Zeev's Turnips Patch-No Politics (ZEEV)

[Bruce A Thompson]

Durban Deep Posts First Quarter Profit After Loss (Update1)
By Antony Sguazzin and Dylan Griffiths

Johannesburg, Oct. 24 (Bloomberg) -- Durban Roodepoort Deep Ltd., South Africa's No. 5 gold producer, posted a first-quarter net income, after a loss the previous quarter to cancel contracts to sell gold at preset prices.

Profit for the three months ended Sept. was 161.9 million rand ($15.9 million), or 89 cents a share, from a 550.2 million rand loss, or 3.22 rand, in the preceding quarter, Durban Deep said. Earnings, before one-time items almost doubled to 45.1 cents a share.

Durban Deep took a 592 million rand charge the previous quarter, mainly for unwinding hedge agreements, a strategy that will pay off if gold price declined. The bullion has climbed 12 percent this year as a sagging dollar and tumbling stock markets spurred investors' interest.

Durban Deep boosted its gold reserves by 13 percent to 16.3 million ounces, the company said in its 2002 business review. Gold output fell 7.7 percent to 228,270 ounces following the sale of 60 percent of its Crown unit to Khumo Bathong Holdings Ltd. in February.

Durban Deep shares fell as much as 1.4 rand, or 4 percent, to 33.5 rand. They traded at 34.5 rand at 1:04 p.m. Johannesburg time, after more than doubling this year.