DRDGold share price jumps on quarterly report

DRDGold share price jumps on quarterly report

2014-10-24 17:32

Johannesburg - DRDGold [JSE:DRD] has announced an 8% increase in gold production to 37 005oz for the quarter ended September 30 2014.

CEO Niël Pretorius noted that the carbon adsorption inefficiencies and throughput issues that plagued the initial start-up of the flotation/fine-grind (FFG) circuit did not manifest this time around and inventory build-up in the FFG impacted gold output exactly as anticipated.

The positive swing in gold production in the last six months, Pretorius said, was 23% or 6 879oz.

Net cash inflow from operations rose to R86.6m for the quarter under review, which enabled the company to pay down R73.3m in debt that was due in July, and to maintain a cash balance of R204m.

Total all-inclusive cash expenditure for the quarter, including all operational and corporate cash costs and capital expenditure and excluding repayments of borrowings, reduced to R415 659/kg from R430 234/kg, for an all-in cash margin of 6%.

“We are pleased with the way the plant has been performing and the results of the test work. We are now better placed to do the fine-tuning that is necessary to get the full benefits of the FFG circuit," said Pretorius.

"I am confident that we will have the system up and running by the beginning of the next quarter.”

On Friday DRDGold shares ended 19% higher at R3.44.

- Fin24