assets and in the form of a guarantor coverage threshold. During FY2013, the group settled the last unsecured notes issued under the previous DMTN Programme which had a 24-month term and carried interest at the three-month JIBAR plus 5%.


F-62
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 21. CASH GENERATED BY OPERATIONS
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
  (37,175)
   Adjusted for:
 
  159,999
    (86,605)
    8,828
    56,591
    (992)
    3,341
    (2,172)
    313
    -
    335
    -
    (27,980)
    52,295
    126,778
   Working capital changes
 (39,394)
    (15,233)
    (17,170)
    (6,991)
   Cash generated by operations
 87,384
   22. CASH FLOW ON DISPOSAL OF SUBSIDIARIES, NET OF CASH DISPOSED
 Total net cash flow on disposal of subsidiary
  -
   -
   Disposal of BlyvoorOn June 1, 2012, DRDGOLD disposed of its 74% shareholding in and loan claims against Blyvoor.
   -
    -
    -
    -
    -
    -
    -
    -
    -
    -
    -
    -


F-63
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 23. CASH AND CASH EQUIVALENTS
 Included in cash and cash equivalents is restricted cash of 
  R13.5 million (2013: R13.0 million, 2012: R20.6 million) in the form of guarantees. An overdraft facility of R100 million is available to the group.
  39,683
    169,249
   208,932
   2014
 2013
 Restated
 R’000
 R’000
 24. COMMITMENTS AND CONTINGENT LIABILITIES
 Capital commitmentsContracted for but not provided for in the financial statements
 3,255
   32,979
  36,234
  This capital expenditure will be financed from existing cash resources, cash generated from operations and negotiated funding facilities.
 Operating lease commitmentsThe group leases its office building in terms of an operating lease. The group does not have an option to acquire the building at the termination of the lease. There is an escalation of 8% per annum imposed by the lease agreement.
 Ergo leases its vehicles under various operating leases. There is an average escalation of 2.5% per annum imposed by these leaseagreements.
   2,110
   1,780
  Financing lease commitmentsDuring FY2014 the group entered into an agreement for the supply of temporary power generation equipment and services. The lease term will commence during October 2014 for a term of five years at a fixed monthly payment. The group has the option to acquire the equipment at the termination of the lease.
    3,978
   32,410


