Lower gold price, production reduce DRDGold’s earnings

5th May 2021 By: Tasneem Bulbulia - Senior Contributing Editor Online

Dual-listed DRDGold’s production decreased by 6% quarter-on-quarter to 1 382 kg in the quarter ended March 31.

In an operating update published on May 5, the company said this was despite a 3% increase in ore milled.

Yield was 9% lower quarter-on-quarter, while sales volumes decreased by 8% to 1 363 kg.

This led to a 3% increase in the cash operating cost per kilogram of gold sold, to R549 817/kg, compared with 532 480/kg in the previous quarter.

All-in sustaining costs were R645 488/kg and all-in costs were R654 072/kg, reflecting a quarter-on-quarter increase, which is mostly attributed to an increase in sustaining capital expenditure.

The 8% decrease in gold sold and 9% decrease in the average rand gold price received of R857 895/kg, contributed to an adjusted earnings before interest, taxes, depreciation and amortisation of R371.7-million, which was 35% lower quarter-on-quarter.

Cash and cash equivalents decreased by R3.7-million to R2 165.7-million as at the period-end.