JSE-listed DRDGOLD says it expects to report earnings per share (EPS) and headline earnings per share (HEPS) of between 109.2c and 116c for the six months ended December 31.

That compares with the EPS and HEPS of 68.4c reported for the six months ended December 31, 2023.

The company, which plans to publish its results for the interim period on February 18, notes that its revenue for the six-month period is likely to be 28% higher year-on-year at R3.8-billion.

At Far West Gold Recoveries Proprietary (FWGR), revenue increased by R302.1-million to R1.08-billion, mainly owing to a 26% increase in the rand gold price received and a 10% increase in gold sold to 731 kg.

DRDGOLD explains that the increase in gold sold was mainly owing to a 9% increase in yield from 0.215 g/t in the prior comparable period to 0.235 g/t in the period under review.

Throughput tonnages remained consistent at 3.1-million tonnes.

At Ergo Mining, revenue increased by R526-million to R2.72-billion as a result of the 26% increase in the rand gold price.

Throughput tonnages increased by 22% from 8.1-million tonnes in the first half of the prior financial year to 9.9-million tonnes in the six months under review as a result of the successful commissioning and ramp-up of production from the 4L3, 4L14 and 5L27 dumps that started early in the 2024 calendar year.

This by and large offset the effect of a reduction in yield from 0.233 g/t to 0.187 g/t owing to lower average grades from the newly commissioned sites.

Gold sold decreased by 2% year-on-year to 1 836 kg.

Meanwhile, group cash operating costs for the period increased by 6% to R2.22-billion.

At Ergo, cash operating costs increased by R94.4-million to R1.89-billion driven by inflationary increases, higher reagent and consumable stores consumption and increased security costs.

DRDGOLD says costs benefited from a decrease in machine hire costs as mechanical reclamation of clean-up sites is systematically reducing.

Additionally, the supply of power from Ergo’s 60 MW solar plant limited the increase in electricity costs to only 3%, despite higher electricity consumption owing to the 22% increase in tonnage throughput.

With the solar plant and battery energy storage system (BESS) having reached practical commissioning in November 2024 and now fully integrated into the national grid, the company says a key focus for the remainder of the current financial year will be to optimise its contribution to the group's cost base through direct consumption and off-setting at Ergo, and wheeling to FWGR. 

At FWGR, cash operating costs increased by R23.6-million to R328.7-million owing to inflation and in particular, higher-than-inflation increases in security and labour costs.

DRDGOLD says it remains on track to meet production guidance of between 155 000 oz and 165 000 oz of gold for the financial year ending on June 30.

Capital expenditure for the first half of the current financial year was mainly driven by ongoing key projects at FWGR such as the regional tailings storage facility construction, the Driefontein 2 Plant expansion and related pipeline infrastructure, as well as the completion costs of the solar power plant and BESS at Ergo. 

Meanwhile, as at December 31, DRDGOLD held R661.2-million in cash and cash equivalents, compared with R1.53-billion as at December 31, 2023.

The group remains free of any bank debt.

To support liquidity in funding the significant capital expansion programme the group has secured a R1-billion revolving credit facility with a R500-million accordion option and a R500-million general bank facility with Nedbank against which it may draw as needed.

The company says these facilities remained undrawn as at December 31.