PART III
 ITEM 17. FINANCIAL STATEMENTS
 Not
 applicable.
 ITEM 18. FINANCIAL STATEMENTS
 
 The following financial statements and related auditor’s reports are filed as part of this Annual Report.
 Page
 Report of the independent registered public accounting firm .............................................................................................
 F-1
 Consolidated statement of comprehensive income for the years ended June 30, 2009, 2008 and 2007 ...........................
 F-2 to F-3
 Consolidated statement of financial position at June 30, 2009 and 2008...........................................................................
 F-4
 Consolidated statement of changes in equity for the years ended June 30, 2009, 2008 and 2007.....................................
 F-5
 Consolidated statement of cash flows for the years ended June 30, 2009, 2008 and 2007................................................
 F-6
 Notes to the annual financial statements..............................................................................................................................
 F-7 to F-68


Report of the Independent Registered Public Accounting Firm
 The Board of Directors and Shareholders of DRDGOLD Limited.
 We have audited the accompanying consolidated statement of financial position of DRDGOLD Limited and subsidiaries as of June 30, 2009 and 2008, and the related consolidated statement of comprehensive income, the consolidated statement of changes in equity, and the consolidated statement of cash flows for each of the years in the three-year period ended June 30, 2009. We also have audited DRDGOLD Limited’s internal control over financial reporting as of June 30, 2009, based on criteria established in Internal Control – Integrated Framework 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 financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management’s annual 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). Those standards 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 International Financial Reporting Standards. 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 International Financial Reporting Standards, 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 subsidiaries as of June 30, 2009 and 2008, and the results of their operations and cash flows for each of the years in the three-year period ended June 30, 2009, 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, 2009, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
 /s/ KPMG Inc.KPMG Inc. Registered Accountants and Auditors Johannesburg, Republic of South Africa November 27, 2009


F-2
 DRDGOLD Limited   CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME   for the year ended June 30, 2009
   Continuing operations
 Discontinued operations
 1
 Total
  operations
   2009
 2008
 2007
 2009
 2008
 2007
 2009
 2008
 2007
 Note R'000
 R'000
 R’000
 R'000
 R'000
 R’000
 R'000
 R'000
 R'000
  1,910,738
 -
  1,910,738
   (1,834,025)
 -
  (1,834,025)
  (1,687,359)
 -
  (1,687,359)
  (99,217)
   -
   (99,217)
    (34,922)
   -
   (34,922)
   Movement in provision for environmental rehabilitation
  (19,545)
   -
   (19,545)
   Movement in gold in progress
 7,018
   -
   7,018
   Gross profit/(loss) from operating activities
 76,713
   -
   76,713
   Loss on derivative financial instruments
  -
   -
   -
    (75,138)
   -
   (75,138)
 Administration expenses and general costs
  (83,583)
  -
   (83,583)
    Results from operating activities
  (82,008)
   -
 
 (82,008)
    205,991
   -
   205,991
     (41,743)
  -
   (41,743)
 Profit/(loss) before taxation 82,240
   -
 
 82,240
    28,444
   -
   28,444
   Profit/(loss) after taxation 110,684
   -
 
 110,684
  Profit on disposal of discontinued operations
  -
   -
   -
  Profit/(loss) for the year
 110,684
   -
 
 110,684
 Attributable to:
       Equity owners of the parent
 129,124
   -
   129,124
    (18,440)
   -
   (18,440)
  Profit/(loss) for the year
 110,684
   -
 
 110,684
 Other comprehensive income, net of tax:
          Fair value adjustment on available-for-sale investment
 (1,133)
   -
   (1,133)
   Foreign exchange (loss)/gain on translation
 (606)
   -
   (606)
   Transfer of reserve on disposal of subsidiaries
 -
   -
   -
  Non-controlling interest on acquisition of subsidiary
 12,892
   -
   12,892
   Revaluation of fixed assets through acquisition of subsidiary
 180,192
   -
   180,192
   Total comprehensive income for the year
 302,029
   -
  302,029
            1
 The discontinued operations relate to the Porgera Joint Venture (disposed on August 17, 2007), Emperor (disposed on October 22, 2007) and NetGold (disposed on
 March 13, 2008.) 2 Operating costs equates to cash costs of production.


F-3
 DRDGOLD Limited   CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)   for the year ended June 30, 2009
 
 Continuing operations
 Discontinued operations
 1
 Total
 operations
 2009
 2008
 2007
 2009
 2008
 2007
 2009
 2008
 2007
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 R'000
 Attributable
 to:
 
  260,727
   -
   260,727
  41,302
   -
   41,302
  Total comprehensive income for the year
 302,029
   -
  302,029
                   Earnings per share attributable to equity owners of the parent
          Basic and diluted earnings/(loss) per share (cents)
 34
   -
   34
     1
 The discontinued operations relate to the Porgera Joint Venture (disposed on August 17, 2007), Emperor (disposed on October 22, 2007) and NetGold (disposed on
 March 13, 2008.) 2 Operating costs equates to cash costs of production.


F-4
 DRDGOLD LimitedCONSOLIDATED STATEMENT OF FINANCIAL POSITION at June 30, 2009
 2009                       
  2008
 Note
 R’000                     
  R’000
 ASSETS
 
 
 Non-current assets
 2,075,252
    1,733,219
    172,680
    4,238
    165,115
  Current assets
 550,520
    93,935
    87,960
   70
   353,555
    15,000
  Total assets
 2,625,772
  EQUITY AND LIABILITIES Equity
 1,583,979
    1,481,473
   102,506
  Non-current liabilities
 715,799
    412,454
    43,639
    194,560
    65,146
  Current liabilities
 325,994
   322,138
    2,101
   931
   824
  Total equity and liabilities
 2,625,772


F-5
 DRDGOLD Limited CONSOLIDATED STATEMENT OF CHANGES IN EQUITY at June 30, 2009
 Number
 of
 ordinary
 shares
 Number of
 cumulative
 preference
 shares
 Share capital
 and share
 premium
 R’000
 Cumulative
 preference
 share capital
 R’000
 Revaluation and
 other reserves
 1
 R’000
 Accumulated
 loss
 R’000
 Total equity of
 the owners of
 the parent
 R’000
 Non-controlling
 interest
 R’000
 Total equity
 R’000
 Balance at June 30, 2006
 320,035,078
 5,000,000
 3,761,368
 500
 280,726
 (3,260,447)
 782,147
 233,125
 1,015,272
      314,594
 314,594
      973
 973
       (7,839)
 (7,839)
       12,686
 12,686
        (961,390)
  (1,192,230)
        -
  18,515
       (36,924)
  (45,715)
        (924,466)
  (1,165,030)
 Balance at June 30, 2007
 370,341,981
 5,000,000
 4,069,096
 500
 256,488
 (4,184,913)
 141,171
 2,285
 143,456
      27,976
 27,976
      2,353
 2,353
       (1,219)
 (1,219)
       6,591
 6,591
        1,067,385
  1,126,304
      1,744
 1,744
               -
  (184,079)
       69,600
  83,571
        996,041
  1,225,068
 Balance at June 30, 2008
 376,571,588
 5,000,000
 4,098,206
 500
 207,934
 (3,062,383)
 1,244,257
 61,204
 1,305,461
  1,429,715
 6,707
 6,707
 6,707
  (433)
 (433)
 (433)
  7,873
 7,873
 7,873
  (37,658)
 (37,658)
 (37,658)
  131,603
 129,124
 260,727
 41,302
 302,029
  (1,133)
 (1,133)
 (1,133)
  (606)
 (606)
 (606)
 Non-controlling interest forming part of the acquisitionof subsidiary
 12,892
 12,892
 Revaluation of fixed assets through acquisition of subsidiary
 133,342
 133,342
 46,850
 180,192
  129,124
 129,124
 (18,440)
 110,684
 Balance at June 30, 2009
 378,001,303
 5,000,000
 4,104,480
 500
 347,410
 (2,970,917)
 1,481,473
 102,506
 1,583,979
 
   .
 The accompanying notes are an integral part of these consolidated financial statements.


F-6
 DRDGOLD Limited CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended June 30, 2009
 2009
 2008
 2007
 Note
 R’000
 R’000
 R’000
 CASH FLOWS FROM OPERATING ACTIVITIES
 
 
   1,910,738
     (1,745,805)
   Cash generated by operations
  164,933
    88,964
    4,829
    (3,605)
    (46,889)
   Net cash inflow from operating activities
 208,232
   CASH FLOWS FROM INVESTING ACTIVITIESPurchase of investments
 (6,049)
     47,467
     (345,132)
     10,816
     (277,821)
     (20,000)
     (2,700)
   Net cash (outflow)/inflow from investing activities
 
 (593,419)
   CASH FLOWS FROM FINANCING ACTIVITIESProceeds from the issue of shares
  6,707
     -
     (54,438)
    (433)
    (37,658)
     -
   Net cash outflow from financing activities
 
 (85,822)
   NET (DECREASE)/ INCREASE IN
   CASH AND CASH EQUIVALENTS
 (471,009)
    845,587
     (21,847)
   Cash and cash equivalents at the end of the year
  352,731


F-7
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES
 DRDGOLD Limited is a company domiciled in South Africa. The consolidated financial statements of the company for the year ended June 30, 2009 comprise the company and its subsidiaries, together referred to as the group and its interests in associates and jointly controlled entities.
 STATEMENT OF COMPLIANCE
 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).
  BASIS OF MEASUREMENT
  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.
 USE OF ESTIMATES AND JUDGMENTS
 The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reporting amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgment based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results may differ from these estimates.
 The estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
 The judgments that management has applied in the application of accounting policies, and the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed in note 28.
 Significant accounting policies
  Change in accounting policy


F-8
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued
 IAS 1 – Presentation of Financial Statements
 The group early adopted IAS 1 – Presentation of Financial Statements as of June 30, 2009.This standard affects the presentation of owner changes in equity and of comprehensive income. It does not change the recognition, measurement or disclosure of specific transactions and other events required by other IFRS standards.
 IFRIC 12 – Service Concession Arrangements
 The group adopted IFRIC 12 – Service Concession Arrangements as of June 30, 2008. This interpretation deals with governments which have entered into contractual service arrangements to attract private sector participation in the development, financing, operation and maintenance of such infrastructure. The group has not entered into contractual service arrangements with the government. The adoption of the interpretation did not have any effect on the financial position or performance of the group.
 IFRIC 13 – Customer Loyalty Programmes
 The group adopted IFRIC 13 – Customer Loyalty Programmes as of June 30, 2008. This interpretation addresses customer loyalty programmes which are used to provide customers with incentives to buy their goods or services. The group has not entered into customer loyalty transactions. The adoption of the interpretation did not have any effect on the financial position or performance of the group.
 IFRIC 14 – The limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
 The group adopted IFRIC 14 – The limit on a Defined Benefit Asset Minimum Funding Requirements and their Interaction as of June 30, 2008. This interpretation addresses paragraph 58 of IAS 19 which limits the measurement of a defined benefit asset to ‘the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan’ plus unrecognized gains and losses. The group has a defined contribution plan and does not have a plan asset in respect of the defined benefit plan for employees. The adoption of the interpretation did not have any effect on the financial position or performance of the group.
 IFRS 8 – Operating Segments
 The group early adopted IFRS 8 – Operating Segments retrospectively as of June 30, 2009. This standard sets out requirements for disclosure of information about an entity’s operating segments in a similar manner to the chief operating decision maker (CODM), enabling him/her to allocate resources to the segments and to assess their performance and to report, in the same vein, about the entity’s products and services, the geographical areas in which it operates, and its major customers. The standard replaced IAS 14 – Segmental Reporting and the main difference is that IFRS 8 no longer requires disclosure of primary and secondary segments but rather operating segments (or aggregations thereof) together with information about the relevant products, services and geographical areas of the operating segments. Furthermore, IFRS 8 allows an entity to disclose amounts by using different measurements from those used in the financial statements. The adoption of the standard did not have any effect on the financial position or performance of the group but does change the disclosures in the note on segmental reporting.
 New accounting standards and IFRIC interpretations
 Certain new accounting standards and International Financial Reporting Interpretations Committee (IFRIC) interpretations have been published that have various effective dates. These new standards and interpretations have not been early adopted by the group. A reliable estimate of the impact of the adoption thereof for the group cannot yet be determined for all of them, as management is still in the process of determining the impact of these standards and interpretations on future financial statements.
 At the date of authorization of these financial statements, the following standards and interpretations were in issue but not yet effective:


F-9
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued
 Standards / interpretation
 Effective date
 IFRIC 16
 Hedges of a Net Investment in a Foreign Operation
   1
 Various
 Improvements to IFRS 2008 (excluding IFRS 5 amendment)
 Annual periods commencing on or
 after January 1, 2009
 1
 IFRS 2 amended
 IFRS 2 Share-based Payment:  Vesting Conditions and Cancellations
 Annual periods commencing on or
 after January 1, 2009
 1
 IAS 23
 Borrowing Costs
 Annual periods commencing on or
 after January 1, 2009
 1
 IAS  27 & IFRS 1  amendment
 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
 Annual periods commencing on or
 after January 1, 2009
 1
 IAS 32 & IAS 1 amendment
 IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial
 Statements: Puttable Financial Instruments and Obligations Arising on Liquidation
 Annual periods commencing on or
 after January 1, 2009
 2
 IFRIC 15
 Agreements for the Construction of Real Estate
 Annual periods commencing on or
 after January 1, 2009
 2
 Amendments to IFRS 7
 Improving Disclosures about Financial Instruments
 Annual periods commencing on or
 after January 1, 2009
 1
 IFRS 3
 Business Combinations
 Annual periods commencing on or
 after July 1, 2009
 1
 IAS 27 amendment
 Consolidated and Separate Financial Statements
 Annual periods commencing on or
 after July 1, 2009
 1
 IAS 39 amendment
 Eligible hedged items
 Annual periods commencing on or
 after July 1, 2009
 1
 IFRS 5 amendment  Improvements to IFRS 2008 – IFRS 5 Non-current Assets Held for Sale and
 Discontinued Operations
 Annual periods commencing on or
 after July 1, 2009
 1
 IFRIC 17
 Distributions of Non-cash Assets to Owners
 Annual periods commencing on or
 after July 1, 2009
 1
 Various
     Annual periods commencing on or
 after July 1, 2009
 1
 Various
     Annual periods commencing on or
 after January 1, 2010
 1


F-10
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 New accounting standards and IFRIC interpretations (continued)
     BASIS OF CONSOLIDATION
 Subsidiaries
 Subsidiaries are entities controlled by the group. Control exists when the group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
 Subsidiaries with a year-end on a date other than June 30, are included in the consolidated financial statements using the most recent financial results with no more than a three-month difference if it is impracticable to prepare financial statements at the group reporting date. Adjustments are made for material transactions and events between the group and subsidiary in the intervening period.
  Associates
 Associates are those entities in which the group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the group holds between 20% and 50% of the voting power of another group. Associates are accounted for using the equity method and are initially recognized at cost. The group's investment in associates includes goodwill identified on acquisition and is presented net of any accumulated impairment losses. The consolidated financial statements include the group's share of the income and expenses and equity movements of associates, after adjustments to align the accounting policies with those of the group, from the date that significant influence commences until the date that significant influence ceases.
 When the group's share of losses exceeds its interest in an associate, the group's carrying amount of that interest is reduced to nil and recognition of further losses is discontinued except to the extent that the group has incurred legal or constructive obligations or made payments on behalf of an associate.
 Joint ventures
 Joint ventures are those entities over the activities of which the group has joint control. They are established by contractual agreement and require unanimous consent for strategic financial and operating decisions. The consolidated financial statements include the group's proportionate share of the entities' assets, liabilities, revenue and expenses, with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases.
 Transactions eliminated on consolidation
 Intra-group balances and any unrealized gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with associates and jointly controlled entities are eliminated to the extent of the group's interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.


