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Gold

DRDGold's Revenue Surges 4% Amid Dip in Gold Production and Sales

Strategic Insights

— 1 min read

Revenues at DRDGold surged 4% for the quarter ending 31 March, despite a dip in gold produced and sold, thanks to a 10% surge in average gold price. Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) decreased by 2% to R761.7 million. The company's cash operating costs remained under control, decreasing to R1 044.2 million, and it has cash and cash equivalents of R950.5m as at the end of the reporting period.

Key Takeaways:

  • DRDGold's revenue for the quarter ending 31 March increased by 4% to R1.8 billion.
  • The average gold price for the quarter surged by 10% to R1 685 760 per kilogram.
  • Gold sold and produced decreased by 169kg to 1 109kg and 13% and 12% respectively, mainly due to unprecedented wet weather conditions.
  • Cash operating costs per kilogram of gold sold increased by 10% to R964 235/kg and cash operating costs per tonne increased by 5% to R175/t.
  • The all-in sustaining costs per kilogram for the period amounted to R1 074 493/kg, increasing by 8% quarter-on-quarter mainly due to the decrease in gold production and sustaining capital expenditure.
  • DRDGold paid an interim cash dividend of R258.7m for the six months ended 31 December 2024.
  • Despite the decrease in gold production, the company's cash and cash equivalents stands at R950.5m as at the end of the reporting period.
  • DRDGold has reviewed downwards its production targets for the year to June 2025, stating it may fall marginally short of its production guidance.
  • Ongoing initiatives include exploring renewable energy initiatives and investing in capital infrastructure developments for throughput and output targets under the Vision 2028 strategy.

Statistics:

  • Revenue: R1.8 billion (4% increase)
  • Average gold price: R1 685 760 per kilogram (10% surge)
  • Gold sold: 1 109kg (169kg decrease)
  • Gold produced: 169kg decrease
  • Cash operating costs: R1 044.2 million (decrease)
  • Cash and cash equivalents: R950.5m
  • All-in sustaining costs: R1 074 493/kg (8% increase)
  • Interim cash dividend: R258.7m
  • Cash generated: will be applied towards the company's extended capital expenditure programme

Sources:

  • DRDGold press release dated 31 March 2025
  • Financial Times (subscription required)

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