Gold miner DRDGold expects annual earnings to rise as much as 9% as revenue grew by double digits.
Headline earnings per share (HEPS) for the year ended June are expected to be between 146.c and 161.4c compared with 148.2c a year ago.
Revenue was 14% higher at R6.24bn, the group said in a statement on Wednesday.
Ergo Mining’s revenue was higher due to a 20% increase in the rand gold price. Gold sold decreased 8% as a result of a decrease in throughput tonnages, which was impacted by the late commissioning of the 5L27 and 4L3 sites.
The department of water and sanitation requested unanticipated design amendments and studies for the 4L3 site, which resulted in further delays in obtaining approvals for the Water Use License.
Furthermore, the community-related disruptions for inclusion in projects experienced at the 5L27 site in the first half of the financial year led to production from this site being delayed until late January.
Far West Gold Recoveries’ revenue increased by R327.1m to R1.7bn mainly due to the higher gold price and a rise in sales.
Group cash operating costs rose 14% to R4.19bn.
The production delays, reclamation activities at cleanup sites and the rehabilitation programme to process material at legacy sites, resulted in the group falling short of its production guidance of 165,000oz-175,000oz, producing 160,850oz, and consequently exceeding its cash operating unit cost guidance of R800,000/kg with unit costs expected to be between R820,000/kg and R835,000/kg.
With Ergo’s replacement reclamation sites now fully operational and the cleanup programme coming to an end, Ergo’s production is expected to stabilise for the next financial year.
DRDGold expects to release its annual results on August 21.
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