DRDGold said fourth quarter net income rose to 37.2 million rand from 34.1 million rand the previous quarter. Total revenue for the quarter was 22% lower at R420.7 million, due mainly to a 16% drop in the average Rand gold price received to R244 927/kg. After accounting for total cash operating costs - 9% higher at R423.2 million - cash operating profit was 99% lower at R1.3 million.
Depreciation of R41.6 million resulted in a gross loss from operating activities of R47.9 million compared with the previous quarter's gross profit of R116.0 million.
The company reports total revenue for the year was 4% higher at R1 910.7 million, reflecting a 30% increase in the average Rand gold price received for the year to R250 589/kg.
Higher impairment provisions and administration expenses and general costs, partly offset by R53 million of negative goodwill, were the major contributors to a pre-tax loss of R81.2 million compared with a pre-tax profit of R95.0 million in the previous quarter.
Net profit was 2% lower at R42.6 million, after accounting for deferred tax of R120.6 million. Operating profit, however, was 26% lower at R282.7 million after accounting for total cash operating costs, which were 11% higher at R1 635.0 million. Higher depreciation charges and retrenchment costs resulted in a 52% decline in gross profit to R129.1 million. The negative effect of higher administration expenses and general costs was offset by a profit on financial liabilities measured at amortised costs, goodwill and higher finance income, leaving profit before tax 4% lower at R82.3 million. After deduction of tax of R46.2 million and deferred tax, net profit was R110.7 million. This compares with the previous year's profit of R1 225.1 million, which reflected a profit on the sale of the company's Australasian assets.
