Media releases

DRDGOLD reports a 12% revenue increase on the back of a higher gold price; interim dividend makes it the 17th consecutive year

Johannesburg, South Africa. 14 February 2024. DRDGOLD Limited’s (JSE: DRD, A2X, NYSE: DRD) revenue increased to R2 974.2 million for the six months ended 31 December 2023 (HY1 FY2024) on the back of a 22% increase in Rand gold price to R1 173 245/kg. The Company returned an operating profit of R909.3 million (15% increase) with cash operating costs of R2 097.1 million. 

Headline earnings were 68.4 SA cents per share and the Company declared an interim dividend of 20 SA cents for H1 FY2024, matching the interim dividend of H1 FY2023. 

A total of R1 074.7 million was reinvested in capital infrastructure, with cash and cash equivalents reduced to R1 529.4 million (30 June 2023: R2 471.4 million) while the Company remained free of bank debt as at 31 December 2023.

Gold production was 7% lower on the back of a 13% drop in throughput, the result of delays in the commissioning of two high volume sites due to community issues and delays in obtaining regulatory approvals respectively, with  the Company having to make up tonnes from a number of legacy and clean-up sites.

With the delays resolved in the latter part of January 2024, CEO Niel Pretorius commented that the remainder of FY2024 looked far better from a throughput perspective, adding that at the rate at which closure and legacy sites were processed in 2023, a large portion of this work has come to an end, which meant ”fewer yellow machines and trucks moving earth, less diesel and therefore lower total costs”. The Company anticipates that its new solar plant, which is nearing completion, could also impact costs as the year progresses. 

Looking ahead, the Company expects to complete the 60MW solar plant by the end of March 2024 and the accompanying battery storage system by end of October 2024. Its next big capital investment project is Phase II of Far West Gold Recoveries to double plant capacity and build the 800 million tonne Regional Tailings Storage Facility for which regulatory approvals are imminent.

The Company still expects output within its guided range of between 165 000 ounces and 175 000 ounces for FY2024 albeit to the lower end of the range. It has revised its guidance for cash operating costs to R800 000/kg (from R770 000/kg) and total capital investment to R3.0 billion.

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