F-11
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 FOREIGN CURRENCY
 Functional currency
 The functional currency is the currency of the primary economic environment in which the entity operates. This is determined by all companies in the group after analyzing all sources and influences of various currencies on their respective financial position and performance, in order to establish the currency with the most dominant influence as its functional currency.
 Each entity in the group has determined its own functional currency in accordance with the above process. The functional currency of the company is the South African rand.
 Foreign currency transactions
 Transactions in foreign currencies are translated to the respective functional currencies of the group entities at the foreign exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the statement of financial position date are translated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency 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 dates that the fair value was determined. Foreign exchange differences arising on translation are recognized in profit of loss, except for differences arising on the translation of available-for-sale equity instruments or a financial liability designated as a hedge of the net investment in a foreign operation, which are recognized directly in other comprehensive income.
 Foreign operations
 The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated into South African rands at the foreign exchange rates ruling at the statement of financial position date. The revenues and expenses of foreign operations are translated to South African rands at rates approximating the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are recognized in other comprehensive income and presented in a separate component of equity, namely the foreign currency translation reserve. When a foreign operation is disposed of, in part or in full, the relevant amount in the foreign currency translation reserve is transferred to profit or loss.
 Net investment in foreign operations
 Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of 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 recognized in other comprehensive income and presented in equity in the foreign currency translation reserve.
 FINANCIAL INSTRUMENTS
 Financial instruments recognized on the statement of financial position include investments, derivative financial instruments, available-for-sale financial instruments, trade and other receivables, cash and cash equivalents, long- and short-term interest-bearing borrowings, trade and other payables, convertible loan notes 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. Subsequent to initial recognition, financial instruments are measured as described below.
 Financial assets at fair value through profit or loss
 An instrument is classified at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Investments are designated at fair value through profit or loss if doing so results in more relevant information because either:
    Upon initial recognition, attributable transaction costs are recognized in profit or loss when incurred. Financial instruments at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss.


F-12
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 FINANCIAL INSTRUMENTS (continued)
 Held-to-maturity investments
 If the group has the positive intent and ability to hold debt securities to maturity, then they are classified as held to maturity. Held-to-maturity investments are measured at amortized cost using the effective interest method, less any impairment losses.
 Loans and receivables
 Loans and receivables (which includes trade and other receivables) and other non-derivative financial instruments are measured at amortized cost using the effective interest method, less any impairment losses.
 Available-for-sale financial assets
 The group's investments in equity securities and certain debt securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign exchange gains and losses on available-for-sale monetary items are recognized in other comprehensive income and presented within equity. When an investment is derecognized, the cumulative gain or loss in other comprehensive income is transferred to profit or loss.
 Cash and cash equivalents
 Cash and cash equivalents comprise cash on hand, demand deposits, and highly liquid investments with an original maturity of three months or less. Cash and cash equivalents are subsequent to initial recognition measured at amortized cost, which is equivalent to their fair value. Bank overdrafts that are repayable on demand and 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.
 Interest-bearing borrowings
 Interest-bearing borrowings (including the preference share liabilities) are subsequent to initial recognition measured at amortized cost with any difference between the initial amount and the redemption value being recognized in profit or loss over the period of the borrowings on an effective interest basis. If the group revises its estimates of payments, the carrying amount of the liability is adjusted to reflect actual and revised estimated cash flows. The carrying amount is recalculated by computing the present value of estimated future cash flows at the liability's original effective interest rate. The adjustment is recognized as income or expense in profit or loss.
 Convertible loan notes
 Convertible loan notes that can be converted to share capital at the option of the holder, where the number of shares issued does not vary with changes in their fair value, are accounted for as compound financial instruments. Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and equity components in proportion to the allocation of proceeds as explained below.
 The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion option. This fair value is determined as the present value of the future interest and principal payments, discounted at the market rate of interest applicable to similar liabilities that do not have a conversion option. The equity component is recognized initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component.


F-13
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 FINANCIAL INSTRUMENTS (continued)
 Convertible loan notes (continued)
 Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition.
 Interest, dividends, losses and gains relating to the financial liability are recognized in profit or loss. Distributions to the equity holders are recognized against equity, net of any tax benefit.
 Where the conversion feature in convertible loan notes is denominated in a foreign currency with a conversion option to convert a fixed amount of notes into a fixed number of shares denominated in the functional currency, the convertible loan notes are classified entirely as a liability.
 Trade and other payables
 Subsequent to initial recognition, trade and other payables are measured at amortized cost, using the effective interest rate method.
 PROPERTY, PLANT AND EQUIPMENT
 Owned assets
 The group's property, plant and equipment consists mainly of mining assets which comprise mining properties (including mineral rights), mine development costs, mine plant facilities and equipment and vehicles.
 Development costs which are capitalized consist primarily of expenditure that gives access to proved and probable Ore Reserves. Capitalized development costs include expenditure incurred to develop new ore bodies, to define future mineralization 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 capitalized represents the actual borrowing costs incurred (refer to accounting policy on finance costs capitalized). Mine development costs include acquired proved and probable Ore Reserves at cost at the acquisition date.
 Exploration and evaluation costs, including the costs of acquiring licenses, property and qualifying borrowing costs, are capitalized as exploration assets on a project-by-project basis pending determination of the technical feasibility and commercial viability of the project. The capitalized costs are presented as either tangible or intangible exploration assets according to the nature of the assets acquired. When a license is relinquished or a project is abandoned, the related costs are recognized in profit or loss immediately. Pre-license costs are recognized in profit and loss as incurred.
 Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses. 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 its intended use, as well as the costs of dismantling and removing an asset and restoring the site on which it was 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.
 Gains and 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 recognized in profit or loss.
 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 assets held under finance leases are accounted for in the same manner as owned property, plant and equipment.
 Subsequent costs
 The group recognizes 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 derecognized. All other costs are recognized in profit or loss as an expense as incurred.


F-14
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
 or the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 PROPERTY, PLANT AND EQUIPMENT (continued)
 Depreciation
 Depreciation of mining properties (including mineral rights), mine development and mine plant facilities relating to underground operations are computed using the units-of-production method based on estimated proved and probable Ore Reserves, which are calculated using our life of mine business plans and a gold price at the end of each financial year. Proved and probable Ore 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. The prevailing market price of gold at the end of the financial year was R154,437, R208,287 and R236,227 per kilogram for the fiscal years ended June 30, 2007, 2008 and 2009, respectively.
 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.
           INTANGIBLE ASSETS
 Acquisition and goodwill arising thereon
 Where an investment in a subsidiary, joint venture or an associate is made, any excess of the cost of acquisition over the fair value of the attributable mineral assets including value beyond proved and probable Ore Reserves and Mineral Resource and exploration properties is recognized as goodwill. In the case of negative goodwill arising from an investment, the amount is recognized in profit or loss immediately. Goodwill relating to equity accounted joint ventures and associates is included within the carrying value of the investment and tested for impairment when indicators exist.
 Goodwill relating to subsidiaries is tested annually for impairment and measured at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purposes of impairment testing.
 IMPAIRMENT
 Financial assets
 A financial asset is assessed at each reporting date to determine whether there is any objective evidence 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, the effective interest rate computed at initial recognition of these financial assets.
 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 is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income is recognized in profit or loss even though the 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.


F-15
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 IMPAIRMENT (continued)
 Available-for-sale financial assets (continued)
 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 statement of financial position date to 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 costs of production, all based on life of mine business plans. The term "recoverable minerals" means proved and probable Ore Reserves which are calculated using our life of mine business plans and a gold price at the end of each financial year. The prevailing market price of gold at the end of the financial year was R154,437, R208,287 and R236,227 per kilogram for the fiscal years ended June 30, 2007, 2008 and 2009, respectively. 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 (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. Impairment losses recognized in respect of cash-generating units are allocated to the carrying amounts of the assets in the unit (group of units) on a pro ratabasis.
 Impairment losses recognized in prior periods are assessed at each reporting date for any indications 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 carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognized.
 Exploration assets
 Exploration assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability and 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 with the determination of reportable segments.
 The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when proved and probable Ore Reserves are determined to exist. Upon determination of proved and probable Ore 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 profit or loss immediately.
 INVENTORIES
 Gold in process is measured at the lower of cost and net realizable value. Costs are assigned to gold in process on an 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. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
 Consumable stores are stated at the lower of cost and net realizable value. Cost of consumables is based on the weighted average cost principle and includes expenditure incurred in acquiring inventories and bringing them to their existing location and condition.


F-16
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 TAXATION
 Income tax expense comprises current and deferred tax. Income tax is recognized in the statement of comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
 Current taxation
 Current taxation is the expected tax payable on the taxable income for the year, using tax rates enacted, or substantively enacted, at the statement of financial position date, and any adjustment to tax payable in respect of previous years.
 Deferred taxation
 Deferred taxation is recognized using the statement of financial position liability method, providing for temporary differences between the carrying amounts of assets and liabilities for 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.
 Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, and the company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
 A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. 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 realized.
 Additional income taxes that arise from the distribution of dividends, such as secondary tax on companies, are recognized at the same time as the liability to pay the related dividend is recognized.
 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 specific 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.
 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 will have no legal or constructive obligation to pay further amounts. Pension plans, which are multi-employer plans in the nature of defined contribution plans, are funded through monthly contributions to these defined contribution plans. Obligations for contributions are recognized as an employee benefit expense in profit or loss as incurred.


F-17
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 EMPLOYEE BENEFITS (continued)
 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 employees and is calculated using a projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in which they arise.
 Share-based payment transactions
 The 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 recognized 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 valuation model, taking into account the terms and conditions upon which the options were granted. The amount recognized as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to market conditions such as share prices not achieving the threshold for vesting.
 Post-retirement medical benefits
 Post-retirement medical benefits in respect of qualifying employees are recognized as an expense over the expected remaining service lives of relevant employees. 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 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 recognized immediately in profit or loss. When the calculation results in a benefit to the group, the recognized asset is limited to the net total of any unrecognized 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 improved, the portion of the increased benefit relating to past service by employees is recognized 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 recognized immediately in profit or loss.
 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 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 decommissioning obligation is included in profit or loss. Estimated future costs of decommissioning obligations 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 relevant asset.
  Restoration liabilities
 The provision for restoration represents the cost of restoring site damage after the start of production. Increases in the provision are charged to 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.


F-18
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 PROVISIONS (continued)
 Rehabilitation trust fund
 Annual contributions are made to dedicated rehabilitation trust funds to fund the estimated cost of rehabilitation during and at the end of the life of the relevant mine. These contributions are recognized as a right to receive reimbursement from the fund and measured at 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 recognized in profit or loss.
 REVENUE RECOGNITION
 Gold bullion and by-products
 Revenue from the sale of gold bullion and by-products is measured 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 to the 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.
 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 trust funds, net gains on financial instruments measured at amortized cost, and other profits and losses arising on disposal of investments.
 Dividends are recognized when the group's right to receive payment is established. Interest is recognized on a time proportion basis taking account of the principal outstanding and the effective rate to maturity on the accrual basis.
 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 remaining balance of the liability.
 Finance expenses
 Finance expenses comprise interest payable on borrowings calculated using the effective interest method, unwinding of discounting of provision for environmental rehabilitation, net foreign exchange gains and losses, net losses on financial instruments measured at amortized cost, and interest on finance leases.
 Finance 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.


F-19
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 1. ACCOUNTING POLICIES (continued)
 OPERATING SEGMENTS
 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 evaluate the 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 if they are similar in the following respects:
     NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
 A held-for-sale asset is classified as such if it is a non-current asset, or disposal group comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use. Immediately before classification as held for sale, the assets (or components of a disposal group) are re-measured in accordance with the group's accounting policies. Thereafter, in general, the non-current assets or disposal groups are measured at the lower of carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale are included in profit or loss, even when there is a revaluation. The same applies to gains and losses on subsequent measurement. Gains are not recognized in excess of any cumulative impairment loss.
 A discontinued operation in the group is a component of the group's business that represents a separate major line of business, or geographical area of operations which has been disposed of or is held for sale, or is a subsidiary acquired exclusively for resale.
  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 are calculated based on the net profit or loss after taxation for the year attributable to ordinary shareholders of the company, divided by the weighted average number of ordinary shares in issue during the year. Diluted earnings or loss per share are presented when the inclusion of ordinary shares that may be issued in the future, has a dilutive effect on earnings or loss per share, which comprises share options granted to employees.
 BUSINESS COMBINATIONS INVOLVING ENTITIES UNDER COMMON CONTROL
 A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and that control is not transitory.
 In the absence of more specific guidance, the group consistently applied the book value measurement method to all common control transactions on the basis that an investment is simply being transferred from one part of the group to another. Any difference between the carrying amount of the net assets received and the consideration paid, if any, is recognized directly in equity as an excess arising from the common-control transaction.


F-20
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 2007
 R’000
 R’000
 R’000
 2. REVENUE
   1,870,574
    40,164
   Total revenue
 1,910,738
   3. RESULTS FROM OPERATING ACTIVITIES INCLUDES      THE FOLLOWING:
  (10,520)
    (10,246)
    (116)
    (158)
       (12,916)
       (681,717)
    (582,509)
    (7,873)
    (34,922)
    (56,413)
    10,266
    (75,138)
    (72,438)
    (2,700)
    -
   During the year ended June 30, 2009, impairments of R53.0 million and R19.4 million were recorded against ERPM’s and Crown’s property, plant and equipment, respectively.  The impairments were due to the recoverable amount of these assets being less than their carrying amount for ERPM due to closure of underground operations and for Crown due to restriction of deposition capacity. The Crown plant, City plant and ERPM’s underground operations are separate cash-generating units. Furthermore, an impairment relating to the investment in West Wits SA (Pty) Limited amounting to R2.7 million was recognized.  The impairment was due to the recoverable amount of this asset being less than its carrying amount.
 During the year ended June 30, 2008, an impairment of R69.8 million was recorded against ERPM’s property, plant and equipment due to unprofitable long-walls, and an impairment of R46.7 million was recorded against Emperor’s property, plant and equipment.  The impairments were due to the recoverable amount of these assets being less than their carrying amount.
 An impairment of R3.5 million recorded during the 2007 financial year against the preference shares held by the black economic empowerment partner, Khumo Gold SPV (Pty) Limited, and R2.4 million impairment which was raised against the loan to the DRDSA Empowerment Trust, were reversed during the 2008 financial year.  The reversal of these impairments was due to the recoverable amount represented by the value in use of these assets being higher than their carrying amount.
 During the year ended June 30, 2007, an impairment, amounting to R872.1 million was recorded against property, plant and equipment at Emperor. R65.0 million related to an impairment of Tolukuma’s property, plant and equipment and R807.1 million related to an impairment of Vatukoula’s property, plant and equipment. The impairments were due to the recoverable amount represented by the value in use of these assets being less than their carrying amount.


F-21
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 2007
 R’000
 R’000
 R’000
 3. RESULTS FROM OPERATING ACTIVITIES INCLUDES      THE FOLLOWING: (continued)
  (2,670)
    9,000
   4. DIRECTORS' EMOLUMENTS Executive directors
 Services rendered as directors of the company
   (6,130)
    (2,907)
   Services rendered by directors as directors of subsidiaries
    (1,429)
    (1,399)
    (747)
   Non-executive directors
 Services rendered as directors of the company
    (3,787)
     Services rendered as directors as directors of subsidiaries
    -
     Alternate Directors
   Services rendered as directors of the company
    -
    -
    -
   Services rendered by directors as directors of subsidiaries
    -
    -
    (16,399)
   5. FINANCE INCOME
  4,829
    -
    75,035
    62,000
    (1,873)
    12,867
    53,006
    127
   205,991


F-22
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 2007
 R’000
 R’000
 R’000
 6. FINANCE EXPENSES
  (2,219)
    (865)
    -
    -
    (10,318)
   Net loss on financial liabilities measured at amortized cost (refer note 22)
 -
   Unwinding of provision for environmental rehabilitation (refer note 19)
 (9,797)
   Unwinding of discount on financial liabilities measured at amortized cost
 (18,023)
    (521)
   (41,743)
   7. INCOME TAX
  20,729
    11,332
    (3,617)
   28,444
      South African
    (43,321)
    749
    74,633
    (3,617)
   Foreign
    -
     -
    -
    -
   28,444
   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% (2008: 28%) (2007: 29%).
 The tax rates applicable to mining and non-mining income of a gold mining company depend on whether the company has elected to be exempt from secondary tax on companies (STC). STC is a tax on dividends declared, which is payable by the company declaring the dividend. At present, the STC tax rate is equal to 10.0% (2008: 10%) (2007: 12.5%) 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.
 In 2009, 2008 and 2007, the tax rates for taxable mining and non-mining income for companies that elected the STC exemption were 43% (2008: 43%) (2007: 45%) and 35% (2008: 35%) (2007: 37%) respectively. During those same years, the tax rates for companies that did not elect the STC exemption were 34% (2008: 34%) (2007: 35%) and 28% (2008: 28%) (2007: 29%).
 In 1993, the company elected not to be exempt from STC, as this would have meant that the company would be subject to normal taxation at the higher rates of 43% for mining income and 35% for non-mining income. The company, having chosen not to be subject to the STC exemption, is subject to 34% (2008: 34%) (2007: 35%) tax on mining income and 28% (2008: 28%) (2007: 29%) for non-mining income. With the exception of Crown, all of the South African subsidiaries elected not to be exempt from STC. The tax rate for all the Australasian operations was 30%.


