JOHANNESBURG (Reuters) - South African gold producer DRDGOLD reported a 9 percent decline in third quarter output partly due to a power crisis in the country but profit rose on the back of a higher gold price.
DRDGOLD is South Africa's No. 4 gold producer, and refocused on its home base after selling off its Australasia assets.
Gold production from continued operations fell to 70,378 ounces in the period to end-March, due both to the negative impact of state-utility Eskom's power cuts in January at DRDGOLD's underground operations and to a significant drop in underground grades.
"It is fortuitous that the afore-mentioned reversals come at a time of gold price buoyancy," DRDGOLD's Chief Executive Officer, John Sayers, said.
"We estimate that, had it not been for the power cuts, our operations would have produced an additional 3,000 ounces," he said in reference to the firm's third quarter production.
The company produced 77,259 ounces during the second quarter.
The company said it would be difficult to forecast output in the fourth quarter but expected to maintain current production levels should power supplies be at around 95 percent.
Revenue rose 20 percent to 498.6 million rand, due to a 32 percent rise in the average gold price received of 228,836 rand per kg.
Cash operating profit was 199 percent up at 142.2 million.















