PRODUCTION INCREASE
DRDGold aims to build on growth
Management’s focus is to ensure that share dilution is offset by earnings from its West Rand tailings project early on
Gold-tailings treatment specialist DRDGold expects to grow output 7%-11% in the year to June after a strong performance in the first half of its financial year, when its plants and pipelines fired on all cylinders. Sibanye-Stillwater and DRDGold agreed late in 2017 that Sibanye would inject its West Rand Tailings Retreatment Project (WRTRP) into DRDGold in return for a 38% stake, with an option to increase it to 50.1%. The project is a complex of residual dumps near Carletonville in western Gauteng containing almost 3-million ounces of gold in reserves. CEO Niël Pretorius said on Thursday the circular on the transaction would be posted to shareholders later in February, ahead of a meeting to vote on it. Management’s focus was to ensure that share dilution was offset by earnings from the WRTRP from an early stage. The first phase would require R288m to develop but had a net present value of R1.3bn. In the second phase, volumes processed would rise to about a million tonnes a month fr...
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