In the media

DRDGOLD posts FY earnings surge

28 August 2012

DRDGOLD on Tuesday reported a 53% increase in full-year operating profit to R622m from its Ergo asset, leading the gold producer to a 259% increase in headline earnings per share from continuing operations to 61c per share.

Net cash flow from operations rose by 91% to R619.5m.

The company also declared a dividend of 10c per share for the year to end-June.

Discussing the group’s performance of the past year, CEO Niël Pretorius said the company was pleased to complete the first part of the sale of deep-level mine Blyvoorutizicht to Village Main Reef, resulting in DRDGOLD acquiring an interest in Village of just under 9%.

Also during the year, completion of the R350m Ergo plant upgrade to a volume capacity of 1.8Mtpm and of the Crown/Ergo pipeline facilitated full consolidation of the Ergo surface retreatment footprint.

Pretorius said he was “encouraged” by Ergo’s production for the year of 135,708 oz – 3% short of the lower end of the operation’s steady-state annual target – given that this was achieved amid several changes. These included the decommissioning of two plants, the phasing in of two new reclamation sites and the phasing out of two depleted sites, one of which was the very lucrative Top Star dump.

Looking ahead, Pretorius said the company must maintain tonnage volumes to plant and ensure that Ergo’s new flotation/fine-grind circuit is operational before the end of the current financial year.