JSE- and NYSE-listed DRDGOLD’s production for the quarter ended September 30 increased by 7% quarter-on-quarter to 1 319 kg (42 407 oz), primarily owing to a 13% increase in tonnage throughput, despite yield being lower at 0.2 g/t.

Gold sold increased by 4% quarter-on-quarter to 1 289 kg (41 442 oz).

Cash operating costs decreased by 4% quarter-on-quarter to R856 723/kg owing to an increase in gold sold. This was despite an increase in total cash operating costs driven mainly by two months of winter tariffs which State-owned entity Eskom charges between June and August each year.

The number of mechanically reclaimed (clean-up) sites, which are more costly to operate compared with hydro mining, have started to reduce, the company points out.

It says this reduction is expected to continue, resulting in a lower cost profile over the remainder of the financial year to end on June 30, 2025.

Additional decreases in costs are expected as the solar power plant and battery energy storage system (BESS), the construction of which is completed, are expected to be fully commissioned during the December quarter.

All-in sustaining costs were R933 686/kg, down 5% quarter-on-quarter, mainly owing to the decrease in cash operating costs, as well as the decrease in sustaining capital expenditure (capex).

All-in costs were R1.15-million per kilogram, down 56% quarter-on-quarter, mainly owing to a decrease in growth capex. The higher growth capex in the previous quarter is attributable to the cost of the solar and BESS infrastructure.

Adjusted earnings before interest, taxes, depreciation and amortisation increased by 17% quarter-on-quarter to R680.8-million primarily owing to the increase in gold sold and the accompanying higher gold price received, at R1.43-million a kilogram.

DRDGOLD says the higher gold price increased liquidity and cash generated during the current quarter, which will be applied towards the company’s extended capex programme for the 2025 financial year, among other purposes.