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DRDGOLD LIMITED - Operating update for the quarter ended 31 March 2024

Release Date: 10/05/2024 07:30
Code(s): DRD     PDF:  
Wrap Text
Operating update for the quarter ended 31 March 2024

(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ISIN: ZAE000058723
JSE & A2X share code: DRD
NYSE trading symbol: DRD
("DRDGOLD" or the "Company")


The operating update of the Company for the quarter ended 31 March 2024 is as follows:

                                                                         QUARTER          QUARTER        %
                                                                           ENDED            ENDED   change
                                                                     31 MAR 2024      31 DEC 2023
 Gold produced                               kg                            1,227            1,263     (3%)
                                             oz                           39,449           40,606     (3%)
 Gold sold                                   kg                            1,218            1,268     (4%)
                                             oz                           39,160           40,767     (4%)
 Ore milled                                  Metric (000't)                5,330            5,533     (4%)
 Yield                                       Metric (g/t)                  0.230            0.228       1%

 Price and costs
 Average gold price received                 R per kg                  1,256,579        1,191,703       5%
                                             US$ per oz                    2,071            1,979       5%
 Adjusted EBITDA *                           Rm                            494.5            441.1      12%
                                             US$m                           26.2             23.5      11%
 Cash operating costs                        R per t                         190              186       2%
                                             US$ per t                        10               10        —
 Cash operating costs                        R per kg                    816,042          803,459       2%
                                             US$ per oz                    1,345            1,334       1%
 All-in sustaining costs **                  R per kg                    912,695          940,794     (3%)
                                             US$ per oz                    1,504            1,562     (4%)
 All-in costs **                             R per kg                  1,190,070        1,157,311       3%
                                             US$ per oz                    1,962            1,922       2%

 Capital expenditure
 Sustaining                                  Rm                             50.5            108.7    (54%)
                                             US$m                            2.7              5.8    (53%)
 Non-sustaining/growth                       Rm                            334.3            271.4      23%
                                             US$m                           17.7             14.5      22%
 Average R/US$ exchange rate                                               18.87            18.73       1%

Rounding of figures may result in computational discrepancies.
* Adjusted earnings before interest, taxes, depreciation and amortisation ("Adjusted EBITDA") may not
be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of
performance under International Financial Reporting Standards (IFRS) and should be considered in
addition to, and not as a substitute for, other measures of financial performance and liquidity.
** All-in cost definitions based on the guidance note on non-GAAP Metrics issued by the World Gold
Council on 27 June 2013.

The long awaited 4L3 and 5L27 sites at Ergo Mining Proprietary Limited ("Ergo") were finally commissioned
during the latter half of January 2024. This was an important development since Ergo had by December 2023
depleted the clean-up and legacy sites from where it reclaimed material to supplement the shortfall in planned
throughput while awaiting regulatory approval and addressing community disruption during the preceding
months. Throughput for the quarter was 4% lower than the previous quarter, largely due to a poor January, but
the trend reversed after commissioning, and with a strong finish toward the end of March, Ergo is set up
favourably for the final quarter, barring the unexpected.

Gold production for the quarter was 3% lower than the previous quarter at 1,227kg while yield was 0.002g/t
higher at 0.230g/t. Gold sold decreased by 50kg to 1,218kg.

As a result of the above, cash operating costs per kilogram of gold sold increased marginally from the previous
quarter to R816,042/kg, with cash operating costs per tonne of material also increasing marginally to R190/t.

All-in sustaining costs per kilogram was R912,695/kg, decreasing quarter on quarter mainly due to a decrease
in sustaining capital expenditure in comparison to the previous quarter. All-in costs per kilogram was
R1,190,070/kg increasing quarter on quarter mainly due to an increase in non-sustaining capital expenditure
associated with the solar project.

Adjusted EBITDA increased by 12% from the previous quarter to R494.5 million primarily due to an increased
gold price received.

An interim cash dividend of R172.3 million was paid for the six months ended 31 December 2023, leaving cash
and cash equivalents up by R56.1 million to R1,585.5 million as at 31 March 2024.

The cash generated during the current quarter will, inter alia, be applied towards the Company's extended capital
expenditure programme for the remainder of the financial year ending 30 June 2024.

With production tracking positively and barring any unforeseen events, the Company remains in a favourable
position to consider declaring a final cash dividend in August 2024.

In the Company's 2023 condensed consolidated unaudited interim results for the six months ended
31 December 2023 ("HY 2024"), published on 14 February 2024, the Company indicated that it would remain
within range, albeit at the lower end of the production guidance for the financial year ending 30 June 2024 of
between 165,000 ounces and 175,000 ounces. Although an increase in tonnages has been observed towards
the end of the quarter ended 31 March 2024, the Company may fall marginally short of its production guidance
due to new reclamation sites commencing production later than planned. As a result of the expected decrease
in gold production, the Company may marginally exceed the revised cash operating unit cost guidance of R800
000/kg, as published in the HY 2024.

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.

10 May 2024

One Capital

Date: 10-05-2024 07:30:00
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