[miningmx.com] – DRDGOLD had stabilised gold production and was confident the technically challenging commissioning of its flotation fine grind (FFG) circuit was behind it as it sought to restore the R600m project to operation.
However, DRDGold CEO, Niel Pretorius could give no date when the FFG would be restored to operation after saying on April 4 that it would take about three months. The firm was working towards “and outcome, not a date”, he said.
Pretorius was commenting in DRDGold’s third quarter results announcement today in which the effects of the FFG’s problems were reflected in a 14% decline in gold output to 30,126 ounces and a more than doubling in all-in sustaining costs.
The outcome was R24.7m headline earnings loss for the quarter and a deepening in the nine month loss of R36.3m. Shares in DRDGold are about half the value of a year ago.
DRDGold suspended its high-grade technology at its Ergo plant following technical problems in April after poor metallurgical recoveries at its FFG circuit.
Pretorius said today, however, that with the stabilisation of the low grade section at Ergo gold production in April had increased 21% month-on-month, and negative all-in cash flows of March had been reversed in the month.
“Notwithstanding the events of the quarter under review, we remain firmly of the view that the difficult part of the project is behind us,” said Pretorius.
“The flotation circuit and the mills work, and our theory that we can isolate the gold-bearing pyrites, and grind them down to liberate the gold they shield, has been proven in practice,” he said.
“We have decided that, rather than work towards a date, we will work towards an outcome,” he said of the decision not to meet a three month deadline on fixing the circuit.
