DRDGold lifts H1 earnings

8th February 2016 By: Anine Kilian - Contributing Editor Online

JOHANNESBURG (miningweekly.com) – JSE-listed DRDGold expects to report a 900% to 1 033% improvement in headline earnings a share to between 2.4c and 2.8c for the six months ended December 31.

This was compared with a 0.3c headline loss a share in the six months to December 2014.

Earnings a share were expected to be 750% to 883% higher year-on-year at 3.9c to 4.7c apiece for the six months under review, compared with a loss of 0.6c a share in the prior comparable period.

Meanwhile, the gold miner increased output by 2% quarter-on-quarter in the three months to December 31, owing to an improved recovery grade and stabilisation after the introduction of five new leach tanks in the low-grade carbon-in-leach (CIL) circuit, and the switch from the carbon-in-pulp (CIP) process to CIL in the high-grade flotation and fine-grind section.

Operating costs remained stable at R75/t for the quarter.

After paying a dividend of R42-million, the company ended the second quarter of the current financial year with R254-million in cash and cash equivalents, compared with R300-million in the previous quarter.

DRDGold would publish its interim results on February 16.