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DRDGOLD posts 9% increase in gold production for the financial year 2020

The South African gold producer said the increase is “mainly attributable” to a “larger contribution” from DRDGOLD’s Far West Gold Recoveries operation

DRDGOLD Limited -
DRDGOLD's Far West Gold Recoveries operation was boosted by the November 2017 acquisition of gold and platinum miner Sibanye-Stillwater’s West Rand Tailings Retreatment Project

DRDGOLD Limited (JSE:DRD) (NYSE:DRD) has shared a production update reporting a 9% year-on-year increase in gold production to 5,424 kilograms (174,385 ounces) for the financial year ended June 30, 2020.

In a statement on Wednesday, the South African gold producer said the increase is “mainly attributable” to a “larger contribution” from DRDGOLD’s Far West Gold Recoveries operation.

The company had earlier provided production guidance of between 175,000 and 190,000 ounces. However, the company said interruptions to its operations due to the coronavirus lockdown caused production to come in “marginally below” the estimated range.

READ: DRDGOLD's lower output offset in fiscal 3Q as it digs into stockpiles and realises higher gold price sales

Cash operating costs per kilogram are expected to be in line with the guidance provided of R490,000 (US$ 28,452) per kilogram.

DRDGOLD’s cash and cash equivalents as of June 30, 2020, was R1,715.1 (US$99.58 million) after paying a cash dividend of R213.8 million (US$12.41 million) in June this year.

Founded in 1895 alongside other Johannesburg mining giants which have come and gone, DRDGOLD remains free of bank debt.

The gold producer will announce its full operating and financial results for FY2020 via SENS and the company’s website at 8.00 am South African time on September 1.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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Price: 11.98 USD

NYSE:DRD
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Market Cap: $1.02 billion
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