DRDGold H1 output up 9%

Wed Feb 13 2013

 

Surface gold miner DRDGold on Tuesday reported a rise in production for the first half of the 2013 financial year on the back of continuing stabilisation in the operation of the JSE-listed group’s new Crown/Ergo pipeline. The company last year completed the consolidation of its Crown and Ergo circuits, as well as the R300-million construction of a 50 km pipeline linking the Crown Central operations, in Roodepoort, to Ergo’s Brakpan plant.

 

DRDGold reported gold output of 39 031 oz for the quarter ended December 2012, up 15% on the 33 983 oz produced in the corresponding period in the prior year. This also represented a 9% quarter-on-quarter increase from the 35 815 oz produced in the first quarter of the 2013 financial year.

 

Further, gold output for the six months ended December 31 amounted to 74 846 oz, up 9% on the 68 545 oz produced in the first half of the previous financial year. Gold sales for the December quarter increased to 39 031 oz in the December quarter, up from the 33 983 oz produced in the December 2011 quarter and the 37 905 oz reported in the quarter ended September 2012.

 

Headline earnings rose quarter-on-quarter, from R77.2-million to R93-million. However, this was down year-on-year from the R125.3-million in the second quarter of the previous financial year. Headline and basic earnings a share from continuing operations increased from 15c in the December quarter of the prior year, to 25c in the second quarter of 2013. DRDGold achieved profit after tax of R124-million, up from R73.1-million year-on-year and R93-million quarter-on-quarter.

 

The group declared an interim dividend of 14c a share.

 

Source: miningweekly.com