DRDGOLD produces 9% more gold despite C-19 lockdown
DRDGOLD, in its earnings forecast for the year ended 30 June 2020, has reported it produced 5,424 kilograms (174,385 ounces) of gold from its two operations for the year ended 30 June 2020, representing a year on year increase of 9% compared to the gold production of 4,977 kilograms for the year ended 30 June 2019.
DRDGOLD is a South African gold producer and a world leader in the recovery of gold from the retreatment of surface tailings. The company has a simple, efficient structure. All operations are consolidated into one operating entity, Ergo Mining Proprietary Limited (Ergo).
The increase is mainly attributable to a larger contribution from Far West Gold Recoveries. DRDGOLD had earlier provided guidance of expected production of between of 175,000 and 190,000 ounces, however, interruptions to its operations as a result of the national lockdown declared by the South African government in response to the COVID-19 pandemic caused production to come in marginally below the estimated range.
The Company also expects cash operating costs per kilogram to be in line with its guidance of R490,000/kg.
DRDGOLD’s cash and cash equivalents as at 30 June 2020 was R1,715.1 million, after paying a cash dividend of R213.8 million in June 2020, and it remains free of bank debt as at 30 June 2020.
