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DRDGOLD grows revenue, profit

Gold producer DRDGOLD grew its revenue by 29 percent due to a 15 percent increase in the rand gold price and increased production during its financial year which ended on June 30, 2011, it said on Monday.

Gold producer DRDGOLD grew its revenue by 29 percent due to a 15 percent increase in the rand gold price and increased production during its financial year which ended on June 30, 2011, it said on Monday.

JOHANNESBURG - Gold producer DRDGOLD grew its revenue by 29 percent due to a 15 percent increase in the rand gold price and increased production during its financial year which ended on June 30, 2011, it said on Monday.

During the year under review, the rand gold price increased by 15 percent to R308,221/kg, DRDGOLD said in a statement.

This, together with higher gold production, contributed to a 29 percent rise in revenue to R2,565.3 million, and to increased operating profit.

Its operating profit increased by 76 percent to R477.0 million.

Gold production for the year rose by 10 percent to 265,179 ounces.

The company said this was due to continuing recovery at Blyvoor, where high-grade production areas underground were damaged by seismicity during the last financial year, and the successful bedding down of the Ergo surface retreatment circuit.

Headline earnings per share -- a measure of profit -- for the year rose 115 percent to 28 cents.

DRDGOLD declared a dividend of 7.5 cents per share -- a 50 percent increase on that of the previous year.

CEO Niël Pretorius said this was the fourth year in a row that the company has declared a dividend, and the stock offers the second-highest dividend yield amongst South African gold producers.