DRDGold's revenue for the year ended June 30, 2023 (FY2023) rose 7% to R5.5 billion ($289.4 million) compared to R5.1 billion ($268.3 million), a year earlier, due to the rise in the price of gold in South African rand terms.
Although the gold sold decreased by 5% to 3,936 kg, the Ergo operation saw revenue surge by R403.7 million, reaching a total of R4.11 billion due to a 16% increase in the rand gold price received and a 21% increase in yield to 0.227 g/t from 0.188 g/t.
Despite a higher rand gold price, Far West Gold Recoveries (FWGR) experienced a drop in revenue of R25.9 million, resulting in a total of R1.39 billion.
The decrease was primarily due to a 15% year-over-year decline in gold sales.
The reduction in gold sales was attributed to the decline in throughput tonnages caused by the conclusion of Driefontein 5's life-of-mine operations and the delay in commissioning the new Driefontein 3 reclamation site.
Lower-grade material from the recently operationalized Driefontein 3 and the nearly depleted Driefontein 5 contributed to the 8% drop in yield from 0.257 g/t to 0.237 g/t, as did reduced milling as mills had to be switched off during periods of load-shedding.
Meanwhile, DRDGold anticipates reporting earnings per share of 142.5c to 155.7c for the fiscal year, an increase of 9% to 19% from the 131.2c reported for the 2022 fiscal year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
