DRDGOLD: Production increases despite yield being lower

Gold production and gold sold increased from the previous quarter to 1,284kg and 1,267kg, respectively, primarily due to a 13% increase in tonnage throughput as a result of the commissioning of major reclamation site at Ergo Mining Proprietary Limited, Rooikraal, in July 2023. Gold production increased despite yield being 0.018g/t lower at 0.228g/t.

Despite the increase in gold production, cash operating costs per kilogram of gold sold increased from the previous quarter to R825,630/kg due to increases in the Municipal electricity tariffs and winter tariffs charged during the current quarter. The cash operating costs per tonne of material decreased marginally from the previous quarter to R190/t due to the increase in tonnage throughput.

All-in sustaining costs per kilogram was R951,008/kg, increasing quarter on quarter mainly due to the increase in cash operating costs, despite a decrease in sustaining capital expenditure. All-in costs per kilogram was R1,097,718/kg, decreasing quarter on quarter mainly due to a decrease in growth capital expenditure in comparison to the previous quarter.

Increases in cash operating costs contributed to an 18% decrease in adjusted EBITDA from the previous quarter to R365.8 million.

Cash and cash equivalents decreased by R973.1 million to R1,498.3 million as at 30 September 2023 (30 June 2023: R2,471.4 million) after paying the final cash dividend of R559.4 million for the year ended 30 June 2023. Capital expenditure of R275.7 million and prepayments towards the development of the solar project of R321.3 million were also incurred in the first quarter of the financial year ending 30 June 2024.