DRDGold: Gold production decreased by 12%, revenue up by 4%
Johannesburg – DRDGold Limited in its Operating update for the quarter ended 31 March 2025 has reported that revenue for the quarter increased by 4% from the previous quarter to R1,873.0 million, mainly as a result of an increase in the average gold price of 10% to R1,685,760/kg. Gold sold decreased by 169kg to 1,109kg.
Gold production decreased by 12% from the previous quarter to 1,093kg, primarily due to a 5% decrease in tonnage throughput and a 7% decrease in yield to 0.181g/t. Tonnages were lower, mainly as a result of unprecedented wet weather conditions, which inhibited access to certain sites and as a consequence, impacted the desired blend of reclamation material. This ultimately affected the average yield achieved.
Cash operating costs remained under control, decreasing to R1,044.2 million. As a result of the reduction in gold production, cash operating costs per kilogram of gold sold increased by 10% from the previous quarter to R964,235/kg. Cash operating costs per tonne increased by 5% to R175/t as a result of the decrease in ore milled quarter on quarter.
All-in sustaining costs per kilogram were R1,074,493/kg, increasing by 8% quarter on quarter mainly due to the decrease in gold production and sustaining capital expenditure. All-in costs per kilogram were R1,427,265/kg, increasing by 1% quarter on quarter, despite a 26% decrease in non-sustaining capital expenditure as continuous rainfall affected construction activities at the Regional Tailings Storage Facility at Far West Gold Recoveries Proprietary Limited.
Adjusted EBITDA decreased by 2% from the previous quarter to R761.7 million.
The cash generated during the current quarter will, inter alia, be applied towards the Company’s extended capital expenditure programme. This, coupled with the recent surge in the gold price and barring any unforeseen events, places the Company in a favourable position to consider declaring a final dividend in August 2025.
The Company indicated that it remained on track to achieve the production guidance for the financial year ending 30 June 2025 of between 155,000 ounces and 165,000 ounces. Due to the decrease in tonnages and decrease in yield that has been observed during the quarter ended 31 March 2025, the Company may fall marginally short of its production guidance. As a result of the expected decrease in gold production, the Company may exceed the revised cash operating unit cost guidance of R870 000/kg, as published in the HY 2025.
