Media releases

DRDGOLD commissions the long awaited 4L3 and 5L27 sites at Ergo

Johannesburg, South Africa. 10 May 2024. DRDGOLD Limited (JSE: DRD, A2X, NYSE: DRD) in an operational update for the quarter ended 31 March 2024, reports the commissioning of the long awaited 4L3 and 5L27 sites at Ergo during the second half of January 2024. This commissioning is an important development for the Company as by December 2023, Ergo had depleted the clean-up and legacy sites from where it reclaimed material to supplement the shortfall in planned throughput while awaiting regulatory approval and addressing community disruption during the preceding months.

Throughput for the quarter was 4% lower than the previous quarter, largely  due to a poor January, but the trend reversed after commissioning. With a strong finish toward the end of March, Ergo is set up favourably for the final quarter of FY2024, barring the unexpected.

Gold production was 3% lower than the previous quarter at 1 227kg, while yield increased by 1% to 0.230/g/t. Gold sold decreased by 4% quarter-on-quarter to 1 218kg.

As a result of the above, cash operating costs per kilogram of gold sold increased marginally from the previous quarter to R816 042/kg, with cash operating costs per tonne of material also increasing marginally to R190/t.

All-in sustaining costs per kilogram decreased 3% quarter-on-quarter to R912 695/kg mainly due to a decrease in sustaining capital expenditure. All-in costs per kilogram increased 3% quarter-on-quarter to R1 190 070/kg mainly due to an increase in non-sustaining capital expenditure associated with the solar project.

An augmented gold price received increased the adjusted EBITDA by 11% from the previous quarter to R494.5 million.

The Company paid an interim cash dividend of R172.3 million for the six months ended 31 December 2023 leaving cash and cash equivalents up by R56.1 million to R1 585.5 million as at 31 March 2024.

The cash generated during the current quarter will, inter alia, be applied towards the Company’s extended capital expenditure programme for the remainder of the financial year ending 30 June 2024.

With production tracking positively and barring any unforeseen events, the Company remains in a favourable position to consider declaring a final cash dividend in August 2024.

In the Company's 2023 condensed consolidated unaudited interim results for the six months ended 31 December 2023 (HY2024) published on 14 February 2024, the Company indicated that it would remain within range, albeit at the lower end of the production guidance for the financial year ending 30 June 2024, of between 165 000 ounces and 175 000 ounces. Although an increase in tonnages has been observed towards the end of the quarter ended 31 March 2024, the Company may fall marginally short of its production guidance due to new reclamation sites commencing production later than planned. As a result of the expected decrease in gold production, the Company may marginally exceed the revised cash operating unit cost guidance of R800 000/kg, as published in the HY2024.

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.

Investor and media relations queries:

R&A Strategic Communications

Jane Kamau

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