DRDGOLD sees 7% increase in gold production
Fri Oct 18 2024
DRDGOLD Limited reported an increase in gold production and cost reduction in the first quarter of FY2025 (Q1 FY2025), aiming for growth towards Vision 2028.
The battery and energy storage system [BESS] is being integrated into the solar photovoltaic [PV] power plant at Ergo and is expected to be fully commissioned during the second quarter, which will contribute to continued cost decreases.
Gold production increased by 7% from the previous quarter to 1 319kg primarily due to a 13% increase in tonnage throughput despite yield being 0.012g/t lower at 0.201g/t, while gold sold increased by 4% to 1 289kg.
Cash operating costs per kilogram of gold sold decreased by 4% from the previous quarter to R856 723/kg due to the increase in gold sold, despite an increase in total cash operating costs driven mainly by two months of winter tariffs which Eskom charges from June to August each year.
Cash operating costs per tonne of material decreased by 6% from the previous quarter to R176/t due to the increase in tonnage throughput. The number of mechanically reclaimed sites (clean-up sites), which are more costly to operate compared to hydro mining, have started to reduce. This reduction is expected to continue, resulting in a decreasing cost profile over the remainder of FY2025.
All-in sustaining costs per kilogram decreased 5% quarter-on-quarter to R933 686/kg mainly owing to the decrease in cash costs and the decrease in sustaining capital expenditure. All-in costs per kilogram decreased 56% quarter-on-quarter to R1 152 406/kg principally as a result of a decrease in growth capital expenditure in comparison to the previous quarter when the BESS for the solar PV power plant was purchased.
Adjusted EBITDA increased by 17% from the previous quarter to R680.8 million primarily due to the increase in gold sold, and the accompanying higher gold price received.
As of 30 September 2024, cash and cash equivalents increased by R72.7 million to R594.2 million, following the payment of the final cash dividend and capital expenditure of R323.3 million during Q1 FY2025.
The company reported that the higher gold price increased liquidity, and that cash generated during the current quarter will be applied towards the Company’s extended capital expenditure programme for FY2025.
Source: https://www.miningreview.com