JOHANNESBURG (miningweekly.com) – The shares of DRDGold fell as the application for the judicial management of its Blyvooruitzicht gold mine was granted in the South Gauteng High Court.

DRDGold CEO Niel Pretorius told Mining Weekly Online that the court had still to appoint a judicial manager.

The shares of the JSE- and Nasdaq-listed gold miner fell by more than 6% to R3,78 a share as the application to stave off hostile creditor action was granted.

Before plunging into its current R27-million loss position under the impact of strikes, seismic events, the strong rand and the rising electricity price, Blyvoor made R190-million profit for the financial year ended June 30.

Pretorius said that Blyvoor needed a capital injection of from R50-million to R70-million to enable it to return to seismically damaged high-grade areas.

DRDGold, which owns 74% of Blyvoor, has allocated R75-million for the rescue of Blyvoor while it seeks additional rescue finance from South Africa's State-owned Industrial Development Corporation.

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