Johannesburg – Miner DRDGold says it will report a loss for the six months to December.
This is as the final clean-up and closure of specific Crown sites continued to weigh on costs causing both accelerated depreciation and retrenchment costs of about R18 million each.
The company says earnings per share will drop by between 76 and 96 percent to between 0.17c and 1.03c.
Its headline loss per share will come in at between 2.66c and 2.14c compared to earnings of 2.6c in the six months to December 2015.
DRDGold also noted volume throughput amounted to 6 million tonnes compared to 6.6 million tonnes, a 10 percent decrease.
In a statement on Monday, it said gold production amounted to 1 066kg compared to 1 034kg, a 3 percent increase and operating costs increased by 9 percent to R 82 per tonne.
After paying a final dividend of R52 million for the year to June, it ended the second quarter of the 2017 financial year with R290 million in cash and cash equivalents, compared with R335 million at the end of the first quarter of. The cash position was also influenced by an increase in working capital of R 70.5 million for the first half of the year.
Gold production for the year to June is expected to be between 136 000 and 140 000 ounces at cash operating costs of between R468 000 per kilogram and R482 000 per kilogram.
The company expects to report on February 15.
BUSINESS REPORT ONLINE