DRDGold upbeat on dividend after third quarter cash boost

DRDGOLD increased cash nearly R600m in the third quarter, and remained debt free, while forging on with a major capital expansion programme – all thanks to the gold price.In an operating update for the March quarter DRDGold reported that total growth capex for the nine months to end-March was R2,3bn compared with R1.2bn for the nine moths to end-March 2025.The bulk of that investment was into the Far West Gold Recoveries (FWGR) project including the regional tailings story facility, the Driefontein 2 plant expansion and associated pipeline infrastructure.Additional expenditure was incurred at the Ergo plant on the East Rand including the Daggafontein pump station as well as the pipeline connecting the Daggafontein tailings storage facility with the Ergo plant.Despite this DRDGold pushed its holding of cash and cash equivalents as of end-March to R2.3bn from R1.7bn at end December while remaining debt-free although it holds a R1.5bn available in banking facilities if required.According to DRDGold “the company’s cash position allows it to continue funding its extended capital expenditure programme without incurring debt.”DRDGold paid out R433.6m in total as an interim dividend for the six months to end-December and now commented that: “If current conditions prevail and barring any unforeseen events, the company is favourably positioned to consider a final dividend in August 2026.”There was no mention as to whether it might loosen the purse strings considering the buoyant nature of the gold price and strong production outlook. Niël Pretorius, CEO of DRDGold said the board was unlikely to consider a special dividend. The omens were good for a generous final dividend, he added.DRDGold increased gold production 6%  to 1,219 kilograms in the March quarter (December quarter: 1,146kg) and reported a quarterly operating profit of R1.85bn (R1.56bn).The average gold price received rose 13% to R2.5m per kg (R2.3m/kg) while all-in sustaining costs (AISC) dropped 5% to R1,06m/kg (R1.12m/kg).DRDGold said it remained “on track” to achieve “the upper end” of previously stated production guidance of between 140,000 and 150,000 ounces of gold for the year to end-June at cash operating costs of around R995,000/kg.The post DRDGold upbeat on dividend after third quarter cash boost appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com