DRD Gold reports better liquidity and higher production amid rising gold prices

DRD Gold directors say the high price of the yellow metal has increased liquidity and cash, and this would be applied, among other things, towards their extended capital expenditure programme for the year to June 30, 2026.

- EDWARD WEST

This was according to an operational update for the quarter ending September 30, released Thursday, which showed that cash operating costs increased by 8% to R179 per ton for its second quarter, while its gold production increased by 2% to 1 191 kg.

The group should benefit more in its third quarter from the current high gold prices; which peaked at its highest price this year at R70,307 per ounce on October 10, or R2.26 million per kilogram. In DRD Gold's second quarter, it obtained an average gold price of R1.94m per kilogram, which in turn was 1% higher than the first quarter.

The share price was marginally 0.02% lower on Thursday morning at R52.56, but the price has more than doubled from R20.44 a year earlier. The gold price increased by about 52% over a year.