JSE- and NYSE-listed DRDGold has reported a 9% year-on-year increase in gold production to 174 385 oz in the financial year ended June 30.
The company attributes the increase in output to a larger contribution from the Far West Gold Recoveries (FWGR) operation, which it acquired from gold miner Sibanye-Stillwater in 2018.
However, interruptions to the company’s operations as a result of the Covid-19-related lockdown have caused DRDGold to just miss its production guidance of between 175 000 oz and 190 000 oz for the year under review.
The FWGR project, located 23 km east of Westonaria, in South Africa, started commercial production in April 2019 after the company spent R330-million on new capital infrastructure and refurbishment.
Phase 2 of the project’s development, which will extend the life of the project to about 20 years, is due to be completed in 2024/25.
DRDGold had cash and cash equivalents at the end of the year under review of R1.7-billion after paying a cash dividend of R213-million in June, while the company remains bank debt free.
The company will release its full operating and financial results for the year under review on or about September 1.