DRDGold sells mining licences

I-Net Bridge | Thu, 26 Aug 2010 10:11

[miningmx.com] -- GOLD producer DRDGold on Thursday reported a substantial improvement in its quarterly earnings by posting headline earnings of 23.9 cents a share for the June quarter.

This compares to headline earnings per share of 0.4 cents in the March quarter and a headline loss per share of 0.2 cents for the June quarter last year.

Net profit after tax for the quarter to end June 2010 was R247.9m, from the previous quarter's R12.9m and the 2009 June quarter's R42.6m.

The company said its improved performance reflected the impact of its strategy to derisk its business.

Gold production dipped 1% to 61,632 ounces, reflecting lower total gold production from Blyvooruitzicht while gold sold was 8% lower at 57,293 ounces after 4,340 ounces of gold produced during the quarter was unsold by Rand Refinery at quarter-end.

On-going de-risking of the business during the quarter saw the transfer of environmental rehabilitation liabilities following disposal of the Durban Roodepoort Deep and West Wits mining licences.

This reduced the provision for environmental rehabilitation and a consequent credit of R110.9m increased gross profit by more than 300% to R144.2m.

Another aspect of de-risking the business came in the form of the voluntary liquidation of offshore subsidiaries. This resulted in the foreign translation reserve of R156.7m, accumulated over their lives, being realised.