[miningmx] — DRDGOLD on Tuesday reported a 53% increase in full-year operating
profit to R622m from its Ergo asset, leading the gold producer to a 259% increase in
headline earnings per share from continuing operations to 61c per share.
Net cash flow from operations rose by 91% to R619.5m.
The company also declared a dividend of 10c per share for the year to end-June.
Discussing the group’s performance of the past year, CEO Niel Pretorius said the
company was pleased to complete the first part of the sale of deep-level mine
Blyvoorutizicht to Village Main Reef, resulting in DRDGOLD acquiring an interest in
Village of just under 9%.
Also during the year, completion of the R350m Ergo plant upgrade to a volume
capacity of 1.8Mtpm and of the Crown/Ergo pipeline facilitated full consolidation of
the Ergo surface retreatment footprint.
Pretorius said he was “encouraged’ by Ergo’s production for the year of 135,708 oz
– 3% short of the lower end of the operation’s steady-state annual target – given
that this was achieved amid several changes. These included the decommissioning of
two plants, the phasing in of two new reclamation sites and the phasing out of two
depleted sites, one of which was the very lucrative Top Star dump.
Looking ahead, Pretorius said the company must maintain tonnage volumes to plant
and ensure that Ergo’s new flotation/fine-grind circuit is operational before the end
of the current financial year.
