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.