DRDGOLD declares five-fold dividend increase
01 September 2015
“Very satisfactory” results for 2015: CEO
Johannesburg, South Africa. 1 September 2015. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has declared a final dividend of 10 South African cents per share for the year ended 30 June 2015, the eighth consecutive final dividend declared and a five-fold increase on the final dividend declared in FY2014.
The improved dividend flows from what CEO Niël Pretorius describes as “very satisfactory results” for the 2015 financial year.
A 13% increase in gold production to 150 145oz boosted operating profit for the year which increased by 48% to R384.3 million, assisted also by a 4% rise in the average Rand gold price received.
Revenue increased by 16% to R2 105.3 million and, after accounting for total cash operating costs (including the negative impact of Eskom’s higher winter tariffs in the last quarter), was 13% higher at R1.741.6 million.
Yield, up 14% to 0.197g/t, drove improved gold production and reflected a sharp turnaround in the performance of the Ergo plant.
Looking ahead to FY2016, Pretorius says the company’s focus will be to fully integrate the new high-grade FFG and established low-grade carbon-in-leach (CIL) circuits.
Strong quarter-on-quarter improvements
The company ended the 2015 financial year strongly, with substantially improved final quarter-on-quarter comparisons. Gold production was 9% higher at 40 253oz, due mainly to a 9% rise in throughput to 6 333 000 tonnes. This resulted from delivery on previously-announced plans to improve the availability of infrastructure, the commissioning of new reclamation sites, and drier winter weather conditions.
Operating profit was 26% higher at R122.6 million, a result of the higher gold production, the lower cash operating cost performance, and a slightly higher Rand gold price received.
South Africa & North America
James Duncan, Russell and Associates
+27 11 880 3924 (office)
Investor and Media Relations
Phil Dexter, St James’s Corporate Services
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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 integrated report for the fiscal year ended 30 June 2014, which we filed with the United States Securities and Exchange Commission on 31 October 2014 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 report have not been reviewed and reported on by DRDGOLD’s auditors.