South Africa’s fourth-largest gold producer, DRDGold,
continues to benefit from itsused sand crusher mexico strategy of offshore
diversification.
The company’s unaudited production results for the quarter
ending December 31, released late last month, indicates that
offshore production increased by 13%.
In the period under review, gold mined in Australasia accounted for
39% of total attributable production.
In his report, DRDGold chairperson Mark Wellesley-Wood ascribed the
rise mainly to the inclusion of the 45,33% attributable production
from Emperor Mines, in Fiji, for the full quarter.
Besides its share in Emperor Mines, DRDGold has two other interests
in Australasia – the wholly-owned Tolukuma mine in Papua New
Guinea, and a 20% share in the Porgera joint-venture, whose
majority shareholder is the Canadian giant Placer Dome.
The Porgera joint venture produced more than a million ounces of
gold in calendar 2004. The company’s attributable production
at Australasian mines amounted to 87 751 oz or 2 731 kg in the
period under review.
In South Africa, DRDGold produced 135 546 oz or 4 216 kg of
gold.
Its main operations in South Africa comprise the Blyvooruitzicht
gold- mine, in Carletonville, in Gauteng, and the North West
operations, which consist of the Hartebeestfontein and
Buffelsfontein gold-mines, in North West province.
Production from the South African operations decreased by 5%,
mainly due to the restructuring that took place at Blyvooruitzicht,
with the mining plan being revised and the reduction of mining
activities at some of its shafts.
Continuing poor results into December have necessitated the
placement of North West under operational review.
Given the difficult conditions experienced in its local operations,
which are exacerbated by the strength of the rand, it is clear why
the company is focusing on developing the low-cost, high-value
deposits that are available elsewhere in the world.
The fact that most of its exploration also takes place in
Australasia, and around Tolukuma, in particular, is a good
indication of the important part which this area will play in
expanding the company’s resource base in future. DRDGold will
release its reviewed operating and financial results on February
24.