Media releases

DRDGOLD anticipates higher EPS, HEPS

01 February 2021

Johannesburg, South Africa, 1 February 2021. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in a trading statement released today, says that it expects to report earnings per share (EPS) of between 106.2 cents and 115.8 cents per share for the six months ended 31 December 2020 compared to 48.5 cents per share for the previous corresponding period.

Headline earnings per share (HEPS) of between 106.2 cents and 115.8 cents per share are expected compared to 48.4 cents per share for the previous corresponding period.

The expected increases in EPS and HEPS are due mainly to movements in revenue, cash operating costs and the weighted number of ordinary shares.

Revenue increased by R866.0 million, or 41%, to R2,977.4 million (2020: R2,111.4 million).

Ergo’s revenue increased by R679.1 million to R2,268.7 million (2020: R1,589.6 million), due mainly to a 42% increase in the Rand gold price received as well as a 1% increase in gold sold. Volume throughput increased by 3% to mitigate a 3% decrease in yield due mainly to the previously reported depletion of high-grade reserves available to the Knights plant.

FWGR’s revenue increased by R186.9 million to R708.7 million (2020: R521.8 million) due mainly to a 42% increase in the Rand gold price received. Gold sold decreased by 5%, a result of a 6% decrease in yield to 0.232g/t from 0.248g/t as reclamation progressed towards the lower-grade central portion of the Driefontein No 5 dump.
The impact of the increase in revenue on earnings and headline earnings was moderated by an increase in cash operating costs of R141.5 million, or 10%, to R1,518.8 million (2020: R1,377.3 million).

At Ergo, cash operating costs increased by R116.8 million, or 10%, to R1,316.9 million (2020: R1,200.1 million) due both to the 3% increase in volume throughput and the use of more reagents.

At FWGR, cash operating costs increased by R24.7 million, or 14%, to R201.9 million (2020: R177.2 million) as a result of increased costs associated with milling, which was not operational for the whole of the previous corresponding period.

EPS and HEPS increased notwithstanding the impact on the six months to 31 December 2020 of the issuance on 22 January 2020 of 168,158,944 shares to Sibanye Stillwater Limited at an aggregate subscription price of R1,085,590,116. The weighted average number of ordinary shares for the period increased by 24% to 855,113,791 from 686,954,847 in the previous corresponding period.

As at 31 December 2020, DRDGOLD’s cash and cash equivalents was R2,169.4 million (30 June 2020: R1,715.1 million), with a revolving credit facility with ABSA Bank Limited of R200 million, available if needed. The Group remains free of any bank debt as at 31 December 2020 (30 June 2020: Rnil). Liquidity is further enhanced by current high Rand gold price levels.

The financial information contained in this announcement is the responsibility of the directors of DRDGOLD, and such information has not been reviewed or reported on by the Company’s auditors.

The condensed consolidated unreviewed interim results for the six months ended 31 December 2020 are expected to be published on or about 16 February 2021.

Note to editors: the full trading statement is available on SENS and the company’s website, www.drdgold.com

Queries

James Duncan
R&A Strategic Communications
+27 (0) 11 880 3924 (office)
+27 (0) 79 336 4010 (mobile)
james@rasc.co.za

Taryn van Olden
R&A Strategic Communications
+27 (0) 11 880 3924 (office)
+27 (0) 79 527 6882 (mobile)
Taryn@rasc.co.za