Johannesburg, South Africa. 17 August 2023. DRDGOLD Limited (JSE: DRD, NYSE: DRD) in a voluntary trading statement and trading update released today, reported revenue of R5 496.3 million and cash operating costs of R3 688.1 million for the year ended 30 June 2023 (FY2023).

DRDGOLD’s condensed consolidated financial statements for FY2023 are expected to be published on SENS on or about 23 August 2023. The Company expects to announce:

Earnings per share (EPS) of between 142.5 cents and 155.7 cents per share compared to 131.2 cents for the year ended 30 June 2022 (FY2022), being an increase of between 9% and 19%
Headline earnings per share (HEPS) of between 141.7 cents and 154.7 cents per share compared to 130.7 cents per share for FY2022, being an increase of between 8% and 18%
The expected increases in EPS and HEPS for FY2023 compared to FY2022 are mainly due to movements in the following:

Revenue
An increase of R377.8 million (7%) to R5 496.3 million (FY2022: R5 118.5 million).

Ergo’s revenue increased by R403.7 million to R4 108.6 million (FY2022: R3 704.9 million), mainly due to a 16% increase in the Rand gold price received as well as a 21% increase in yield to 0.227g/t from 0.188g/t to make up for a 5% decrease in gold sold to 3 936kg (FY2022: 4 139kg). Gold production decreased as a result of a decrease in throughput tonnages, caused by significant load shedding at the beginning of the financial year affecting particularly the City Deep line, the depletion of high-volume reclamation sites at City Deep and Ergo and the late commissioning of two major new reclamation sites.

Far West Gold Recoveries' (FWGR) revenue decreased by R25.9 million to R1 387.7 million (FY2022: R1 413.6 million). A 15% decrease in gold sold to 1 337kg (FY2022: 1 575kg) was offset by a 16% increase in the Rand gold price received. The decrease in gold sold was as a result of a decrease in throughput tonnages due to Driefontein 5 nearing the end of its life of mine and entering final clean-up and a delay in the commissioning of the new Driefontein 3 reclamation site. Yield decreased by 8% to 0.237g/t from 0.257g/t in part attributable to the material being processed from the lower grade areas of the newly commissioned Driefontein 3 and the almost depleted Driefontein 5, as well as reduced milling with mills having to be switched off during periods of load shedding.

Cash operating costs
The impact of the increase in revenue on earnings and headline earnings was moderated by an increase in cash operating costs of R224.3 million (6%) to R3 688.1 million (FY2022: R3 463.8 million).

At Ergo, cash operating costs increased by R173.4 million (6%) to R3 183.2 million (FY2022: R3 009.8 million). At FWGR, cash operating costs increased by R50.9 million (11%) to R504.9 million (FY2022: R454.0 million). At both Ergo and FWGR, costs relating to reagents, diesel, electricity and security experienced above inflationary increases. Additionally, there was a significant increase in machine hire costs to mechanically lift and reclaim material from late phase clean-up sites at both Ergo and FWGR.

Liquidity
As at 30 June 2023, DRDGOLD held R2 471.4 million in cash and cash equivalents compared to R2 525.6 million on 30 June 2022. During FY2023, DRDGOLD generated free cash flow (cash inflow from operating activities less cash outflow from investing activities) of R468.9 million (FY2022: R871.6 million) after a R546.0 million increase to R1 172.2 million in investing activities (FY2022: R626.2 million) and paying cash dividends of R515.3 million (FY2022: R513.3 million).

The Group remains free of any bank debt as at 30 June 2023 (FY2022: Rnil).

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https://www.drdgold.com/media-insights/media-releases/2023/1583-trading-statement-17aug2023