In the media

High Court lifts Blyvoor judicial management order

[Miningweekly] - The High Court of South Africa on Tuesday lifted a provisional judicial management order on South African miner DRDGOLD's Blyvooruitzicht subsidiary.

JOHANNESBURG (miningweekly.com) - The High Court of South Africa on Tuesday lifted a provisional judicial management order on South African miner DRDGOLD’s Blyvooruitzicht (Blyvoor) subsidiary.

The gold miner, which held a 74% stake in Blyvooruitzicht, had, in March, filed papers with the mine’s joint judicial managers to support its view that a judicial management order should be lifted.

The Blyvoor mine had been placed under judicial management last year, after posting a R27-million loss, as a result of industrial action, seismic events, rising energy costs and a lower rand gold price.

However, the mine had recorded a profit of R33,6-million between November last year and February, while its creditors had been reduced to R2,17-million, down from R39-million.

Further, the mine’s output increased to 315 kg/m, compared with 272 kg/m before, while the gold price had improved to R265 000/kg, up from the previous R240 000/kg.

“The provisional judicial management of Blyvoor has been a success; the company is able to pay its debts as and when they fall due for payment; it has turned the corner and is, once again, a successful concern,” DRDGOLD CEO Niël Pretorius said in a statement to shareholders on Tuesday.

He added that the four judicial managers appointed by the court had supported its application for lifting the order, on condition that DRDGOLD’s provision of a R15-million facility to the mine remained in place.

The facility had been made available in November last year, but has not yet been accessed.