DRDGold reported yesterday that for the quarter ended September 30, 2023, it achieved a 5% increase in quarter-on-quarter gold production due to an increase in tonnage throughput.
In its operating update for the quarter ended September 30, 23, the gold tailings retreatment group said gold production and gold sold increased from the previous quarter to 1284kg and 1267kg, respectively, primarily due to a 13% increase in tonnage throughput as a result of the commissioning of major reclamation site at Ergo Mining, Rooikraal, in July 2023.
The group, which mines gold dumps around Johannesburg, said gold production increased despite yield being 0.018g/t lower at 0.228g/t.
“Despite the increase in gold production, cash operating costs per kilogram of gold sold increased from the previous quarter to R825 630/kg due to increases in the municipal electricity tariffs and winter tariffs charged during the current quarter.
“The cash operating costs per ton of material decreased marginally from the previous quarter to R190 per ton due to the increase in tonnage throughput,” it said.
The group posted that All-in sustaining costs per kilogram was R951008 per kg, increasing quarter on quarter mainly due to the increase in cash operating costs, despite a decrease in sustaining capital expenditure.
“All-in costs per kilogram were R1097,718 per kg, decreasing quarter on quarter mainly due to a decrease in growth capital expenditure in comparison to the previous quarter," it said.
Increases in cash operating costs contributed to an 18% decrease in adjusted Ebitda from the previous quarter to R365.8 million, it said.
Cash and cash equivalents decreased by R973.1m to R1.5 billion as of the reported period. On June 30, 2023, they amounted to R2.5bn after paying the final cash dividend of R559.4m for the year ended June 30, 2023.
DRDGold said capital expenditure of R275.7m and prepayments towards the development of the solar project of R321.3m were also incurred in the first quarter of the financial year ending June 30, 2024.
In its latest results released in August, the gold miner, which was also sizing up its opportunities in the platinum group metals value chain reported stronger performance in the second half year at some of its operations.
At the time, chief financial officer Riaan Davel said the group was one of the best-performing stocks on the JSE.
“We witnessed a steep increase in the gold price in the first half compared to the second half of the year. Our volumes for the period were down, but the yield was higher,” Davel said.