Mining News
Gold producer DRDGOLD says its earnings up in FY23 on higher Rand gold price and yield increase
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(Kitco News) - DRDGOLD (NYSE: DRD), a South African gold producer that recovers gold from the retreatment of surface tailings, reported today that its revenue increased to R5,496.3 million (~$297 million) for the year ended 30 June 2023 (FY2023) from R5,118.5 million (~$277 million) in FY2022.
The company said it produced 169,820 ounces of gold in FY2023, 180 ounces shy of its mid-range guidance of 170,000 ounces.
The company also reported operating profit of R1,819.0 million (~$98 million) for the year ended 30 June 2023, an increase of 8% compared to the previous year.
Headline earnings per share (HEPS) were 148.2 SA cents per share in FY2023 compared to 130.7 SA cents per share in FY2022, being an increase of 13%. The company also declared a final dividend of 65 SA cents per share for FY2023.
DRDGOLD said its HEPS increased in FY2023 mainly due to a 16% increase in the Rand gold price received as well as a 21% increase in yield to 0.227g/t from 0.188g/t.
Looking ahead, the company said that its main priority is to ensure "sufficient" tailings storage capacity.
Importantly, the company added it expects higher throughput for FY2024 and guides production higher at between 165,000 ounces and 175,000 ounces.
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.
