Media releases

Lower gold price, production reduce DRDGOLD quarter on quarter earnings

05 May 2021

Johannesburg, South Africa. 5 May 2021. DRDGOLD Limited (DRDGOLD; JSE, NYSE:DRD), has today issued an operating update for the quarter ended 31 March 2021 and reports a 6% quarter on quarter reduction in gold produced to 1,382kg. This is despite a 3% increase in ore milled. Yield was 9% down to 0.190g/t, compared to 0.208g/t in the previous quarter, and the volume of gold sold was down by 8% to 1,363kg.

This led to a 3% increase in the cash operating cost per kilogram of gold sold, to R549,817/kg, compared to 532,480/kg in the previous quarter. The cash operating cost per ton of material processed decreased by 6% to R102/t.

All-in sustaining costs per kilogram were R645,488/kg and all-in costs per kilogram 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 EBITDA of R371.7 million, which was down 35% from the previous quarter.

Cash and cash equivalents decreased by R3.7 million to R2,165.7 million as at 31 March 2021 after the interim dividend of R341.8 million was paid for the six months ended 31 December 2020.
External borrowings remained at zero.

DRDGOLD reports that its extended capital expenditure programme for the year ending 30 June 2021 will be the main beneficiary of cash generated in the quarter in review. Even with this planned capital expenditure, and unless an unforeseen event takes place, the Company anticipates declaring a final dividend in August 2021, to maintain its 14-year unbroken run of dividends paid.
The information contained in this release does not constitute an earnings forecast. The financial information provided is the responsibility of the directors of DRDGOLD; it has not been reviewed or reported on by the company’s auditors.

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

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James Duncan
R&A Strategic Communications
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james@rasc.co.za

Taryn van Olden
R&A Strategic Communications
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taryn@rasc.co.za