DRDGOLD Limited's revenues and profitability are very sensitive to the price of gold, so the South African operator's shares are positively and very strongly correlated to movements in the price of the precious metal.

A big part of the R800-million expenditure in the Far West Gold Recoveries operation is for a tailings dam and, in the not-too-distant future, an amount not quite as high but similar will be invested at Ergo on the East Rand to expand the size and capacity of the Brakpan/Withok tailings facility.

In a trading statement, the company said it expected its earnings per share to increase by 9% to 19%. Headline earnings per share (Heps) were likely to rise by 8–18%, amounting to about R1.40 to R1.54.

DRDGOLD (NYSE:DRD) reported Thursday that revenues rose 7% Y/Y to nearly 5.5B South African rand for the year ended June 30, as gold prices increased. The miner said it expects to post headline earnings per share of 141.7-154.7 cents, rising 8%-18% compared to 130.7 cents per share for FY 2022.

DRDGOLD Limited (JSE: DRD, NYSE: DRD) in a voluntary trading statement and trading update released today, reported revenue of R5 496.3 million and cash operating costs of R3 688.1 million for the year ended 30 June 2023 (FY2023).

During the Current Reporting Period, DRDGOLD generated free cash flow (cash inflow from operating activities less cash outflow from investing activities) of R468.9 million (2022: R871.6million) after a R546.0 million increase to R1,172.2 million in investing activities (2022: R626.2 million) and paying cash dividends of R515.3 million (2022: R513.3 million). The Group remains free of any bank debt as at 30 June 2023 (2022: Rnil).

A 16% increase in the rand gold price was enough to offset lower sales and push JSE-listed DRDGold’s earnings up almost 20%.

The Ergo operation's revenue increased by R403.7-million to R4.11-billion, mainly as a result of a 16% increase in the rand gold price received, as well as a 21% increase in yield to 0.227 g/t from 0.188 g/t to make up for a 5% decrease in gold sold to 3 936 kg.

Can mining ever be ‘green’? By its very nature, minerals extraction disturbs the natural environment, makes use of a wide range of chemicals in the process and forever changes the composition of the area mined.

DRDGOLD has been kicking around for nearly as long as Joburg has had a mining sector. Only De Beers ranks older, according to CEO Niël Pretorius. The good news for shareholders is that plans are afoot to extend its run for many more years.