F-64
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued)
 Contingent liabilities
 EnvironmentalAt Durban Roodepoort Deep mine, rehabilitation and other responsibilities like the National Nuclear Regulator Certificate of Registration requirements have been taken over by DRD Proprietary Limited (a subsidiary of Mintails South Africa Proprietary Limited (Mintails SA)). A liability transfer on the prescribed form in terms of section 43(2) of the MRPDA was submitted to theDMR in July 2010. The DRD Village was sold to a property developer (Dino Properties Proprietary Limited (Dino Properties)). The DRD Village was registered at the Deed Office into the name of Dino Properties on October 16, 2012. The legal transfer of the liability would be dependent on the DMR’s assessment of inter alia Mintail SAs financial capability. DRDGOLD therefore still has a contingent liability until such legal transfer is effected, amounting to R63.4 million less the trust fund amount of R26.8 million. We are still awaiting approval of the transfer of environmental liabilities from the DMR.
 Mine residue deposits may have a potential pollution impact on ground water through seepage. The group has taken certain preventative actions as well as remedial actions in an attempt to minimise the group’s exposure and environmental contamination.
 The flooding of the western and central basins have the potential to cause pollution due to Acid Mine Drainage (AMD) contaminating the ground water. The government has appointed Trans-Caledon Tunnel Authority (TCTA) to construct a partial treatment plant to prevent the ground water being contaminated. TCTA completed the construction of the neutralisation plant forthe Central Basin and commenced treatment during July 2014. As part of the Heads of agreement signed in December 2012 between EMO, Ergo, ERPM and TCTA, sludge emanating from this plant is co-disposed onto the Brakpan TSF. Partially treated water is then discharged by TCTA into the Elsburg Spruit.
 While these heads of agreement should not be seen as an unqualified endorsement of the State’s AMD solution, and do not affect our right to either challenge future directives or to implement our own initiatives should it become necessary, they are an encouraging development. In particular, if the spirit of cooperation that led to its conclusion is taken into the implementation and management of the project, this initiative has every chance of success.
 DRDGOLD, through its participation in the Western Utilities Corporation initiative, provided the government with a solution fora sustainable long-term solution to AMD. This solution would have been at no cost to the mines and government. In view of the limitation of current information for the accurate estimation of a potential liability, no reliable estimate can be made for thepossible obligation.
 Occupational health - SilicosisIn January 2013 DRDGOLD, ERPM and 23 other mining companies were served with a court application for a class action issued in the South Gauteng High Court by alleged former mineworkers and dependants of deceased mineworkers. In the pending application the applicants allege that DRDGOLD, ERPM and other mining companies conducted underground mining operations in such a negligent manner that the former mineworkers contracted silicosis. The applicants have not yet quantified the amountswhich they would like the mining companies to pay as damages.
 DRDGOLD and ERPM have instructed Malan Scholes Attorneys to defend the case. The companies are currently gathering information in preparation for the matter. An answering affidavit opposing the application for the certification of a class actionwas filed with the High Court on June 24, 2014.
 Taking into account that the silicosis claim is still at certification stage and should anyone bring similar claims against DRDGOLD or any of its subsidiaries in future, those claimants would need to provide evidence proving that silicosis was contracted while in the employment of the company and that it was contracted due to negligence on the company’s part. The link between the cause (negligence by the company while in its employ) and the effect (the silicosis) will be an essential part of anycase. It is therefore uncertain as to whether the company will incur any costs related to silicosis claims in the future and due to the limited information available on any claims and potential claims and the uncertainty of the outcome of these claims, no reliableestimation can be made for the possible obligation.
 Dispute with the Ekurhuleni MunicipalityThe Ekurhuleni Municipality has brought an action against ERPM claiming an amount of R42.0 million in respect of outstanding rates and taxes which are allegedly owing. As at June 30, 2014, the difference between the invoiced amount and ERPM’s calculations amounted to R55.8 million. ERPM has employed experts to investigate the allegations and it appears that this claimis unfounded. ERPM is defending this action and has employed Norton Rose Attorneys to represent it. There are sufficient defences to repel the claim, therefore an outflow of resources is remote.


F-65
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS
 OverviewThe group has exposure to credit risk, liquidity risks, as well as other market risks from its use of financial instruments. This note presents information about the group’s exposure to each of the above risks, the group’s objectives and policies and processes for measuring and managing risk. The group’s management of capital is disclosed in note 27. Further quantitative disclosures are included throughout these consolidated financial statements.
 Risk management frameworkThe board of directors (board) has overall responsibility for the establishment and oversight of the group’s risk management framework. The board has established the Audit and Risk Committee, which is responsible for developing and monitoring the group’s risk management policies. The committee reports regularly to the board on its activities.
 The group’s risk management policies are established to identify and analyse the risks faced by the group, to set appropriate risklimits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly toreflect changes to market conditions and the group’s activities. The group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles andobligations.
 The Audit and Risk Committee oversees how management monitors compliance with the group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the group. The Audit and Risk Committee is assisted in its oversight role by the internal audit function. The internal audit function undertakes bothregular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit and Risk Committee.
 CREDIT RISK
 Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial instrument fails to meet itscontractual obligations, and arises principally from the group’s receivables from customers and investment securities.
 The group’s financial instruments do not represent a concentration of credit risk, because the group deals with a variety of major banks and financial institutions located in South Africa after evaluating the credit ratings of the representative financial institutions. Furthermore, its trade receivables and loans are regularly monitored and assessed for recoverability. Where it isappropriate an impairment loss is raised.
 In addition, the group’s operations all deliver their gold to Rand Refinery Proprietary Limited (Rand Refinery), which refines the gold to saleable purity levels and then sells the gold, on behalf of the South African operations, on the bullion market. The gold is usually sold by Rand Refinery on the same day as it is delivered and settlement is made within two days.


