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DRDGold posts 11% drop in Q1 production, halts quarterly reporting

28th October 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – JSE- and NYSE-listed DRDGold on Wednesday posted an 11% drop in gold production and a 2% rise in volume throughput for the first quarter of the 2016 financial year as the group built up its inventory.

In an update to the market, the company explained that it was currently building inventory prior to introducing five new leach tanks in the low-grade carbon-in-leach (CIL) circuit and the switch-over from carbon-in-pulp to CIL in the high-grade flotation and fine grind section.

DRD’s cash operating costs remained stable at an estimated at R75/t, with the company ending the quarter with R300-million in cash and cash equivalents following the payment of the final R23-million instalment toward the domestic medium-term notes programme.

In April, DRD had settled R53-million of the R75.5-million in the unsecured notes outstanding as at March 31.

Meanwhile, the surface gold miner told shareholders that it would no longer publish quarterly reports, but rather bi-yearly reports, to reduce corporate costs after the company reviewed its financial reporting cycle amid the “leads and lags” associated with the improvement of operations and the cyclical nature of certain cost drivers, such as electricity, in the operating environment.

Edited by Creamer Media Reporter

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