Photo by: Duane Daws
JOHANNESBURG – DRDGold‚ a tailings retreatment operation‚ swung to profit in the first nine months of its financial year as gold production grew 11% and costs shrank.
DRDGold‚ which treats old mine dumps around Johannesburg to extract gold‚ reported net profit of R7.8-million in the nine months to end-March compared to a loss of R42-million in the same period a year ago.
Its cash balance grew in the March quarter by 18% to R286-million.
Gold output in the nine months grew 11% to 109 892 oz and its all-in sustaining costs fell 9% to $1 166/oz against an average received price of $1 238/oz. In rand terms‚ the all-in sustaining costs were R421 060/kg and a received price of R446 803/kg.
DRDGold has paid back R53-million of its Domestic Medium Term Notes during the March quarter and intends redeeming the remaining R22-million in July.
Gold production increased because of a 13% rise in the average yield to 0.196g/tonne as metallurgical efficiencies improved.
Earnings before interest‚ taxes‚ depreciation and amortisation (EBITDA) was pushed up 111% to R189.5-million by a higher operating profit‚ lower corporate costs and the sale of non-core land.
DRDGold reported headline earnings for the nine months of 2c a share compared to a 10c loss before.