Johannesburg - DRDGold lost almost a quarter of its market value over the past two days following the announcement of the permanent closure of its Vatukoula gold mine in Fiji.
Yesterday DRDGold's shares on the JSE closed at R6.60, 8.3 percent lower than the previous close.
Earlier in the day, the stock fell to R6.25, the lowest level since August last year and almost 23 percent lower than Monday's close of R8.10, before the announcement of Vatukoula's closure on Tuesday.
Since Monday's close DRDGold has lost as much as R630 million in market value.
Chief executive Mark Wellesley-Wood said the company could sell its 78.72 percent stake in Australian-listed Emperor Mines, which in turn owns Vatukoula, as part of a restructuring exercise.
However, spokesperson Ilja Graulich said the company was looking at a number of options to restructure Emperor's debt.
The sale of Emperor would leave DRDGold with just three gold mining operations in South Africa. These produced a total of 316 000 ounces in the year to June - a minnow in world gold mining, and a hefty drop from the group's total gold output of 527 000 ounces in the year to June 2005.
DRDGold produced 1.1 million ounces of gold in the year to June 2000, when it was among the top 10 producers.
AngloGold Ashanti produces less than 6 million ounces of gold a year, Gold Fields mines more than 4 million ounces and Harmony Gold about 2.4 million ounces.
Wellesley-Wood said yesterday that the company would look to list on London's Alternative Investment Market (AIM) after delisting from the London Stock Exchange.
AIM is usually where junior and start-up firms first list before moving to the main board. DRDGold has existed for more than 110 years.
Vatukoula is the second gold mine DRDGold has shut in almost two years. In March last year it placed its North West operations in liquidation following an earthquake.
Imara SP Reid analyst Stephen Meintjes said the closure of Vatukoula was a good decision but the cost of retrenchments and restructuring could be significant.
Wellesley-Wood said DRDGold had about $40 million (R286 million) in cash on its balance sheet.
DRDGold is both a controlling shareholder of Emperor and a major creditor. Emperor owes DRDGold A$25 million (R141 million). Emperor's other major creditor is the Australia and New Zealand Banking Group, which is owed A$42 million.
Vatukoula's closure came after a three-month review found mining operations were no longer viable. Wellesley-Wood cited operating losses, technical difficulties, high oil prices and the coup in Fiji.
The mine would be placed on care and maintenance, while a review aimed at optimising the value of Vatukoula and other Fijian land holdings was completed.
Since it began operating in 1933, Vatukoula has produced more than 7 million ounces.
At the end of last month, Emperor's Tolukuma mine in Papua New Guinea was halted after serious damage was discovered at its sag mill, which grinds gold ore. The only operating Emperor mine is now the Porgera joint venture in Papua New Guinea.
Early last month Wellesley-Wood (55) said he would retire from the company.
In the September quarter, DRDGold generated a loss of R66.1 million as costs rocketed and its loss-making Australasian operations offset profit made in South Africa.