DRDGOLD Operating update for the quarter ended 31 March 2023
Gold production increased by 4% from the previous quarter to 1,329kg primarily due to yield being 0.03g/t higher at 0.255g/t, and despite an 8% decrease in ore treated. Gold sold decreased by 31kg to 1,289kg.
As a result of the increase in yield, cash operating costs per kilogram of gold sold decreased marginally from the previous quarter to R689,426/kg. Cash operating costs per tonne of material increased from the previous quarter to R170.3/t due to a decrease in the ore treated, the result of the reclamation of final remnant and clean up material at sites as they near depletion at both operations.
All-in sustaining costs per kilogram were R790,471/kg, decreasing quarter on quarter mainly due to a decrease in sustaining capital expenditure.
All-in costs per kilogram were R920,965/kg, increasing quarter on quarter mainly due to an increase in non-sustaining capital expenditure, relating primarily to the development of the 20MW solar power plant.
Adjusted EBITDA increased by 54% from the previous quarter to R488.5 million primarily due to an increase in Rand gold price received.
Cash and cash equivalents increased by R160.2 million to R2,552.4 million as at 31 March 2023 (31 December 2022: R2,392.2 million), notwithstanding the payment of the interim cash dividend of R172.1 million for the six months ended 31 December 2022. External borrowings remained at Rnil as at 31 March 2023 (31 December 2022: Rnil).
The cash generated during the current quarter will, inter alia, be applied towards the Company’s extended capital expenditure programme for the financial year ending 30 June 2023. Despite the remaining capital expenditure planned for the current financial year, the Company remains in a favourable position to, in the absence of unforeseen events, consider declaring a final cash dividend in or around August 2023.