F-23
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 7. INCOME TAX (continued)
 South African deferred tax is provided at the estimated effective mining tax rate applicable in terms of the mining tax formula to the relevant operations at either 34% or 43% (2008: 34% or 43%) (2007: 35% or 45%) while the Australian deferred tax was provided at the Australian statutory tax rate of 30% (2008: 30%) (2007: 30%).
  2009
 2008
 2007
 R’000
 R’000
 R’000
    1,907,048
      914,057
       2,821,105
  Estimated future tax relief at applicable statutory rates
 922,492
   Tax reconciliationMajor items causing the group's income tax provision to
    (25,660)
    (22,986)
    32,372
    (1,373)
    2,114
    (3,617)
   Temporary differences (including tax losses) for which deferred tax assets (notrecognized) and previously unrecognized temporary differences recognized
 45,047
    2,547
   Taxation relief/(charge)
 28,444


F-24
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 8. PROFIT ON DISPOSAL OF DISCONTINUED OPERATIONS
 The sale of Emperor’s 20% interest in the Porgera Joint Venture to Barrick was completed on August 17, 2007 for a cash consideration of R1.9 billion ($255.0 million) and subsequently Emperor retired all its debt facilities, leaving the group debt- and hedge-free. Emperor’s capital return to its shareholders amounting to R308.5 million ($43.9 million) was completed on September 3, 2007 and DRDGOLD received its portion of the capital return, amounting to R242.8 million ($37.7 million).
 The sale of DRDGOLD’s 78.72% interest in Emperor was concluded on October 22, 2007 for a total consideration of R355.8 million (A$56.0 million), drawing to a close the group’s mining investment in Australasia.
 On March 30, 2008 DRDGOLD disposed of its 50.25% shareholding in NetGold Services Limited (NetGold) and in exchange for its shareholding in NetGold obtained a 12.3% stake in GM Networks Limited (GoldMoney), which was sold during the current year.
 An extensive three-month review of the Vatukoula mine was completed in early December 2006. The results of the review concluded that continuation of the mine plan was no longer economically viable. On December 5, 2006 mining ceased, and the mine was closed and placed on care and maintenance. The mine was sold on March 28, 2007.
 Comparative information has been restated and re-presented to show the discontinued operations separately from the continuing operations.
  -
    -
    -
    -
    -
   Profit on disposal of discontinued operations
 -
   2009
 2008
 2007
 R’000
 R’000
 R’000


F-25
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 9. EARNINGS/(LOSS) PER SHARE
 Basic
          129,124
   Basic earnings/(loss) from continuing operations attributable to equityowners of the parent
 129,124
    376,678,974
      Diluted
    129,124
    -
    129,124
   Reconciliation of weighted average ordinary shares to diluted weightedaverage ordinary sharesWeighted average number of ordinary shares in issue
 376,678,974
    223,547
    376,902,521
    34
    34
    34
    34
   There was no dilution in loss per share for 2007 as the effect of dilutive securities in issue would be anti-dilutive, as the group recorded a loss.
  2009
 2008
 2007
 R’000
 R’000
 R’000


F-26
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 R’000
 R’000
 10. PROPERTY, PLANT AND EQUIPMENTTotal Cost
 2,901,436
   1,809,606
   740,874
   346,668
   5,154
   (866)
   -
   -
  Accumulated depreciation, amortization and impairment losses
 (1,168,217)
   (996,731)
   (99,217)
   (72,438)
   169
   -
   -
  Net book value
 1,733,219


F-27
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 R’000
 R’000
 10. PROPERTY, PLANT AND EQUIPMENT (continued)
 Mining propertyCost
 284,800
   259,313
   22,367
   3,298
   (178)
   -
   -
  Accumulated depreciation, amortization and impairment losses
 (151,527)
   (145,574)
   (5,746)
   (207)
   -
   -
  Net book value
 133,273
  Mine development Cost
 1,806,500
   902,845
   672,140
   231,715
   (200)
   -
   -
  Accumulated depreciation, amortization and impairment losses
 (614,272)
   (513,450)
   (54,254)
   (46,568)
   -
   -
  Net book value
 1,192,228


F-28
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 R’000
 R’000
 10. PROPERTY, PLANT AND EQUIPMENT (continued)
 Mine plant facilities
   Cost
 679,049
   547,018
   39,925
   92,253
   (147)
   -
   -
  Accumulated depreciation, amortization and impairment losses
 (386,457)
   (324,383)
   (37,401)
   (24,673)
   -
   -
  Net book value
 292,592
  Equipment and vehicles Cost
 21,557
   18,301
   3,597
   (341)
   -
   -
  Accumulated depreciation, amortization and impairment losses
 (15,961)
   (13,324)
   (1,816)
   (990)
   169
   -
   -
  Net book value
 5,596
  Exploration Assets (a) Cost
 109,530
   82,129
   28,809
   (3,264)
   1,856
  Net book value
 109,530


F-29
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 10. PROPERTY, PLANT AND EQUIPMENT (continued)
   At year end a reclassification took place to disclose exploration assets as a separate asset class, together with the early adoption of IFRS 8 – Operating Segments to provide better information. For comparative purposes the numbers for 2008 are the only numbers affected by this reclassification and have been amended accordingly.
 In assessing the recoverability of the above assets, where there are indicators of possible impairment, the estimated cash flows have been calculated using the following estimates:
    gold price estimates are based on a gold price of R270 000/kg of gold (US$885 per ounce) in year one, escalating at an average of 7.42% per annum and a base exchange rate of R8.50 = US$1.00, with the rand weakening in future years based on the expected differential between the local South African interest rates in those years over the United States interest rates in those years.
  working cost estimates are based on current working costs per kilogram at June 30, 2009, escalated for expected South African inflationary increases of approximately 5.5% per annum; and
  capital cost estimates are based on current estimates of future development costs to mine the current proved and probable Ore Reserves, escalated for expected South African inflationary increases of approximately 5.5% per annum.
 
 tailings complex as well as the property included through proportionate consolidation of Witfontein Mining (Pty) Limited (refer to note 13).


F-30
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 200
 2009                 
  2008
 R’000              
  R’000
 11. NON-CURRENT INVESTMENTS AND OTHER ASSETS
  -
   -
   -
   -
   -
   -
   9,556
   10,078
   23,364
   129,682
   110,766
   6,049
   12,867
   172,680
   9,556
        Market
 Carrying
 Carrying
 Number                
  value                    
  value                    
  value
 of                 
  2009                     
  2009
 % Held
 shares
 R'000
 R'000
                       Unlisted investments comprise investments in various unlisted companies in South Africa. The valuations, which are done on an annual basis, are based on the net asset value of these investments. During the previous year the group disposed of all its listed investments.
 The monies in the environmental rehabilitation trust funds are invested primarily in low-risk interest-bearing debt securities and may be used only for environmental rehabilitation purposes.


F-31
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 R’000
 R’000
 12. INVESTMENT IN SUBSIDIARIES
 Acquisition of subsidiary during the year
 ErgoGold (formerly Elsburg Gold Mining Joint Venture)
 The group entered into a 50.50 joint venture agreement through East Rand Proprietary Mines Limited (ERPM), together with one of Mintails SA (Pty) Limited subsidiaries called Mogale Gold (Pty) Limited on August 15, 2008.  The joint venture is called ErgoGold.  On March 31, 2009 the group acquired the remaining 50% interest in ErgoGold through ERPM acquiring 15% and DRDGOLD acquiring 35% for a cash consideration of R100 million and R177 million respectively. The fair value of the assets acquired at the date of acquisition, exceeded the cost of the acquisition, therefore resulting in a bargain purchase. The bargain purchase was a direct result of the favourable change in the gold price from the time the purchase price was fixed and the higher gold price on the date all the requirements were met for the acquisition to be recognized, which was the date the fair value of the assets and liabilities were determined.  The resulting negative goodwill arising amounted to R53 million and was recognized in the statement of comprehensive income, under finance income. The most significant fair value determined related to the mining rights included in property, plant and equipment and amounted to R583.0 million. The Multi Period Excess Earnings Method (MEEM) was used to calculate the fair value, incorporating the following assumptions on acquisition date: gold price of R288,665/kg, average escalation of gold price of 6.4% per annum, working cost per tonne of R30 at an average escalation of 6%, life of mine (period) of 13 years, average yield of 0.14g/t and discount rate of 22.5%. The statement of comprehensive income since acquisition relating to ErgoGold which has been consolidated is set out below:
 Statement of comprehensive income (3 months to June 30, 2009)Revenue
 8,713
   (54,614)
   (45,901)
   (1,250)
  Loss before taxation
 (47,151)
  The statement of comprehensive income for the full 8 months trading period of ErgoGoldhas been set out below: Revenue
 39,643
   (105,058)
   (65,415)
   (1,251)
  Loss before taxation
 (66,666)
  The statement of financial position at acquisition of ErgoGold has been set out below: Statement of financial position (as at April 1, 2009)
 
 Non-current assetsProperty, plant and equipment
 887,462
  Current assetsInventory
 17,866
   950
   1,666
  Total fair value of assets
 907,944
  Non-current liabilitiesDeferred tax liability
 (185,653)
  Current liabilitiesTrade and other payables
 (33,381)
  Total fair value of liabilities
 (219,034)
  Fair value of net assets on date of acquisition
 688,910
  Non controlling interest in fair value of net assets
 55,866
  Acquisition date fair value on 50% initial equity interest
 344,455


F-32
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 R’000
 R’000
 13. INVESTMENT IN JOINT VENTURES
 The joint venture for which the statement of comprehensive income and statement of financialposition have been proportionately consolidated were as follows:Witfontein Mining (Pty) Limited – percentage held
 50%
   50%
  The group acquired a 50% interest in Witfontein Mining (Pty) Limited (Witfontein) onFebruary 28, 2009 for a cash consideration of R20 million.  The group has the option todispose of its interest at a consideration equal to the acquisition price if Witfontein isunsuccessful in obtaining the required approvals for a deposition facility. Witfontein had nocapital commitments at year end. The group acquired a 50% interest in Ergo Mining (Pty) Limited (Ergo Joint Venture) witheffect from May 6, 2008.  Ergo Joint Venture is jointly controlled by the group and MintailsLimited. Ergo Joint Venture has contracted commitments which have not been provided for inthe financial statements amounting to R4.8 million (2008: R133.7 million), and commitmentsauthorized by the directors but not contracted for amounting to R30.9 million (2008: R146.1million). The group’s proportionate share in these amounts is 50%. The group’s effective share of income, expenses, assets, liabilities and cash flows of the jointventures, which is included in the consolidated financial statements, is as follows: Statement of comprehensive income
  -
   (5,162)
   (5,162)
   (3,967)
  Loss before taxation
 (9,129)
  Statement of financial position
  69,876
   34,269
   104,145
   10,830
   70,840
   22,475
  Total equity and liabilities  104,145
  14. INVESTMENT IN ASSOCIATES
 The associate has been equity accounted for in the statement of comprehensive income and statement of financial position.  An impairment has been provided against this investment.
 West Wits SA (Pty) Limited – percentage held
 28.33%
   2,700
   (2,700)
  Carrying value of investment in associate
 -
  15. INVENTORIESCurrent
  42,861
   51,074
  93,935
  Non-current
  4,238
  Total inventories
 98,173


F-33
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009
 2008
 R’000
 R’000
 16. TRADE AND OTHER RECEIVABLES
  30,966
   27,494
   386
   86
   6,181
   31,161
   (8,314)
  87,960
  17. ASSETS CLASSIFIED AS HELD FOR SALE
 Mining property of R15.0 million, being the Durban Deep mine village, is presented as held for sale following the decision of the group’s management on January 13, 2006 to sell this disposal group as part of the closure of the old Durban Deep mine.  A sale was expected by June 30, 2009, however due to circumstances beyond the company’s control, the sale has been postponed and is expected to be completed by June 30, 2010.  The company remains committed to its plan to sell this disposal group.
 On March 30, 2008 DRDGOLD disposed of its 50.25% shareholding in NetGold and, in exchange for its shareholding in NetGold, acquired a 12.3% stake in GoldMoney.  DRDGOLD recognized the sale at a fair value of R22.1 million ($2.7 million) with a subsequent re-measurement to fair value at June 30, 2008 to R24.7 million ($3.1 million). On September 12, 2008 DRDGOLD disposed of its 12.3% stake in GoldMoney for R26.2 million ($2.9 million).
  Assets classified as held for sale
    15,000
   -
  15,000


F-34
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 2009                           
  2008
 R’000                         
  R’000
 18. EQUITY OF THE OWNERS OF THE PARENT
       Authorized share capital
 
 
       500
  Issued share capital378,001,303 (2008: 376,571,588) ordinary shares of no par value
 4,104,480
  5,000,000 (2008: 5,000,000) cumulative preference shares of 10 cents each
 500
  4,104,980
  Share capital Unissued shares
 The group operates a share option scheme as an incentive tool for its executive directors and senior employees whose skills and experience are recognized as being essential to the group’s performance. In terms of the scheme rules, a maximum of 15% of the issued ordinary shares is reserved for issuance there under and no participant may hold options at any time, which if exercised in full, would exceed 2% of the company's issued share capital at that time. The number of issued and exercisable share options are 4.6% of the issued ordinary share capital which is within the internationally accepted guideline of 3% to 5% for such schemes.
 In addition, the participants in the scheme are fully taxed at their marginal tax rate on any gains realized on the exercise of their options.
 In terms of an ordinary resolution passed at the previous annual general meeting, the remaining unissued ordinary shares in the company are under the control of the directors until the next general meeting.
 Cumulative preference shares
 The terms of issue of the cumulative preference shares were that they carried the right, having priority over 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's mineral rights acquired from Randgold and Exploration Company Limited in September 1997. In 2005, the Argonaut mineral rights reverted to the South African Government after no application for conversion was lodged within the stipulated period of one year, under the provisions of the Mineral and Petroleum Resources Development Act (MPRDA).
 Option instruments
 The company currently has one class of options authorized but not issued, namely Durban Deep ‘C’ options. There are 10,000,000 authorized option instruments at year-end which entitle the holder to subscribe for one ordinary share per option instrument at a subscription price of R15 per ordinary share, which are exercisable at any time during the period from the date on which the option is issued by the company to a date no later than five years from the date of issue.


F-35
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 18. EQUITY OF THE OWNERS OF THE PARENT (continued)
 2009                        
  2008
 R’000                       
  R’000
 Revaluation and other reserves
    156,538
   138,953
   51,919
  347,410
  (a)  The foreign exchange translation reserve represents the cumulative translation effect arising on the translation of the financial statements of the company’s foreign operations, as well as from the translation of liabilities that hedge the company’s net investment in a foreign subsidiary.
 (b)  Certain items of property, plant and equipment that have been revalued to fair value on or prior to July 1, 2004 – the date of transition to IFRS – are measured on the basis of deemed cost, being the revalued amount at the date of the revaluation. A revaluation adjustment of R5.0 million has been recognized in the asset revaluation reserve.
  On the acquisition of ErgoGold, an amount of R133.3 million was taken to the asset revaluation reserve.  This 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.
 (c)  The company issues equity-settled instruments to certain qualifying employees under an employee share option scheme to purchase shares in the company’s authorized but unissued ordinary shares. Equity share-based payments are measured at the fair value of the equity instruments at the date of the grant. Deferred share-based compensation is expensed over the vesting period, based on the company’s estimate of the shares that are expected to eventually vest. During 2009, a deferred share-based compensation expense of R7.9 million (2008: R6.6 million), was charged to the statement of comprehensive income (refer to note 3).
 Dividends
 The following dividends were declared and paid by the group: 10.0 cents per qualifying ordinary share (2008: 0 cents)
 (37,658)
    After June 30, 2009 a dividend of 5 cents per qualifying share (R18.9 million) was proposed by the directors for 2010.  The dividend has not been provided for nor the secondary tax on companies (STC) which is charged at 10% of the dividend declared and which amounts to R1.8 million.
 19. PROVISION FOR ENVIRONMENTAL REHABILITATION
  381,252
   -
   1,860
   9,797
   19,545
   412,454
     The company intends to fund the ultimate rehabilitation costs from the money invested with the trust funds as well as, at the time of mine closure, the proceeds on sale of remaining assets and gold from plant clean-up.
 20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS
  42,498
   1,141
  43,639


F-36
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 2009
 2008
 R’000
 R’000
 Contribution funds
 In South Africa, the group participates in a number of multi-employer industry-based retirement plans. All plans are governedby the Pension Funds Act, 1956.
 The group pays fixed contributions to external institutions and will have no legal or constructive obligation to pay furtheramounts. Pension plans, which are multi-employer plans in the nature of defined contribution plans, are funded throughmonthly contributions to these defined contribution plans. Obligations for contributions are recognized as an employeebenefit expense in the statement of comprehensive income as incurred.
     (35,419)
  Post-retirement medical benefits
 The group has an obligation to fund a portion of the medical aid contributions of certain of its employees after they haveretired. A provision for post-retirement medical benefits has been raised, based on the latest calculations, using a projectedunit credit method of independent actuaries, performed as at June 30, 2009. Post-retirement medical benefits are actuariallyvalued every three years. The obligation is unfunded. Amounts recognized in the statement of financial position are as follows:
  21,504
   1,101
   18,226
   1,667
   42,498
    (1,101)
   (18,226)
   (1,667)
  (20,994)
  Principal actuarial assumptions at the statement of financial position date:
    7.3%
   8.3%
   0.9%
   60.0%
   60/65
   59.9/64.1
  3 years
   100%
   85%


F-37
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 Historical information:
 2009
 2008
 2007
 R’000
 R’000
 R’000
  42,498
     Sensitivity analysis:
 Health care
 
 Variation
 cost inflation
 Mortality
 Resignation rate
 100bp
 R’000
 R’000                           
  R’000
                      Long-service awards
 The group participates in the Chamber of Mines of South Africa Long Service Awards Scheme (the scheme). The scheme does not confer on any employee or other persons any right of payment of any award.
 In terms of the scheme, bonus payments may be made to certain employees, usually semi-skilled, upon reaching the age of 55, who have completed 15 years of continuous service in South African gold mining companies which are members of the Chamber of Mines of South Africa and The Employment Bureau of Africa, provided such service is not pensionable service. The scheme lays down the rules under which an employee may be eligible for the award. The award is paid by the company for which the employee works upon becoming eligible for the award and electing to receive payment. All awards must be confirmed by the Chamber of Mines of South Africa before payment.
 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.
 2009
 2008
 R’000
 R’000
 Amounts recognized in the statement of financial position are as follows:
    1,236
   -
   (95)
  Closing balance
 1,141
  Amounts recognized in the statement of comprehensive income
 
  -
  Share option scheme
 a) Details of the scheme
 The company operates a share option scheme, DRDGOLD (1996) Share Scheme, (the scheme), as an incentive tool for its executive directors and senior employees whose skills and experience are recognized as being essential to the company's performance. In terms of the scheme rules a maximum of 15% of the issued ordinary shares of the company is reserved for issuance there under and no participant may hold options at any time which, if exercised in full, would exceed 2% of the company's issued share capital at that time. The number of issued and exercisable share options is approximately 4.6% of the issued ordinary share capital which is within the internationally accepted guideline of 3% to 5% for such schemes. In addition, the participants in the scheme are fully taxed at their maximum marginal tax rate on any gains realized on the exercise of their options.


