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Gold/Mining/Energy : DROOY Durban Deep- Best S. African Mine -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (211)	7/29/1999 12:29:00 AM
From: Bob Dobbs	Respond to of 851

DRD FORGES AHEAD WITH GROWTH STRATEGIES, SUSTAINS PROFITABILITY FOR 9th SUCCESSIVE QUARTER Johannesburg, 27 July - Durban Roodepoort Deep boosted gold production to 5 307 kg in the June quarter (March: 5 241 kg) and made a cash profit of R16.5 million (March: R18.8 million) in spite of operational setbacks which increased cash operating costs by 4% to R53 043/kg. At the same time, the group pressed ahead with a capital upgrade and renewal programme at its South African operations and started expanding its presence in the Australasian region, where it has launched a bid to acquire the rest of the shares in Hargraves Resources. DRD already holds 19% of Hargraves. Back home, it is examining synergies with neighbouring operations, including those of Randfontein Estates, which could be developed on a joint-venture basis. Chief executive Mike Prinsloo said today these moves were designed to secure and maintain gold production at these levels and further reduce unit operating costs at its existing operations, while establishing a sound base for its global growth intentions. DRD had already made substantial progress with the implementation of these strategies, he said. During the past quarter, the consolidation of the Durban Deep and West Wits underground operations continued to progress and the increase in production volumes resulted in a further reduction in their unit operating costs. The Crown surface recovery business again performed well, and costs at Blyvoor=s underground operations were decreased in spite of a winder breakdown at the beginning of the quarter. The Buffels underground and surface costs were affected by reduced production resulting from technical difficulties. Prinsloo said the sharp drop in the gold price had unfortunately necessitated further restructuring at Buffels and Durban Deep/West Wits. Some R25 million (March: R32 million) was spent on capital projects during the quarter. These included the completion of the pre-concentration plant at Knights, the Blyvoor 2000 project and phase three of a pre-feasibility study for the 3-D seismic survey across the Argonaut project. The restructuring of the DRD hedge book was completed and Prinsloo said this would secure the company=s 1999/2000 budget and capital programmes.