JSE- and NYSE-listed gold producer DRDGold says its revenue for the financial year ended June 30 increased by 7% year-on-year to R5.5-billion.
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.
Gold production at Ergo, however, decreased as a result of a decrease in throughput tonnages, caused by significant loadshedding at the beginning of the financial year affecting particularly the City Deep line, the depletion of high-volume reclamation sites at City Deep and Ergo and the late commissioning of two major new reclamation sites.
Meanwhile, Far West Gold Recoveries’ (FWGR’s) revenue decreased by R25.9-million to R1.39-billion, as a 15% year-on-year decrease in gold sold was offset by the higher rand gold price received.
The decrease in gold sold was as a result of a decrease in throughput tonnages owing to Driefontein 5 nearing the end of its life-of-mine and entering final clean-up and a delay in the commissioning of the new Driefontein 3 reclamation site.
Yield decreased by 8% to 0.237 g/t from 0.257 g/t in part attributable to the material being processed from the lower-grade areas of the newly commissioned Driefontein 3 and the almost depleted Driefontein 5, as well as reduced milling with mills having to be switched off during periods of loadshedding.
Group cash operating costs increased by 6% year-on-year to R3.69-billion.
As a result, DRDGold expects to report earnings a share of between 142.5c and 155.7c for the financial year, a 9% to 19% increase on the 131.2c reported for the 2022 financial year.
Headline earnings a share are expected to have increased by 8% to 18% to between 141.7c and 154.7c a share, compared with the 130.7c reported for the 2022 financial year.
DRDGold will publish its results on August 23.
Read More: DRDGold’s revenue rises on higher rand gold price