Far West project boosts DRDGold's quarterly output by 15%

7th May 2019 By: Marleny Arnoldi - Deputy Editor Online

Far West project boosts DRDGold's quarterly output by 15%

DRDGold CEO Niƫl Pretorius
Photo by: Creamer Media

Surface gold recovery company DRDGold produced 41 120 oz of gold in the quarter ended March 31 – a 15% increase compared with the 35 732 oz produced in the quarter ended March 2018.

The gold producer, which is headed up by CEO Niël Pretorius, on Tuesday attributed the higher production mainly to the Far West Gold Recoveries project’s production of 4 790 oz.

This project has a planned ramp-up to 500 000 t a month from Phase 1. Final commissioning of Phase 1 was expected to be completed before the end of the current financial year.

The company further reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of R58-million for the quarter, compared with the adjusted Ebitda of R29-million reported for the March 2018 quarter.

DRD stated that the higher adjusted Ebitda was mainly owing to the 4% increase in the gold price received, coupled with stable cash operating unit costs compared with the previous quarter – in terms of both per ton of material processed and per kilogram of gold sold.

DRD sold 40 180 oz, or 1 250 kg, of gold in the reporting period, compared with the 36 556 oz, or 1 137 kg, sold in the prior comparable period.