DRDGOLD expects higher production

[miningmx.com] — DRDGOLD advised on Friday that it expected its full-year production to be 10% higher than the previous year.

Production was expected to be about 265,200 ounces for the year to June, the company said.

Cash operating unit costs for 2011 are expected to be about 8% higher, while capital expenditure for 2011 is anticipated to be about 70% higher than the previous year, reflecting the continued development of the Crown/Ergo pipeline.

The new pipeline will link two of the Crown operation’s plants, Crown and City Deep, in the west with Ergo in the east.

Constructed at a capital cost of R300m, the pipeline and plant expansion project at the company’s Ergo operation should significantly extend the life of its Crown surface operations.

The detailed results report for the quarter and year will be released to the market on or about August 26.