DRDGold Boosts Output and Escapes Wage Conflict

DRDGold, South Africa

DRDGold, one of the couple of companies unscathed by labour unrest in the localized excavation part, advanced gold output for the quarter and year to June.

The enhancement came as the company was in wage converses with unions, head executive Niel Pretorius said on Friday.

Gold yield expanded by 8% to 146 381 ounces in the year to June and by 10% to 35 559 ounces for the fourth quarter from the third.

DRDGold is carrying out wage converses with the nationwide Union of Mineworkers and Uasa, which are expected to extend for up to six weeks.

The militant Association of Mineworkers and building amalgamation is not comprised at the company. DRDGold is not part of centralized bargaining in the gold sector that is being led by the Chamber of Mines, as it negotiates with unions directly.

Richard Samuels, Uasa’s procedures manager, said DRDGold had listed a last offer of a 7% boost to workers on Thursday.

Pretorius said that in the past two years, workers had benefited from basic rises of 8% a year and they could earn up to 15% more depending on the company’s profit.

DRDGold traded its 74% stake in Blyvooruitzicht mine in Carletonville to town Main Reef last year, but the mine was placed into provisional liquidation previous this month.

Stanlib analyst Kobus Nell said rehabilitation charges were a point of contention. The share cost dropped as much as 5.9% on the JSE on Friday as DRDGold described a minor incline in degree.
The stock retrieved to close 0.17% smaller at R5.75.

It reported that grade recovery expanded somewhat from 0.195g a ton to 0.196g a ton.
Headline profits increased 11% to R259m or 68c a share, for the year, up from 61c a share a year previous. Although, the dollar cost of gold in the quarter to June weighed heavily on profits, as headline profits a share fallen to 9c from 22c in the preceding quarter. The gold price was R429 115 a kilogram contrasted with R474 482 a kilogram in the stride quarter.

DRDGold announced a 28c a share bonus for the year, a 180% annual increase.

Pretorius said DRDGold would charge its flotation vegetation and directed for steady output by the end of December. The vegetation would advance inefficiencies in the tailings of residue.