DRDGold’s first-quarter production down 3% q/q, but operating costs rise
Gold miner DRDGold’s production decreased by 3% quarter-on-quarter to 49 066 oz for the three months ended March 31, primarily owing to a 5% decrease in tonnage throughput.
Gold sold in the period decreased by 6% quarter-on-quarter to 48 572 oz and, as a result, elevated cash operating costs in rand terms by 3%, from R586 330/kg in the fourth quarter of 2021, to R605 011/kg for the first quarter of this year.
In dollar terms, cash operating costs were 5% higher quarter-on-quarter, at $1 237/kg.
Cash operating costs per tonne of material processed increased by 8% to R127/t, or by 9% in dollar terms to $8.30/t.
All-in sustaining costs decreased from R681 887/kg in the fourth quarter of 2021 to R677 996/kg for the first quarter of this year, mainly as a result of a decrease in sustaining capital expenditure.
All-inclusive costs for the period under review were R735 948/kg, up from the R709 706/kg of the fourth quarter of 2021, increasing quarter-on-quarter mainly as a result of increased non-sustaining capital expenditure.
As such, DRDGold’s adjusted earnings before interest, taxes, depreciation and amortisation decreased by 3% quarter-on-quarter to R367.3-million, primarily owing to a 6% decrease in gold sold, which was in-part offset by a 3% increase in the average rand gold price received to R914 864/kg.
Cash and cash equivalents increased by R70.4-million in the first quarter to R2.3-billion after DRDGold paid an interim cash dividend of R167.8-million for the six months ended December 31, 2021.
DRDGold reports that its management is “favourably” positioned to consider declaring a final cash dividend in or around August, in the absence of unforeseen circumstances.
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