F-66
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 CREDIT RISK (continued)
  Carrying
 Carrying
 value
 value
 2014
 2013
 Restated
 R'000
 R'000
 Financial assets
  34,097
   171
   2,592
   82,848
   75,826
   208,932
  404,466
   Carrying
 Carrying
 value
 value
 2014
 2013
 Restated
 R'000
 R'000
  25,630
   2,992
  Other receivables, including disposal of property debtors(refer note 14)
 47,204
  75,826
   Gross
 Impair-
 Gross
 Impair-
 value
 ment
 value
 ment
 2014
 2014
 2013
 Restated
 2013
 Restated
 R'000
 R'000
 R'000
 R'000
                           Impairment Impairment
 2014
 2013
 Restated
 R'000
 R'000
  (6,360)
   (621)
   (6,981)


F-67
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 LIQUIDITY RISK
 Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group’s reputation.
 The group ensures that it has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such asnatural disasters.
 Unless otherwise stated, the following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:
 Carrying
 Contractual
 6
 months
 amount
 cash flows
 or less
 6 - 12 months
 2 - 5 years
 R’000
 R’000
 R’000
 R’000
 R’000
 June 30, 2014
 Unsecured
 Domestic Medium Term Note Programme
 148,695
 (156,863)
 (75,358)
 (4,000)
 (77,505)
  182,136
 (182,136)
 (182,136)
 -
 -
 330,831
 (338,999)
 (257,494)
 (4,000)
 (77,505)
 June 30, 2013 Restated
 Unsecured
 Domestic Medium Term Note Programme
            357,892
 (379,107)
 (218,408)
 -
 (160,699)
 MARKET RISK
 Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the group's income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing returns.
 Commodity price sensitivity
 The profitability of the group's operations, and the cash flows generated by those operations, are affected by changes in the market price of gold which is predominantly sold in US Dollars. DRDGOLD does not enter into forward sales, derivatives or other hedging arrangements to establish a price in advance for the sale of future gold production.


F-68
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 MARKET RISK (continued)
 Interest rate risk
 Fluctuations in interest rates impact on the value of short-term cash investments and financing activities, giving rise to interest rate risks. In the ordinary course of business, the group receives cash from its operations and is obliged to fund working capital and capital expenditure requirements. This cash is managed to ensure surplus funds are invested in a manner to achieve maximum returns while minimizing risks. Funding deficits for the group's mining operations have been financed through external borrowings. Lower interest rates result in lower returns on investments and deposits and also may have the effect of making it less expensive to borrow funds at then current rates. Conversely, higher interest rates result in higher interest payments on loans and overdrafts.
  Carrying
 Carrying
 value
 value
 2014
 2013
 Restated
 R’000
 R’000
 Variable interest rate instrumentsFinancial assets
 291,780
   (148,695)
  143,085
  Cash flow sensitivity analysis for variable rate instruments:
 A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.The analysis is performed on the same basis for 2013.
 2014
 2013 Restated
 Equity and profit or (loss)
 Equity and profit or (loss)
 100 bp
 100 bp
 100 bp
 100 bp
 increase
 decrease
 increase
 decrease
 June 30
 R’000
 R’000
 R’000
 R’000
  1,431
 1,431
 (1,431)
 (1,431)


F-69
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 MARKET RISK (continued)
 Foreign currency risk
 The group’s reporting currency is the South African Rand. Although gold is sold in US Dollars, the company is obliged to convertthis into South African Rand. The company is thus exposed to fluctuations in the US Dollar/South African Rand exchange rate. The company conducted its operations in South Africa during the current year. Foreign exchange fluctuations affect the cash flowthat it will realise from its operations as gold is sold in US Dollars, while production costs are incurred primarily in South African rands. The company’s results are positively affected when the US Dollar strengthens against the Rand and adversely affected when the US Dollar weakens against the Rand. The group does not hedge against foreign currency fluctuations and considers the  risk to be low due to foreign currency normally being disposed of on the same day. The group is also exposed to certain by-product commodity price risk. The company’s cash and cash equivalent balances are held in South African rands; holdings denominated in other currencies are relatively insignificant.
  2014
 2013
 Restated
  USD’000
 USD’000
  2,423
   2,423
   Spot rate at year end
 Average rate
  2014
 2013
 2014
 2013
  10.5784
  10.3706
  Sensitivity analysis
 A 10 % strengthening of the Rand against the currencies mentioned at June 30, would have increased/(decreased) equity and profit/(loss) by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2013.
 Impact
 2014
 2013
 Restated
  R’000
 R’000
  (2,563)
   (2,563)
  A 10% weakening of the Rand against the above currencies at June 30, would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.


