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JSE-listed DRDGOLD has reported on its operating performance for the quarter ended 31 March 2025 (Q3 FY2025), noting that revenue for the quarter increased by 4% due to a 10% increase in the average gold price to R1 685 760/kg.

Favourable revenue and gold price as DRDGOLD celebrates 130 years on JSE

Gold sold and produced decreased by 13% and 12% respectively, due to a 5% decrease in tonnage throughput and a 7% decrease in yield to 0.181g/t. Tonnages decreased mainly due to unprecedented wet weather conditions, which inhibited access to certain sites and consequently impacted the desired blend of reclamation material. This also affected the average yield achieved, which reduced by 7% to 0.181g/t. Cash operating costs remained under control, decreasing to R1 044.2 million.

Cash and cash equivalents increased by R289.3 million to R950.5 million as at 31 March 2025, after paying an interim cash dividend of R258.7 million for the six months ended 31 December 2024. The cash generated during the current quarter will, inter alia, be applied towards the company’s extended capital expenditure programme. This coupled with the recent surge in the gold price and barring any unforeseen events, places the company in a favourable position to consider declaring a final dividend in August 2025.

In the company’s 2025 condensed consolidated unaudited interim results for the six months ended 31 December 2024 (HY1 FY2025) published on 18 February 2025, the Company indicated that it remained on track to achieve the production guidance for the financial year ending 30 June 2025 of between 155 000 ounces and 165 000 ounces. Due to the decrease in tonnages and decrease in yield that has been observed during the quarter ended 31 March 2025, the company may fall marginally short of its production guidance. As a result of the expected decrease in gold production, the company may exceed the revised cash operating unit cost guidance of R870 000/kg as published in the HY1 FY2025.

A key event worth noting post this Q3 FY2025 period was the 130th anniversary of the company’s uninterrupted listing on the JSE as of 25 April 2025. Niel Pretorius, DRDGOLD CEO, touched on the legacy of DRDGOLD on the environment and for future generations at the JSE celebration: “The idea of rolling back mining’s environmental legacy aligns with the values of our people. Our people are not only working for the next month or year, but they are also working for the next generation and towards a better future. This is what sustainability is all about.”

The company also reiterated that it continues to explore further renewable energy initiatives in line with its commitment to sustainability as well as invest in capital infrastructure developments that underscore the throughput and output targets of Vision 2028.

The information contained in this announcement does not constitute an earnings forecast. The financial information provided is the responsibility of the directors of DRDGOLD, and such information has not been reviewed or reported on by the Company’s auditors.

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