[miningmx.com] – DRDGOLD provided some evidence it had steadied the ship after suspending its newly commissioned high-grade technology at its Ergo plant in April, although its fortunes remain in balance.
Gold production from the existing carbon-in-leach circuit increased about 13% for the quarter ended June 30, the company said today in an announcement. Cash operating costs would be 6% lower while cash on hand increased R4m to R210m.
However, in a sign the company is still in a state of flux, the company’s CFO, Francois van der Westhuizen resigned from the board on July 18. DRDGold gave no details, but Van Der Westhuizen was only in the job since the March quarter.
Anthon Meyer, the former CFO of Mintails, has agreed a two-month, interim appointment as CFO of DRDGOLD.
Said Niel Pretorius, CEO of DRDGold: “Following the suspension of the flotation and fine grind (FFG) circuit in April, it was important that we stabilised Ergo’s carbon in leach (CIL) circuit.
“This circuit is now delivering into call, and we are well positioned to start a three-month test programme of the FFG in September 2014, after Eskom’s winter tariffs come to an end.’
Poor metallurgical recoveries at its FFG circuit, commissioned in the December quarter following capital expenditure of R600m over a two-year period, resulted in a 14% decline in March quarter gold output. All in sustaining costs increased 24%.
Pretorius said in April that although the new FFG technology had achieved positive float and grinding results, the CIP section “… has not yet stabilised and appears to have also contributed to metallurgical instability and carbon inefficiencies downstream in the existing carbon in leach (CIL) circuit or low grade section”.
He added in May that he was not prepared to put a time on when the FFG’s performance would be improved. DRDGold is due to publish its financial and operating figures for the June quarter on September 2.
