In the media
DRDGOLD focusing on expansion plans
14 February 2012
DRDGOLD says it is focusing on its expansion plans, after reporting a 107% increase to R243.98 million in cash inflow for the second quarter ended December 31, 2011.
The junior gold miner said its board of directors have given the go ahead for a flotation and fine-grinding circuit to be incorporated at its Ergo plant in Brakpan.
DRDGOLD's CEO Niël Pretorius said once implemented, this will result in an increase of between 16% and 20% in the company's gold production.
Pretorius added that the company was "settling in" following the integration of the Crown circuit and the Ergo circuit via a 52 kilometre pipeline.
"We expect that we can now leverage the considerable competitive advantage offered by our extensive resource, plant infrastructure and strategic surface holdings in order to grow our 11 million-ounce surface resource even further and thus extend the life of Ergo." he said.
Pretorius announced that the company was also expecting the Competent Person's Report on the ERPM extension 1 and 2 prospect to be completed by the end of this month.
"The board has now also resolved to develop this resource further through additional drilling to take it to the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (Samrec) and Joint Ore Reserves Committee (Jorc) compliant level of confidence".
Although the company did not provide a clear guideline of its quarterly production outlook, output levels to remain similar to those in Q2.
DRDGOLD's total production was virtually unchanged at 63,659oz for the second quarter, compared to 63,562oz in the comparative period in 2010.
Revenues were up by 7% to R865.9 million, while net profits, buoyed by an 11% increase in the Rand/gold price to R437,316/kg, increased by 99% to R165.1 million.
For the six months ended December, gold production from continuing operations was down 5% to 68,545oz.
In terms of the agreement, DRDGOLD has agreed to sell to Village its entire shareholding in Blyvoor and its working capital and shareholder loan claims against Blyvoor.
The purchase consideration will be settled by Village through the issue of 85.7 million new Village shares.