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Johannesburg - DRDGold has reported "better than average" gold production in the quarter ended March 31, 2013, CEO Niel Pretorius said on Thursday.
"As the new Crown/Ergo pipeline continues to settle, increasingly we are starting to understand Ergo's current Brakpan carbon-in-leach (CIL) circuit in our quest to achieve steady-state performance," he said in a statement.
Headline earnings per share (HEPS) in Q3 of the 2013 financial year were 17% higher at 14 cents, compared with Q3 FY2012.
This was on the back of a 16% increase in gold revenue to R531m, flowing both from a three percent increase in gold production to 35,976 ounces, and a higher average rand gold price of R474 482 a kilogram.
Operating profit was up 5%, at R170.7m, after net operating costs of R360.3m were accounted for.
Free cash flow was up 16% to R85.7m.
In the first nine months of FY2013, gold production was seven percent higher at 110,822 ounces when compared with the first nine months of the previous year.
"Together with a higher rand gold price received of R466 506 per kg, this delivered a 20% rise in gold revenue to R1638.4m," he said.
Cash operating costs had been well-contained to US1091 an ounce, representing a one percent increase.
Operating profit was 15% higher at R583.1m, which yielded a 51% increase in HEPS to 59 cents.
Pretorius said as the company moved into the commissioning phase of a new flotation/fine-grind circuit at Ergo's Brakpan plant, it was "cautiously optimistic about the project’s ability to deliver into targeted operating and financial performance".
Meanwhile, as capital commitments approached an end, it was necessary to remain focused on maximising the operating and financial capabilities of the Brakpan plant’s CIL circuit.
A key element of the circuit was improved productivity at operational and individual employee level, Pretorius said.
