Media releases

DRDGold production update

Key features:
  • 5% increase in gold production
  • Far West Gold Recoveries reaches 500 000tpm
  • EBITDA more than doubles
  • Rise in cash/cash equivalents to R333.6 million
  • Zero debt

Johannesburg, South Africa. 28 October 2019. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in a production update for the quarter ended 30 September 2019 released today, reports a 5% increase in gold production quarter on quarter to 1 493kg.

This was due primarily to a 4% increase in tonnage throughput to 7 155 000t as the company’s Far West Gold Recoveries (FWGR) operation achieved planned throughput of 500 000tpm from Phase 1 and successfully started operating its mills.

Overall yield increased by 1% to 0.209g/t due mainly to improved head grade at the Ergo operation.

The increase in production resulted in a 3% decrease in cash operating cost per kilogram of gold sold to R459 868/kg and a 2% decrease in cash operating cost per ton of material processed to R97/t.

Adjusted EBITDA more than doubled to R326.1 million, a consequence primarily of a 15% increase in the gold price received to R696 368/kg and a 6% increase in gold sold to 1 510kg.

All-in sustaining costs per kilogram were 11% higher at R517 219/kg and all-in costs per kilogram 9% higher at R528 344/kg due to the positive impact of the change in estimate of environmental rehabilitation recognised in profit or loss, lowering the comparative unit costs of the previous quarter. The September 2019 quarter also contains a R 41.1 million increase in the liability of the long-term incentive scheme while including gold production/sold for the quarter only.

Cash and cash equivalents increased to R333.6 million from R279.5 million after paying a cash dividend of R136.4 million for the year ended 30 June 2019 and increasing working capital lockup by R133.9 million for the quarter.

External borrowings remained at zero.

The Board of Directors will consider the payment of a dividend once the half-year results (for the six months ended 31 December) have been finalised.

The information contained in this announcement does not constitute an earnings forecast.

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