DRD Gold: Profit down by 3% due to 6% decrease in gold sold

The operating update of DRD Gold for the quarter ended 31 March 2022 reports that gold production decreased by 3% from the previous quarter to 1,391kg primarily due to a 5% decrease in tonnage throughput, despite a 2% increase in yield. Gold sold decreased by 6% to 1,377kg.

As a result of the above, the cash operating costs per kilogram of gold sold increased by 3% from the previous quarter to R605,011/kg. The cash operating costs per ton of material processed increased by 8% to R127/t.

All-in sustaining costs per kilogram was R677,996/kg, decreasing quarter on quarter mainly due to a decrease in sustaining capital expenditure. All-in costs per kilogram was R735,948/kg, increasing quarter on quarter mainly due to increased non-sustaining capital expenditure.

Adjusted EBITDA decreased by 3% from the previous quarter to R367.3 million primarily due to a 6% decrease in gold sold, which was in part offset by a 3% increase in the average Rand gold price received to R914,864/kg.

Cash and cash equivalents increased by R70.4 million to R2,309.5 million as at 31 March 2022

(31 December 2021: R2,239.1 million) after paying the interim cash dividend of R167.8 million for the six months ended 31 December 2021. External borrowings remained at Rnil as at 31 March 2022 (31 December 2021: Rnil).

The Company remains in a favourable position to, in the absence of unforeseen events, consider declaring a final cash dividend in or around August 2022. 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.

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