DRDGOLD reports 15% rise in gold production, doubling of EBITDA
07 May 2019
Johannesburg, South Africa. 7 May 2019. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRDGOLD), in an update for the quarter ended 31 March 2019 released today, reports a 15% quarter-on-quarter rise in gold production to 1 279kg.
This was due primarily to an 11% increase in tonnage throughput to 6 373 000t as the first phase of the company’s Far West Gold Recoveries (FWGR) operation ramps up towards the planned throughput of 500 000tpm.
Final commissioning of FWGR Phase 1 is expected before the end of the current financial year.
Overall yield increased by 4% to 0.201g/t due to higher grade material being processed at FWGR, as well as to improved yield at the Ergo operation.
A 100% increase in adjusted EBITDA to R58.3 million was due mainly to a 4% improvement in the average gold price received to R588 025/kg, coupled with stable cash operating unit costs in terms of both per ton of material processed (R100) and per kilogram of gold sold (R509 205).
The adjusted EBITDA for the quarter does not reflect the revenues and production costs of FWGR. These are included in the capital expenditure of the project until final commissioning is completed.
All-in costs of R563 539/kg include growth capital expenditure incurred. All-in costs were lower due to the growth capital for FWGR Phase 1 being largely incurred to 31 December 2018.
Cash and cash equivalents decreased from R209.4 million to R169.0 million while external borrowings decreased from R 173.3 million to R17 million.
The information contained in this announcement does not constitute an earnings forecast. The financial information provided is the responsibility of the directors of DRDGOLD, and such information has not been reviewed or reported on by the Company’s auditors
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Forward looking Statements
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2018, which we filed with the United States Securities and Exchange Commission on 31 October 2018 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.