JSE-listed gold recovery company DRDGOLD has generated higher adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter ended March 31, compared with the same quarter of last year, despite having produced slightly fewer ounces.

Adjusted Ebitda in the reporting quarter of R494-million, or $26.2-million, compares with adjusted Ebitda of R441-million, or $23.5-million, in the prior comparable quarter.

DRDGOLD produced 39 449 oz in the quarter under review, compared with the 40 606 oz produced in the prior comparable quarter. The gold yield, however, was 0.002 g/t higher in the reporting quarter at 0.230 g/t.

Production decreased by 3% year-on-year, while adjusted Ebitda increased by 12%. The company realised a higher average gold price in the quarter of $2 071/oz, compared with an average realised gold price of $1 979/oz in the prior comparable quarter.

The company also managed to lower its all-in sustaining costs to $1 504/oz in the quarter under review, which is a 4% decrease compared with the AISC of $1 562/oz in the prior comparable quarter.

After paying an interim dividend of R172-million in the six months ended December 31, DRDGOLD has cash and cash equivalents on hand of R1.58-billion as of March 31.

The company will apply this cash towards its capital expenditure programme for the remainder of the financial year ending June 30.

DRDGOLD advises that its Ergo operation is set up for a strong final quarter of the financial year, following commissioning of two sites on the property in the latter half of January.

This was an important development as Ergo had, by December last year, depleted the clean-up and legacy sites from where it reclaimed material to supplement the shortfall in planned throughput while awaiting regulatory approval and addressing community disruption during the preceding months.

Throughput in the reporting quarter was 4% lower than the prior comparable quarter, largely owing to a poor January, but the trend reversed towards the end of March after commissioning of the new sites.

DRDGOLD expects to pay a final cash dividend in August, barring any unforeseen events.

The company also remains on track to produce between 165 000 oz and 175 000 oz for the full-year, albeit at the lower end of the range.