F-70
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 MARKET RISK (continued)
 Other market price risk
 Equity price risk arises from available-for-sale equity securities fair value adjustments accounted for in other comprehensive income. Investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Risk Committee when significant.
 The following table represents the carrying amounts and net gain/(loss), finance income and finance expense recognised in profitor loss and / or equity as well as other comprehensive income per category of financial instruments at June 30:
 Carrying
 value
 Equity and
 profit / (loss)
 Carrying
 value
 Equity and
 profit / (loss)
 2014
 2014
 2013
 Restated
 2013
 Restated
 R'000
 R'000
 R'000
 R'000
 Financial assetsAvailable-for-sale financial assets
 34,268
 (98,540)
    370,198
 20,358
   404,466
 (78,182)
   Financial liabilitiesFinancial liabilities measured at amortized cost
 330,831
 (14,276)
   330,831
 (14,276)


F-71
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 FAIR VALUE OF FINANCIAL INSTRUMENTS
 The following table represents the carrying amounts and fair values of the group's financial instruments at June 30: The classification of the group’s financial instruments are discussed on page F-70.
 Carrying
 Fair
 Carrying
 Fair
 value
 value
 value
 value
 2014
 2014
 2013
 Restated
 2013
 Restated
 R’000
 R’000
 R’000
 R’000
 Financial assets measured at fair value
 34,268
 34,268
    34,097
 34,097
    171
 171
   Financial assets measured at amortised cost
 370,198
 370,198
    2,592
 2,592
   Investments in environmental rehabilitation trust funds (refer note 10)
 82,848
 82,848
    75,826
 75,826
    208,932
 208,932
   404,466
 404,466
   Financial liabilities measured at amortised cost
  330,831
 330,831
    75,500
 75,500
    73,195
 73,195
    182,136
 182,136
   330,831
 330,831
   Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
 Financial instruments measured at fair value
  Listed investmentsThe fair value of listed investments is determined by reference to published price quotations from recognised securities exchanges and adjusted with a discount factor for any liquidity constraints where appropriate.
 Unlisted investmentsThe valuations are based on the net asset values of these investments and constitute the investments’ fair value as most of theassets in these investment companies are carried at fair value. The valuations have been compared to recent transactions in theunderlying investment with external parties.
 Financial instruments measured at amortised cost
 The group applied the discounted cash flow valuation technique in the measurement of loans and receivables as well as financialliabilities measured at amortised cost. No significant unobservable inputs are used in this measurement.
 Loans to black empowerment entitiesThe fair value of these loans cannot be reliably estimated due to the unavailability of market information.
 Cash and cash equivalents and investments in environmental trust fundsThe carrying value of cash and cash equivalents approximates their fair value due to the short-term maturity of these deposits.The carrying value of the environmental trust funds approximate their fair value due to these investments being cash in nature.
 Trade and other receivablesThe fair value approximates the carrying value due to their short-term maturities.


F-72
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 FAIR VALUE OF FINANCIAL INSTRUMENTS(continued)
 Loans and borrowingsThe loan bears interest at the three month Johannesburg Inter-bank Acceptance Rate plus a margin ranging from 4% to 5% a year. Fair value is calculated by reference to quoted prices for floating interest instruments.
 Trade and other payablesThe fair value approximates the carrying value due to their short-term maturities.
 FAIR VALUE HIERARCHY
 The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
    Level 2: inputs other than quoted prices included within Level 1 that are observed for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
   Level 1
 Level 2
 Level 3
 Total
 R'000
 R'000
 R'000
 R'000
 June 30, 2014Available-for-sale financial assets
  30,079
 4,000
 -
 34,097
  -
 -
 171
 171
 30,079
 4,000
 171
 34,268
 June 30, 2013 RestatedAvailable-for-sale financial assets
    -
   -
 -
       The group applied the following unobservable inputs in the measurement of the fair value of Level 2 and Level 3 financial instruments:
 2014
 2013
 Level 2     Discount rate
 50%
  Constraints on liquidity resulting from escrow agreement (refer note 10) Level 3     Other inputs
 Refer note 4


