In the media

DRDGOLD lifts Q2 gold yield, profit

[Mining Weekly] -- In a production update on Wednesday, DRDGOLD posted a quarter-on-quarter improvement in gold production of 4%, an increase in operating profit of 17% and a drop in all-in sustaining costs of 14%.

In a production update on Wednesday, DRDGOLD posted a quarter-on-quarter improvement in gold production of 4%, an increase in operating profit of 17% and a drop in all-in sustaining costs of 14%. 

The increase in gold production was the result of a 9% increase in the average yield, which offset a 4% drop in throughput. 

In the quarter under review, construction of the flotation/fine-grind (FFG) circuit at Ergo’s Brakpan plant was completed, with full production through this circuit under way in January.

Meanwhile, for the half-year ended December 31, gold production was down 8% compared with the first six months of the 2013 financial year – the combined effect of a “solid” second quarter in the 2013 fiscal year and a poor first quarter in the 2014 fiscal period.

Cash operating profit was down 62% on the back of the drop in production, a 14% rise in all-in sustaining unit costs and a 9% decline in the average gold price received. 

“We are pleased that production [is] back up, but we would have preferred to have had the FFG circuit fully operational by the end of December. That is what we told the market we were aiming for. Unfortunately, delays in getting the last of three thickeners up and running pushed final commissioning back by at least three weeks,” commented CEO Niël Pretorius.

DRDGold’s full operating and financial results for the quarter and six months ended December 31 would be released on February 11.