Oct 10th 2013 - Edison Investment Research today published a report on DRDGOLD entitled "Wage Settlement Ends Strike At Ergo". In summary, the report says:
DRDGOLD has announced that a wage settlement has been signed with the National Union of Mine Workers (NUM), bringing to an end the two-day strike at its Ergo operations. Higher wage increases for lower-grade job categories have been partly offset by tapering increases for management grades, such that the increase in the annual wage bill is ZAR21m, comparable to our ZAR19m forecast increase before the strike. We estimate this will take 0.3c off our FY14 and FY15 EPS forecasts and reduce our base and upside case valuations by less than 1% or 2c/share to ZAR4.69/share and ZAR6.85/share respectively. This compares to estimated 9% and 6% decreases in our base and upside case valuations if NUM’s demands had been fully implemented.
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