The miner expects earnings to rise as much as 70% at the halfway stage of the financial year
06 February 2025 - 09:20
by Jacqueline Mackenzie
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DRDGold expects its earnings to rise as much as 70% at the halfway stage of the financial year due to the higher rand-gold price and an increase in gold sales.
The company expects to report headline earnings per share for the six months ended December of between 109.2c and 116c — an increase of between 60% and 70% from a year ago, it said in a statement on Thursday.
Group revenue increased 28% to R3.8bn as a result of a 26% increase in the rand gold price received, and a marginal increase in sales from 2,535kg to 2,567kg.
Far West Gold Recoveries’ (FWGR) revenue increased to R1.08bn from R781.2m, mainly due to a 26% increase in the rand gold price received and a 10% increase in gold sold.
Ergo Mining’s revenue rose to R2.72bn from R2.19bn mainly due to the 26% increase in the rand gold price received.
Group cash operating costs increased 6% to R2.215bn.
With the solar plant and battery energy storage system reaching practical commissioning in November 2024 and now fully integrated into the national grid, a key focus for the remainder of the 2025 financial year is to optimise its contribution to the group’s cost base through direct consumption and off-setting at Ergo, and wheeling to FWGR, it said.
The company is on track to achieve its production guidance for the 2025 financial year of between 155,000oz and 165,000oz of gold and cash operating costs of about R870,000/kg.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
DRDGold reaps benefits of higher gold price
The miner expects earnings to rise as much as 70% at the halfway stage of the financial year
DRDGold expects its earnings to rise as much as 70% at the halfway stage of the financial year due to the higher rand-gold price and an increase in gold sales.
The company expects to report headline earnings per share for the six months ended December of between 109.2c and 116c — an increase of between 60% and 70% from a year ago, it said in a statement on Thursday.
Group revenue increased 28% to R3.8bn as a result of a 26% increase in the rand gold price received, and a marginal increase in sales from 2,535kg to 2,567kg.
Far West Gold Recoveries’ (FWGR) revenue increased to R1.08bn from R781.2m, mainly due to a 26% increase in the rand gold price received and a 10% increase in gold sold.
Ergo Mining’s revenue rose to R2.72bn from R2.19bn mainly due to the 26% increase in the rand gold price received.
Group cash operating costs increased 6% to R2.215bn.
With the solar plant and battery energy storage system reaching practical commissioning in November 2024 and now fully integrated into the national grid, a key focus for the remainder of the 2025 financial year is to optimise its contribution to the group’s cost base through direct consumption and off-setting at Ergo, and wheeling to FWGR, it said.
The company is on track to achieve its production guidance for the 2025 financial year of between 155,000oz and 165,000oz of gold and cash operating costs of about R870,000/kg.
mackenziej@arena.africa
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.