In the media

DRDGOLD posts R203m profit, output down

[Miningweekly] - South African gold miner DRDGOLD recorded an 84% increase in net profit to R203,3-million in the 2010 financial year, up from the R110,7-million profit recorded the year before.

JOHANNESBURG (miningweekly.com) - South African gold miner DRDGOLD recorded an 84% increase in net profit to R203,3-million in the 2010 financial year, up from the R110,7-million profit recorded the year before.

Headline earnings, however, fell by 62% to R48,9-million during the year, compared with headline earnings of R127,4-million in the 2009 financial year.

In the year ended June 30, 2010, revenues increased by 4% to just under R2-billion, compared with the R1,9-billion earned in the year ended June 2009.

This was despite gold output for the full year having dropped to 241 194 oz, down 3% on the 247 690 oz produced in the previous year.

DRDGOLD, led by CEO Niël Pretorius, noted that the fall in production was a result of lower output from the company’s Blyvooruitzicht mine, where volumes were still recovering after a seismic event caused damage to underground production areas in May last year.

A month-long strike over wages by nearly 4 000 workers at the end of 2009, had also resulted in a drop in output, with DRDGOLD previously having indicated that it was losing about 230 oz/d in production owing to the industrial action.