Gold processing company DRDGold reported a 11% drop in gold production for its Q1, 2016 results as a result of inventory build-up associated with the introduction of five new leach tanks in its low grade CIL circult.
A switch-over from the CIP process to CIL in the high-grade flotation/find grind (FFG) section was also attributed to the drop.
The company did however report a 2% increase in throughput from the previous quarter and stable operating costs at R75/t.
After payment of the final R23 million installment in respect of its Domestic Medium Term Note (DMTN) programme, DRDGold ended the first quarter with R300 million in cash and cash equivalents, compared with R324 million in the previous quarter.
Change in financial reporting
The company has decided that it will no longer report on a quarterly basis but rather at six-monthly intervals – at half-year and year-end. Operating and financial results for the period ended 31 December 2015 will be provided as soon as reasonably possible following the end of the period.
The decision to review and adjust the reporting cycle flows from DRDGold’s intention to reduce corporate costs; the “leads and lags” associated with business improvements; and the cyclical nature of certain cost drivers in the South African operating environment – for example, power supply.