DRDGOLD reports increase in gold production
The mining house DRDGOLD, who owns Far West Gold Recoveries between Carletonville and Fochville, reported a quarter-on-quarter upgrade increase in production.
In its operational update for the quarter ended 31 March 2023, DRDGOLD reports that gold production increased by 4% from the previous quarter to 1 329kg. This is primarily due to yield being 0.03g/t higher.
Gold sold decreased by 31kg to 1 289kg.
As a result of the increase in yield, cash operating costs per kilogram decreased marginally to R689 426/kg from R691 061/kg. Cash operating costs per tonne of material increased by 9% to R170/t due to a decrease in ore treated, the result of the reclamation of final remnant and clean up material at sites as they near depletion at both operations.
All-in sustaining costs per kilogram was R790 471/kg, decreasing quarter-on-quarter (R844 697/kg) mainly due to a decrease in sustaining capital expenditure. All-in costs per kilogram was R920 965/kg, increasing quarter-on-quarter (R901 591/kg) mainly due to an increase in non-sustaining capital expenditure, relating to the development of a 20MW solar power plant.
Adjusted EBITDA increased by 54% from the previous quarter to R488.5 million primarily due to an increase in Rand gold price received.
According to Investopedia, EBITDA is net income (earnings) with interest, taxes, depreciation, and amortization added back. EBITDA can be used to track and compare the underlying profitability of companies regardless of their depreciation assumptions or financing choices.
