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DRDGOLD closes Top Star deal Posted: Thu, 21 Sep 2006 [miningmx.com] -- DRDGOLD, the marginal South African gold producer, has closed an agreement to buy the Top Star dump in central Johannesburg, from AngloGold Ashanti, the company said. "DRDGOLD has concluded an agreement with AngloGold Ashanti to purchase the remaining extent of Erf 1 Park Central Township or better known as Top Star dump in central Johannesburg," it said in its year to June financial results announcement. In the results, DRDGOLD posted a taxed loss of R188.9m compared to a loss of R106.5m in the previous financial year. However, the results were condensed and don't show the effects of a disagreement between DRDGOLD's auditors on how to treat the reversal of its South African assets into Australian listed Emperor Gold Mines. Cash operating costs ballooned 55% in the period to R1.3bn from R834m in the previous period. Care and maintenance costs also increased to R49m. There was a net cash outflow from operations of R13.2m. DRDGOLD announced in July it had suffered a 31% decline in gold production in the year to June falling to about 527,000 oz. The company's operating woes were related to underperformance from its Australasian assets were production was down a third, especially the Porgera mine in Papua New Guinea operated by Barrick Gold Corp. So it's with some irony that DRDGOLD is now turning attention to output growth from its mature South African assets. The Top Star dump, which has become an icon in the heart of Johannesburg, could yield up to four tons of gold for DRDGOLD, according to comments by investor relations GM, Ilja Graulich in January. At the time, he declined to put an economic value on the resource which is estimated to contain about 5.1 million tons of material at an average grade of 0.78g/ton.Free news alerts: click here to subscribe
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