Finweek English Edition - - IN THE NEWS -

the com­pany to a R38.7m head­line profit for its 2015 f inan­cial year from R700 000 in the pre­vi­ous year.

The im­proved re­turns mean that the com­pany could step back from a bid for new re­sources on the far West Rand of Johannesburg and fo­cus on now mine­able re­serves “just be­yond [its] gar­den gate”. Ex­ist­ing re­serves are also ex­tended ow­ing to the im­proved re­cov­er­ies.

For all these fine mar­gins, how­ever, DRDGold re­mains very much a gold stock; at least, that’s the way the mar­ket views the com­pany as ev­i­denced by the 28% de­cline in its share price from mid-July to mid-Au­gust, which was in line with liq­ui­da­tions in other SA gold stocks in the same time pe­riod.

“The mar­ket doesn’t think about the com­pany in specifics in so much as the tech­ni­cal anal­y­sis of the sec­tor,” says Pre­to­rius. “It’s caught up in the trend [around the gold mar­ket].”

The op­er­a­tional turn­around of the past t wo years, how­ever, has swayed Pre­to­rius to put off re­sign­ing from the busi­ness and he has signed a new three­year con­tract with DRDGold.

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