In the media

DRDGOLD Q1 earnings up 44%

[www.businessday.co.za] -- DRDGOLD earnings up because of a deferred tax credit, plans to sell Blyvoor mine.

South African junior gold miner DRDGOLD says its headline earnings for the March quarter grew 44% quarter-on-quarter to 12.5 cents.

"Revenue was virtually unchanged at R655.9 million, a 3% increase in the average rand gold price received to R312 913/kg offsetting the impact of lower gold production," DRDGOLD said in a statement on Tuesday.

Total gold production is 3% lower at 67 387oz, despite its Ergo operation recovering 8%.

DRDGOLD says net cash generated by operations rose 53% to R120.4 million.

DRDGOLD added that it will sell its Blyvoor operation.

"The board has now concluded that Blyvoor no longer fits the core strategic focus of the company. It has therefore resolved to sell the mine and has appointed Royal Bank of Canada as well as Beijing Axis to advise on the transaction," DRDGOLD explained.

DRDGOLD says it will focus on its new pipeline.

"Operationally our focus will remain the construction of the Crown/Ergo pipeline and Ergo plant upgrade. We will also in the coming months be decommissioning the Topstar site and commencing reclamation from two other sites, while work on the integration of the Crown Central and City Deep plants into Ergo, will also get underway," DRDGOLD said.