Oct 09th 2013 - Edison Investment Research today published a report on DRDGOLD entitled "Industrial Action At Ergo". In summary, the report says:
DRDGOLD has confirmed industrial action at its Ergo operations following management’s refusal to accede to eleventh-hour union demands. Ergo production is unaffected and we do not expect any impact on operations if the strike lasts less than a month. If union demands were fully implemented, management estimates a ZAR43m annual cost increase. We estimate that the maximum impact would be a 9% decrease in our base case valuation to ZAR4.28/share and a 6% decrease in our upside case valuation to ZAR6.43/share.
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