In the media

DRDGOLD records 4% hike in gold production

[Business Report] - South Africa's fourth-biggest gold producer, DRDGOLD, yesterday reported a 4 percent rise in gold production for the quarter to December and a return to profit owing to lower operating costs.

South Africa’s fourth-biggest gold producer, DRDGOLD, yesterday reported a 4 percent rise in gold production for the quarter to December and a return to profit owing to lower operating costs.

The company, a mid-tier, unhedged gold producer, said yesterday that output in the second quarter of last year increased to 59 866 ounces.

Revenue for the quarter jumped by 12 percent to R499.6 million due to the higher output and a 12 percent increase in the average rand gold price of R268 302 a kilogram.

Operating costs fell 4 percent to R416.5m.

Local gold mining firms sell their gold in dollars, and pay their costs in rands.

Headline earnings rose to 1.4c a share, from a loss a share of 13.1c the previous quarter.

Given the strength of the rand, the company said it would focus on reducing its exposure to risk, controlling costs and managing margins in the near term.

"The rand’s strong trending continued during the quarter and is showing little sign of softening against the major currencies," the company said.

DRDGOLD said that along with a local partner, it would make an initial "modest" investment in a prospecting project in Zimbabwe.

South Africa-focused DRDGOLD has a mix of assets, including underground mines, surface re-treatment operations and exploration.

The company did not declare an interim dividend.

Its share price added 2.22 percent to R4.60 yesterday.