Media releases

DRDGOLD reports 45% quarter-on-quarter increase in gold production

27 October 2020

Johannesburg, South Africa. 27 October 2020. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in an operational update for the quarter ended 30 September 2020, reports a 45% quarter-on-quarter increase in gold production to 1 514kg, due primarily to a 27% increase in tonnage throughput to 7 260 000t and a 15% increase in yield to 0.209g/t.

Gold sold increased by 60% to 1 522kg.

As a result, cash operating costs per kilogram of gold sold decreased by 10% to R489 750/kg. Cash operating costs per ton of material processed increased by 2% to R104/t.

All-in sustaining costs per kilogram and all-in costs per kilogram were R588 239/kg (R579 180/kg) and R613 206/kg (R597 371/kg) respectively, the increases due mainly to a rise in sustaining capital expenditure.

Adjusted EBITDA increased by 110% to R770.4 million, due primarily to the increase in gold sold and a 6% increase in the average Rand gold price received to R1 029 893/kg.

Cash and cash equivalents increased by R300.1 million to R2 015.2 million after paying the final dividend for the year ended 30 June 2020 of R299.1 million.

External borrowings remained at Rnil.

The cash generated during the current quarter will be applied towards the company’s extended capital expenditure programme for the year ended 30 June 2021. In spite of the capital expenditure planned for the year, management positions the company favourably to consider declaring an interim dividend in February 2021, in the absence of unforeseen circumstances.

The information contained in this announcement does not constitute an earnings forecast. The financial information provided is the responsibility of the directors of DRDGOLD. Such information has not been reviewed or reported on by the company’s auditors.

Note to editors: the full operating update is available on SENS and the company’s website, www.drdgold.com

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