DRDGold FY revenue up 7%

JSE-listed gold producer DRDGold has reported a 13 per cent increase in headline earnings for the fiscal year, fueled by the higher gold price in rand, despite a decrease in gold production and sales. The CEO of DRDGold, Niel Pretorius, discussed the underlying factors that influenced these results in a recent interview with CNBC Africa. Pretorius mentioned that the transition between reclamation sites and delays in the activation of new sites impacted the volume throughput, leading to a marginal decrease in production. Additionally, power interruptions and load curtailment affected production efficiency. However, the company managed to adapt to these challenges, and the CEO expressed satisfaction with their response. The favorable gold price played a significant role in boosting the company's financial performance. Looking ahead, Pretorius expressed optimism regarding the sustainability of the gold price, citing global dynamics that may provide support for gold in the future. He highlighted the potential moderation of rate increases in the US, which could contribute to the stability of the gold price. Despite regulatory delays related to infrastructure approvals, DRDGold is implementing proactive strategies to prevent such issues in the future. The company is investing in solar power to enhance its operational capacity and offset interruptions. In terms of growth focus, DRDGold aims to optimize its current ore body and extend its mining operations beyond the projected timeline. The company also aims to explore additional opportunities for expansion if attractive prospects arise. Notably, DRDGold has made strides in promoting gender diversity in the mining sector, with women now constituting 25% of the total workforce. The CEO emphasized the importance of creating a safe and inclusive work environment to attract and retain female talent. As South Africa celebrates Women's Month, DRDGold's commitment to gender diversity serves as a testament to its success in fostering a diverse and inclusive workplace. The company's proactive approach to addressing operational challenges and promoting diversity positions it for continued growth and success in the gold mining industry.