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Production Update: 4% Rise In Gold Production, 17% Increase In Operating Profit

5th February 2014

  

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DRDGold  (0.05 MB)

DRDGOLD Limited,in a production update released today, reported a quarter on quarter improvement in gold production of 4%, an increase in operating profit of 17% and a drop in all-in sustaining costs of 14%.

The increase in gold production was the result of a 9% increase in the average yield, which offset a 4% drop in throughput.

In the quarter under review, construction of the flotation/fine-grind circuit at Ergo’s Brakpan Plant was completed and full production through this circuit was achieved in the third week of January 2014.

DRDGOLD CEO Niël Pretorius said: “We are pleased that production was back up, but we would have preferred to have had the FFG circuit fully operational by the end of December 2013.

That is what we told the market we were aiming for. Unfortunately, delays in getting the last of three thickeners up and running pushed final commissioning back by at least three weeks.”

For the half-year ended 31 December 2013 gold production was down 8% compared with the first six months of FY2013, the combined effect of a very solid second quarter in FY2013 and a poor first quarter in FY2014. Cash operating profit was down 62% on the back of the drop in production, a 14% rise in all-in sustaining unit costs and a 9% decline in the average gold price received.

DRDGOLD’s full operating and financial results for the quarter and six months ended 31 December 2013 will be released on Tuesday, 11 February 2014.

Edited by Creamer Media Reporter

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