F-73
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 25. FINANCIAL INSTRUMENTS (continued)
 FAIR VALUE HIERARCHY (continued)
  2014
 2013 Restated
 Level 2
 Level 3
 Level 2
 Level 3
 R'000
 R'000
 R'000
 R'000
 Available-for-sale financial assets
  4,500                      93,484
  -
 7
    200
 (53,140)
    (700)
 (40,180)
    -
 -
   Balance at end of year
 4,000
 171
    (700)
 (40,180)
   Gain/(loss) recognized in other comprehensive income
 200
 (53,140)
   Fair value adjustment recognized in other comprehensive income
 200
 (53,140)
    -
 -
    The available-for-sale financial assets Level 2 comprises investments in listed shares which are held in escrow (refer note 11).The available-for-sale financial assets Level 3 comprises investments in unlisted shares for which no reasonable alternative measure for fair value is available. Therefore no sensitivity analysis has been prepared.
 26. RELATED PARTY TRANSACTIONS
 2014
 2013
 Restated
 2012
 Restated
 R’000
 R’000
 R’000
 Key management personnel remuneration (excluding directors)
 Short-term benefits  Salaries, bonuses and performance payments
 68,939
   Long service awards  Share-based payment expense
 3,341
    261
   72,541
   Directors' remuneration
 Short-term benefits  Salaries, bonuses and performance payments
 14,736
   Long service awards  Share option scheme gains
 308
       15,044
   The group has related party relationships with its subsidiaries, equity accounted investments and with its directors and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) of the company.  During FY2014, nil (2013: 62,614 and 2012: 3,584,627) treasury shares were used to settle share options exercised by key management personnel.
 Post-retirement medical benefits and long-term employee incentive scheme balances for key management personnel as at June 30, 2014 amounts to R6.7 million (2013: R6.3 million and 2012: R6.0 million) and R2.6 million (2013: R2.3 million and 2012: Rnil), respectively.


F-74
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 26. RELATED PARTY TRANSACTIONS (continued)
 Prior to the awarding of a contract to a related party for the supply of goods and services the group procurement manager reviews both the pricing, quality and the reliability of that party. The contract terms are compared to similar suppliers of goods and services to ensure that the contract is on market related terms.
 The company’s executive directors review the terms and conditions of all loans to ensure that the terms of the loans are similar to those offered by financial institutions.
 TRANSACTIONS WITH SUBSIDIARIES AND EQUITY ACCOUNTED INVESTMENTS
 Balances outstanding at June 30, 2014• Subsidiaries (refer note 11) • Equity accounted investments including associates and joint ventures (refer note 12).
 Transactions during the year:During FY2014, DRDGOLD earned:  • management fees from Ergo Mining Operations Proprietary Limited (EMO) amounting to R21.9 million (2013: R25.1 million
   Limited amounting to R28.5 million (2013: R32.2 million and 2012: Rnil) and from Blyvoor amounting to Rnil (2013: Rnil and 2012: R2.6 million), respectively.
 During FY2014, EMO disposed of 50 000 (2013: nil, 2012: nil) ordinary shares in the company (held as treasury shares for consolidation purposes) to D J Pretorius at market value. As at June 30, 2014, EMO held 6,155,559 (2013: 6,205,559 and 2012: 6,268,173) treasury shares. During the year ended June 30, 2014, EMO acquired nil (2013: nil and 2012: 9,852,800) ordinary shares (held as treasury shares for consolidation purposes) in the company.
 TRANSACTIONS WITH OTHER ENTITIES IN WHICH AN OWNERSHIP INTEREST IS HELD
 Guardrisk Insurance Company Limited (Guard Risk)During FY2014 Ergo paid insurance premiums to the Guardrisk Cell Captive amounting to Rnil (2013: R21.0 million and 2012: R41.8 million by ERPM and R21.0 million by Ergo). Guardrisk issued environmental guarantees to the DMR amounting to R305.7 million (2013: R305.7 million, 2012: R305.7 million) relating to the environmental liabilities (note 17). These guarantees are funded by the assets in Guardrisk Insurance Company Limited (Cell Captive) (refer note 10).
 Rand Refinery Proprietary Limited (Rand Refinery)The group has entered into an agreement with Rand Refinery, for the refining and sale of all of its gold produced in South Africa. Under the agreement, Rand Refinery performs the final refining of the group’s gold and casts it into troy ounce bars. Rand Refinery then sells the gold on the same day as delivery, for the London afternoon fixed price on the day the gold is sold. In exchange for this service, the group pays Rand Refinery a variable refining fee plus fixed marketing, loan and administration fees.
 Mr Gwebu, executive: legal, compliance and company secretary of DRDGOLD, was a director of Rand Refinery and a member of its Remuneration Committee and chairman of the Social and Ethics Committee until 3 September 2014 when he resigned as director. Mr Charles Symons was nominated to replace him as director of Rand Refinery with effect from 3 September 2014. Mr Mark Burrell who is the financial director of Ergo is an alternate director of Rand Refinery and a member of Rand Refinery’s Audit Committee.  • The group currently owns shares in Rand Refinery (which is jointly owned by South African mining companies) (refer note 10)  • Trade receivables to the amount of R25.6 million (2013: R30.4 million) relate to metals sold  • The group received a dividend of Rnil (2013: R6.8 million, 2012 R nil) from Rand Refinery.
 CONSULTANCY AGREEMENTOn June 23, 2008, EMO approved a consultancy agreement with Khumo Gold, which owns 20% of EMO and Blyvoor. The agreement provides for a monthly retainer of R0.3 million (2013: R0.2 million, 2012: R0.2 million).
 SALE OF SHARESThe non-controlling shareholders entered into an agreement with DRDGOLD for the sale of their shares in EMO (refer note 16.2).


