Surface gold producer DRDGOLD has reported an increase in revenue for the quarter ending 31 March 2025, driven by a strong gold price, despite operational setbacks caused by record rainfall.Gold sales for the period amounted to 1,109 kg, generating revenue of R1.873 billion, up by 4% on the previous quarter thanks to a 10% rise in the average gold price to R1,685,760/kg. This uplift in pricing helped offset a 5% decline in tonnage throughput and a 7% decrease in yield, which dropped to 0.181g/t. The wet weather significantly hampered access to key sites, affecting production and material blending.
As a result, gold output fell 12% to 1,093 kg. However, the company’s financial position remains strong. After distributing an interim dividend of R258.7 million for the six months ending December 2024, DRDGOLD’s cash and cash equivalents still increased by R289.3 million, reaching R950.5 million by quarter-end. This liquidity, coupled with the high gold price environment, positions the company well to consider a final dividend declaration in August 2025, subject to no unforeseen developments.
Ongoing rainfall also impacted the construction of the new regional tailings storage facility at Far West Gold Recoveries, which will ultimately have a capacity of 800 million tonnes. All-in costs rose slightly to R1,427,265/kg, with the additional cash generated earmarked for extended capital expenditure across both the Ergo and Far West operations.
DRDGOLD’s core operations include the flagship Ergo metallurgical plant, east of Johannesburg, and Far West Gold Recoveries, west of the city. Ergo, based in Brakpan, along with the Knights plant in Germiston and supporting infrastructure at Crown Mines and City Deep, processes around 1.7 million tonnes of tailings per month. Its Brakpan/Withok tailings storage facility accommodates two million tonnes monthly. Far West Gold Recoveries includes the 600,000 t/month Driefontein Plant 2 and 500,000 t/month storage capacity at Driefontein 4.
Given the drop in tonnage and yield, DRDGOLD may fall marginally short of its full-year gold production guidance of 155,000 oz to 165,000 oz by 30 June. Lower output could also lead to the company exceeding its revised cash operating unit cost guidance of R870,000/kg.Looking ahead, the company remains cautiously optimistic, noting that gold prices are expected to remain elevated over the medium term.
