DRD Gold production up 8 per cent, operating profit up 9 per cent

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DRD Gold production up 8 per cent

The company, which released results for the year ended 30 June 2013, reported that revenue increased by 18 per cent to 2 076.5 million rand for the 12 months ended 30 June 2013. This was attributed to an 8 per cent increase in gold production and a 9 per cent increase in the rand gold price.

The company’s fourth quarter results were also released adjacent to results for the year ended 30 June 2013.

Headline earnings per share increased by 11 per cent to 68 cents from 61 cents last year for the same period.

Gold production was up 8 per cent to 146,381 oz from 135,708 oz for the same period in 2012. The 8 per cent increase in gold production is as a result of e an 8 per cent increase in throughput to 23,254,000 tonnes.

A final dividend of 14 cents per share for the year ended 30 June 2013 has been declared.

“I am pleased to report that, by the end of FY2013 on 30 June, we had successfully completed the consolidation of our various surface retreatment operations into a single, operating entity, Ergo Mining (Pty) Limited (“Ergo”),” the company said in a statement.

“Ergo’s performance in terms of volume and recovery are reassuringly stable and consistent with call. Commissioning of the new flotation/fine-grind circuit at the Brakpan plant is going well, with early test work showing that performance is consistent with assumptions.”

Capital expenditure was however  13 per cent higher at 361.5 million rand, compared to 319.9 million rand in 2012, due to the continued development of their Ergo Mining infrastructure.

The company recorded an impairment of 238.0 million rand, two of which consisted of 101.3 million against the investment in Village Main Reef Limited and a 25.6 million rand against the DRDGOLD Limited rehabilitation trust fund, due to the disposal of relating mining rights over the old DRDGOLD mining lease area. The two were the largest out of four reported impairments.

DRD Gold plans to continue with the commissioning of their flotation/fine-grind circuit at their Ergo plant in Brakpan, which is expected to be completed and begin production by December 2013.

“On the technology front, we will look afresh at the potential our new technologies offer in terms of greater scale, both within our existing footprint and further afield,” was said in the statement.  

Gold sector talks are underway in an effort to end striking in the gold mining and construction sectors of the country. Wage negotiation talks collapsed on Wednesday after unions rejected the latest wage offer from the Chamber of Mines of South Africa.