DRDGOLD reports 5% quarter-on-quarter gold production increase
A 5% quarter-on-quarter increase in gold production was reported by Johannesburg- and New York-listed surface gold recovery company DRDGOLD late last month.
The gold output of DRDGOLD, which reprocesses tailings at Ergo on the East Rand and at Far West Rand Gold Recoveries on the West Rand, increased to 1 284 kg and gold sold increased to 1 267 kg compared with the previous quarter ended June 30.
This was primarily because of a 13% increase in tonnage throughput, the company stated in an operational update for the quarter ended September 30.
The operating model involves the high-pressure hydromining of discarded mine tailings, pumped as a slurry mix to reduction works through a network of pipelines.
Gold is recovered from the slurry through an extensively automated process and discard tailings are then deposited on a facility of a different design following contemporary management practice.
Cash operating costs per kilogramme increased to R825 630/kg from R780 054/kg, in part owing to Eskom’s winter tariffs and higher municipal power rates.
Cash operating costs per tonne of material decreased by 2% to R190/t owing to an increase in tonnage throughput.
All-in sustaining costs per kilogramme were R951 008/kg, increasing quarter-on-quarter from R921 603/kg, mainly because of the increase in cash operating costs, and despite a decrease in sustaining capital expenditure (capex).
All-in costs per kilogramme were R1 097 718/kg, decreasing quarter-on-quarter fromR1 150 641/kg, mainly because of lower growth capex in comparison with the previous quarter.
Adjusted earnings before interest, taxes, depreciation and amortisation decreased by 18% from the previous quarter to R365.8-million, primarily because of an increase in cash operating costs.
Cash and cash equivalents decreased by R973.1-million to R1 498.3-million as at September 30, after paying the final cash dividend of R559.4-million for the year ended June 30.
Capex of R275.7-million and prepayments towards the development of a solar project of R321.3-million were also incurred in the first quarter of the financial year ending June 30, DRDGOLD, headed by CEO Niël Pretorius, stated in a media release.
DRDGOLD is South Africa’s oldest continuously listed mining company still in operation, having been established in 1895, and Pretorius is a director of the World Gold Council, which is chaired by Neal Froneman, the CEO of Sibanye-Stillwater, which owns 50.1% of DRDGOLD.
Between 25-million and 30-million tonnes of material are moved a year as part of a permanent solution for scarred land, which reverses the environmental legacy of mining.
Capex includes R325-million being spent on piping and pumping infrastructure at Ergo.
At Far West Rand Gold, R162-million is being spent on the Driefontein 3 reclamation and pump station and R67-million on land for the construction of tailings storage facility infrastructure.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation