DRDGOLD Limited (NYSE:DRD) (JSE:DRD), the South Africa-focused mine tailings specialist, has reported a fall in gold production in its latest quarter, despite an increase in the amount of ore processed.
DRDGold is majority-owned by Sibanye-Stillwater, the major platinum group metals (PGMs) and gold producer. It operates the Ergo Mining Operations (EMO) business on the eastern Witwatersrand, and also the Far West Gold Recoveries (FWGR) project.
In a statement covering its first quarter to March 31, 2021, the miner said there was a 6% quarter-on-quarter reduction in gold output to 1,382 kilogram (kg), despite a 3% increase in the ore milled.
READ: DRDGOLD on track to reach upper end of fiscal 2021 output guidance as revenue surges 41% in first half
The amount of gold sold was down by 8% to 1,363kg, while there was a 9% decrease in the average Rand gold price received of R857,895 per kg.
This led to adjusted earnings before interest, tax, depreciation and amortization of (EBITDA) for the quarter of R371.7 million (US$25.8 million) - down 35% compared to the previous quarter.
Cash and cash equivalents decreased by R3.7 million (US$256,789) to R2,165.7 million (US$150.3 million) at the end of 1Q, after the interim dividend of R341.8 million (US$23.7 million) was paid for the six months to end-December, 2020.
DRDGOLD reported that its extended capital expenditure program for the year ending June 30, 2021 will be the main beneficiary of the cash it generated in the first quarter and it expects to declare a final dividend in August 2021, to maintain its 14-year unbroken run of dividend payments.
Contact the author at giles@proactiveinvestors.com