DRDGOLD expects rise in headline earnings per share due to higher gold production
29 August 2018
Johannesburg, South Africa. 29 August 2018. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in a trading statement and production update released today, says it expects to report headline earnings of between 1.53 and 1.87 cents per share for the financial year ended 30 June 2018 (FY2018).
This compares with 0.2 cents per share for FY2017.
The expected increase is due primarily to a 10% increase in gold production, from 4 265kg to 4 679kg.
Higher gold production also resulted in a decrease in cash operating costs of around 6%, from R489 549/kg to around R459 000/kg, and in all-in sustaining costs of around 5%, from R530 930/kg to R506 000/kg.
Headline earnings include transaction costs of R9 million relating to the acquisition from Sibanye-Stillwater of the West Rand Tailings Retreatment Project assets.
The above information has not been reviewed or reported on by the Company’s auditors. The Company’s Results are expected to be published on or about 5 September 2018.
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Forward looking Statements
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2017, which we filed with the United States Securities and Exchange Commission on 31 October 2017 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.