DRDGOLD sees gold output slide by 20 percent
DRDGOLD revealed yesterday (August 20th) that its annual gold output fell by 20 percent this year.
South Africa's fourth-largest producer of the yellow metal confirmed that its production declined to 247,690 ounces, while its operating profit slumped 26 percent to $35 million.
The company is attributing the drop to the suspension of underground mining at its ERPM operation in Q2, while volumes were altered at its Crown facility following the decommissioning of one section.
DRDGOLD's plight will be of interest to anyone with a Gold Investment because lower supplies naturally tend to stimulate demand, which in turn sends Gold Prices higher.
Meanwhile, George Gero, vice president of RBC Capital Markets Global Futures, has also sounded a positive note for the future of gold this week.
Speaking in an interview with Reuters, he explained that investors are looking to put their money in the yellow metal over concerns about the weakness of the dollar, which moves in the opposite direction to gold.
"Investors sold US dollar holdings to buy gold and crude oil, and the December contract looked set to break out and test the next significant resistance level at $975 an ounce," he told the news provider.
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