DRDGOLD (US:DRD)2024-10-30 14:25Revenue and Production - Revenue increased by 14% to R6,239.7 million in fiscal year 2024 from R5,496.3 million in fiscal year 2023, primarily due to a 20% increase in the average rand gold price received[337]. - Gold production decreased to 160,818 ounces in fiscal year 2024 from 169,820 ounces in fiscal year 2023, reflecting a decline in gold sold from 5,273 kilograms to 4,989 kilograms[336]. - Gold revenue increased by R740.0 million, or 13%, to R6,229.7 million in fiscal year 2024, driven by a 20% increase in average gold price to R1,248,679 per kilogram, despite a decrease in gold sold from 169,531 ounces to 160,400 ounces[360]. - Gold produced in the quarter ended September 30, 2024, was 1,319 kg, a 7% increase from 1,228 kg in the previous quarter[399]. - Gold production rose by 7% to 1,319 kg, driven by a 13% increase in tonnage throughput[403]. Costs and Expenditures - Cash operating costs per kilogram increased to R833,536 in fiscal year 2024 from R697,382 in fiscal year 2023, indicating rising operational costs[336]. - Cost of sales rose to R4,429.9 million in fiscal year 2024, with operating costs increasing by 13% to R4,206.0 million, primarily due to higher contract reclamation and machine hire costs[361]. - Consolidated cash operating costs per kilogram increased by 20% to R833,536 per kilogram in fiscal year 2024 from R697,382 per kilogram in fiscal year 2023[375]. - All-in sustaining costs per kilogram rose by 14% to R946,848 per kilogram in fiscal year 2024 from R827,148 per kilogram in fiscal year 2023[375]. - All-in costs per kilogram surged by 61% to R1,509,040 per kilogram in fiscal year 2024 from R937,525 per kilogram in fiscal year 2023[375]. - Cash operating costs for fiscal year 2024 increased by R505.2 million to R4,193.3 million compared to R3,688.1 million in fiscal year 2023[381]. - Cash operating costs per kilogram of gold sold decreased by 4% to R856,723/kg due to increased gold sold[404]. - Non-sustaining capital expenditure increased significantly from R554.6 million in fiscal year 2023 to R2,789.1 million in fiscal year 2024, related to the construction of a solar power plant[378]. - Non-sustaining capital expenditure decreased by 86% to R275.6 million compared to the previous quarter[402]. Financial Performance - The average gold price received increased to R1,248,679 per kilogram in fiscal year 2024, compared to R1,041,102 per kilogram in fiscal year 2023[336]. - The adjusted EBITDA for the quarter ended September 30, 2024, was R680.8 million, compared to R583.8 million in the previous quarter[400]. - Adjusted EBITDA increased by 17% to R680.8 million, attributed to higher gold sold and increased gold price received[406]. - Finance income decreased to R280.8 million in fiscal year 2024 from R334.3 million in fiscal year 2023, mainly due to lower cash and cash equivalents[367]. - Cash generated from operating activities amounted to R1,845.2 million for fiscal year 2024, up from R1,655.6 million in fiscal year 2023, primarily due to a 20% increase in the average rand gold price received[383][384]. Regulatory and Environmental Factors - The company faced regulatory challenges in South Africa, impacting the execution of key capital projects due to slow permit and approval processes[334]. - The total environmental rehabilitation provision increased to R616.8 million as of June 30, 2024, from R562.1 million at June 30, 2023[363]. - The company is focusing on sustainability and compliance with increasing ESG standards, which may affect future operational strategies[334]. Future Outlook - For fiscal year 2025, the company plans gold production of between 155,000 (4,821 kg) to 165,000 (5,132 kg) ounces at a cash operating unit cost of approximately R870,000 per kilogram[395]. - The anticipated capital investment for fiscal year 2025 is approximately R3.5 billion, focusing on RTSF, DP2 expansion at FWGR, and a solar power project at Ergo[393]. - The solar power plant and battery energy storage system are expected to be fully commissioned in the second quarter of fiscal year 2025, contributing to further cost reductions[404]. Cash Flow and Liquidity - Net cash utilized by investing activities rose significantly to R3,042.6 million in fiscal year 2024 from R1,186.5 million in fiscal year 2023, mainly for cash additions to property, plant, and equipment[386][387]. - Net cash outflow from financing activities was R750.7 million in fiscal year 2024, compared to R532.2 million in fiscal year 2023, largely due to dividends paid on ordinary shares[389]. - Cash and cash equivalents as of June 30, 2024, decreased to R521.5 million from R2,471.4 million at the end of fiscal year 2023[390]. - Cash and cash equivalents rose by R72.7 million to R594.2 million as of September 30, 2024[406]. Exchange Rates and Inflation - The average rand/dollar exchange rate weakened by 5% in fiscal year 2024, while the Consumer Price Index (CPI) inflation rate was recorded at 5.1%[333]. - The average R/US$ exchange rate improved by 3% to 17.97[402].