F-38
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 The price at which an option may be exercised is the lowest seven-day trailing average of the closing market prices of an ordinary share on the JSE Limited, as confirmed by the company's directors, during the three months preceding the day on which the employee is granted the option. Each option remains in force for 10 years after the date of grant, subject to the terms of the option plan. Options granted under a plan vest at the discretion of the company's directors, but primarily according to the following schedule over a maximum of a three-year period:
 Percentage vested in each periodgrant:
 Period after the originaldate of the option:
          b) Share options activity in respect of the DRDGOLD (1996) Share Scheme was as follows:
 Outstanding Vested
 Average Average
 price per
 price per
 Number of
 share
 Number of
 share
 shares
 R
 shares R
                              17,304,929
 11.75
 11,611,308                            
  10.43
 Options to acquire the company’s ordinary shares that were granted post November 7, 2002 and 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 vesting period, adjusted to reflect actual levels of vesting, with the corresponding credit to a share-based payments reserve, which is part of equity.
 The fair value of the options granted is measured using the Black – Scholes option valuation model, taking into account the terms and conditions upon which the options were granted.
 Analysis of share options:
 Vested  Unvested
 June 30,
 June 30,
 June 30,
 June 30,
 2009  2010  2011  2012
      
    
    
    
    11,611,308
 2,500,831  2,081,962
 1,110,828


F-39
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)
 2009
 2008
 R’000
 R’000
 c) The fair value of the options determined using the Black - Scholes option valuation model.
  Market price at date of grant (rand per share)
  10.93
   5.13
   5.50
   5.94
   9.93
   5.50
   4.70
 Vesting periods (years)
  3
   3
   3
   3
   3
   3
   3
 Option strike price (rand per share)
  11.70
   4.84
   7.10
   8.78
   9.08
   3.88
   3.50
 Risk-free rate
  8.56%
   7.81%
   7.58%
   7.94%
   8.39%
   8.79%
   9.55%
 Volatility
 (1)
  29%
   37%
   38%
   36%
   44%
   28%
   31%
 (1)


F-40
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 21. DEFERRED TAX
 2009
 2008
 R’000
 R’000
  Deferred tax asset
    282,940
   132,704
   114,998
   152,063
   (517,590)
  165,115
  Deferred tax liabilityProperty, plant and equipment
 (211,633)
   10,162
   6,911
  (194,560)
   (29,445)
  Reconciliation between deferred taxation opening and closing balances
 
  81,575
   -
   (185,653)
   74,633
   (29,445)
    22. LOANS AND BORROWINGS
 SecuredAngloGold Ashanti Limited (a)
 2,101
  Unsecured
 Preference shares held by Khumo Gold SPV (Pty) Limited and the DRDSA Empowerment Trust (b)
 65,146
  67,247
   (2,101)
  65,146
  Loans and borrowings expected repayment schedule for capital amounts payable inthe twelve months to:
  -                     
  39,972
  2,101                     
  23,776
  12,591                               
  -
  52,555  101,88667,247  165,634
 Analysis of gross loans and borrowings by currency:South African rand
 67,247
  Effective interest rates: Secured liabilitiesAngloGold Ashanti Limited
 11.0%
  Undrawn committed borrowing facilities:Investec Bank Limited
 250,000


F-41
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 22. LOANS AND BORROWINGS (continued)
 (a) On July 31, 2007 and on March 1, 2008 Ergo Mining (Pty) Limited entered into two separate loan facilities, amounting to R85.3 million, with AngloGold Ashanti Limited for the purchase of the remaining moveable and immovable assets of Ergo. These assets had a carrying value of R87.8 million (2008: R87.8 million) at year end.  The facilities are repayable in equal monthly installments over 23 and 19 months respectively.  The loans bear interest at the prime lending rate, which was 11% at June 30, 2009 (2008: 15.5%).  The loans are secured over the assets that were purchased from AngloGold Ashanti Limited.
 (b) On November 18, 2005, the group issued class A cumulative participating preference shares to Khumo Gold SPV (Pty) Limited (Khumo Gold), for a subscription price of R10.6 million.  Class B and Class C cumulative participating preference shares, for a subscription price of R7.1 million and R8.6 million were issued to Khumo Gold and the DRDSA Empowerment Trust respectively on November 30, 2006.  The preference shares entitle Khumo Gold and the employee trust to receive a dividend of R0.26 for every R0.74 paid by Crown, ERPM and Blyvoor to the company towards capital and interest on their outstanding intra-group loans as at November 30, 2005.  Crown repaid its loan to DRDGOLD during the year and a preference dividend of R31.8 million was paid to Khumo Gold and the employee trust.  There are no further obligations pursuant to the Crown preference shares and they will be cancelled.  The preference shares are measured at amortized cost. The extension of the repayment periods of Blyvoor and ERPM resulted in a net gain of R36.1 million and R27.2 million, respectively, and a net loss at Crown of R1.3 million.


F-42
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2008
 23. COMMITMENTS AND CONTINGENT LIABILITIES
 2009
 2008
 R’000
 R’000
 Capital commitments
    33,063
   79,333
  112,396
   Operating lease commitments
 The company leases its office building in terms of an operating lease. The company does not have an option to acquire the building at the termination of the lease. There is an escalation of 10% per annum imposed by the lease agreement.
 Crown leases its vehicles under various operating leases. There is an average escalation of 2.5% per annum imposed by these lease agreements.
 The future minimum lease payments under non-cancellable operating leases are asfollows:
    1,874
   307
   -
  Contingent liabilities and uncertainties
 Environmental
 At Durban Deep mine, rehabilitation of the surface has continued throughout the year. The management of the 2L24 tailings complex has been taken over by Mintails who plans to reprocess it.  Rehabilitation of the No 7 shaft pit is 90% complete, rehabilitation of the No 8 shaft pit is 40% complete and rehabilitation of the Great Britain pit is 75% complete.  Rehabilitation of all these pits will be completed in the 2010 financial year.  A full closure plan update is currently being done.
 West Wits mine
 Management of West Rand Consolidated Mines’ tailings dams have been taken over by Mintails who plan to reprocess them.  Various shafts still need to be capped and closed.  The closure plan for the area will be updated this year.
 The Western Basin Environmental Corporation (WBEC), a section 21 company, was formed by Mintails, West Wits and Harmony to manage the underground water decant. Pilot plants were constructed and the results are very promising. The feasibility study for a full-scale plant is complete.  Approvals and permission from the various regulators is now awaited so that construction can begin.  The plant will be sited at the High Density Separation (HDS) plant at ERPM and will treat Western, Central and Eastern basin water.  The treatment plant will take 12 months to construct.  A water pipeline connecting the western and central basins has been proposed to stop any discharge and hence potential pollution. Regulator approval is awaited.
 Blyvoor continues to pump water from underground and discharges approximately 8 million liters (Ml) per day into the Wonderfontein Spruit. Regular monthly quality meetings continue to take place with the Potchefstroom Municipality, with Blyvoor being fully compliant with the requirements of the agreement with the Potchefstroom City Council. Blyvoor also participates in the Mining Interest Group, a sub-group of the Wonderfontein Spruit Forum, to determine strategies regarding potential pollution and remedial action for the Wonderfontein Spruit and eventual regional closure. The regulators have produced a remediation report for the spruit that identifies certain areas requiring attention.  Implementation task teams will now be set up to do the necessary studies and remediation where required.  Blyvoor has also commissioned a water treatment plant that will treat approximately 6Ml per day of the discharged water to potable standard for their own consumption.
 Blyvoor has embarked on a surface clean-up project where slime from historic run-off and pipe bursts is picked up and the area rehabilitated.


F-43
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 23. COMMITMENTS AND CONTINGENT LIABILITIES (continued)
 Crown has continued to engage proactively with the local community in terms of dust and other environmental issues.  Since the upgrading of pipelines there have been very limited slime spills.  Dust is very well managed.
  ERPM has updated its Environmental Management Programme (EMP) to meet the requirements of the Mineral and Petroleum Resources Development Act (MPRDA) and submitted it to the Department of Mineral Resources (DME) for approval. The concurrent rehabilitation of redundant structures and holdings continued throughout the year. Water pumping was stopped on October 6, 2008 after two fatalities in September due to CO
 2
  with the Hercules Basin and is currently flooding at a rate of 0.7m per day.  The level was 800m below surface in July 2009.  This water will need to be pumped from 150m below surface to prevent pollution of ground water.  Central Rand Gold may pump from deeper to preserve their resource.  The water will be pumped to the proposed Western Utilities Corporation (WUC) treatment plant to be purified to potable standards and supplied to Rand Water Board pending regulatory approval.  The cost of the 150m pumping option is approximately R66 million of which ERPM may have a 17% apportionment.
  ErgoGold has restarted depositing onto the Brakpan tailings facility.  Cladding of the side slopes of the dam to prevent dust progressed very well throughout the year.
 Mining rights
 The company’s rights to own and exploit its Ore Reserves and deposits are governed by the laws and regulations of the jurisdictions in which the mineral properties are located. Currently all of the company’s Ore Reserves and deposits are located in South Africa.
 On May 1, 2004, the Mineral and Petroleum Resources Development Act of 2002 (MPRDA), which was passed by the Parliament of South Africa in June 2002, came into effect. Prior to the introduction of the MPRDA, private ownership in mineral rights and statutory mining rights in South Africa could be acquired through the common law or by statute. With effect from May 1, 2004, all mineral rights have been placed under the custodianship of the South African government. Under the provisions of the MPRDA, old order proprietary rights need to be converted to new order rights of use within certain prescribed time frames.
 The MPRDA vests custodianship of South Africa’s mineral resources in the state which will issue prospecting rights or mining rights to applicants in the future. The existing common law prospecting, mining and mineral rights will cease to exist but transitional arrangements are provided in order to give holders of existing rights the opportunity to convert to new rights. The implementation of the MPRDA may result in significant adjustment to the company’s property ownership structure, which could have a material adverse effect on its financial condition and results of operations.
 Where the company holds mineral rights and mining authorizations and conducts mining operations on the date on which the MPRDA came into effect, it will be able, within five years from the date of effectiveness of the MPRDA, to submit the old rights and authorizations for conversion to a new mining right. It will need to submit a mining work program to substantiate the area and period of the new right, and also to comply with the requirements of the Mining Charter. A similar procedure applies where it holds prospecting rights and a prospecting permit and conducts prospecting operations, but it must apply for a conversion to a new prospecting right within two years from the date of effectiveness of the MPRDA for which purpose a prospecting work program must be submitted. Where the company holds unused rights however, it will have one year to apply for new prospecting rights or mining rights.
 If the company does not acquire new rights under the MPRDA, it will be entitled to claim compensation from the state as provided for under the Constitution of South Africa if it can prove that through this outcome its property has been expropriated. Whether mineral rights constitute property and whether the MPRDA does bring about an expropriation are both aspects which are the subject of legal debate which, ultimately, is likely to be settled by litigation. The factors in determining compensation include not only fair market value, but also history of acquisition and use and aspects of redress and reform, which could have the effect of reducing the compensation.
 The company has been granted a prospecting right in respect of the Argonaut area and ERPM has been granted a prospecting right over the Sallies area. The company has submitted applications for conversions in respect of the group’s mining rights, however, as at year end the Department of Mineral Resources had not yet finalized the applications.


F-44
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 23. COMMITMENTS AND CONTINGENT LIABILITIES (continued)
 Royalty BillThe South African government has enacted the details of the new legislation, whereby the old and new order rights will be subject to a state royalty.  The Mineral and Petroleum Resources Royalty Act was published on October 11, 2006 for public comment.  The Mineral and Petroleum Resources Royalty Act, No. 28 of 2008 was enacted on November 21, 2008 and was published in the Government Gazette on November 24, 2008 and Mineral and the Petroleum Resources Royalty Act (Administration), No. 29 of 2008 on November 26, 2008.  These acts provide for the payment 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 group.  The registration process is to commence November 1, 2009 and the payment of royalties will commence on March 1, 2010.
 Merafong Local Council
 According to legislation Merafong City Council has been appointed by Rand Water as the Water Services Authority in the area. They are charging water at a premium of 53% for domestic water consumption. This premium over the rate that was previously charged by Rand Water does not compel them to take over current water reticulation maintenance and monitoring.
 It is the opinion of our legal advisors that the amount levied is excessive and because there is no value that can be enforced, until an agreement has been signed regarding the rate and the entity that will maintain the infrastructure between Blyvoor and Merafong City Council. The potential liability could amount to R18.5 million. We are currently awaiting a court date.
 Litigation
  24. FINANCIAL INSTRUMENTS
 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 its contractual 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 is appropriate, an impairment loss is raised.
 In addition, the group's operations all deliver their gold to Rand Refinery 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. The group does not hedge against fluctuations in the bullion market.


