DRD Gold’s glowing results - CNBC Africa

DRD Gold’s glowing results


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DRD Gold 18 per cent increase in revenue in Q1 FY2015. PHOTO: Wall Street Daily.

The increase in revenue was attributed to the increase in gold production and gold sold.

Results show an eight per cent increase in gold production from 34 143oz in Q4 FY2014 to 37 005oz in Q1 FY2015. Gold sold went up by 17 per cent from 32 857oz in June to 38 291oz in September.

“The carbon adsorption inefficiencies and throughput issues that plagued the initial start-up of the flotation and fine-grind circuit (FFG) did not manifest this time round, and inventory build-up in the FFG impacted gold output exactly as anticipated,” said [DATA DRD:DRD Gold].

Operating profit was reported at 52 per cent higher than the previous quarter, it went from 52.6 million rand in June to 79.7 million rand in September. 

(READ MORE: DRDGold posts weak earnings as production falls)

The company’s headline earnings were reported at 1.1 million rand in September. DRD Gold also saw a profit before tax of 41.6 million rand in September from a profit of 19.3 million rand in June.

“Earnings before interest, taxation, depreciation and amortisation (EBITDA) were 58 per cent lower at 48.0 million rand and the headline loss position was zero, compared with headline earnings of 10 South African cents per share in the previous quarter,” said DRD Gold.

Niël Pretorius, CEO of DRD Gold, says the company is motivated by its positive performance.

“These results provide clear guidance on the adjustments required to take full advantage of the considerable upside that this circuit promises. We remain on track to complete test work, and the changes we may have to make, by the end of December,” he said.