DRDGold (NYSE:DRD) -3.1% in Wednesday’s trading after reporting a 22% decline in profit for the year ended June 30, due mostly to surging costs.

DRDGold’s (DRD) headline earnings fell to 1.307 South African rand/share from 1.684 rand/share in the same period a year ago.

The miner said it generated 871.6M rand in free cash flow for the year, supported by a gold price that slipped from recent highs but was still strong.

Full-year production came in flat Y/Y at 183.9K oz, but all-in sustaining costs climbed 15%, citing price increases for diesel, chemicals and steel.

Looking ahead, DRDGold (DRD) said it remains committed to investing in the sustainability and growth of its business, raising capital spending from 584.1M rand to 700M rand in the current financial year.

The company also declared a dividend of 40 South African cents/share, for a total distribution of 60 cents/share for the full year.

DRDGold’s (DRD) Q2 earnings conference call transcript