DRDGold’s shares slip after trading update
Company says the expected loss is partly due to retrenchment and accelerated depreciation costs of some Crown Mine sites
The share price of gold mine dump reprocessor DRDGold fell 8% to R6.90 on Monday morning after it warned investors it expected to report an interim headline loss per share. DRDGold said in a trading statement that it expected to report on February 15 that it made a headline loss per share for the six months to end-December of between 2.66c and 2.14c. It reported headline earnings per share (HEPS) of 2.6c in the matching period. The loss was partly due to R18m retrenchment and accelerated depreciation costs of some Crown Mine sites, the company said. DRDGold said it managed to increase gold production by 3% to 1,066kg despite the volume of material it processed falling 10% to 6-million tonnes. Its operating costs were up 9% to R82/tonne. Gold production for the year to end-June was expected to be between 136,000oz (3,856kg) and 140,000oz (3,967kg) at cash operating costs of between R468,000/kg and R482,000/kg, DRDGold said. After paying a final dividend of R52m for the year to end-Ju...
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