DRDGold expects annual earnings to almost double as record gold prices lift revenue despite largely unchanged production.The gold producer said on Thursday that it expects HEPS for the year ended June 30 to increase by between 85% and 95% to between 481.2c and 507.2c, from a year earlier. Revenue increased 42% to R11.16bn, largely because the average rand gold price received rose 40% to R2.29m per kilogram. Gold production was largely unchanged at 155,577oz, compared with 155,288oz in the previous financial year. Production exceeded its guidance of 140,000oz to 150,000oz.Cash operating costs increased 8% to R4.71bn, driven by higher reagent, diesel and transport costs. DRDGold said sodium cyanide supply constraints in South Africa, higher diesel prices linked to the conflict in the Middle East and increased trucking costs contributed to the increase, while higher electricity tariffs raised costs at its Far West Gold Recoveries (FWGR) operation on Gauteng’s West Rand. Lower electricity costs at its Ergo operation in Ekurhuleni, supported by its solar plant and battery energy storage system, partly offset the increase. Cash operating costs of R967,544/kg were below its guidance of about R995,000/kg.“This is a pleasing outcome, particularly in a year in which we have been investing significantly in the future of the business,” said CEO Niël Pretorius. “We produced above guidance, kept costs below guidance and maintained a strong financial position while progressing our growth programme.” “The gold price has been supportive, but the operational performance and the discipline with which we have continued to invest are equally important,” Pretorius said. Capital expenditure rose 57% to R3.53bn as the company continued work on projects under its Vision 2028 growth programme. These included infrastructure for the Daggafontein Tailings Storage Facility at Ergo and the expansion of the DP2 processing plant and related tailings infrastructure at FWGR.DRDGold said it received a water use licence for the Libanon reclamation pump station in July, which is expected to support increased production at FWGR.The company ended the year with cash and cash equivalents of R2.77bn, up from R1.31bn a year earlier, after paying R779.3m in dividends and funding its capital programme. It remained free of bank debt and said its available R1.5bn banking facilities were undrawn.DRDGold is expected to publish its full-year results on August 19.Reuters