Village Main Reef Ltd. rose the most in almost three months after the South African gold miner posted a 36 percent rise in fourth-quarter profit as it benefitted from higher prices of the metal.
The shares advanced 6.1 percent, the most since May 31, to 1.40 rand by the close in Johannesburg.
Earnings per share increased to 9.81 cents in the three months through June from 7.19 cents the previous quarter, the company said in a statement today. Operating profit increased to 114.4 million rand ($14 million), boosted by the acquisition of the Blyvooruitzicht Gold Mining Company Ltd. on June 1. Sales were “positively impacted” by a higher realised gold price of 423,872 rand per kilogram over the quarter, up 1 percent from the previous three-month period, it said.
“We have made great progress in strengthening our balance sheet over the last 12 months,” Joint Chief Executive Officer Marius Saaiman said in the statement. “Production volumes are traditionally higher during the September quarter than those achieved during the June quarter, and we expect all our operations to follow this trend.”
The company’s Consolidated Murchison Mine in South Africa’s Limpopo province produced 1,436 tons of antimony in the three months, from 909 tons the previous quarter, as it benefitted from better grade control and the company deployed more machinery to produce the mineral used to harden lead.