In the media

DRDGOLD operating profit rises 53%

28 August 2012

Surface gold miner DRD Gold reported a 53% increase in operating profit to R622.2-million from its Ergo operation for the year to June 30.

Headline earnings a share soared 259% to 61c, with net cash flow leaping 91% to R619.5-million.

The JSE- and NYSE-listed company, which declared its fifth successive yearly dividend of 10c for the year, is left with just under 9% of the Blyvooruitzicht Gold Mining Company after disposing its 74% interest to JSE-listed Village Main Reef.

DRDGOLD CEO Niël Pretorius was encouraged by Ergo being able to produce 135 708 oz and said the company now needed to maintain tonnage volumes and ensure that Ergo’s new flotation/fine-grind circuit was operational before June 30 next year.

The R350-million Ergo plant upgrade to 1.8-million tons a month has been completed, with the Crown/Ergo pipeline facilitating full consolidation of the Ergo surface retreatment capacity.

As research and development continued into metallurgical efficiency enhancement, water-use innovation and carbon footprint reduction, the company was keen to leverage its tailings retreatment experience in other areas of reclamation.

On the sustainable development front, its business development academy was developing “real human and social capital”.

Source: www.miningweekly.com