In the media

DRDGOLD Q3 earnings climb 17% on back of strengthened revenue

A 16% increase in gold revenue to R531-million for dual-listed DRDGOLD for the quarter ended March 31, 2013, has driven a 17% jump in headline earnings a share to 14c for the period, the company has reported.

A 16% increase in gold revenue to R531-million for dual-listed DRDGOLD for the quarter ended March 31, 2013, has driven a 17% jump in headline earnings a share to 14c for the period, the company has reported.

The improved revenue was on the back of a 3% year-on-year increase in gold production to 35 976 oz, as well as a higher average gold price of R474 482/kg received for the quarter.

After accounting for net operating costs of R360.3-million, operating profit was 5% higher at R170.7-million, notwithstanding a 3% increase in cash operating unit costs to $1 111/oz owing to increased volumes and yearly price increases.

Good production results were further bolstered by steady volume delivery to the plants, which saw a 3% year-on-year increase in throughput to about 5.77-million tons for the March quarter, in addition to marginally improved gold production over the average quarterly production seen in the last two years, commented CEO Niël Pretorius.

“Improved throughput reflects the positive impact of both continued stabilisation in the operating parameters of the new Crown/Ergo pipeline and the decommissioning of the Crown plant,” he said in a statement on Thursday.

Development of the flotation and fine-grind circuit at the Brakpan plant, however, drove a substantial 60% rise in capital expenditure to R99.8-million for the three months.

Meanwhile, DRDGOLD said it was assessing various expressions of interest it had received following the company’s announcement last quarter that it intended to dispose of its East Rand Proprietary Mines underground mining asset in South Africa and its exploration assets in Zimbabwe.

Looking ahead, the company planned to advance the commissioning of the new flotation and fine-grind circuit at Ergo's Brakpan plant and was “cautiously optimistic” about the project's ability to deliver into targeted operating and financial performance.

“In the interim, as our strategic capital commitments come to an end, we remain focused on maximising the operating and financial capabilities of the Brakpan plant's carbon-in-leach circuit, focusing chiefly on improved productivity,” the company stated.