Modern Mining August 2020

DRDGOLD reports 9% increase in gold production for FY2020 In a production update released on August 5, DRDGOLD Limited reports a 9% year-on-year increase in gold production to 5 424 kg (174 385 ounces) for the financial year ended 30 June 2020. The increase is mainly attributable to a larger contribution from DRDGOLD’s Far West Gold Recoveries operation. The company had earlier provided production guidance of between 175 000 and 190 000 ounces. However, interruptions to its operations as a result of the national lockdown declared by the South African Government in response to the COVID-19 pandemic caused produc- tion to come in marginally below the estimated range. Cash operating costs per kilogram are expected to be in line with the guidance provided of R490 000/kg. DRDGOLD’s cash and cash equivalents as at 30 June 2020 was R1 715,1-million after paying a cash dividend of R213,8-million in June 2020, and the company remains free of bank debt as at 30 June 2020. 

The increase is mainly attributable to a larger contribution from DRDGOLD’s Far West Gold Recoveries operation.

Tsodilo Resources and TBM enter into royalty agreement Tsodilo Resources Limited has reached an agreement with TBM (Pty) Ltd. to grant royalties on its wholly owned Botswana subsidiary Gcwihaba (Pty) Ltd. metal licences (base and precious minerals, plati- num group metals and rare-earth elements) projects in consideration of the payment of US$500 000. The package of assets in the royalty sale includes the grant of a 0,5% Net Smelter Return or Net Mineral Return on Gcwihaba’s seven prospecting metal licenses in northwest Botswana. The proceeds from this royalty sale will be used for exploration and general corporate purposes. James M. Bruchs, chairman and CEO of Tsodilo, comments: “We are extremely pleased to have signed this agreement with TBM. The agreement represents significant potential revenue for the buyer and an attractive source of funding for Tsodilo, allowing us to fund our exploration activities while still giving Tsodilo shareholders full upside exposure to our projects.” 

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