DRDGOLD Ltd (NYSE:DRD, JSE:DRD, OTC:DRDGF) has said its cash and cash equivalents increased by 70.4 million Rand (R) to R2 309.5 million in the quarter ending March 31, 2022, after paying an interim cash dividend of R167.8 million for the six months ended December 31, 2021.
Management said this positions the company favourably to consider declaring a final cash dividend in or around August 2022, in the absence of unforeseen circumstances, adding that it remains free of bank debt as at end of March 2022.
The company also reported a 3% quarter-on-quarter decrease in gold production to 1,391 kilograms (kg) in the three months to end-March 2022, due primarily to a 5% decrease in tonnage throughput.
READ: DRDGOLD declares 20 cents per share interim dividend after gold production exceeds forecasts
The company said gold sold decreased by 6% to 1,377 kg and cash operating costs per kilogram increased by 3% from the previous quarter to R605,011 per kg (/kg) from R586,330/kg. Cash operating costs per tonne (/t) of material processed increased by 8% to R127/t.
All-in sustaining costs per kilogram was R677 996/kg from 681 887/kg, decreasing quarter-on-quarter mainly due to a decrease in sustaining capital expenditure. All-in costs per kilogram was R735 948/kg from R709 706/kg, increasing quarter on quarter mainly due to increased non-sustaining capital expenditure.
Adjusted EBITDA decreased by 3% from the previous quarter to R367.3 million primarily due to a 6% fall in gold sold, which was partly offset by a 3% increase in the average Rand gold price received to R914,864/kg.
The South Africa-focused firm, which is majority-owned by Sibanye-Stillwater, the major platinum group metals and gold producer, operates the Ergo Mining Operations business on the eastern Witwatersrand, and also the Far West Gold Recoveries project.
Contact the author at jon.hopkins@proactiveinvestors.com