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Rising costs hurt DRDGold

Operating costs rose due to increases in the cost of diesel, steel and chemicals. Archive image of the Ergo gold recovery plant, run by DRDGold in Brakpan.
Operating costs rose due to increases in the cost of diesel, steel and chemicals. Archive image of the Ergo gold recovery plant, run by DRDGold in Brakpan.
Image: Bloomberg

DRDGold expects its full-year profit to be cut by about a third amid surging costs and lower production, the company said on Wednesday.

DRDGold's headline earnings per share is expected to be in the R1.136 and R1.472 range for the year ended June 30, down from R1.684 during the same period last year.

The company said operating costs had risen 13% during the six months, driven mainly by increases in the cost of key inputs such as diesel, steel and chemicals.

Revenue is 3% lower, due to reduced production.

DRDGold said it expects to release its annual results on August 24.

Reuters

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