JOHANNESBURG (miningweekly.com) – In the three months to March 31 when gold sold in the quarter added up to 1 109 kg, the revenue of surface gold miner DRDGOLD increased on strong gold pricing, despite the impact of unprecedented wet weather.

Even after paying an interim cash dividend of R258.7-million for the six months ended December 2024, DRDGOLD’s cash and cash equivalents increased by R289.3-million to R950.5-million as at March 31.

This, coupled with the recent surge in the gold price and barring any unforeseen events, places the company in a favourable position to consider declaring a final dividend in August 2025, the company stated on Wednesday.

For the most part, tonnages were lower owing to extreme rain, which inhibited access to certain sites but the 10%-higher average R1 685 760/kg gold price elevated revenue to R1 873-million, which was 4% up on the previous quarter.

The 5%-lower tonnage throughput and 7%-lower yield to 0.181g/t were the foremost reasons for 12%-lower 1 093 kg gold production, in the midst of impacted reclamation material blending lowering the average yield achieved by the Johannesburg Stock Exchange centenarian-plus company.

All-in costs per kilogram were a 1%-higher R1 427 265/kg with continuous rainfall affecting construction activities surrounding the development of the Far West Gold Recoveries’ regional tailings storage facility of 800-million-ton capacity. Cash generated during the current quarter will go towards DRDGOLD’s extended capital expenditure programme, which uplifts Ergo and Far West Gold Recoveries.

Principal subsidiaries are its flagship Ergo metallurgical plant, east of Johannesburg, and Far West Gold Recoveries, west of Johannesburg.

Ergo in Brakpan and the Knights plant in Germiston, together with the milling and pump station at Crown Mines and City Deep, treat 1.7-million tons a month. The Brakpan/Withok tailings storage facility has a capacity of two-million tons a month.

Far West Gold Recoveries takes in the 600 000-ton-a-month processing capacity of Driefontein plant 2 and Driefontein 4’s tailings storage capacity of 500 000 tons a month.

Mining Weekly can report that the March quarter tonnage and yield decreases may result in the company possibly falling marginally short of its February-stated production guidance for the financial year ending June 30 of between 155 000 oz and 165 000 oz, and as a result of the expected decrease in gold production, may exceed the revised cash operating unit cost guidance of R870 000/kg.

The general outlook is that the gold price will likely remain at elevated levels in the medium term.