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DRDGOLD increases gold production 4% q-o-q, says adjusted EBITDA up 54%

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(Kitco News) - DRDGOLD (NYSE: DRD), a South African gold producer that recovers gold from the retreatment of surface tailings, announced today that for the quarter ended 31 March 2023, its gold production increased by 4% from the previous quarter to 1,329 kg (~43 kozt), primarily due to higher yield.

The company said that as a result of the increase in yield, cash operating costs per kilogram decreased marginally to R689,426/kg from R691,061/kg, adding that all-in sustaining cost (AISC) per kilogram was R790,471/kg, decreasing quarter-on-quarter (R844,697/kg) mainly due to a decrease in sustaining capital expenditure.

Importantly, the company noted that its adjusted EBITDA increased by 54% from the previous quarter to R488.5 million (~$27 million) primarily due to an increase in Rand gold price received.

DRDGOLD also reported that its cash and cash equivalents increased by R160.2 million to R2,552.4 million (~$140 million) after paying the interim cash dividend of R172.1 million for the six months ended 31 December 2022.

The company said it remains free of bank debt as at 31 March 2023 (31 December 2022: Rnil).

DRDGOLD comprises two subsidiaries: Ergo located some 50km east of Johannesburg in Brakpan; and Far West Gold Recoveries (FWGR) near Carletonville, west of Johannesburg.

Ergo is a surface gold retreatment operation which treats old slime dams and sand dumps to the south of Johannesburg’s central business district as well as the East and Central Rand goldfields. FWGR is a surface gold retreatment operation and treats old slime dams in the West Rand goldfields.

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