DRDGold lifts output and cuts costs in March quarter
The group’s costs and debt levels fall as it nears completion of a large new tailings project
Tailings retreatment specialist DRDGold lifted production in the March quarter and lowered its all-in costs as it put the bulk of its investment in a new project behind it and started reaping the benefits. DRDGold concluded a deal in 2018 to acquire tailings dumps, a processing plant and a deposition site from Sibanye-Stillwater in exchange for a 38% stake in the tailings company. The new Far West Gold Recoveries business promises to be a game changer for DRDGold, giving it 82% more reserves, which now stand at about 6-million oz of gold. DRDGold poured R188m into the Far West business during the December quarter, a number which reflected in the very high all-in cost of R732,394/kg against a received gold price of R564,218/kg.
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