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DRDGOLD recently released a trading statement in which the company had high expectations for the release of financial results for the six months ended 31 December 2019.

The company expects to report earnings per share of between 47.78 cents and 49.22 cents per share for the six months ended 31 December 2019 compared to a loss of 7.2 cents per share for the previous corresponding period.

Headline earnings per share of between 47.68 cents and 49.12 cents per share are expected compared to a headline loss of 7.2 cents per share for the previous corresponding period. The expected increase in earnings per share and headline earnings per share are due mainly to a R858.9 million (69%) increase in revenue to R2 111.4 million (2018: R1 252.5 million).

Ergo’s revenue increased by R356.6 million to R1 589.6 million (2018: R1 233.0 million) due to a 3% increase in gold sold and a 26% higher average Rand gold price received, while that of Far West Gold Recoveries (FWGR) increased by R502.3 million to R521.8 million (2018: R19.5 million) due to the current reporting period being the first period of full production.

Cash operating costs rose by R208.5 million (18%) to R1 377.3 million (2018: R1 168.8 million), due largely to the inclusion of the cash operating costs of FWGR, amounting to R177.2 million. DRDGOLD completed the six months ended 31 December 2019 with cash and cash equivalents of R543.4 million (30 June 2019: R279.5 million) and zero borrowings.

Results are expected to be released on 12 February 2020.

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