Johannesburg –
DRDGold says gains in the rand price for gold boosted its revenue 5 percent to
R1.2 billion in the six months to December.
The miner notes
that the average rand gold price was up 16 percent to R572 443 a
killogramme, which countered the 10 percent decrease in gold sold.
In a statement issued
on Wednesday, the miner also notes total operating costs were 6 percent higher
at R1.05 billion, which translated into operating profit of R172.6 million, a 4
percent gain year-on-year.
It adds its operating
margin was stable at 14.5 percent.
However, the
company recorded a headline loss of R10.2 million, or 2.4c a share, compared
with a gain of R10.9 million a year ago. This was mostly due to the
commencement of the final clean-up and closure of various Crown sites, causing accelerated
depreciation and retrenchment costs of R18 million each, it says.
Gold production was
7 percent lower at 2 100 kg as throughput and yield declined, it notes.
Read also: DRDGold shares are hit by profit news
DRDGold adds two new
reclamation sites have been commissioned in recent weeks. Reclaimed slimes from
4L2 – which contains some 11.9 million tons at 0.30g/t – will report to the
City Deep plant at a rate of 300 000 tpm and then to the Ergo plant for gold
extraction.
Reclaimed slimes
from 4L37 – which contains 7.2 million tons at at 0.28g/t – will report
directly to the Ergo plant at a rate of 300 000tpm for gold extraction for a
period of 24 months.
Two other slimes
dams – 4L50, containing 20.3 million t at 0.26g/t and 7L15, containing 17.1
million t at 0.26g/t – are being assessed to decide which should be prioritised
for reclamation, it says.
DRDGold says, these
new reclamation sites, together with the phasing out of the West Rand, are expected
to enhance consistency in volume delivery and will “obviously” also come in at
a much lower unit cost to reclaim than the West Rand clean-up sites.
BUSINESS REPORT ONLINE