DRDGOLD generated R725.8m in free cash inflow in the September quarter as higher gold production and prices lifted revenue.
Operating profit rose 42% year on year to R1.63bn as revenue increased 31% to R2.95bn. Gold production was 10% higher at 42,021 ounces, helped by a 15% improvement in yield despite a 5% fall in the amount of material processed.
The profit figure comes before the full effect of DRDGold’s substantial expansion spending. Growth capital expenditure was R555.7m during the quarter, although this was 29% lower than a year earlier and less than half the R1.16bn spent in the June quarter.
Sustaining capital expenditure rose to R119.7m.
DRDGold ended September with R2.45bn in cash after paying a R1.04bn final dividend during the quarter. It remained free of bank debt.
The company is moving further through Vision 2028, its expansion programme aimed at lifting annual gold production to about 200,000 ounces. It spent R3.5bn on capital projects in the year to June, from R2.2bn a year earlier.
At Far West Gold Recoveries, the new regional tailings storage facility was 77% complete at the end of September, with 99% of the work needed for occupation completed. Occupation remains subject to regulatory approvals and favourable weather.
The DP2 processing plant expansion was substantially complete and due to be commissioned in October. Construction of the Libanon reclamation station started in September, while the Daggafontein tailings storage facility at Ergo was commissioned in July.
Cash operating costs rose 12% year on year to R1.3bn, partly because of higher diesel and reagent prices and increased spending at Far West Gold Recoveries ahead of new infrastructure coming on stream.
All-in sustaining costs increased 6% to R1.14m/kg, while all-in costs, which include growth spending, fell 10% as capital expenditure declined.
DRDGold maintained its forecast of producing 160,000 to 170,000 ounces in the year to June 2027.