Johannesburg, South Africa — MININGREVIEW.COM — 03 December 2009
DRDGold Limited “’ South Africa’s fourth biggest gold producer “’ has agreed to sell a 60% stake in Blyvooruitzicht Gold Mining Limited, which was placed under judicial management last month, to Aurora Empowerment Systems Limited for R296 million.
The sale strengthens DRDGold’s balance sheet as the company moves to lower risk, lower-cost, higher margin surface operations, CEO Niel Pretorius said in a statement to Johannesburg’s stock exchange. The company has closed underground operations and now focuses on extracting gold from mine waste.
“DRDGold owns 74% of Blyvoor, which was placed into judicial management on 12 November to protect it from hostile creditors, Pretorius revealed.
Strikes at the company’s Blyvoor and Crown mines in September and October had cost the company 8 000 ounces of output worth about R60 million, according to DRDGold.
DRDGold posted a net loss of R48.4 million in the three months through September.
Shares in the company rose 34 cents, or 8.7%, to R4.26 in Johannesburg trading, valuing the company at R1.6 billion rand.