Financial|Gold|Installation|Power|Solar|Storage|Surface|Power Generation|Operations
Financial|Gold|Installation|Power|Solar|Storage|Surface|Power Generation|Operations

DRDGold posts production, earnings increase as it heads into last quarter of FY23

8th May 2023

By: Marleny Arnoldi

Deputy Editor Online


Font size: - +

A healthy increase in cash and cash equivalents of R160-million to R2.5-billion in the quarter ended March 31 puts dual-listed DRDGold in good stead to continue its extended capital expenditure (capex) programme for the year ending June 30, and perhaps declare a final cash dividend.

The company committed to a R1.4-billion capex programme in the 2022/23 financial year, which compares to a capital spend of R584-million in the prior financial year.

DRDGold is investing heavily into increasing throughput at the Far West Gold Recoveries operation, as well as the installation of solar power generation and storage facilities, which would see the company becoming largely independent from the grid.

In its latest operational update, the surface miner reports a 4% higher production rate at 1 329 kg, compared with the preceding quarter, owing to yield being 0.03 g/t higher.

Although gold sales decreased by 31 kg quarter-on-quarter to 1 289 kg, DRDGold reported a 54% increase in adjusted earnings before interest, taxes, depreciation and amortisation to R488-million, owing to an increase in the rand gold price received.

The company advises that its cash operating costs per tonne of material increased by 9% to R170/t in the quarter under review, compared with the preceding quarter, owing to a decrease in ore treated.

In turn, the lower treated volumes are a result of the reclamation of final remnant and clean-up material at sites on the Ergo and Far West Gold Recoveries operations as the sites near depletion.

The company also reports its all-in sustaining cost (AISC) per kilogram was R790 471/kg in the quarter, which is lower than the prior quarter’s AISC of R844 697/kg, mainly owing to a decrease in sustaining capex.

In turn, the all-in cost was R920 965/kg in the period under review, compared with R901 591/kg in the prior quarter, as a result of an increase in non-sustaining capex, relating to the development of DRDGold’s 20 MW solar power plant at the Ergo operation.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...


Latest Multimedia

sponsored by

Magazine round up | 29 September 2023
Magazine round up | 29 September 2023
29th September 2023

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.063 0.186s - 91pq - 2rq
Subscribe Now