Production update: 4% rise in gold production, 17% increase in operating profit
05 February 2014
Johannesburg, South Africa. 5 February 2014. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) in a production update released today, reported a quarter on quarter improvement in gold production of 4%, an increase in operating profit of 17% and a drop in all-in sustaining costs of 14%.
The increase in gold production was the result of a 9% increase in the average yield, which offset a 4% drop in throughput.
In the quarter under review, construction of the flotation/fine-grind (FFG) circuit at Ergo’s Brakpan Plant was completed and full production through this circuit was achieved in the third week of January 2014.
DRDGOLD CEO Niël Pretorius said: “We are pleased that production was back up, but we would have preferred to have had the FFG circuit fully operational by the end of December 2013. That is what we told the market we were aiming for. Unfortunately, delays in getting the last of three thickeners up and running pushed final commissioning back by at least three weeks.”
For the half-year ended 31 December 2013 gold production was down 8% compared with the first six months of FY2013, the combined effect of a very solid second quarter in FY2013 and a poor first quarter in FY2014. Cash operating profit was down 62% on the back of the drop in production, a 14% rise in all-in sustaining unit costs and a 9% decline in the average gold price received.
DRDGOLD’s full operating and financial results for the quarter and six months ended 31 December 2013 will be released on Tuesday, 11 February 2014.
South Africa & North America
James Duncan, Russell and Associates
+27 11 880 3924 (office)
+27 (0) 79 336 4010 (mobile)
Investor and Media Relations
Phil Dexter, St James’s Corporate Services
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+44 (0) 779 863 4398 (mobile)
For more information, please visit www.drdgold.com
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2013, which we filed with the United States Securities and Exchange Commission on 25 October 2013 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statement included in this report have not been reviewed and reported on by DRDGOLD’s auditors.