DRDGold has reported a significant 65% increase in earnings for the six months ended December, thanks to soaring gold prices. The company’s headline earnings rose to R970.1 million, or 112.6 cents per share.
As an unhedged gold producer, DRDGold was able to take full advantage of the 26% rise in the average rand gold price. CEO Niël Pretorius said the gold price performed exceptionally well, and the company was able to benefit from it.
Gold production increased by 1% to 82,434 ounces, while gold sales also rose by 1% to 82,531 ounces. However, all-in-sustaining costs rose by 6% to $1,670 per ounce.
The company’s Ergo operation maintained steady gold production, while its Far West Gold Recoveries operation saw a 9% increase in gold production.
DRDGold remains on track to achieve its guided output of 155,000 to 165,000 ounces of gold and cash operating costs of about R870,000 per kilogram. The company has declared an interim dividend of 30 cents per share.