1
Preparation
of Financial
Information
We are a South African
company and
currently
all our operations
are located
in South Africa.
Accordingly, our books
of account
are
maintained
in South African
Rand. Our financial statements included in our corporate filings are prepared in accordance with International
Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
Our consolidated financial statements included in this Annual Report are prepared in accordance with IFRS as issued by the IASB.
All financial information in this Annual Report, except as otherwise noted is prepared in accordance with IFRS as issued by the IASB.
We present our financial information in rand, which is our presentation and reporting currency.
All references
to “dollars”
or “$”
herein are
to United States
Dollars and
references
to “rand” or
“R” are to South
African rands.
Solely for your convenience, this Annual Report
contains translations of certain rand amounts into dollars at specified rates. These rand amounts do not represent actual dollar amounts, nor
could they necessarily have been converted into dollars at the rates indicated. Unless otherwise indicated, rand amounts have been translated
into dollars at the rate of R16.27 per $1.00, the year end exchange rate on June 30, 2022.
In this Annual Report, we present certain non-IFRS financial measures such as “cash operating costs per kilogram”, “all-in
sustaining costs per kilogram” and “all-in costs per kilogram” which have been determined using industry guidelines promulgated by the
World Gold Council, and which we use to determine costs associated with producing gold, cash generating capacities of the mines and to
monitor performance of our mining operations. An investor should not consider these items in isolation or as alternatives to, operating costs,
cash generated from operating activities, profit/(loss) for the year or any other measure of financial performance presented in accordance
with IFRS or as an indicator of our performance. While the World Gold Council has provided definitions for the calculation of these
measures,
the calculation of cash operating costs per kilogram, all-in sustaining costs per kilogram and all-in costs per kilogram may vary
significantly among gold mining companies, and these definitions by themselves do not necessarily provide a basis for comparison with
other gold mining companies. See Glossary of Terms and Explanations and Item 5A. Operating Results – “Cash operating costs, all-in
sustaining costs and all-in costs” and “Reconciliation of cash operating costs per kilogram, all-in sustaining costs per kilogram, all-in costs
DRDGOLD Limited
When used in
this Annual
Report, the
term the “Company”
refers to DRDGOLD
Limited and
the terms “we,”
“our,” “us” or
“the
Group” refer
to the Company
and its subsidiaries
as appropriate
in the context.
Special Note
Regarding Forward-Looking
Statements
This Annual
Report contains
certain “forward-looking”
statements
within the meaning
of Section
21E of the
U.S. Securities
Exchange
Act of 1934,
regarding expected
future events,
circumstances,
trends and expected
future financial
performance
and information
relating to
us
that are
based on the
beliefs of
our management,
as well as
assumptions
made by and
information
currently available
to our management.
Some
of these forward-looking
statements
include phrases
such as “anticipates,”
“believes,”
“could,” “estimates,”
“expects,”
“intends,”
“may,”
“should,” or
“will continue,”
or similar
expressions
or the negatives
thereof or
other variations
on these expressions,
or similar
terminology, or
discussions
of strategy, plans
or intentions,
including statements in connection with, or relating
to, among other things:
●
our reserve calculations and underlying assumptions;
●
the trend information discussed in Item 5D.- Trend Information, including target gold production and cash operating costs;
●
life of mine and potential increase in life of mine;
●
statements made in or with respect to the Technical Report Summaries (“
TRS
” or “
TRSs
”) including statements with respect to
Mineral Reserves and Resources and assumptions, gold prices, projected revenue and cash flows and capital expenditures and
other forward looking statements in the TRSs;
●
estimated future throughput capacity and production;
●
expected trends in our gold production as well as the demand for and the price of gold;
●
our anticipated labor, electricity, water,
crude oil and steel costs;
●
our expectation that existing cash will be sufficient to fund our operations in the next 12 months including our anticipated
commitments;
●
estimated production costs, cash operating costs per ounce, all-in sustaining costs per ounce and all-in costs per ounce;
●
expectations on future gold price, supply and pricing trends, including long term trends, expected impact of the global environment
on gold prices;
●
expected gold production and cash operating costs expected in fiscal year 2023;
●
statements with respect to agreements with unions;
●
our prospects in litigation and disputes;
●
statements with respect to the legal review for increasing the deposition capacity of the Brakpan/Withok Tailings Storage Facility
(“
TSF
”) and the Regional Tailings Storage Facility (“
RTSF
”), and expected potential increase in capacity and life of mine and
statements with respect to our flotation fine-grind
(“
FFG
●
expected deposition capacity from improvements in our dams and new dam construction; and
●
expected effective gold mining tax rate.
Such statements
reflect our
current views
with respect
to future events
and are subject
to risks, uncertainties
and assumptions.
Many
factors could
cause our
actual results,
performance
or achievements
to be materially
different from
any future
results, performance
or
achievements
that may be
expressed or
implied by
such forward-looking
statements,
including, among
others: