Media releases

Revenue increases due to Rand gold price increase

Johannesburg, South Africa. 03 February 2023. DRDGOLD Limited (JSE: DRD, NYSE: DRD), in a trading statement and update released today, reported revenue of R2 654.3 million and cash operating costs of R1 839.5 million for the six months ended 31 December 2022.

The Company expects to report earnings per share (EPS) and headline earnings per share (HEPS) of between 59.5 cents and 68.1 cents per share compared to EPS and HEPS of 58.0 cents per share each for the previous corresponding period.

The condensed consolidated interim results for the six months ended 31 December 2022 are expected to be published on or about 15 February 2023.

Ergo Mining Proprietary Limited’s (Ergo’s) revenue increased by R153.8 million to R1 958.5 million (2021: R1 804.7 million), mainly due to an 11% increase in the Rand gold price received as well as a 10% increase in yield to 0.203g/t from 0.184g/t. Gold sold decreased by 2% to 2 040kg (2021: 2 090kg). Volume throughput decreased by 14% mainly as a result of unprecedented load shedding, unscheduled electricity trip-outs at the Ergo plant related to the Eskom grid, and excessive rain. Volume throughput was also impacted by late phase clean-up at Ergo sites where, as the last material is lifted from the floor of the reclamation site, volumes are typically lower and head grades slightly higher.

Far West Gold Recoveries’ (FWGR’s) revenue remained stable at R695.8 million (2021: R693.8 million). An 11% increase in the Rand gold price received was offset by a 10% decrease in gold sold to 722kg (2021: 801kg). Volume throughput decreased by 3% mainly due to severe weather that caused four days of lost production. Yield decreased by 0.012g/t from 0.257g/t to 0.245g/t in part attributable to the processing of a lower-grade part of the Driefontein No 5 dump and the suspension of milling to curtail load during periods of load shedding.

During the interim period ended 31 December 2022, DRDGOLD generated free cash flow (cash inflow from operating activities less cash outflow from investing activities) of R215.4 million (2021: R406.9 million) and paid cash dividends of R342.5 million (2021: R345.5 million).

The Group remains free of any bank debt as at 31 December 2022 (2021: Rnil).

The financial information contained in this announcement is the responsibility of the directors of DRDGOLD, and such information has not been reviewed or reported on by the Company’s auditors.

Investor and media relations queries:
R&A Strategic Communications
Jane Kamau
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