DRDGOLD, the Johannesburg-listed gold producer, is to report more than a doubling in interim share earnings and headline share earnings owing to an improved rand gold price which more than compensated for lower production.
Headline earnings per share would come in between 106.2 cents and 115.8 c/share compared to 48.5 and 48.4 cents/share respectively for the previous corresponding period, the company said today in a trading statement.
Revenue increased 41% to nearly R3bn for the six months period, ended December 31. DRDGOLD’s flagship Ergo Mining reported revenue of R2.3bn owing to a 42% increase in the rand gold price.
Cash and equivalents as of December 31 totalled R2.2bn, an increase compared to the cash position as of June 30 of roughly R400m. DRDGOLD also has access to R200m in a revolving credit facility, if required. DRDGOLD said liquidity was “further enhanced” by current high rand gold price levels.
DRDGOLD is due to report its interim numbers on February 16.
DRDGOLD’s long-standing chairman, Geoffrey Campbell, announced last week he is to step down from the company’s board on November 30. Campbell said in a DRDGOLD announcement to the JSE that there was no need for a UK-based chairman at the company given it had become a subsidiary of Sibanye-Stillwater.
Commenting in DRDGOLD’s 2020 annual report, Campbell said political and economic developments would ultimate direct the firm’s capital allocation plans.
“The sizeable investment decisions DRDGOLD will be considering in the future will need to be weighed up against the risk of political instability and expropriation of land without compensation,” he said.
“The political outlook in South Africa remains extremely challenging and the Covid-19 pandemic has exacerbated the situation.”
