DRDGOLD Limited has reported a 4% increase in quarter on quarter gold production for the quarter ended 31 March 2016 to 1 187 kilograms, in spite of a 7% decrease in throughput to 5 896 000 tonnes.
Johannesburg, South Africa. 18 April, 2016. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has reported a 4% increase in quarter on quarter gold production for the quarter ended 31 March 2016 to 1 187 kilograms, in spite of a 7% decrease in throughput to 5 896 000 tonnes.
In a production update for the quarter, the company states that total operating costs were stable. As a result of the decrease in throughput, operating costs per unit increased by 7% to just over R80 per tonne.
Throughput for the quarter was lower due to inclement weather, as well as several grid-related interruptions in electricity supply.
After paying a dividend of R51 million, DRDGOLD ended the quarter with R416 million in cash and cash equivalents, compared with R254 million in the previous quarter.
A key regulatory milestone in increasing the capacity of the Brakpan/Withok Tailings Deposition Facility (TDF) has been achieved, the company reported, with the approval by the Department of Water and Sanitation (DWS) of amendments to its Integrated Water Use Licence to incorporate the bulk of the Withok footprint.
This approval by the DWS paves the way to increase the deposition capacity of Ergo Mining Proprietary Limited (Ergo) from 200 million tonnes to approximately 800 million tonnes, which is enough to receive most of the mine waste tailings in and around the Johannesburg area.
The TDF is used to dispose of all residues from the reprocessing of mine waste from Ergo's clean-up and reclamation sites across the eastern and western Johannesburg area. It also serves as a disposal facility for the water treatment plant of the DWS’s Trans-Caledon Tunnel Authority in Boksburg, where the bulk of acid mine drainage (AMD) emanating from the central basin is treated.
Ergo has resources of approximately 10.8 million ounces of gold contained in mine waste, which are being reprocessed at a rate of approximately 24 million tonnes per year.
The DWS approval not only brings DRDGOLD closer to a very significant increase in the life of mine of Ergo, but also serves as assurance of a long-term sustainable deposition site for the waste produced by the treatment of AMD.
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Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the rand against the dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our integrated report for the fiscal year ended 30 June 2015, which we filed with the United States Securities and Exchange Commission on 30 October 2015 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.