F-45
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 24. FINANCIAL INSTRUMENTS (continued)
  Carrying                        
  Fair
 Carrying                       
  Fair
 value                      
  value
 value                     
  value
 2009                       
  2009
 
 R'000                     
  R'000
 
 
 
   Financial assets
 
 
    9,556                      
  9,556
 
  33,442                    
  33,422
 
 Investments in environmental rehabilitation trust funds (refernote 11)
 129,682                  
  129,682
 
  60,080                    
  60,080
 
  353,555                   
  353,555
 
 586,315                   
  586,315
 
 The following represents the maximum exposure to creditrisk for trade and other receivables at June 30:
     Carrying                        
  Fair
 Carrying                       
  Fair
 value                     
  value
 value                    
  value
 2009                       
  2009
 
 R'000                     
  R'000
 
  30,966                   
  30,966
 
  86                         
  86
 
  29,028                   
  29,028
 
 60,080                   
  60,080
 
  
 
   Gross                 
  Impair-
 Gross                 
  Impair-
 value                    
  ment
 value                    
  ment
 2009                     
  2009
 
 R'000                    
  R'000
 
  48,868                     
  (105)
 
  4,202                       
  (75)
 
  6,067                     
  (260)
 
  9,257                  
  (7,874)
 
 68,394                  
  (8,314)
 
   Impairment
 Impairment
 2009
 2008
 R'000
 R'000
  (8,201)
   (113)
   (8,314)


F-46
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 24. FINANCIAL INSTRUMENTS (continued)
 Interest rate and 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 as natural disasters.
 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 the issue of additional shares and external borrowings. Lower interest rates result in lower returns on investments and deposits and may also 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.
 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
 6-12  More  than
 amount
 cash flows
 or less
 months
 2-5 years
 5 years
 R’000  R’000
 R’000
 R’000
 R’000
 R’000
 June 30, 2009
       Secured
        2,101  (2,373)
 (2,373)
 -
 -
 -
 Unsecured
 
  
 
 
 
 
 
  
 
 
 
 
 
 DRDSA Empowerment Trust (expected repayments)
 65,146  (197,803)
 -
 -
 (109,015)
 (88,788)
  322,138  (322,138)
 (322,138)
 -
 -
 -
  824  (824)
 (824)
 -
 -
 -
 390,209  (523,138)
 (325,335)
 -
 (109,015)
 (88,788)
       June 30, 2008
       Secured
              Unsecured
                    DRDSA Empowerment Trust (expected repayments)  140,900


F-47
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 24. FINANCIAL INSTRUMENTS (continued)
  Carrying
 Carrying
 amount
 amount
 2009
  R’000
  Variable interest rate instruments
     956,880
   (25,261)
  931,619
 Cash flow sensitivity analysis for variable rate instruments:
 A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit or 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 2008.
 2009 2008
 Profit or (loss)
 Profit or (loss)
 100 bp
 100 bp
   increase
 decrease
   June 30
 R’000
 R’000
   4,803
 (4,803)
    4,803
 (4,803)
   Fair value of financial instruments
  Carrying
 Fair
 Carrying
 Fair
 value
 value
 value
 value
 2009
 2009
   R’000
 R’000
   Financial assets
 
 
    9,556
 9,556
    33,442
 33,442
   Investments in environmental rehabilitation trustfunds (refer note 11)
 129,682
 129,682
    60,080
 60,080
    353,555
 353,555
   586,315
 586,315
   Financial liabilities
 
 
   Loans and borrowings (refer note 22) – long-term
 65,146
 65,146
    2,101
 2,101
    322,138
 322,138
    824
 824
   390,209
 390,209


F-48
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 24. FINANCIAL INSTRUMENTS (continued)
 The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged between knowledgeable, willing parties in an arm's length transaction.
 Fair values
 Trade and other receivablesThe fair value approximates the carrying value due to their short-term maturities.
 Loans to black empowerment entitiesThe fair value of these loans cannot be reliably estimated and are reflected at their carrying value.
 Preference shares held by Khumo Gold SPV (Pty) Limited and the DRDSA Empowerment TrustPreference shares are measured at amortized cost based on expected future discounted cash flows. The original risk adjusted discount rate of 13% is used when estimating the future liability and are re-measured on an annual basis.
 Loans from AngloGold Ashanti LimitedLoans from AngloGold Ashanti are measured at amortized cost using the market interest rate. The loans bear interest at the prime lending rate.
 Cash and cash equivalents and investments in environmental trust fundsThe carrying value of cash and cash equivalents approximates their fair value because of the short-term maturity of these deposits. The carrying value of investments in environmental trust funds approximates its fair value due to these investments being cash in nature.
 Listed investmentsThe fair value of listed investments is determined by reference to published price quotations from recognized securities exchanges.
 Trade and other payablesThe fair value approximates the carrying value due to their short-term maturities.
 Unlisted investmentsThe valuations are based on the net asset values of these investments which approximates the investments’ fair value.
 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 convert this 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 flow that it will realize 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 company's cash and cash equivalent balances are held in US dollars, Australian dollars and South African rands; holdings denominated in other currencies are relatively insignificant. The group does not hedge against fluctuations in foreign currency.


F-49
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 24. FINANCIAL INSTRUMENTS (continued)
  USD                           
  AUD
 USD
 AUD
 2009                           
  2009
 2008
 2008
 ’000  ’000
 ’000
 ’000
  3                         
  1,373
    3,929                                 
  -
    (8)                          
  (137)
    3,924                          
  1,236
    Spot rate at year-end
 Average rate
 2009
  2009
   7.8821
  9.0484
   6.3433
  6.6725
  Sensitivity analysis
 A 10% strengthening of the rand against the currencies mentioned at June 30, would have increased (decreased) equity and profit or (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 2008.
 USD
 AUD
 USD
 AUD
 2009
 2009
 2008
 2008
 R’000
 R’000
 R’000
 R’000
  4
 (784)
    (3,097)
 -
   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-50
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 24. FINANCIAL INSTRUMENTS (continued)
  Carrying
 Fair
 Carrying
 Fair
 value
 value
 value
 value
 2009
 2009
 2008
 2008
 R'000
 R'000
 R'000
 R'000
 Financial assetsAvailable-for-sale financial assets
 9,556
 9,556
    576,759
 576,759
   586,315
 586,315
   Financial liabilitiesFinancial liabilities measured at amortized cost
 390,209
 390,209
   390,209
 390,209
   25. CAPITAL MANAGEMENT
 The primary objective of 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 of Directors 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 continued 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 of Directors also monitors the level of dividends to ordinary shareholders.
  26. OPERATING SEGMENTS
 During the year the group changed its accounting policy regarding segmental reporting by early adopting IFRS 8 (Operating Segments) which supercedes IAS 14 (Segmental Reporting).  The comparative numbers have been updated to reflect these changes and the effect thereof is clear from the disclosures due to the fact that previously only one business segment was disclosed.
         has been renamed ErgoGold following the DRDGOLD group’s acquisition of Mintails’ share.  ErgoGold is now wholly owned by the DRDGOLD group.  Phase one has been established as a surface retreatment operation to retreat the Elsburg Dump owned by ERPM and the L29 dump.
 
 Joint Venture.  The Ergo Joint Venture consists of Phase two of the Ergo Project, which is to explore, evaluate and process surface uranium – and sulphur bearing tailings on the East and Central Rand goldfields of South Africa.


F-51
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended June 30, 2009
 
 
 26. OPERATING SEGMENTS (continued)
 2009
 Blyvoor
 R’000
 Crown
 R’000
 ERPM
 R’000
 ErgoGold(2)
 R’000
 Ergo Joint
 Venture
 R’000
 Offshore
 R’000
 Corporate
 Headoffice (3)
 and all other
 R’000
 Total
 R’000
 Financial performanceSegmental revenue
 1,018,527
 620,125
 247,908
 24,178
 -
 -
 -
 1,910,738
  (842,329)
 (456,205)
 (303,581)
 (69,365)
 (4,057)
 -
 (11,822) (1,687,359)
  176,198
 163,920
 (55,673)
 (45,187)
 (4,057)
 - (11,822)
 223,379
  3,185
 2,347
 1,409
 2
 3
 1,031 72,014 79,991
  (521)
 (5)
 (860)
 (1)
 -
 - (2,218) (3,605)
  -
 -
 (30,681)
 -
 -
 -
 (4,241)
 (34,922)
  (1,719)
 (4,980)
 (1,592)
 (1,256)
 (1,554)
 (756) (71,726) (83,583)
  -
 (41,529)
 -
 -
 -
 -
 (4,660)
 (46,189)
  177,143
 119,753
 (87,397)
 (46,442)
 (5,608)
 275 (22,653)
 135,071
  (97,537)
 (43,115)
 (31,736)
 (157,129)
 (17,025)
 -
 (126) (346,668)
  79,606
 76,638
 (119,133)
 (203,571)
 (22,633)
 275 (22,779) (211,597)
  
 
 (2)  With effect from April 1, 2009, ErgoGold represents DRDGOLD’s 100% interest in ErgoGold (formerly the Elsburg Gold Mining Joint Venture).(3)  Corporate head office expenses 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
  Operating results (4)
 
 
    t’000  603
 -
 184
 -
 -
 -
 -  787
  t’000  3,433
 6,577
 1,430
 2,296
 -
 -
 -  13,736
  t’000  4,036
 6,577
 1,614
 2,296
 -
 -
 -  14,523
   g/t  4.59
 -
 3.20
 -
 -
 -
 -
 4.26
  g/t  0.37
 0.38
 0.33
 0.05
 -
 -
 -
 0.32
  g/t  1.00
 0.38
 0.66
 0.05
 -
 -
 -
 0.53
    Kg  2,765
 -
 589
 -
 -
 -
 -
 3,354
  Kg  1,262
 2,500
 474
 114
 -
 -
 -
 4,350
  Kg  4,027
 2,500
 1,063
 114
 -
 -
 -
 7,704
  oz  88,898
 -
 18,935
 -
 -
 -
 -  107,833
  oz  40,575
 80,377
 15,239
 3,666
 -
 -
 -  139,857
  oz  129,473
 80,377
 34,174
 3,666
 -
 -
 -
 247,690
 
  R/kg  255,517
 -
 361,141
 -
 -
 -
 -
 274,066
  R/kg  98,124
 182,482
 222,430
 608,465
 -
 -
 -  164,549
  R/kg  209,170
 182,482
 285,589
 608,465
 -
 -
 -
 219,024
  $/oz  878
 -
 1,287
 -
 -
 -
 -
 942
  $/oz  337
 578
 778
 2,077
 -
 -
 -
 566
  $/oz  709
 578
 1,060
 2,077
 -
 -
 -
 753


F-52
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended June 30, 2009
 
 
 26. OPERATING SEGMENTS (continued)
 2009
 Blyvoor
 R’000
 Crown
 R’000
 ERPM
 R’000
 ErgoGold(1)
 R’000
 Ergo Joint
 Venture
 R’000
 Offshore
 R’000
 Corporate
 Headoffice(2)
 and all other
 R’000
 Total
 R’000
 Reconciliation of assetsReportable segment assets
 463,947
 150,947
 49,422
 888,876
 150,791
 -
 29,236 1,733,219
  96,536
 183,235
 155,240
 61,007
 34,268
 25 362,242 892,553
  560,483
 334,182
 204,662
 949,883
 185,059
 25
 391,478 2,625,772
 Reconciliation of liabilities
 
 
  182,783
 297,498
 87,877
 66,092
 84,454
 60
 127,538
 846,302
  12,403
 650
 -
 182,150
 -
 -
 288 195,491
  195,186
 298,148
 87,877
 248,242
 84,454
 60
 127,826 1,041,793
 Other material information
 
 
  (29,273)
 (35,532)
 (3,187)
 (26,854)
 (3,930)
 -
 (441)
 (99,217)
  -
 (19,426)
 (53,012)
 -
 -
 -
 (2,700)
 (75,138)
 Reconciliation of revenues
 
 
  1,018,527
 620,125
 247,908
 24,178
 -
 -
 -
 1,910,738
  1,018,527
 620,125
 247,908
 24,178
 -
 -
 -
 1,910,738
  
 -
 -
 -
 -
 -
 -
 -
 -
  1,018,527
 620,125
 247,908
 24,178
 -
 -
 -
 1,910,738
 Reconciliation of profit/(loss)
 
 
  177,143
 119,753
 (87,397)
 (46,442)
 (5,608)
 275 (22,653)
 135,071
  (29,273)
 (35,532)
 (3,187)
 (26,854)
 (3,930)
 -
 (441)
 (99,217)
  426
 (11,002)
 11,023
 -
 2,825
 -
 (22,817)
 (19,545)
  (9,445)
 3,658
 1,573
 11,232
 -
 -
 -
 7,018
  -
 (19,426)
 (53,012)
 -
 -
 -
 (2,700)
 (75,138)
  -
 -
 -
 -
 -
 -
 53,006
 53,006
   36,141
 (1,403)
 27,234
 -
 -
 -
 28
 62,000
  -
 -
 -
 -
 -
 (1,873)
 -
 (1,873)
  2,929
 4,441
 1,597
 -
 -
 -
 3,900 12,867
  -
 -
 -
 -
 -
 (10,549) 231
 (10,318)
  (1,119)
 (4,137)
 (1,648)
 -
 (2,365)
 -
 (528) (9,797)
   (10,388)
 (3,237)
 (4,398)
 -
 -
 -
 -
 (18,023)
  (43,154)
 25,593
 69,525
 3,503
 (12)
 -
 19,178
 74,633
  123,260
 78,708
 (38,690)
 (58,561)
 (9,090)
 (12,147)
 27,204
 110,684
 (1)  With effect from April 1, 2009, ErgoGold represents DRDGOLD’s 100% interest in ErgoGold (formerly the Elsburg Gold Mining Joint Venture).(2)  Corporate head office expenses 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


F-53
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended June 30, 2009
   26. OPERATING SEGMENTS (continued)
 2009
 Revenues
 Non-
 current
 assets
 
 
 R’000  R’000
 
 Geographical InformationSouth Africa
 1,910,738  1,733,219
 
 Australia
 -  -
 
 Total
 1,910,738  1,733,219
 
 Information about major customers
 The group has only one major customer regarding the sale of gold ore in each geographical are due to regulatory authority.


F-54
 NOTES TO THE ANNUAL FINANCIALSTATEMENTS for the year ended June 30, 2009
 
 
 26. OPERATING SEGMENTS (continued)
 2008
 Blyvoor
 R’000
 Crown
 R’000
 ERPM
 R’000
 Ergo Joint
 Venture
 R’000
 Offshore
 R’000
 Corporate
 Headoffice (2)
 and all other
 R’000
 Total
 R’000
 Financial performanceSegmental revenue
 848,230
 528,625
 467,057
 -
 89,235
 - 1,933,147
  (697,281)
 (362,237)
 (428,255)
 -
 (124,437)
 (15,242) (1,627,452)
  150,949
 166,388
 38,802
 -
 (35,202) (15,242)
 305,695
  3,296
 1,081
 1,608
 -
 10,067 58,472 74,524
  (498)
 (9)
 (778)
 -
 (26,505) (7,739) (35,529)
  -
 -
 (5,528)
 -
 -
 (5,816)
 (11,344)
  (3,005)
 2,034
 (3,294)
 (41)
 (18,102) (77,115) (99,523)
  -
 (13,272)
 -
 -
 (32,678)
 -
 (45,950)
  150,742
 156,222
 30,810
 (41)
 (102,420) (47,440)
 187,873
  (74,847)
 (42,077)
 (30,082)
 (176,785)
 (47,572)
 (26) (371,389)
  75,895
 114,145
 728
 (176,826)
 (149,992) (47,466) (183,516)
   
 
   Operating results (3)
 
 
    t’000 687
 -
 303
 -
 56
 - 1,046
  t’000 3,719
 8,235
 1,859
 -
 -
 - 13,813
  t’000 4,406
 8,235
 2,162
 -
 56
 - 14,859
   g/t 4,70
 -
 5,83
 -
 7,45
 -
 5,17
  g/t 0.31
 0.33
 0.38
 -
 -
 -
 0.33
  g/t 1.00
 0.33
 1.14
 -
 7.45
 -
 0.67
    Kg 3,229
 -
 1,767
 -
 417
 -
 5,413
  Kg 1,162
 2,717
 705
 -
 -
 -
 4,584
  Kg 4,391
 2,717
 2,472
 -
 417
 -
 9,997
  oz 103,813
 -
 56,812
 -
 13,427
 -
 174,052
  oz 37,359
 87,354
 22,667
 -
 -
 - 147,380
  oz 141,172
 87,354
 79,479
 -
 13,427
 - 321,432
   R/kg 181,518
 -
 190,938
 -
 298,410
 -
 190,967
  R/kg 90,971
 133,322
 138,350
 -
 -
 - 121,321
  R/kg 158,798
 133,322
 173,242
 -
 298,410
 -
 162,794
  $/oz 772
 -
 812
 -
 1,098
 -
 810
  $/oz 387
 553
 588
 -
 -
 -
 516
  $/oz 670
 553
 748
 -
 1,098
 -
 692


F-55
 NOTES TO THE ANNUAL FINANCIALSTATEMENTS for the year ended June 30, 2009
 
 
 26. OPERATING SEGMENTS (continued)
 2008
 Blyvoor
 R’000
 Crown
 R’000
 ERPM
 R’000
 Ergo Joint
 Venture
 R’000
 Offshore
 R’000
 Corporate
 Headoffice(1)
 and all other
 R’000
 Total
 R’000
 Reconciliation of assets
 
 
 
  396,060
 162,790
 73,885
 179,399
 -
 741
 812,875
  131,598
 180,736
 107,748
 41,657
 133,550
 854,331             
  1,449,620
 Total assets
 
 527,658
 343,526
 181,633
 221,056
 133,550
 855,072
 2,262,495
 Reconciliation of liabilitiesReportable segment liabilities
 218,984
 330,393
 168,109
 136,083
 599
 101,095
 955,263
  -
 1,771
 -
 -
 -
 -
 1,771
 Total liabilities
 
 218,984
 332,164
 168,109
 136,083
 599
 101,095
 957,034
 
 
 
 Other material informationDepreciation and amortization
 (22,671)
 (20,548)
 (25,269)
 -
 (854)
 (589)
 (69,931)
  -
 -
 (69,804)
 -
 (46,718)
 5,889
 (110,633)
 
 
 
 Reconciliation of Revenues
 
 
 
  848,230
 528,625
 467,057
 -
 89,235
 -               
  1,933,147
   848,230
 528,625
 467,057
 -
 -
 -              
  1,843,912
   -
 -
 -
 -
 89,235
 -
 89,235
  848,230
 528,625
 467,057
 -
 89,235
 -               
  1,933,147
 
 
 
 Reconciliation of profit/(loss)
 
 
  150,742
 156,222
 30,810
 (41)
 (102,420)
 (47,440)
 187,873
  (22,671)
 (20,548)
 (25,269)
 -
 (854)
 (589)
 (69,931)
  (958)
 (20,334)
 (10,976)
 -
 (4,019)
 2,097                
  (34,190)
  14,373
 1,354
 (484)
 -
 (10,059)
 -
 5,184
  -
 -
 -
 -
 (433)
 -
 (433)
  -
 -
 (69,804)
 -
 (46,718)
 5,889
 (110,633)
  
 
  (64,644)
 (22,169)
 1,492
 -
 2,457
 (857)
 (83,721)
  -
 -
 -
 -
 5
 12,000
 12,005
  2,586
 1,449
 1,107
 -
 -
 3,344
 8,486
  -
 -
 -
 -
 (27,153)
 (10,161)
 (37,314)
  (49)
 (3,174)
 (1,011)
 -
 -
 (501)                   
  (4,735)
   (1,757)
 (574)
 (4,063)
 -
 -
 -
 (6,394)
  30,752
 18,299
 32,512
 12
 108,086
 -                  
  189,661
  108,374
 110,525
 (45,686)
 (29)
 (81,108)
 (36,218)
 55,858


F-56
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended June 30, 2009
   26. OPERATING SEGMENTS (continued)
 2008
 Revenues
 Non-
 current
 assets
 
 
 R’000                    
  R’000
 
 Geographical InformationSouth Africa
 1,843,912  812,875
 
 Australia
 89,235  -
 
 Total
 1,933,147  812,875
 
 Information about major customers
 The group has only one major customer regarding the sale of gold ore in each geographical which is due to regulatory authority.


