69% increase in revenue to R2 111.4 million: up to eight-fold turnaround to earnings from previous loss expected
30 January 2020
Johannesburg, South Africa. 30 January 2020. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in a trading statement released today, says it 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.
The information contained in this announcement does not constitute an earnings forecast. The financial information provided is the responsibility of the directors of DRDGOLD, and such information has not been reviewed or reported on by the Company’s auditors.
DRDGOLD’s results for the six months ended 31 December 2019 are expected to be released via SENS and the company’s website, www.drdgold.com, at or around 08:00 South African time on Wednesday, 12 February 2020.
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