DRDGOLD PAYS ITS 14TH CONSECUTIVE DIVIDEND ON HIGHER GOLD PRICES

DRDGOLD, which mines old gold dumps around Joburg, yesterday said it expected slightly lower production and higher operating costs in 2022 as it declared its 14th consecutive financial year of dividends for the year to the end of June on higher gold prices and sales. DRDGold, which operates Ergo and the Far West Gold Recoveries (FWGR), declared a final dividend of 40 cents per share. Group operating profit increased 39 percent to R2.2 billion. DRDGold, for whose primary shareholder is Sibanye-Stillwater, said because of marginally lower yield, it expected to produce slightly less gold in 2022 than in 2021, to between 160 000 and 180 000 ounces. Cash operating costs were likely to be R600 000/kg, while capital investment would hit R600 million, it said. Revenue rose by 26 percent to R5.3 billion because of the rise in gold production and sales, and the 19 percent increase in the average rand gold price received to R917 996/kg. Headline earnings were 127 percent higher at R1.4bn, representing 168.4c per share, up from R634.5m, representing 82.4c per share a year earlier. “By producing and selling more gold at a substantially higher average rand gold price and containing working cost increases reasonably well, we recorded a much higher operating profit,” chief executive Niël Pretorius said during a virtual presentation. Pretorius said the company came within striking distance of achieving the upper limit of its production guidance of 185 000 ounces and exceeded its cash operating cost guidance of R535 000 a kg by only 1 percent. “Year-on-year, we increased production by treating more material and, as a consequence, cleared more land for rehabilitation and sustainable land use, delivering on our promise to help reverse the environmental impacts of mining,” he said. A total of R105m was spent on environmental activities. DRDGold closed 4.32 percent lower at R13.30 on the JSE yesterday.