Johannesburg, South Africa. 23 August 2023. DRDGOLD Limited (JSE: DRD, NYSE: DRD) has reported operating profit of R1 819.0 million for the year ended 30 June 2023 (FY2023). A final dividend of 65 SA cents per share for FY2023 has been declared.
In a commentary accompanying the Company’s operating and financial results for FY2023 released today, CEO Niël Pretorius said: “We produced 169 820 ounces, 180 ounces shy of our mid-range guidance of 170 000 ounces, at a cash operating cost of R697 382/kg. In the process, we generated R1.8 billion in operating profit, paid R515.3 million in dividends, re-invested R1.1 billion in capital expenditure and paid R314.8 million in income tax.
“Our net cash position moved from R2.53 billion at 30 June 2022, to R2.47 billion at 30 June 2023, leaving us in a healthy position at year end and allowing us to top-up the interim dividend of 20 cents per share by declaring a final cash dividend of 65 cents per share, bringing the total declared dividend in respect of the 30 June 2023 financial year end to 85 cents per share.”
He added: “We are very pleased with the progress made on the first 20MW phase of our solar project, which is nearing completion, and over the next two years, a further 40MW is to be added. A 160MWh power storage facility, feeding back into the grid and setting us up to offset power consumption in the rest of the business through wheeling will also be added”.
The Company revenue increased to R5 496.3 million (FY2022: R5 118.5 million). The impact of the increase in revenue on earnings and headline earnings was moderated by an increase in cash operating costs to R3 688.1 million (FY2022: R3 463.8 million).
As at 30 June 2023, the Company held R2 471.4 million in cash and cash equivalents compared to R2 525.6 million on 30 June 2022. During FY2023, DRDGOLD generated free cash flow of R469.1 million (FY2022: R871.6 million) after a R546.0 million increase to R1 186.5 million in investing activities (FY2022: R626.2 million) and paying cash dividends of R515.3 million (FY2022: R513.3 million). The Group remains free of any bank debt as at 30 June 2023 (FY2022: Rnil).
Looking ahead, Pretorius says that the Company’s main priority is to ensure sufficient tailings storage capacity.
The Company expects higher throughput for FY2024 and guides production higher at between 165 000 ounces and 175 000 ounces. It guides cash operating costs at approximately R770 000/kg and total capital investment of approximately R3.5 billion to reinvest its cash savings in the business.
R&A Strategic Communications