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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (41919)	8/20/2009 8:50:51 PM
From: LoneClone	Read Replies (1) \| Respond to of 194768

DRDGOLD FY gold production down 20% Revenues are up but costs hurt the bottom line Author: Reuters Posted: Thursday , 20 Aug 2009 JOHANNESBURG,(Reuters) - mineweb.net South Africa's fourth biggest gold producer, DRDGOLD Ltd (DRDJ.J: Quote), said on Thursday annual gold production fell 20% after output at a key mine was suspended, while higher costs eroded its profit. Looking ahead, DRDGOLD's Chief Executive Officer Niel Pretorius said the company would improve its underground operations to boost output. "We have the means to grow our lower-risk, lower-cost, higher-margin surface footprint," Pretorius said. DRDGOLD said total gold production for the year fell to 247,690 ounces after underground mining was suspended at its ERPM operation in the second quarter, and the downward volume adjustment at its Crown mine where a section was decommissioned. The company, a mid-tier, unhedged gold producer, said despite higher annual revenue, operating profit fell 26% to 283 million rand ($35.01 million) after an 11% rise in operating costs. Revenue rose 4% to 1.911 billion rand, reflecting a 30% increase in the average rand gold price received for the year to 250,589 rand/kg. South African gold miners sell their gold in dollars, and pay their costs in rand. Headline earnings -- the key profit measure in South Africa, stripping out capital, non-trading and some extraordinary items -- rose to 33.8 cents per share against 30 cents last year, the company said in a statement. DRDGOLD declared a final dividend of 5 South African cents per ordinary share for the year, compared with the final dividend of 10 cents per share for the previous year, citing the need to conserve cash in the face of a stronger rand, which could impact its future earnings. To boost output, DRDGOLD's Pretorius said the company would repair higher-grade panels at its Blyvoor mine, which were damaged by seismic activity. The company would shut its ERPM underground operation, currently on care and maintenance. South Africa-focused DRDGOLD has a mix of assets, including underground mines and surface re-treatment operations and exploration activities. (Reporting by James Macharia)