Mining News
South Africa's DRDGOLD reports production decline in March quarter
(Kitco News) - South African gold producer DRDGOLD (JSE, NYSE: DRD) reported Wednesday that its gold production in March quarter 2021 decreased by 6% from the previous quarter to 1,382kg primarily due to a 9% decrease in yield despite a 3% increase in tonnage throughput. Gold sold decreased by 8%.
The company said that because of the above, the cash operating costs per kilogram of gold sold increased by 3% from the previous quarter to R549,817/kg. The cash operating costs per ton of material processed decreased by 6% to R102/t.
All-in sustaining costs per kilogram and all-in costs per kilogram were R645,488/kg and R654,072/kg, respectively, increasing quarter on quarter mainly due to an increase in sustaining capital expenditure.
Adjusted EBITDA decreased by 35% from the previous quarter to R371.7 million primarily due to an 8% decrease in gold sold and a 9% decrease in the average Rand gold price received of R857,895/kg.
Cash and cash equivalents decreased by R3.7 million to R2,165.7 million as at 31 March 2021 (31 December 2020: R2,169.4 million) after paying the interim cash dividend of R341.8 million for the six months ended 31 December 2020.
DRDGOLD said that despite the capital expenditure planned for the year, the company remains in a favourable position to, in the absence of unforeseen events, consider declaring a final cash dividend in or around August 2021.
DRDGOLD is a South African gold producer and describes itself as a world leader in the recovery of gold from the retreatment of surface tailings.
