As an unhedged producer, the group was able to take full advantage of bullion’s strong rally
18 February 2025 - 09:41
by Jacqueline Mackenzie
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DRDGold has reported a 65% increase in earnings at the halfway stage as the unhedged producer was able to benefit from higher gold prices.
Headline earnings for the six months to end-December were up 65% to R970.1m, which equated to 112.6c per share, the group said in a statement on Tuesday.
Group operating profit rose by 74% to R1.58bn. Operating profit margin for the period rose by 36% to 42%. An interim dividend of 30c was declared.
“The gold price performed really well, and, as an unhedged producer, we were able to take full advantage of the 26% rise in the average rand gold price received to R1,478,663/kg,” said CEO Niël Pretorius.
Business Day TV takes a closer look at the numbers with the miner's CFO, Riaan Davel.
Gold production was up 1% at 82,434oz, while gold sales rose by the same percentage to 82,531oz. All-in-sustaining costs were up 6% to $1,670/oz.
Gold production at Ergo remained steady in the first half, maintaining a total of 1,844kg. The stability was largely attributed to the full ramp-up of newly commissioned high-volume lower-grade reclamation sites replacing virtually cleaned-up high-grade reclamation sites, DRDGold said.
Gold production at Far West Gold Recoveries (FWGR) remained stable, with a moderate 9% increase to 720kg reflecting the mine’s full operational status, resulting in consistent tonnage as well as improved head grade from Driefontein 3.
The company said it remained on track to achieve guided output 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 soaring gold
As an unhedged producer, the group was able to take full advantage of bullion’s strong rally
DRDGold has reported a 65% increase in earnings at the halfway stage as the unhedged producer was able to benefit from higher gold prices.
Headline earnings for the six months to end-December were up 65% to R970.1m, which equated to 112.6c per share, the group said in a statement on Tuesday.
Group operating profit rose by 74% to R1.58bn. Operating profit margin for the period rose by 36% to 42%. An interim dividend of 30c was declared.
“The gold price performed really well, and, as an unhedged producer, we were able to take full advantage of the 26% rise in the average rand gold price received to R1,478,663/kg,” said CEO Niël Pretorius.
Business Day TV takes a closer look at the numbers with the miner's CFO, Riaan Davel.
Gold production was up 1% at 82,434oz, while gold sales rose by the same percentage to 82,531oz. All-in-sustaining costs were up 6% to $1,670/oz.
Gold production at Ergo remained steady in the first half, maintaining a total of 1,844kg. The stability was largely attributed to the full ramp-up of newly commissioned high-volume lower-grade reclamation sites replacing virtually cleaned-up high-grade reclamation sites, DRDGold said.
Gold production at Far West Gold Recoveries (FWGR) remained stable, with a moderate 9% increase to 720kg reflecting the mine’s full operational status, resulting in consistent tonnage as well as improved head grade from Driefontein 3.
The company said it remained on track to achieve guided output 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.