DRDGOLD increases quarter on quarter gold output by 45%

In its operating update for the quarter ended 30 September 2020 DRDGOLD says its gold production increased by 45% from the previous quarter to 1,514kg primarily due to a 27% increase in tonnage throughput and a 15% increase in yield. Gold sold increased by 60%.

As a result, the cash operating cost per kilogram of gold sold decreased by 10% from the previous quarter to R489,750/kg. The cash operating cost per ton of material processed increased by 2% to R104/t.

All-in sustaining costs per kilogram and all-in costs per kilogram were R588,239/kg and R613,206/kg, respectively, increasing quarter on quarter mainly due to an increase in sustaining capital expenditure.

Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortisation) increased by 110% from the previous quarter to R770.4 million primarily due to a 60% increase in gold sold and a 6% increase in the average Rand gold price received of R1,029,893/kg.

Cash and cash equivalents increased by R300.1 million to R2,015.2 million as at 30 September 2020 after paying the final dividend for the year ended 30 June 2020 of R299.1 million. External borrowings remained at Rnil as at 30 September 2020 (30 June 2020: Rnil).

The cash generated during the current quarter will, inter alia, be applied towards the Company’s extended capital expenditure programme for the year ending 30 June 2021. Despite the capital expenditure planned for the year, management positions the Company favourably to, in the absence of unforeseen events, consider declaring an interim dividend in February 2021.

The information contained in this announcement does not constitute an earnings forecast.

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