F-75
 NOTES TO THE FINANCIAL STATEMENTS (continued)for the year ended June 30, 2014
 27. CAPITAL MANAGEMENT
 The primary objective of the board of directors (the board) in managing the group's capital is to ensure that there is sufficient capital available to support the funding requirements of the group, including capital expenditure, in a way that optimizes the cost of capital, maximizes shareholders' returns, and ensures that the group remains in a sound financial position. There were no changes to the group's overall capital management approach during the current year. The group manages and makes adjustments to the capital structure as opportunities arise in the market place, as and when borrowings mature or as and when funding is required. This may take the form of raising equity, market or bank debt or hybrids thereof.
 The board monitors the return on capital, which the group defines as net operating income divided by total shareholders' equity,excluding non-redeemable preference shares and non-controlling interest from continuing operations, and seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The board decides the level of dividends to ordinary shareholders.
  2014
 2013 Restated
 R’000
 R’000
  959,535
   (208,932)
  Net liabilities
 750,603
  Total equity
 1,481,211
  Net debt to equity ratio at June 30
 0.51
  28. SUBSEQUENT EVENTS
 There were no significant subsequent events between the year-end reporting date of June 30, 2014 and the date of issue of thesefinancial statements, except as outlined below:
 On July 25, 2014, DRDGOLD announced that its subsidiaries Ergo Mining Operations Proprietary Limited (EMO) and East Rand Proprietary Mines Limited (ERPM) collectively had entered into an agreement to dispose of certain underground mining and prospecting rights held by ERPM, and certain other assets on the related mining areas, for an agreed consideration of R220 million. The carrying values of these assets and their related liabilities as at June 30, 2014 are outlined in note 15.
 This agreement is subject to a number of suspensive conditions including regulatory consent and permission which had not been fulfilled at the date of this report.


