Johannesburg, South Africa. Friday, 24 October 2014. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has announced an 8% increase in gold production to 37 005oz for the quarter ended 30 September 2014.
CEO Niël Pretorius notes: “The carbon adsorption inefficiencies and throughput issues that plagued the initial start-up of the flotation/fine-grind (FFG) circuit did not manifest this time around, and inventory build-up in the FFG impacted gold output exactly as anticipated.”
The positive swing in gold production in the last six months, Pretorius says, was 23% or 6 879oz.
Net cash inflow from operations rose to R86.6 million for the quarter under review, which enabled the company to pay down R73.3 million in debt that was due in July, and to maintain a cash balance of R204 million.
Total all-inclusive cash expenditure for the quarter, including all operational and corporate cash costs and capital expenditure and excluding repayments of borrowings, reduced to R415 659/kg from
R430 234/kg, for an all-in cash margin of 6%.
Looking ahead, Pretorius says: “We are pleased with the way the plant has been performing and the results of the test work. We are now better placed to do the fine-tuning that is necessary to get the full benefits of the FFG circuit. I am confident that we will have the system up and running by the beginning of the next quarter.”
South Africa & North America
James Duncan, Russell and Associates
+27 (0) 11 880 3924 (office)
United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 (0) 20 7796 8644 (office)
+44 (0) 779 863 4398 (mobile)
For more information, please visit www.drdgold.com
Disclaimer
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2013, which we filed with the United States Securities and Exchange Commission on 25 October 2013 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statement included in this report have not been reviewed and reported on by DRDGOLD’s auditors.