Lower gold production and sales, together with a 6% decline in the average rand-gold price received to R432,775/kg, resulted in a 13% drop in revenue to R1.8bn for the year. After accounting for net operating costs — 11% higher at R1.5bn — operating profit was 62% lower at R260m.
The group said although the results reflected a weak full year, it was pleasing that production and revenue did increase in the fourth quarter. Gold production to end June was up 13% to 34,143oz compared with the previous quarter, reflecting improvements both in throughput and average yield.
Gold production for the year was down 9% to 132,909oz.
Gold sold was 9% higher at 32,857oz, a consequence of higher gold production. Cash operating costs were 8% lower at R379,039/kg, due also to the increase in gold production.
DRD Gold announced it had entered into a R220m agreement for the disposal of the underground mining and prospecting rights at East Ran