101
 ITEM 19. EXHIBITS
   (1)
    (7)
    (1)
    (2)
    (13)
    (1)
    (5)
 Indenture between DRDGOLD Limited, as Issuer, and The Bank of New York Mellon, as Trustee, dated November 12, 2002.
  (3)
 Deposit Agreement among DRDGOLD Limited, The Bank of New York Mellon as Depositary, and owners and holders of American Depositary Receipts, dated as of August 12, 1996, as amended and restated as of October 2, 1996, as further amended and restated as of August 6, 1998, as further amended and restated July 23, 2007.
  (4)
    (4)
    (5)
    (6)
 Term Sheet concluded between DRDGOLD Limited and Khumo Bathong Holdings Proprietary Limited (KBH), dated July 6, 2005.
  (6)
 Option Agreement entered into by and between DRDGOLD Limited and M5 Developments Proprietary Limited, dated July 21, 2005.
  (7)
 Subscription Agreement between DRDGOLD Limited and DRDGOLD South African Operations Proprietary Limited, dated November 9, 2005.
  (7)
 Share Sale Agreement between Crown Consolidated Gold Recoveries Limited and DRDGOLD South African Operations Proprietary Limited, dated November 14, 2005.
  (7)
 Subscription Agreement between DRDGOLD South African Operations Proprietary Limited and Khumo Gold SPV Proprietary Limited, dated November 18, 2005.
  (7)
 Subscription Agreement between DRDGOLD Limited and Khumo Gold SPV Proprietary Limited, dated November 18, 2005.
  (7)
 Cession Agreement between DRDGOLD Limited and Khumo Gold SPV Proprietary Limited and Khumo Bathong Holdings Proprietary Limited, dated November 18, 2005.
  (7)
 Option Agreement between DRDGOLD Limited and Khumo Gold SPV Proprietary Limited and DRDGOLD South African Operations Proprietary Limited, dated November 18, 2005.
  (7)
 Offer of Class A Preference Share between Khumo Gold SPV Proprietary Limited and East Rand Proprietary Mines Limited, dated November 18, 2005.
  (7)
 Offer of Class A Preference Share between Khumo Gold SPV Proprietary Limited and Blyvooruitzicht Gold Mining Company Limited, dated November 18, 2005.
  (7)
 Offer of Class A Preference Share between Khumo Gold SPV Proprietary Limited and Crown Gold Recoveries Proprietary Limited, dated November 18, 2005.
  (7)
 Shareholders’ Agreement between DRDGOLD Limited and Khumo Gold SPV Proprietary Limited and DRDGOLD South African Operations Proprietary Limited, dated November 24, 2005.
  (8)
 Option Exercise Agreement between DRDGOLD Limited, Khumo Gold SPV Proprietary Limited and the Trustees for the time being of the DRDSA Empowerment Trust dated October 10, 2006.
  (8)
 Class B Preference Share Subscription Agreement between DRDGOLD Limited and Khumo Gold SPV Proprietary Limited dated October 24, 2006.
  (8)
 Three Class B Preference Share Subscription Agreements between Khumo Gold SPV Proprietary Limited and Blyvooruitzicht Gold Mining Company Limited, Crown Gold Recoveries Proprietary Limited and East Rand Proprietary Mines Limited, dated October 24, 2006.
  (8)
 Three Class C Preference Share Subscription Agreements between the Trustees for the time being of the DRDSA Empowerment Trust and Blyvooruitzicht Gold Mining Company Limited, Crown Gold Recoveries Proprietary Limited and East Rand Proprietary Mines Limited, dated October 24, 2006.
  (9)
 Third Addendum to Memorandum of Agreement between AngloGold Ashanti Limited (“AGA”), Ergo Mining Proprietary Limited  (formerly called Friedshelf 849 Proprietary Limited) (“Ergo”), DRDGOLD South African Operations Proprietary (“DRDGOLD SA”) Mintails South Africa Proprietary Limited dated November 14, 2007.
  (9)
 Fifth Addendum to Memorandum of Agreement between AngloGold Ashanti Limited (“AGA”), Ergo Mining Proprietary Limited  (formerly called Friedshelf 849 Proprietary Limited (“Ergo”), DRDGOLD South African Operations Proprietary (“DRDGOLD SA”) Mintails South Africa Proprietary Limited dated May 22, 2008.
  (9)
 Mining User Contract between Crown Gold Recoveries Proprietary Limited (“Crown”), East Rand Proprietary Mines Limited (“ERPM”), Elsburg Gold Mining Joint Venture (“Elsburg JV”), Ergo Mining Proprietary Limited (“Ergo”), Ergo Uranium Proprietary Limited (“Ergo Uranium”) and Mogale Gold Proprietary Limited (“Mogale Gold”) dated August 15, 2008
  (9)
 Ergo Uranium Sale Agreement of Brakpan Plants to Ergo Mining between Ergo Uranium Proprietary Limited (“Ergo Uranium”) and Ergo Mining Proprietary Limited (“Ergo”) dated August 15, 2008.


