DRDGold reported a 12% revenue increase in the first half of 2023, reaching R2,974.2m, driven by a 22% rise in the Rand gold price and a cash operating cost of R2,097.1m.
Estimated EPS and HEPS for the interim period are projected to be between 65.3 and 71.5 cents, compared to 62.3 cents for the same period in 2022, reflecting an increase of 5% to 15%.
The likely increase in EPS and HEPS for the first half of the year compared to HY1 of the financial year of 2023 primarily stems from movements in revenue and cash operating costs.
DRDGold plans to release its condensed consolidated, unaudited interim results for the six months ended December 31 on February 14.
Revenue surge:
The impact of the increase in revenue on earnings and headline earnings was moderated by a 14% increase in group cash operating costs of R257.5m to R2 097.1m (HY1 FY2023: R1 839.5m).
At Ergo, cash operating costs increased by R197.8m (12%) to R1 792.0m (HY1 FY2023: R1 594.2m) due to double-digit increases in machine hire costs and contract reclamation costs driven by the reclamation of remnant material on legacy and clean-up sites and increased diesel prices.
Far West Gold Recoveries (FWGR) cash operating costs increased by 24% to R305.1m due to increased reagent usage, particularly lime and steel balls, due to reclaimed material from Driefontein 3. Electricity costs also increased due to reclamation and high-shear agitator installation. Machine hire costs were higher due to the Driefontein 5 clean-up and increased diesel prices.
Source: miningreview
