Media releases

DRDGOLD reports a 7% gold production increase and reduces operating costs

Positions for growth towards its Vision 2028

Johannesburg, South Africa. 17 October 2024. DRDGOLD Limited (JSE: DRD, A2X, NYSE: DRD) reported in an operational update for the first quarter of FY2025 (Q1 FY2025) ended 30 September 2024 an increase in gold production and a reduction in cost as the Company positions for growth towards its Vision 2028. The battery and energy storage system (BESS) is being integrated into the solar photovoltaic (PV) power plant at Ergo and is expected to be fully commissioned during the second quarter, which will contribute to continued cost decreases.

Gold production increased by 7% from the previous quarter to 1 319kg primarily due to a 13% increase in tonnage throughput despite yield being 0.012g/t lower at 0.201g/t, while gold sold increased by 4% to 1 289kg.

Cash operating costs per kilogram of gold sold decreased by 4% from the previous quarter to R856 723/kg due to the increase in gold sold, despite an increase in total cash operating costs driven mainly by two months of winter tariffs which Eskom charges from June to August each year. Cash operating costs per tonne of material decreased by 6% from the previous quarter to R176/t due to the increase in tonnage throughput. The number of mechanically reclaimed sites (clean-up sites), which are more costly to operate compared to hydro mining, have started to reduce. This reduction is expected to continue, resulting in a decreasing cost profile over the remainder of FY2025.

All-in sustaining costs per kilogram decreased 5% quarter-on-quarter to R933 686/kg mainly owing to the decrease in cash costs and the decrease in sustaining capital expenditure. All-in costs per kilogram decreased 56% quarter-on-quarter to R1 152 406/kg principally as a result of a decrease in growth capital expenditure in comparison to the previous quarter when the BESS for the solar PV power plant was purchased.

Adjusted EBITDA increased by 17% from the previous quarter to R680.8 million primarily due to the increase in gold sold, and the accompanying higher gold price received.

Cash and cash equivalents increased by R72.7 million to R594.2 million as at 30 September 2024
(30 June 2024: R521.5 million) after paying the final cash dividend of R172.3 million for the year ended 30 June 2024 and capital expenditure (including prepayments towards capital items) of R323.3 million incurred during Q1 FY2025.

The Company reported that the higher gold price increased  liquidity, and that cash generated during the current quarter will be applied towards the Company’s extended capital expenditure programme for FY2025.

The information contained in this announcement does not constitute an earnings forecast. The financial information provided is the responsibility of DRDGOLD’s directors, 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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