(Kitco News) - DRDGOLD (NYSE: DRD), a South African gold producer that recovers gold from the retreatment of surface tailings, announced today that for the year ended 30 June 2022 (FY22), its gold production was only marginally lower year-over-year at 5 720kg (FY21: 5 723kg).
Group all-in sustaining unit costs (AISC) were 15% higher at R721 684/kg (FY2021: 626 247/kg), driven substantially by increases in the cost of key consumables, diesel, steel and cyanide, as well as investments in new pump stations and piping at Ergo.
The company said that due to marginally lower than expected yield, it expects production for FY23 to be lower than actual production for FY22, of between 160 000 and 180 000 ounces, with volume throughput still the primary determining factor.
Group revenue for the year decreased by 3% to R5 118.5 million (FY2021: R5 269.0 million) due mainly to a 3% reduction in the average Rand gold price received to R894 409/kg (FY2021: 917 996/kg).
Group operating profit was down 22% at R 1 685.1 million (FY2021: R2 170.7 million) after accounting for cash operating costs, 13% higher at R3 463.8 million (FY2021: R3 072.7 million). The Group’s operating margin was 20% lower at 32.9% (FY2021: 41.2%).
Total headline earnings were down 22% to R1 119.2 million (FY2021: R1 439.8 million) and 22% lower per share at 130.7 SA cents (FY2021: 168.4 SA cents).
The Group’s cash and cash equivalents were 16% higher at R2 525.6 million (FY2021: R2 180.0 million), after paying cash dividends of R513.3 million (FY2021: R640.9 million). The Group remains free of bank debt as at 30 June 2022.
The company also reported to investors a final dividend (its 15th consecutively), of 40 SA cents per share bringing the total dividend for FY2022 to 60 SA cents per share, albeit it being lower than in FY2021 when the company declared 80 SA cents per share.
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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