DRDGOLD slightly exceeds production guidance for the year ended 30 June 2022

DRDGOLD’s production guidance for the Current Reporting Period was between 160 000 and 180 000 ounces of gold at a cash operating cost of R600 000/kg, with planned capital investment of R600 million. For the Current Reporting Period, DRDGOLD produced 183 902 ounces of gold at a cash operating cost of R600,875/kg, with a capital investment of R584.1 million.

For the reclamation operations owned and managed by DRDGOLD, being Ergo Mining Proprietary Limited (‘Ergo’) and Far West Gold Recoveries Proprietary Limited (‘FWGR’), revenue decreased by R150.5 million, or 3%, to R5,118.5 million (2021: R5,269.0 million).

Ergo’s revenue decreased by R238.1 million, or 6%, to R3,704.9 million (2021: R3,943.0 million), due mainly to a 3% decrease in the Rand gold price received and a 3% decrease in gold sold. The decrease in gold sold resulted from a 4% decrease in volume throughput offset by a 1% increase in yield.

FWGR’s revenue increased by R87.6 million, or 7%, to R1,413.6 million (2021: R1,326.0 million) due mainly to a 9% increase in gold sold. The increase in gold sold resulted from an 8% increase in yield, notwithstanding volume throughput decreasing by 1%.
The impact of the decrease in revenue on earnings and headline earnings was further impacted by an increase in cash operating costs of R391.1 million, or 13%, to R3,463.8 million (2021: R3,072.7 million). The increases in costs at both operations were mainly caused by above inflationary increases in the costs of key consumables, diesel, steel and cyanide.
At Ergo, cash operating costs increased by R343.3 million, or 13%, to R3,009.8 million (2021: R2,666.5 million).

At FWGR, cash operating costs increased by R47.8 million, or 12%, to R454.0 million (2021: R406.2 million).