In the media

DRDGOLD easing into ‘steady state’

[Business Day] -- DRDGOLD has turned in a solid December quarter performance, reporting a 17% rise in operating profit to R84.1m after a 4% rise in gold production to 35,043oz and a 14% drop in all-sustaining production costs to R375,246/kg.

DRDGOLD has turned in a solid December quarter performance, reporting a 17% rise in operating profit to R84.1m after a 4% rise in gold production to 35,043oz and a 14% drop in all-sustaining production costs to R375,246/kg.

The company has reported headline earnings of R0.9m compared with the September quarter’s headline loss of R12.5m.

CEO Niël Pretorius said gold production would be lower than planned in the current financial year to end-June because of the late commissioning of the flotation fine grind (FFG) circuit at Ergo, although he pointed out the FFG plant was "achieving a recovery efficiency that is consistent with feasibility study assumptions".

Mr Pretorius said: "The fact that we are only now easing into steady state means that, for the near term, our approach to costs and capital expenditure will remain conservative in order to preserve an adequate cash buffer.

"By and large the measure required to achieve steady state are operational and within our control, though. That will continue to be our main priority."