DRDGOLD Ltd (NYSE:DRD, JSE:DRD, OTC:DRDGF), which recovers gold from processing mine dumps and tailings dams, said it 'held its own' in fiscal 2022 as the mining firm posted full-year results for the period to June 30.
The company declared a final dividend of 40 South African cents—its 15th consecutive year of dividend payments and said it remained committed to investing in the sustainability and growth of the business despite the challenges of operating globally and in South Africa.
"One of the core principles that informs our strategic thinking is that, to thrive well, you need to survive well," said CEO Niël Pretorius in a commentary accompanying the numbers.
"In practice this means that, for many years, we have deliberately invested in capital and developing a system to increase business resilience and robustness. This approach has carried us through."
READ: DRDGOLD says cash and cash equivalents increased in quarter ended March 31, 2022
The miner said it grew capital investment from Rand (R) 584.1 million in 2022 to around R700 million in full year 2023.
Gold production was stable in 2022 at 5,720 kilograms (kg), while group operating profit was 22% lower at R1 685.1 million after accounting for cash operating cost, which was 13% higher at R3 463.8 million. The firm said R871.6 million of free cash flow was generated for the year.
The group's cash and equivalents were 16% higher at R2 525.6 million, after paying cash dividends of R513.3 million. DRDGOLD said it remains free of bank debt as of the end of the year.
Among the challenges in South Africa, said Pretorius, included infrastructure theft and decay, labor unrest and the soaring cost of basics required by businesses and communities.
In terms of guidance for full year 2023, Pretorius added that DRDGOLD expects production to be lower, due to weakened expected yield, at between 160, 000 and 180,000 ounces (oz). Cash operating costs are expected to be around R685 000 per kg. Long term and sustaining capital investment of around R1,400 million is planned.
The company said total dividend distribution for the year was 60 South African cents.
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 writer at giles@proactiveinvestors.com