DRD Gold reports 6% revenue increase despite decline in gold sales

DRD Gold increased revenue by 6% in the quarter to March 31, primarily due to the rise in the price of gold and despite a 6% decline in the amount of gold sold.

- EDWARD WEST

SLURRY in the tertiary sump is pumped to two tertiary cyclones and additional underflow is transferred to the secondary sump, at DRD Gold's Far West Gold Recoveries (FWGR) operations.

(SUPPLIED)

Revenue for the quarter increased to R2,96 billion. The average gold price received rose by 13% to R2,565,465 per kilogram.

Gold production increased by 6% from the previous quarter, reaching 1,219 kilograms, primarily due to a 5% increase in tonnage throughput and a slight increase in yield to 0,194 grams per ton.

Tonnages processed improved due to drier weather conditions following early rainfall in the previous quarter.

Cash operating costs increased by 5% to R1,19bn due to higher reagent consumption and trucking costs, in line with the increased tonnages processed.

As a result of the increase in gold production, cash operating costs per kilogram fell by 4% from the previous quarter to R960,270 per kilogram. Cash operating costs per ton remained consistent at R190 per ton.