DRDGOLD is also planning an 800-million-ton tailings storage facility at its Far West Gold Recoveries operation that will consolidate all the material on the far west of Johannesburg. This will, ultimately, create a model that reverses the environmental damage caused by mining while being economical and profitable to benefit the company and all its stakeholders.
Despite the company’s interim headline earnings improving from R535 million in the 2022 December half year to R589.3m in the period under review, shares in DRDGOLD were nearly unchanged, inching up by 0.22% to R13.60 in afternoon trade on the JSE.
A total of R$1074.7 million was reinvested in capital infrastructure, with cash and cash equivalents reduced to R$ 529.4 million (30 June 2023: R$ 471.4 million) while the company remained free of bank debt as at 31 December 2023.
Gold producer DRDGOLD reported a 10% rise in half-year profit despite a slight decrease in output, which was a result of a delay in the commissioning of four new sites to replace high-volume sites, which had reached the end of their life cycles.
In the two years running up to end-December three major production clusters contributing 25,000 tons a day reached the end of their lives. The planned start-up at four new sites that were supposed to come into operation from October 2022 onwards help up by a combination of regulatory delays and “community-related interference”.
Pretorius also announced significant advancements in sustainability and efficiency, including the completion of a new solar plant by March end, followed by a battery storage system in October, to enhance cost savings and supply consistency.
However, delays in processing water-use licences on two sites, appeal proceedings lodged by a community forum on a third, and community-related interference with the construction of a pipe-column at the fourth site caused delays.
Dust exceedances were reduced at the company’s Ergo and Far West Gold Recoveries (FWGR) owing to various efforts to continuously reduce dust fallout through rehabilitation programmes and other mitigation measures.
“Community-related interference” caused delays of several months to new projects being developed by gold producer DRDGOLD, which operates from sites near Johannesburg in Gauteng. The group reported a 10% rise in profit for the six months to end-December despite a 7% drop in output, which was a result of a delay in the commissioning of new sites to replace high-volume sites, which had reached the end of their life cycles.
DRDGOLD Ltd, a leading South African gold producer, announces 12% revenue growth for H1 FY2024. Strategic moves, higher gold prices, and sustainable investments drive the company's success. DRDGOLD remains optimistic about FY2024 output and reveals plans for capital investments and dividends.
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Results for the six months ended 31 December 2023 14 February 2024 (PDF - 11.41 MB)
Results for the six months ended 31 December 2023 (PDF - 34.46 MB)