In the media

DRDGOLD profit improves on higher output, rand gold price

[Business Day] -- DRDGOLD, a tailings treatment company, reported strong annual results on Friday, with its profit rising on improved gold production and a higher rand gold price.

DRDGOLD, a tailings treatment company, reported strong annual results on Friday, with its profit rising on improved gold production and a higher rand gold price.

The miner, which processes old mining dumps to extract gold, posted an 11% increase in headline earnings per share (HEPS), which came in at 68c for the year to end-June.

It reported a 180% increase in its total dividend payment for the year to 28c, after declaring a final dividend of 14c.

Its gold production was 8% higher at 146,381oz compared with the previous year.

The rand gold price was 9% higher at R458,084/kg against an all-in sustaining cost of R365,569/kg for the year.

DRDGOLD’s free cash flow of R98m, combined with debt of R165m raised during the year, meant the company had cash on its balance sheet of R377m.

During the year, DRDGOLD installed a fine-grind circuit and a flotation facility at its Ergo plant, resulting in capital expenditure of R362m.

"In the first half of the ensuing financial year, we will continue with commissioning of the flotation and fine-grind circuit, with a view to achieving completion and stable production by December 2013," CEO Niël Pretorius said.

DRDGOLD reported total impairments of R238m for the year, of which R101m was a revaluation of its investment in Village Main Reef, which it has put up for sale.

It has impaired its Zimbabwean exploration assets by R50m and its Crown tailings operations by R40m after it was decommissioned.

The Zimbabwean assets are up for sale and Mr Pretorius said there had been interest from potential buyers.