(Reuters) – DRDGold, South Africa’s fifth-largest gold producer, described an 11% increase in full-year profits on Friday, increased by a powerful rand/gold price in the first half and higher production.
Headline profits per share for the year rose seven cents to 68 South African cents. But profits in the fourth quarter slumped harshly as bullion’s spot cost has come under pressure, compressing South African gold procedures.
The mean gold cost in the June 2013 quarter was 13% smaller at $1,405 an ounce and the location cost and the rand/gold cost was 8% down.
Impairments of 238 million rand were registered in the financial year with the bulk of the compose downs arising from its buying into in town major Reef.
Production rose 8% for the year at 146,381 ounces but charges climbed 14% as above-inflation increases in work and electricity charges ate into margins.