DRDGOLD Ltd (NYSE:DRD, JSE:DRD, OTC:DRDGF) said its gold production in the quarter ended September 30, 2022, rose 1% from the previous three-month period to 1,453kg, primarily driven by a 1% increase in tonnage throughput as the amount of gold sold decreased by 4kg to 1,442kg.
In an operational update, the company said it remains in a favourable position to consider declaring an interim cash dividend in or around February 2023.
The company noted that its cash operating costs per kilogram increased by 2% from the previous quarter to 658,530 rand (R) per kg, while cash operating costs per tonne of material processed remained stable at R133 per tonne.
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All-in sustaining costs per kilogram were R755,201, decreasing by 14% quarter-on-quarter mainly due to a 68% decrease in sustaining capital expenditure. All-in costs per kilogram were R796,255, decreasing 9% quarter-on-quarter.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 19% from the previous quarter to R386.4 million, primarily due to an insurance claim of R84.7 million recognised in the previous quarter.
Cash and cash equivalents decreased by R280.5 million to R2,245.1 million after paying the final cash dividend of R342.5 million for the year ended June 30, 2022.
The cash generated during the current quarter, among others, will go towards the company’s extended capital expenditure programme for the year ending June 30, 2023, DRDGOLD said.
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