102
  (9)
  Ergo Mining Shareholders’ Agreement between Crown Gold Recoveries Proprietary Limited (“Crown”) and Ergo Uranium Proprietary Limited (“Ergo Uranium”) dated August 15, 2008.
  (9)
  Elsburg Gold Mining Joint Venture (“Elsburg JV”) Agreement between East Rand Proprietary Mines Limited (“ERPM”) and Mogale Gold Proprietary Limited (“Mogale Gold”) dated August 15, 2008.
  (9)
  Mogale Sale of Part Venture Interest in the Elsburg Gold Mining Joint Venture (“Elsburg JV”) between East Rand Proprietary Mines Limited (“ERPM”) and Mogale Gold Proprietary Limited (“Mogale Gold”) dated September 29, 2008.
  (10)
  Heads of Agreement entered into by Mintails Limited, Mogale Gold Proprietary Limited (“Mogale Gold”), Ergo Mining Proprietary Limited (“Ergo Joint Venture”), DRDGOLD Limited (“DRDGOLD”) and East Rand Proprietary Mines Limited (“ERPM”), dated December 8, 2008.
  (10)
  Loan Facility entered into by Mintails South Africa Proprietary Limited (“Borrower”), DRDGOLD Limited (“Lender”), Mintails Limited (“Borrower’s Guarantor”), Mogale Gold Proprietary Limited (Mogale Gold”) Ergo Uranium Proprietary Limited (“Ergo Uranium”) dated December 8, 2008.
  (10)
  Subscription and shareholders’ Agreement entered into by Mintails SA Proprietary Limited (“Mintails SA”), Witfontein Mining Proprietary Limited (“Witfontein”) and Argonaut Financial Services Proprietary Limited (“Argonaut”) dated December 9, 2008.
  (10)
  (11)
  (11)
  (11)
 Facility Agreement between Investec Bank limited (“the Lender”) and DRDGOLD Limited (“the Borrower”) dated March 31, 2009. Final Heads of Agreement between Chizim Investments (Pvt) Limited (“Chizim”) and DRDGOLD Limited (“DRDGOLD”) dated December 9, 2009. Memorandum of Agreement between Ergo Uranium Proprietary Limited (“Ergo Uranium”) and East Rand Proprietary Mines Limited (“ERPM”) dated January 21, 2010. Heads of Agreement between East Rand Proprietary Mines Limited (“ERPM”) and Aurora Empowerment System Proprietary Limited (“Aurora”) dated January 22, 2010.
  (11)
  Domestic Medium Term Note Programme (“Programme”) entered into by DRDGOLD South African Operations Proprietary Limited (“Issuer”) and DRDGOLD Limited (“guarantor’) dated September 30 2010.
  (12)
  Domestic Medium Term Note ) and High Yield Programme (“DMTN Programme”)  Agreement entered into by DRDGOLD  Limited (“Issuer”)  Crown Gold Recoveries Proprietary Limited  (“Crown Gold”), East Rand Proprietary Mines Limited (“ERPM”), Ergo Mining Operations Proprietary Limited (“EMO”) )and  ABSA Bank  Limited (“ABSA”) ) dated  June 30, 2012.
  (12)
  Sale of Shares and Claims Agreement entered into by Village Main Reef Limited (“Village”), DRDGOLD Limited (“DRDGOLD”) (“Seller”), Business Venture Investments No 1557 Proprietary Limited (“Purchaser”) and Blyvooruitzicht Gold Mining Company Limited (“Blyvoor”) dated February 11, 2012.
  (12)
  Sale of Interest Agreement between DRDGOLD Limited (“DRDGOLD”) and Ergo Mining Proprietary Limited (“Ergo”) dated June 29, 2012.
  (13)
  Heads of Agreement entered into by Trans-Caledon Tunnel Authority (“TCTA’), Ergo Mining Operations Proprietary Limited (“EMO”), East Rand Proprietary Mines Limited (“ERPM”) and Crown Gold Recoveries Proprietary Limited (“CGR”) (collectively CGR, EMO and ERPM are called “the Ergo Group”) dated November 28, 2012.
  (14)
  (14)
 
 
  (14)
     (13)
   (14)
   (14)
   (14)
   (14)
   (1)
  (2)
  (3)
  333-140850
  (4)
  (5)
  (6)
  (7)
  (8)
  (9)
  (10)
  (11)
  (12)
  (13)
  (14)


SIGNATURES
 The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and
 authorized the undersigned to sign this annual report on its behalf.
 LDRDGOLD IMITED
 By:
 /s/
 D.J.
 Pretorius
 D.J. Pretorius Chief Executive Officer
 By:
 /s/ A.T. Meyer
 A.T. Meyer Acting Chief Financial Officer
 Date: October 30, 2014