DRDGOLD declares dividend as profit jumps


DRDGOLD declares dividend as profit jumps

Published Date: 2020-02-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

DRDGOLD declares dividend as profit jumps

The gold mine tailings retreatment specialist benefitted from a 26 percent rise in the gold price as it increased production by a third.

DRDGOLD has returned to profitability for the first six months of its financial year, lifted by extra production from the West Rand mine dumps it bought from Sibanye-Stillwater at the end of 2017. The gold mine tailings retreatment specialist said its improved performance came despite load shedding, which affected throughput at its Ergo operation on the East Rand.

Production rose by a third to 3,037 kilograms (97,642 ounces) over the six months to ed-December and it sold 34% more gold over the period. All-in sustaining costs fell 7% to R512,136. The gold price it received was, on average, 26% higher in rand terms.

For the period, revenue jumped 69% to R2.11 billion and operating profit rose 604% to R720 million. It swung to headline earnings per share of 48.4c from a 7.2c loss previously. It's paying an interim dividend of 25c per share.

DRDGOLD said it was on track to meet the upper range of its full-year guidance.

Last month, Sibanye-Stillwater exercised its option to take control of DRDGOLD. It received an initial 38% stake in the gold company in return for the West Rand tailings with the option to increase its stake to 50.1% within 24 months. It bought the additional 168.2 million shares at R6.46 each, valuing the transaction at R1.1 billion.

Its shares fell 2.3% to R9.10 yesterday.

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