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DRDGold expects ‘Christmas bonus’

DRDGOLD’s Blyvoor
Johannesburg, South Africa — MININGREVIEW.COM — 13 December 2010 – South African gold miner DRDGOLD Limited – a medium-sized gold producer with three operations and some exploration activity in Southern Africa “’ expects to get US$1 450 more per kg of gold it sells this quarter than it received in the previous three months, because of higher prices.

“The three months leading up to Christmas always seem to be a good time for the gold bulls,” CEO Niel Pretorius wrote in an e-mail to investors.

Gold for immediate delivery rose to a record US$1 431.25 an ounce last week.

“For every metric ton of gold produced, DRDGold’s sales may grow R10 million in the quarter,” Pretorius said, adding that the company would achieve similar levels of output to the three months ended 30 September, when it produced 2 030kg.

“Higher prices and an absence of winter tariffs are both likely to have a very attractive impact on the cost and revenue line,” he added.

South African producers, seeking to maintain or expand output, face rising costs as they dig deeper to reach reserves. They have the deepest mines, extracting gold from rock as far as 4 km underground.