Shares of gold mine waste retreatment firm surges 28%
DRD Gold retreats old gold mine dumps like this one just south of downtown Johannesburg, South Africa. A movie drive-in theatre – the screen can still be seen in this photo – built on top of the heap was a popular attraction for Joburgers in the 1970s.
ADRs of DRDGold (NYSE:DRD) which retreats surface gold tailings rocketed 28% in New York on Monday without any fresh news about Johannesburg-based company surfacing.
By the close DRD Gold, which extracted 33,600 ounces of gold from old mine dumps in its most recent quarter, was trading up 27.8% at $4.23 in New York, after earlier spiking as high as $4.65 per American Depositary Receipt.
Almost 1 million units changed hands compared to usual volumes of less than 80,000. The company, worth $160.4 million on the NYSE, is still showing annual losses – it is down 47% in 2013.
The company announced a small loss in its September quarter due to delays of a new flotation and fine-grind milling circuit at its Ergo plant near Springs outside Johannesburg, South Africa.
The plant treats some 2 million tonnes of recovered mine waste every month and the flotation technology could up recoveries of gold to 75% from the 45% achieved at the existing carbon in leach facility.