F-57
 NOTES TO THE ANNUAL FINANCIALSTATEMENTS for the year ended June 30, 2009
   26. OPERATING SEGMENTS (continued)
 2007
 Blyvoor
 R’000
 Crown
 R’000
 ERPM
 R’000
 Offshore
 R’000
 Corporate
 Headoffice (2)
 and all other
 R’000
 Total
 R’000
 Financial performanceSegmental revenue
 694,612
 472,842
 367,323
 674,928
 -  2,209,705
 Operating costs
 (602,871)
 (343,476)
 (358,716)
 (719,996)
 (10,063)  (2,035,122)
 Operating profit/(loss)
 91,741
 129,366
 8,607
 (45,068)  (10,063)  174,583
 Interest and other investment income
 1,920
 915
 93
 7,272
 9,710  19,910
 Interest expense
 (1,128)
 (24)
 (1,183)
 (84,234)  (12,727)  (99,296)
 Retrenchment costs
 -
 -
 (73)
 (26,507)
 (865)
 (27,445)
 Administration expenses and general costs
 (436)
 (1,869)
 (2,448)
 (112,396)  (92,837)  (209,986)
 Taxation charge (1)
 (328)
 (276)
 (133)
 (4,792)
 -  (5,529)
 Working profit/(loss) before capital expenditure
 91,769
 128,112
 4,863
 (265,725)  (106,782)  (147,763)
 Capital expenditure
 (68,485)
 (29,978)
 (40,624)
 (173,606)
 (341)  (313,034)
 Working profit/(loss) after capital expenditure
 23,284
 98,134
 (35,761)
 (439,331)  (107,123)  (460,797)
 (1)The taxation charge excludes deferred tax.
 
 
 (2) Corporate head office expenses 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.
 Operating results (3)
 
 
 Ore milled
 -
 underground
 t’000  690
 -
 269
 1,016
 -  1,975
 -     surface
 t’000  3,694
 8,405
 1,753
 -
 -  13,852
 -     total
 t’000  4,384
 8,405
 2,022
 1,016
 -  15,827
 Average yield
 -    underground
 g/t  4.98
 -
 6.71
 4.37
 -
 4.90
 -   surface
 g/t  0.34
 0.38
 0.39
 -
 -
 0.37
 -   total
 g/t  1.07
 0.38
 1.23
 4.37
 -
 0.94
 Gold dispatched
 -
 underground
 Kg  3,436
 -
 1,806
 4,435
 -
 9,677
 - surface
 Kg  1,269
 3,204
 689
 -
 -
 5,162
 - total
 Kg  4,705
 3,204
 2,495
 4,435
 -  14,839
 - underground
 oz  110,471
 -
 58,063
 142,661
 -
 311,195
 - surface
 oz  40,798
 103,011
 22,153
 -
 -  165,962
 - total
 oz  151,269
 103,011
 80,216
 142,661
 -
 477,157
 Operating cost  -
 underground
 R/kg  149,114
 -
 151,816
 162,344
 -
 106,821
 - surface
 R/kg  66,693
 107,202
 140,719
 -
 -  107,736
 - total
 R/kg  128,134
 107,202
 143,774
 162,344
 -
 137,147
 - underground
 $/oz  642
 -
 654
 645
 -
 645
 - surface
 $/oz  287
 450
 606
 -
 -
 431
 - total
 $/oz  547
 450
 641
 645
 -
 571
 (3) Unaudited.


F-58
 NOTES TO THE ANNUAL FINANCIALSTATEMENTS for the year ended June 30, 2009
 
 
 26. OPERATING SEGMENTS (continued)
 2007
 Blyvoor
 R’000
 Crown
 R’000
 ERPM
 R’000
 Offshore
 R’000
 Corporate
 Headoffice
 and all other
 R’000
 Total
 R’000
 Other material informationDepreciation and amortization
 (21,451)
 (28,080)
 (13,766)
 (115,027)
 (608)               
  (178,932)
  -
 (15,588)
 (3,829)
 (872,133)
 13,504
 (878,046)
 
 
 
 Reconciliation of Revenues
 
 
 
  694,612
 472,842
 367,323
 674,928
 -               
  2,209,705
   694,612
 472,842
 367,323
 -
 -               
  1,534,777
   -
 -
 -
 674,928
 -
 674,928
  694,612
 472,842
 367,323
 674,928
 -               
  2,209,705
 
 
 
 Reconciliation of profit/(loss)
 
 
  91,769
 128,112
 4,863
 (265,725)
 (106,782)              
  (147,763)
  (21,451)
 (28,080)
 (13,766)
 (115,027)
 (608)               
  (178,932)
  (5,350)
 (9,198)
 (1,516)
 -
 (3,888)                
  (19,952)
  (296)
 (589)
 3,760
 14,380
 -                   
  17,255
  -
 -
 -
 (50,852)
 -
 (50,852)
  -
 (15,588)
 (3,829)
 (872,133)
 13,504
 (878,046)
  
 
  (1,840)
 (2,332)
 (5,025)
 -
 644
 (8,553)
  (171)
 -
 -
 -
 (7,573)                  
  (7,744)
  4,320
 750
 577
 -
 2,414
 8,061
  -
 -
 -
 15,994
 (1,982)
 14,012
  -
 -
 (3,250)
 -
 -
 (3,250)
  -
 -
 -
 (204)
 -
 (204)
  66,981
 73,075
 (18,186)
 (1,273,567)
 (104,271)
 (1,255,968)
 Revenues
 
 
 R’000
 Geographical InformationSouth Africa
 1,534,777
  674,928
  2,209,705
 Information about major customers


F-59
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
  for the year ended June 30, 2009
  27. RELATED PARTY TRANSACTIONS      (short-term benefits)     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 associates, joint ventures and subsidiary companies
 During the year ended June 30, 2009, the company earned management fees from DRDGOLD South African Operations (Pty) Ltd (DRDGOLD SA) amounting to R15.6 million (2008: R17.5 million).  Transactions with associates are priced on an arm’s length basis.
 Subsidiaries
  ISSUED ORDINARY SHARE
 CAPITAL
 NUMBER OF
 SHARES
 % HELD
 SHARES AT COST
 LESS
 IMPAIRMENTS
 R’000
 EFFECTIVE
 DATE OF
 ACQUISITION
 INDEBTEDNESS
 NET OF
 IMPAIRMENTS
 R’000
 South Africa
 Argonaut Financial Services (Pty) Limited
 100
 100
 -
 Oct 1, 1997
 18,945
 Crown Consolidated Gold Recoveries Limited
 51,300,000
 100
 -
 Sep 14, 1998
 (245,316)
 DRDGOLD South African Operations (Pty) Limited
 1
 1,000,000
 74
 113,177
 Nov 14 , 2005
 1,122,891
 East Champ d’Or Gold Mine Limited
 7
 100
 -
 Apr 1, 1996
 -
 Rand Leases (Vogelstruisfontein) Gold Mining
 Company Limited
 118,505,000
 100
 -
 Jan 1, 1996
 (42,092)
 Roodepoort Gold Mine (Pty) Limited
 1
 100
 -
 Jan 1, 1996
 -
 West Witwatersrand Gold Holdings Limited
 99,000,000
 100
 -
 Apr 1, 1996
 (22,996)
 Guardrisk Insurance Company Limited
 20
 100
 100
 Jul 1, 2008
 -
 ErgoGold (1)
 -
 35
 52,551
 Mar 31, 2009
 204,985
 Australasia/International
 Dome Resources NL
 142,619,074
 100
 -
 Apr 1, 2000
 -
 DRD Australia APS
 130
 100
 -
 Jan 26, 1999
 -
 DRD Australasia (Pty) Limited
 100
 100
 -
 Nov 15, 1999
 -
 DRD International APS
 125
 100
 -
 Apr 28, 1999
 -
 DRD (Offshore) Limited
 5
 100
 -
 Nov 4, 2005
 -
 Total
 165,828
 1,036,417
 1
 DRDGOLD South African Operations (Pty) Limited holds the following investments: 100% of Blyvooruitzicht Gold Mining Company Limited, 100% of East
 Rand Proprietary Mines Limited, 100% of Crown Gold Recoveries (Pty) Limited and 50% of Ergo Mining (P


F-60
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 27. RELATED PARTY  TRANSACTIONS (continued)
 Joint Ventures
 The joint ventures for which the statement of comprehensive income and statement of financial position have been proportionately consolidated are disclosed in note 13. Rand Refinery agreement
 The group has entered into an agreement with Rand Refinery Limited (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 usually 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 Pretorius, CEO of DRDGOLD, is also a director of Rand Refinery and is a member of their Audit Committee.  The group currently owns 4.0% of Rand Refinery (which is jointly owned by South African mining companies).  Trade receivables to the amount of R31.0 million (2008: R58.7 million) relate to metals sold.  The group received a dividend of R4.1 million (2008: R1.5 million) from Rand Refinery.
 Consultancy agreement
 On June 23, 2008 DRDGOLD SA approved a consultancy agreement with Khumo Gold, which owns 20% of DRDGOLD SA. The agreement provides for a monthly retainer of R200,000.
 2009
 2008
 2007
 R’000
 R’000
 R’000
  165,828
    (1,036,417)
    1,622,795
    (275,974)
    (310,404)
      1,202,245
               (163,271)
    270,175


F-61
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 28. ACCOUNTING ESTIMATES AND JUDGMENTS
 The preparation of the financial statements in conformity with IFRS requires the group’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
 Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable in the circumstances.
 The resulting accounting estimates may differ from actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
 (a)
 Recoverable amount of mining assets
   also considers such factors as the market capitalization of the group, the quality of the individual ore body and country risk in determining the recoverable amount. During the year under review, the group calculated recoverable amount based on updated life-of-mine business plans, a gold price of R270,000 per kilogram in year one escalating at 7.42% per year, and a discount rate of 12.5%.  At a 10% lower gold price received of R243,000 per kilogram, or a 4 percentage points (32%) increase in the discount rate to 16.5%, no further impairment would have been raised (refer note 10).
 The calculation of unit-of-production rate of amortization could be affected to the extent that actual production n the future is different from current forecast production based on proved and probable Ore Reserves.  This would generally arise when there are significant changes in any of the factors or assumption used in estimating Ore Reserves.  Factors could include:
        (b)
 Valuation of financial instruments
   using 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.
  (c)
 Estimate of exposure and liabilities with regard to rehabilitation costs
   based on the group’s environmental management plans in compliance with current technological, environmental and regulatory requirements.
    mine plans were utilized in the calculation of the estimated net present value of the rehabilitation liability (2008: discount rate of 11.0% and inflation rate of 8.9%).


F-62
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 28. ACCOUNTING ESTIMATES AND JUDGMENTS (continued)
 (d)
 Estimate of post-retirement medical liability
   discount rate, health cost inflation rate, real discount rate, income at retirement, retirement age, spouse age gap, continuation at retirement and proportion married at retirement (refer note 20).
  (e)
 Estimate of taxation
   worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The group recognizes liabilities for anticipated tax audit 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.
 (f)
 Fair value of share-based compensation
   the model are: vested period and conditions, risk-free interest rate, volatility, price of grant. (Refer to note 20 for detail on the share option scheme.)
 (g)
 Gold in lock-up
     (h)
 Assessment of contingencies
    (i)
 Ore Reserves estimates
    Ore Reserves are estimates of the amount of product that can be economically and legally extracted from the group’s properties.  In order to calculate Ore 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.
 Estimating the quantity and/or grade of Ore 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 Ore Reserves change from period to period and because additional geological data is generated during the course of operations, estimates of Ore Reserves may change from period to period.  Changes in reported Ore Reserves may affect the group’s financial results and financial position in a number of ways and including the following:


F-63
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 28. ACCOUNTING ESTIMATES AND JUDGMENTS (continued)
 (j)
 Estimate of deferred tax asset
   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 utilized. These factors included profitability of the operations and a higher gold price. The amount recognized as a deferred tax asset is sensitive to the current gold spot price. The amount recognized at June 30, 2009 is based on a future gold price received of R270,000 per kilogram (2008: R235,000 per kilogram) in year one, escalating at an average of 7.42% (2008: 11%) per annum.  At a 10% lower gold price received of R243,000 per kilogram (2008: R211,500 per kilogram) the deferred tax asset will reduce by R140.8 million (2008: R32.5 million).  ErgoGold is still a new project with no profit history and still faces some metallurgical challenges which it must overcome to achieve the forecasted recovery grade.  Should these challenges not be overcome the deferred tax asset raised will be impacted in the future.
  29. CASH GENERATED BY OPERATIONS
 2009
 2008
 2007
 R’000
 R’000
 R’000
  82,240
   Adjusted forDepreciation
 99,217
    19,545
    (7,018)
    -
    75,138
    (10,266)
    7,873
    -
    -
    113
    18,226
    (205,991)
    41,743
    120,820
   Working capital changes
 44,113
    156,042
    (16,648)
    (97,954)
    2,673
   Cash generated by operations
 164,933


F-64
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 30. CASH FLOW ON ACQUISITION/DISPOSAL OF SUBSIDIARIES, NET OF CASH
 2009
 2008
 2007
 R’000
 R’000
 R’000
 Total net cash flow on disposal/acquisition of subsidiaries
 
    -
 -
   -
    -
    -
    (100)
    (277,721)
   (277,821)
   Disposal of Buffelsfontein Gold Mines LimitedWith effect from March 22, 2006 Buffelsfontein Gold Mines Limited wasliquidated. Costs on liquidation recovered
        Disposal of Vatukoula mine
 `
 On March 28, 2007, Emperor Mines Limited disposed of the Vatukoulamine to Westech Gold (Pty) Ltd. The fair value of the net assets disposed of were as follows: Cash and cash equivalents
                            Disposal of Netgold Limited
   On March 30, 2008 DRDGOLD disposed of its 50.25% shareholding inNetGold Services Limited (NetGold) and in exchange for its shareholdingin NetGold obtained a 12.3% stake in G.M. Networks Limited(GoldMoney). The fair value of the net assets disposed were as follows:
    -
    -
    -
    -
    -
    -
    -
    -
   Disposal of Emperor Mines Limited
 DRDGOLD disposed of its 78.72% interest in Emperor on October 2007 fora total consideration of R355.8 million. The fair value of the net assets disposed were as follows: Property, plant and equipment
 -
    -
    -
    -
    -
    -
    -
    -
    -
    -
    -
    -
    -


F-65
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 30. CASH FLOW ON ACQUISITION/DISPOSAL OF SUBSIDIARIES, NET OF CASH
 2009
 2008
 2007
 R’000
 R’000
 R’000
 Acquisition of DRDGOLD Limited (Cell No. 170)
 On July 1, 2008, DRDGOLD acquired 100% of a separate class of share inGuardrisk Insurance Company Limited known as DRDGOLD Limited (CellNo 170). Cash flow on acquisition of subsidiary
  (100)
   Acquisition of ErgoGold (formerly Elsburg Gold Mining Joint Venture)
 On March 31, 2009, East Rand Proprietary Mines Limited and DRDGOLDacquired 15% and 35% respectively, of ErgoGold from Mogale Gold(Proprietary) Limited. The fair value of the assets acquired net of non-controlling interest were asfollows: Property, Plant and equipment
 409,118
    8,236
    438
    13,975
    768
    (85,586)
    (15,389)
    331,560
     (833)
    (53,006)
     (277,721)
   31. CASH FLOW ON (ACQUISITION)/DISPOSAL OF JOINT VENTURES, NET OF CASH
 Disposal of Porgera Joint Venture
    On August 17, 2007, Emperor Mines Limited disposed of its 20% interest inthe Porgera Joint Venture. The fair value of the net assets disposed of were as follows:
     -
    -
    -
    -
    -
    -
    -
    -
    -
    -


F-66
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 31. CASH FLOW ON (ACQUISITION)/DISPOSAL OF JOINT VENTURE, NET OF CASH (continued)
 2009
 2008
 2007
 R’000
 R’000
 R’000
 Acquisition of Witfontein Mining (Pty) Limited
       On February 28, 2009, DRDGOLD through its subsidiary Argonaut FinancialServices (Pty) Limited acquired a 50% interest in Witfontein Mining (Pty)Limited and entered into a joint venture agreement with Mintails SA (Pty)Limited which owns the remaining 50%. Cash flow on acquisition of joint venture
 (20,000)
   32. CASH FLOW ON ACQUISITION OF ASSOCIATE
 Acquisition of West Wits SA (Pty) Limited
 In January 2009, DRDGOLD acquired a 28.33% interest in West Wits SA(Pty) Limited. Cash flow on investment in associate
 (2,700)
   33. CASH AND CASH EQUIVALENTS
 Cash and cash equivalents comprise cash on hand, demand deposits, andhighly liquid investments with an original maturity of three months or less.Included in cash and cash equivalents is restricted cash in a form of aguarantee relating to the rehabilitation of the Brakpan tailings dump, given toAngloGold Ashanti Limited and amounting to R49.6 million.
 
