Exhibit 99.1
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE000058723
NYSE trading symbol: DRD
(“DRDGOLD” or the “Company”)
INTERIM PAYMENT TO EKURHULENI METROPOLITAN COUNCIL
In December 2014 DRDGOLD’s subsidiary, Ergo Mining Proprietary Limited (“Ergo”), instituted motion
proceedings in the High Court of South Africa (“High Court”) against the Ekurhuleni Metropolitan
Council (“EMM” or the “Municipality”) and Eskom for an order declaring that:
· the Municipality does not “supply“electricity to Ergo from a “supply main” as contemplated in the
Municipality's Electricity By-Laws of 2002 (“By-Laws”);
· the Municipality is not licensed to supply electricity to Ergo in terms of the Municipality's
Temporary Distribution Licence;
· the Municipality is not entitled to render tax invoices to Ergo for the supply and consumption of
electricity from the sub-station;
· Ergo is not indebted to the Municipality for the supply and consumption of electricity and is not
obliged to tender payment for any amounts claimed in the invoices rendered by the Municipality;
· the Municipality is indebted to Ergo in respect of the surcharges and premiums that were
erroneously paid to the Municipality in the bona fide and reasonable belief that the Municipality
supplied electricity to it; and
· Eskom be compelled to conclude an agreement with Ergo for the supply of electricity to the Ergo
Plant.
These proceedings were instituted on the basis inter alia that, in the opinion of Ergo, its plant draws
power directly from an Eskom sub-station, that EMM does not render any services or possess any
infrastructure forming part of the supply to the Ergo Plant, and that nothing in the said By-Laws qualifies
EMM as a supplier.
Following the institution of the proceedings, and pending its conclusion, Ergo reduced periodic payments
to EMM to the actual Eskom tariff, and net of the municipal surcharges levied by EMM.
In May 2016 and relying on legislatively sanctioned enforcement measures contained in inter alia section
95, read with section 97 of the Municipal Systems Act 32 of 2000 (“Systems Act”), EMM threatened to
discontinue the supply of power to the Ergo Plant unless Ergo paid its “arrears”.
Ergo sought and was granted an interdict in the High Court prohibiting EMM from disconnecting supply,
on condition that it paid the disputed amount into an attorney’s trust account as security for payment to
EMM in the event that Ergo failed in the main application. This interdict had the effect that until the High
Court gave a final ruling on the items listed above, EMM would be prohibited from enforcing payment of
the account “arrears” through the credit control and debt collection mechanisms of the Systems Act.
EMM appealed the granting of the interdict, and on 29 August 2017 the High Court set aside the interdict
that prohibits EMM from disconnecting power pending the final hearing of the matter.