Logo of Sibanye-Stillwater and DRDGold Limited partnership FILE PHOTO

Business In The News South Africa

DRDGOLD forecasts profit of R229.4 million

JOHANNESBURG, February 6 –  DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) on Tuesday announced that its proposed acquisition of Sibanye-Stillwater’s West Rand Tailings Retreatment Project (WRTRP) forecasts profit of R229.4 million for the 12 months ending 31 December 2019.

The company said the profit forecast was based on throughput of approximately 500 000tpm at a recovered grade of 0.294g/t; working costs per ton processed of R63.97 (excluding contingency and inflation); and a gold price of R564 245/kg.

DRDGOLD said the forecast financial information provided was prepared on the assumption that, the proposed acquisition becomes unconditional on 30 April 2018 and the reconfiguration of the infrastructure acquired and related ramp-up (including gold lock-up) to steady-state production is obtained by 31 December 2018.

“Pro forma financial information for DRDGOLD for the year ended 30 June 2017 – also contained in today’s announcement – values the WRTRP at R2.1 billion,” the company said in a statement issued by its investor and media relations official, James Duncan.

– African News Agency (ANA)

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