 
  353,555
    (824)
   352,731
   34. CASH FLOWS FROM DISCONTINUED OPERATIONS
 
      -
    -
    -
   35. CASH FLOWS RELATING TO EXPLORATION ASSETS
 
      27,401


F-67
 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)for the year ended June 30, 2009
 36. SUBSEQUENT EVENTS
 Offer for Mintails Limited’s South African business assets
 On June 29, 2009, DRDGOLD made an offer to Mintails Limited (Mintails) to acquire all of Mintails’ South African business assets except its interest in underground explorer West Wits Mining Limited (West Wits).  The purchase consideration under the offer was to be determined by the 30-day Volume Weighted Average Price (VWAP) of Mintails shares over the 30 trading days terminating on June 24, 2009, less the value of Mintails’ holding in West Wits based on the West Wits trading VWAP for the same 30 days to June 24, 2009.  DRDGOLD proposed an issue of its shares in payment for the acquisition, also calculated by a 30 trading day VWAP to June 24, 2009.
 Mintails initially conditionally accepted the offer by DRDGOLD, however the offer was rejected by the Mintails board on July 22, 2009.
 Dividend
 On August 20, 2009, DRDGOLD declared a dividend of 5 cents per share, which amounts to R18.9 million.  Secondary tax on companies of R1.8 million is payable on the dividend.  The last day to trade ordinary shares cum dividend is October 2, 2009.
 Blyvoor right-sizing
 On August 26, 2009, DRDGOLD announced that it had advised unions of its intention to right-size the Blyvoor operation.  Blyvoor proceeded with a 60-day facilitated consultation process in terms of Section 189A of the South African Labour Relations Act to determine the future of affected employees.  This had been brought about by a drop in underground production due mainly to seismic damage to high-grade panels, a significant drop in the average rand gold price received due to rand strength and an increase in underground cash operating costs. The Section 189A process was completed on October 26, 2009 and resulted in the retrenchment of 330 employees at a cost of R11.7 million.
 Blyvoor Provisional Judicial Management
 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.
 The application, in terms of the provisions of Section 427 of the South African Companies Act, was prompted by Blyvoor’s inability to continue to sustain losses incurred since April 2009, which were brought about by the following circumstances:
 
  
  
  
  In terms of a provisional judicial management order, the court appoints a judicial manager who has a wide range of powers at his disposal to take such actions he deems necessary to save the business. These could include giving certain creditors temporary preference over others and agreeing compromises with creditors without the risk of committing an act of insolvency and thereby exposing the mine to liquidation. Management believes that provisional judicial management offers the best possible prospect of preventing Blyvoor’s liquidation and of restoring the operation to profitability, while protecting the interests of all stakeholders of both Blyvoor and DRDGOLD.
  •  management of Blyvoor will become the responsibility of a provisional judicial manager to be appointed by the Master
 of the High Court of South Africa;
 •  the provisional judicial manager will manage Blyvoor until March 16, 2010 when he will present to the Court a report on
 the performance of the business;
 •  on or prior to March 16, 2010 interested and affected parties may approach the Court and provide reasons why the order
 should be dismissed or confirmed as final. If the order is confirmed, then a final judicial management order will be made by the Court;
 •  If, at any stage prior to March 16, 2010, Blyvoor returns to profitability, any interested and affected party, including
 DRDGOLD, may bring an application before the Court to lift the provisional order.


F-68
 DRDGOLD expects that Blyvoor will remain under provisional judicial management until after access to the seismicity-damaged, higher-grade areas at its No 5 Shaft have been regained, which is expected to be in March 2010. The two key factors which are critical to Blyvoor’s future profitability are an improvement in recovered grade once the higher-grade areas have been accessed and an increase in the rand gold price to above current costs of production. Currently the breakeven point in rand gold price terms, for operating purposes amounts to R245,000 per kilogram and if capital expenditure is included it amounts to R278,000 per kilogram. The breakeven point being the point where the revenue generated from production measured in rand gold price terms is equal to the cost of production also measured in rand gold price terms.
 As discussed in more detail under Note 28 “Accounting estimates and judgments” management has made various estimates and assumptions that affect the reported amounts of assets included in these financial statements, which include Blyvoor’s assets. Details of assumptions and estimates which were used to determine the recoverable amount of mining assets are contained in this note. If actual results differ from these estimates and assumptions and if Blyvoor does not regain access to its higher-grade areas, as expected in March 2010, then Blyvoor may have to raise an impairment against its property, plant and equipment, which amounted to R463.9 million at June 30, 2009.


ITEM 19. EXHIBITS
 
 The following exhibits are filed as a part of this Annual Report:
 1.1
 (1)
 
 Memorandum of Association of DRDGOLD Limited.
 1.2
 (7)
 
 Articles of Association of DRDGOLD Limited, as amended on November 8, 2002.
 1.3
 (1)
 
 Excerpts of relevant provisions of the South African Companies Act.
 1.4
 (2)
 
 Durban Roodepoort Deep (1996) Share Option Scheme as amended.
 2.1
 (1)
 
 Excerpts of relevant provisions of the Johannesburg Stock Exchange Listings Requirements.
 2.2
 (7)
 
 Indenture between DRDGOLD Limited, as Issuer, and The Bank of New York, as Trustee, dated November 12, 2002.
 2.3
 (7)
 
 Purchase Agreement between DRDGOLD Limited and CIBC World Markets Corp., dated November 4, 2002.
 2.4
 (7)
 
 Registration Rights Agreement between DRDGOLD Limited and CIBC World Markets Corp., dated November 12, 2002.
 2.5
 (7)
 
 DRDGOLD Limited 6% Senior Convertible Note Due 2006 in the amount of $61,500,000 issued pursuant to Rule 144A of the Securities Act of 1933, as amended.
 2.6
 (7)
 
 DRDGOLD Limited 6% Senior Convertible Note Due 2006 in the amount of $4,500,000 issued pursuant to Regulation S under the Securities Act of 1933, as amended.
 4.1
 (1)
 
 Tribute Agreement, dated October 9, 1992, between DRDGOLD Limited and Rand Leases.
 4.2
 (1)
 
 Service Agreement, dated July 27, 1995, between DRDGOLD Limited and Randgold.
 4.3
 (1)
 
 Agreement, dated September 28, 1995, among First Westgold Mining (Proprietary) Limited, DRDGOLD Limited and Rand Leases in respect of purchase of assets of First Westgold by Rand Leases.
 4.4
 (2)
 
 Pumping Assistance, dated October 14, 1997, for the 1997/1998 fiscal year from the Minister of Mineral and Energy Affairs – Republic of South Africa to DRDGOLD Limited.
 4.5
 (3)
 
 Deposit Agreement among DRDGOLD Limited, The Bank of New York 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 11, 1998.
 4.6
 (4)
 
 Security Agreement, dated November 5, 1998, between The Chase Manhattan Bank, DRDGOLD Limited, Blyvoor, Buffels and West Wits.
 4.7
 (4)
 
 Loan Agreement, dated June 8, 1999, between Industrial Development Corporation of South Africa Limited, Crown and DRDGOLD Limited.
 4.8
 (4)
 
 Lender Substitution Deed, dated August 18, 1999, between DRDGOLD Limited, DRD Australasia, NM Rothschild & Sons (Singapore) Limited, NM Rothschild & Sons (Australia) Limited, as agent in its own capacity, and Rothschild Nominees (Pty) Limited.
 4.9
 (4)
 
 A $10m Facility Agreement, dated September 10, 1999, between DRDGOLD Limited, DRD Australasia and NM Rothschild & Sons (Australia) Limited.
 4.10
 (4)
 
 Facility Agreement, dated August 9, 1996, between PT Barisan Tropical Mining, Rothschild Australia Limited and the Participants.
 4.11
 (4)
 
 Deposit Agreement, dated September 30, 1999, between Buffels and BOE Merchant Bank, a division of BOE Bank Limited.
 4.12
 (4)
 
 Undertaking and Security Agreement, dated November 17, 1999, between BOE Bank Limited, through its division BOE Merchant Bank, and Buffels.
 4.13
 (4)
 
 Guarantee and Indemnity Agreement, dated November 17, 1999, between DRDGOLD Limited, Blyvoor, Argonaut Financial Services (Proprietary) Limited, West Wits, Crown and BOE Bank Limited, through its division BOE Merchant Bank.
 4.14
 (4)
 
 Loan Security Agreement, dated November 17, 1999, between FBCF Equipment Finance (Proprietary) Limited and Buffels.
 4.15
 (4)
 
 Sale of Business Agreement in respect of Harties, dated August 16, 1999, between Avgold Limited, Buffels and DRDGOLD Limited.
 4.16
 (4)
 
 Form of Restraint Agreement.
 4.17
 (4)
 
 Sale of Shares Agreement, dated September 29, 1997, between RMP Properties Limited, Randgold, Crown, City Deep Limited, Consolidated Main Reef Mines and Estate Limited, Crown Mines Limited, RMP Properties SA Limited and Industrial Zone Limited.
 4.18
 (5)
 
 Form of Non-Executive Employment Agreement.
 4.19
 (5)
 
 Form of Executive Employment Agreement.
 4.20
 (5)
 
 Share Sale Option Agreement, dated March 12, 1993, between Newmont Proprietary Limited, Ballimore No. 56 Proprietary Limited, Clayfield Proprietary Limited and Dome Resources N.L.
 4.21
 (5)
 
 Convertible Loan Agreement, dated November 19, 1997, between Tolukuma Gold Mines Proprietary Limited, Dome Resources N.L. and Mineral Resources Development Company Proprietary Limited.
 4.22
 (5)
 
 First Deed of Variation of Loan Agreement, between Mineral Resources Development Company Pty Limited, Dome Resources N.L. and Tolukuma Gold Mines Pty Limited.
 4.23
 (5)
 
 Agreement, dated February 21, 2000, between DRDGOLD Limited and Western Areas Limited.


127
  (5)
  Independent Auditor’s Report from PricewaterhouseCoopers to the Board of Directors and Shareholders of Crown Consolidated Gold Recoveries Limited, dated August 28, 2000.
  (5)
  Shareholders’ Agreement, dated September 29, 2000, between DRDGOLD Limited, Fraser Alexander Tailings (Proprietary) Limited and Mine Waste Solutions (Proprietary) Limited.
  (5)
  First Addendum to the Agreement, dated November 15, 2000, between DRDGOLD Limited and Western Areas Limited.
  (5)
  Second Addendum to the Agreement, dated December 21, 2000, between DRDGOLD Limited and Western Areas Limited.
  (6)
  Agreement between DRDGOLD Limited, Western Areas Limited, Consolidated African Mines Limited and JCI Gold Limited, dated April 25, 2001.
  (6)
  Addendum to the Agreement between DRDGOLD Limited, Western Areas Limited, Consolidated African Mines Limited and JCI Gold Limited, dated August 31, 2001.
  (6)
  Addendum to the Agreement between DRDGOLD Limited, Western Areas Limited, Consolidated African Mines Limited and JCI Gold Limited, dated September 26, 2001.
  (6)
  Guarantee and Cession in Securitatem Debiti Agreement between DRDGOLD Limited and Investec Bank Limited, dated October 9, 2001.
  (6)
  Second Deed of Variation of Loan Agreement between Tolukuma Gold Mines Limited, Dome Resources NL and Mineral Resources Development Company Limited, dated June 28, 2001.
  (6)
  Principal Terms and Conditions for Waiving Right to Declare Default and Enforce Security Deed under 1993 Purchase Agreement between Newmont Second Capital Corporation, Tolukuma Gold Mines (Pty.) Limited, Dome Resources (PNG) Pty. Limited, Dome Resources NL and DRDGOLD Limited, dated July 16, 2001.
  (6)
  Loan Agreement between Bank of South Pacific Limited and Tolukuma Gold Mines Limited, dated November 8, 2001.
  (7)
  Master Finance Lease between Volvo Truck Finance Australia (Pty) Ltd and Dome Resources N.L., dated November 1, 2000.
  (7)
    (7)
  Share Purchase Agreement between Crown Consolidated Gold Recoveries Ltd, The Industrial Development Corporation of South Africa Ltd, Khumo Bathong Holdings (Pty) Ltd and DRDGOLD Limited, dated June 12, 2002.
  (7)
  Shareholder’s Agreement between The Industrial Development Corporation of South Africa Limited, Khumo Bathong Holdings (Pty) Ltd, Crown Consolidated Gold Recoveries Ltd, and Crown Gold Recoveries (Pty) Ltd and DRDGOLD Limited, dated June 12, 2002.
  (7)
  Addendum to Shareholder’s Agreement between The Industrial Development Corporation of South Africa Limited, Khumo Bathong Holdings (Pty) Ltd, Crown Consolidated Gold Recoveries Ltd, Crown Gold Recoveries (Pty) Ltd and DRDGOLD Limited, dated June 14, 2002.
  (7)
  Subscription Agreement between Khumo Bathong Holdings (Pty) Limited and DRDGOLD Limited, dated June 12, 2002.
  (7)
    (7)
  Memorandum of Loan Agreement No. 1 between Durban Roodepoort Deep and Crown Gold Recoveries (Pty) Ltd, dated June 12, 2002.
  (7)
  Memorandum of Loan Agreement No. 2 between DRDGOLD Limited and Crown Gold Recoveries (Pty) Ltd, dated June 12, 2002.
  (7)
  Memorandum of Loan Agreement No. 3 between Crown Consolidated Gold Recoveries Ltd and Crown Gold Recoveries (Pty) Ltd, dated June 12, 2002.
  (7)
  Loan Agreement between Industrial Development Corporation of South Africa Ltd and Blyvooruitzicht Gold Mining Company Ltd, dated July 18, 2002.
  (7)
  Agreement of Loan and Pledge between DRDGOLD Limited and East Rand Proprietary Mines Limited, dated September 12, 2002.
  (7)
  Management Services Agreement between DRDGOLD Limited, Khumo Bathong Holdings (Pty) Ltd and Crown Gold Recoveries (Pty) Ltd, dated October 1, 2002.
  (7)
  Agreement amongst DRDGOLD Limited, West Witwatersrand Gold Mines Limited and Bophelo Trading (Pty) Ltd, dated June 12, 2002.
  (7)
  Letter Agreement between DRDGOLD Limited and The Standard Bank of South Africa, represented by its Standard Corporate and Merchant Bank Division, dated October 7, 2002.
  (7)
  Memorandum of Agreement between Daun Et Cie A.G., Courthiel Holdings (Pty) Ltd, Khumo Bathong Holdings (Pty) Ltd, Claas Edmond Daun, Paul Cornelis Thomas Schouten, Moltin Paseka Ncholo, Michelle Patience Baird, Derek Sean Webbstock, as sellers, and Crown Gold Recoveries (Pty) Ltd, as purchaser, dated October 10, 2002.
  (7)
  Memorandum of Loan Agreement between DRDGOLD Limited and Crown Gold Recoveries (Pty) Ltd, dated October 10, 2002.
  (7)
  Letter Agreement Relating to Consultancy Arrangement between DRDGOLD Limited and Nicolas Goodwin, dated October 15, 2002.
  (7)
  Management Services Agreement between DRDGOLD Limited and East Rand Proprietary Mines Ltd, dated October 10, 2002.
  (7)
  Agreement for sale of shares in Emperor Mines Limited, between DRD (Isle of Man) Limited and Kola Ventures Limited, dated December 13, 2002.


