[miningmx.com] – DRDGOLD reported a hefty 62% decline in cash operating profit in the first half of its financial year owing to a 9% drop in the price of gold, lower production and a subsequent rise in all-in sustaining costs.
The company, which extracts gold by re-treating surface tailings, said construction of its flotation, fine-grind circuit at its Ergo Brakpan plant was completed, although DRDGold CEO, Niel Pretorius, said the circuit should have been completed sooner.
“We are pleased that production was back up, but we would have preferred to have had the FFG circuit fully operational by the end of December 2013,” he said. “That is what we told the market we were aiming for,” he said.
“Unfortunately, delays in getting the last of three thickeners up and running pushed final commissioning back by at least three weeks,’ he added.
In the December quarter, however, DRDGold posted a 4% increase in production and a 17% lift in operating profit. All-in sustaining costs fell.
DRDGOLD’s full operating and financial results for the quarter and six months ended December 31 will be published on February 11.