128
  (8)
    (8)
  Amendment to Confirmation, dated September 4, 2003, between DRDGOLD Limited and Investec Bank (Mauritius) Limited.
  (9)
  Deed of Amalgamation for the Corporate Restructuring of Orogen Minerals (Porgera) Limited, Mineral Resources Porgera Limited and Dome Resources (PNG) Limited, dated October 14, 2003.
  (9)
    (9)
  Loan Assignment Agreement between Orogen Minerals Limited, DRD (Isle of Man) Limited and Orogen Minerals (Porgera) Limited, dated October 14, 2003.
  (9)
    (9)
  Loan Assignment Agreement, between Dome Resources (PNG) Limited, Dome Resources Pty Limited, DRD (Isle of Man) Limited and Tolukuma Gold Mines Limited, dated November 21, 2003.
  (9)
  Memorandum of Agreement made and entered into between DRDGOLD Limited, West Witwatersrand Gold Mines Limited, Mogale Gold (Proprietary) Limited and Luipaards Vlei Estates (Proprietary) Limited dated June 6, 2003.
  (10)
  Porgera Joint Venture Operating Agreement between Placer (P.N.G.) Pty Limited and Highlands Gold Properties Pty. Limited and PGC (Papua New Guinea) Pty Limited, dated November 2, 1988.
  (10)
    (10)
  Banking Facilities Agreement made and entered between DRDGOLD Limited and Standard Bank of South Africa, Limited, dated November 14, 2003.
  (10)
  Agreement of Employment between DRDGOLD Limited and Mr. M.M. Wellesley-Wood, dated as of December 1, 2003.
  (10)
  Service Agreement between DRD (Isle of Man) Limited and Mr. M.M. Wellesley-Wood, dated as of December 1, 2003.
  (10)
    (10)
    (10)
  Subscription and Option Agreement made and entered between DRD (Isle of Man) Limited, Net-Gold Services Limited and G.M. Network Limited, dated January 26, 2004.
  (10)
  Forward Bullion Transaction Agreements made and entered between DRDGOLD Limited and Investec Bank Limited, dated February 4, 2004, February 6, 2004, February 10, 2004, February 11, 2004 and February 12, 2004.
  (10)
    (10)
  Termination Agreement made and entered between DRDGOLD Limited, Eskom Holdings Limited and Investec Bank Limited, dated June 24, 2004.
  (10)
  Novation Agreement made and entered between J Aron & Company, Eskom Holdings Limited and Investec Bank Limited, dated June 24, 2004.
  (10)
  Memorandum of Understanding made and entered between Buffelsfontein Gold Mines Limited, Buffelsfontein Division and The National Union of Mineworkers, The United Association of South Africa, The Mine Workers Union (Solidarity) and The South African Electrical Workers Association regarding retrenchments associated with No. 9, 10 and 12 Shafts of Buffelsfontein Division, dated August 6, 2004.
  (10)
  CCMA Settlement Agreement made and entered between Blyvooruitzicht Gold Mining Company Limited and The United Association of South Africa, South African Equity Workers’ Association, Solidarity and The National Union of Mineworkers regarding the retrenchment of up to 2,000 employees of the Blyvooruitzicht Gold Mining Company, dated September 2, 2004.
  (10)
  Loan Agreement made and entered between DRDGOLD Limited and Investec Bank Limited, dated September 15, 2004.
  (10)
  Subscription Agreement made and entered between DRD (Isle of Man) Limited and DRDGOLD Limited, dated September 21, 2004.
  (10)
  Common Terms Agreement of Loan made and entered between DRD (Isle of Man) Limited and Investec Bank (Mauritius) Limited, dated October 14, 2004.
  (10)
  Facility A Loan Agreement made and entered between DRD (Isle of Man) Limited and Investec Bank (Mauritius) Limited, dated October 14, 2004.
  (11)
  Loan Agreement made and entered between DRDGOLD Limited and Investec Bank Limited, dated December 10, 2004.
  (11)
  Subscription Agreement between DRDGOLD Limited and Baker Steel Capital Managers LLP (BSCM), dated April 7, 2005.
  (11)
  Underwriting Agreement between DRDGOLD Limited, the Baker Steel Capital Managers LLP (BSCM) and certain underwriters, dated April 5, 2005.
  (11)
  Memorandum of Agreement between DRDGOLD Limited, Simmer & Jack Mines Limited and Simmer & Jack Investments (Proprietary) Limited (S&J Companies), dated August 31, 2005.
  (11)
  Cession Agreement entered into among The Industrial Development Corporation of South Africa Limited (IDC), DRDGOLD Limited, Business Ventures Investment No. 750 (Pty) Ltd and Business Ventures Investment No. 751 (Pty) Ltd (the BVI Companies), dated July 13, 2005.
  (11)
  Share Sale Agreement entered into among The Industrial Development Corporation of South Africa Limited (IDC), DRDGOLD Limited, Business Ventures Investment No. 750 (Pty) Ltd (BVI 1) and Business Ventures Investment No. 751 (Pty) Ltd (BVI 2), dated July 13, 2005.


129
  (11)
  Term Sheet concluded between DRDGOLD Limited and Khumo Bathong Holdings (Pty) Ltd (KBH), dated July 6, 2005.
  (11)
  Facility B Loan Agreement between Investec Bank (Mauritius) Limited and DRD (Isle of Man) Limited (DRDIOM), dated March 3, 2005.
  (11)
  Convertible Loan Facility Agreement between DRDGOLD Limited and Emperor Mines Limited (Emperor), dated July 8, 2005.
  (11)
    (11)
  Option Agreement entered into by and between DRDGOLD Limited and M5 Developments (Pty) Limited, dated July 21, 2005.
  (11)
  Share Sale Agreement between DRD (Offshore) Limited, DRDGOLD Limited and Emperor Mines Limited, dated November 16, 2005.
  (12)
  Deed of Loan, Cession, Payment and Set-Off entered into between DRDGOLD Limited, East Rand Proprietary Mines Limited, Crown Gold Recoveries (Pty) Limited  and Blyvooruitzicht Gold Mining Company Limited, dated November 7, 2005.
  (12)
  Share Sale Agreement between Business Venture Investments 750 (Pty) Ltd and DRDGOLD South African Operations (Pty) Limited, dated November 8, 2005. Share Sale Agreement between Business Venture Investments 751 (Pty) Limited and DRGOLD South African Operations (Pty) Limited, dated November 8, 2005.
  (12)
  Subscription Agreement between DRDGOLD Limited and DRDGOLD South African Operations (Pty) Limited, dated November 9, 2005.
  (12)
  Share Sale Agreement between Crown Consolidated Gold Recoveries Limited and DRDGOLD South African Operations (Pty) Limited, dated November 14, 2005.
  (12)
  Subscription Agreement between DRDGOLD South African Operations (Pty) Limited and Khumo Gold SPV (Pty) Limited, dated November 18, 2005.
  (12)
  Subscription Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited, dated November 18, 2005.
  (12)
  Cession Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited and Khumo Bathong Holdings (Pty) Limited, dated November 18, 2005.
  (12)
  Cession Agreement between DRDGOLD Limited and The Industrial Development Corporation of South Africa Limited and Business Venture Investments No. 750 (Pty) Limited and Business Venture Investments No. 751 (Pty) Limited, dated November 18, 2005.
  (12)
  Option Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited and DRDGOLD South African Operations (Pty) Limited, dated November 18, 2005.
  (12)
  Offer of Class A Preference Share between Khumo Gold SPV (Pty) Limited and East Rand Proprietary Mines Limited, dated November 18, 2005.
  (12)
  Offer of Class A Preference Share between Khumo Gold SPV (Pty) Limited and Blyvooruitzicht Gold Mining Company Limited, dated November 18, 2005.
  (12)
  Offer of Class A Preference Share between Khumo Gold SPV (Pty) Limited and Crown Gold Recoveries (Pty) Limited, dated November 18, 2005.
  (12)
  Shareholders’ Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited and DRDGOLD South African Operations (Pty) Limited, dated November 24, 2005.
  (12)
  Sale and Subscription Agreement between DRDGOLD Limited and DRD (Offshore) Limited, dated January 4, 2006.
  (12)
    (12)
  Restructure Deed between DRD (Offshore) Limited and DRD (Isle of Man) Limited and Emperor Mines Limited and Emperor Gold Mining Company Limited and Australia and New Zealand Banking Group Limited, dated February 24, 2006.
  (12)
  Facility Agreement between DRD (Porgera) Limited and Tolukuma Gold Mines Limited and Australia and New Zealand Banking Group Limited, dated March 20, 2006.
  (12)
  Settlement of Loans Agreement between DRD (Isle of Man) Limited and DRD (Offshore) Limited, dated March 23, 2006.
  (14)
  Option Exercise Agreement between DRDGOLD Limited, Khumo Gold SPV (Pty) Limited and the Trustees for the time being of the DRDSA Empowerment Trust dated October 10, 2006.
  (14)
  Class B Preference Share Subscription Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited dated October 24, 2006.
  (14)
  Three Class B Preference Share Subscription Agreements between Khumo Gold SPV (Pty) Limited and Blyvooruitzicht Gold Mining Company Limited, Crown Gold Recoveries (Pty) Limited and East Rand Proprietary Mines Limited, dated October 24, 2006.
  (14)
  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 (Pty) Limited and East Rand Proprietary Mines Limited, dated October 24, 2006.
  (14)
  Share Sale Agreement between Emperor Mines Limited and Westech Gold (Pty) Limited, dated March 22, 2007,` regarding the disposal of its Fijian assets.


130
  (14)
  Joint Venture Interest Sale Deed – Procurement Deed between Barrick Gold Corporation, or Barrick, and Emperor Mines Limited, dated April 12, 2007.
  (14)
    (14)
  Joint Venture Interest Sale Deed between Barrick Gold Corporation, Barrick (Niugini) Limited, Emperor Mines Limited and DRD (Porgera) Limited dated July 19, 2007.
  (14)
  Deed of Assignment and Assumption between Barrick (Niugini) Limited (“Buyer”), DRD (Porgera) Limited (“Seller”), Barrick (Goldfields PNG Holdings) Limited (“Goldfields”) and Minerals Resources Enga Limited (“MRE”) (collectively “the parties”) dated July 19, 2007.
  (14)
  Memorandum of Agreement between Anglo Gold Ashanti Limited, Friedshelf 849 (Proprietary) Limited (renamed Ergo Mining (Pty) Limited), DRDGOLD South African Operations (Pty) Limited and Mintails SA (Pty) Limited, dated August 6, 2007.
  (14)
  Merger Implementation Deed between Emperor Mines Limited and Intrepid Mines Limited, dated September 18, 2007.
  (14)
  Mandate for the Placement of DRD (Offshore) Limited’s 78.72% Shareholding in Emperor Mines Limited, dated September 28, 2007.
  (14)
  Term Sheet for the joint venture agreement entered into by Acorn Gold (Proprietary) Limited, DRDGOLD Limited, Durban Roodepoort Deep (Proprietary) Limited, Friedshelf 850 (Proprietary) Limited, Geotorm Investments Limited, Kgosi Resource Management (Proprietary) Limited, Minerals and Mining Reclamation Services (Proprietary) Limited, Mintails SA (Proprietary) Limited, West Witwatersrand Gold Mines Limited, West Witwatersrand Holdings Limited, West Wits Mining Limited, West Wits Mining SA (Proprietary) Limited, dated November 9, 2007.
  (15)
  Third Addendum to Memorandum of Agreement between AngloGold Ashanti Limited (“AGA”), Ergo Mining (Pty) Limited  (formerly called Friedshelf 849 (Pty) Limited) (“Ergo”), DRDGOLD South African Operations (Pty) (“DRDGOLD SA”) Mintails South Africa (Pty) Limited dated November 14, 2007.
  (15)
  Fifth Addendum to Memorandum of Agreement between AngloGold Ashanti Limited (“AGA”), Ergo Mining (Pty) Limited  (formerly called Friedshelf 849 (Pty) Limited (“Ergo”), DRDGOLD South African Operations (Pty) (“DRDGOLD SA”) Mintails South Africa (Pty) Limited dated May 22, 2008.
  (15)
  Mining User Contract between Crown Gold Recoveries (Pty) Limited (“Crown”), East Rand Proprietary Mines Limited (“ERPM”), Elsburg Gold Mining Joint Venture (“Elsburg JV”), Ergo Mining (Pty) Limited (“Ergo”), Ergo Uranium (Pty) Limited (“Ergo Uranium”) and Mogale Gold (Pty) Limited (“Mogale Gold”) dated August 15, 2008
  (15)
  Ergo Uranium Sale Agreement of Brakpan Plants to Ergo Mining between Ergo Uranium (Pty) Limited (“Ergo Uranium”) and Ergo Mining (Pty) Limited (“Ergo”) dated August 15, 2008.
  (15)
  Ergo Mining Shareholders’ Agreement between Crown Gold Recoveries (Pty) Limited (“Crown”) and Ergo Uranium (Pty) Limited (“Ergo Uranium”) dated August 15, 2008.
  (15)
  Elsburg Gold Mining Joint Venture (“Elsburg JV”) Agreement between East Rand Proprietary Mines Limited (“ERPM”) and Mogale Gold (Pty) Limited (“Mogale Gold”) dated August 15, 2008.
  (15)
  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 (Pty) Limited (“Mogale Gold”) dated September 29, 2008.
  (16)
  Heads of Agreement entered into by Mintails Limited, Mogale Gold (Pty) Limited (“Mogale Gold”), Ergo Mining (Pty) Limited (“Ergo Joint Venture”), DRDGOLD Limited (“DRDGOLD”) and East Rand Proprietary Mines Limited (“ERPM”), dated December 8, 2008.
  (16)
  Loan Facility entered into by Mintails South Africa (Pty) Limited (“Borrower”), DRDGOLD Limited (“Lender”), Mintails Limited (“Borrower’s Guarantor”), Mogale Gold (Pty) Limited (Mogale Gold”) Ergo Uranium (Pty) Limited (“Ergo Uranium”) dated December 8, 2008.
  (16)
  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.
  (16)
  Facility Agreement between Investec Bank limited (“the Lender”) and DRDGOLD Limited (“the Borrower”) dated March 31, 2009.
  (16)
 
  (16)
    (16)
    (16)
    (16)
    (10)
    (11)
  Crown Gold Recoveries (Pty) Limited Consolidated Financial Statements for the years ended June 30, 2005, 2004 and 2003.
  (13)
  Crown Gold Recoveries (Pty) Limited Unaudited Consolidated Financial Statements for the period ended December 1, 2005 and the years ended June 30, 2005 and 2004.
  (13)
  Emperor Mines Limited Unaudited Consolidated Financial Statements for the period ended April 6, 2006 and the years ended June 30, 2005 and 2004.
  (11)
    (1)


(2)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 1997.
 (3)
 Incorporated by reference to our Registration Statement (File No. 333-9242) on Form F-6.
 (4)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 1999.
 (5)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2000.
 (6)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2001.
 (7)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2002.
 (8)
 Incorporated by reference to Amendment No. 4 of our Annual Report on Form 20-F for the fiscal year ended June 30, 2002.
 (9)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2003.
 (10)
 Incorporated by reference to Amendment No. 3 of our Annual Report on Form 20-F for the fiscal year ended June 30, 2004.
 (11)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2005.
 (12)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2006.
 (13)
 Incorporated by reference to Amendment No. 1 of our Annual Report on Form 20-F for the fiscal year ended June 30, 2006.
 (14)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2007.
 (15)
 Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2008.
 (16)
 Filed herewith.


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.
 
 
 DRDGOLD LIMITED
 By:     
  /s/
 D.J.
 Pretorius
 D.J. Pretorius Chief Executive Officer
 By:     
  /s/
 C.C.
 Barnes
 C.C. Barnes Chief Financial Officer
 Date: November 27, 2009