DRDGold had mixed fortunes over the year under review, with stronger performance in the second half year at some of its operations. However, the company, whose stock has performed 71.7% stronger on the JSE in the year to date, was propped up by stronger rand gold prices, higher recoveries at some operations and firmer investment into its production processes.

Net cash position moved from R2.53-billion at June 30, 2022, to R2.47-billion at June 30, 2023, allowing R0.20 a share interim dividend top-up by declaring a final cash dividend of R0.65 a share, bringing the total declared dividend 2023 financial year to R0.85 a share.

Gold producer DRDGold reported a jump in annual profit as it benefited from the higher gold price in rand despite producing and selling less gold.

DRDGOLD Limited (JSE: DRD, NYSE: DRD) has reported operating profit of R1 819.0 million for the year ended 30 June 2023 (FY2023). A final dividend of 65 SA cents per share for FY2023 has been declared.

In comments to the firm’s annual results today, however, Pretorius said DRDGOLD had “moved past the idea of an interim storage solution” for FWGR. This was owing to opposition to DRDGOLD’s plans by the department of water and sanitation and global thinking on such facilities.

Ergo’s revenue increased by R403.7-million to R4 108.6 million (FY2022: R3 704.9- million), mainly due to a 16% increase in the Rand gold price received as well as a 21% increase in yield to 0.227g/t from 0.188g/t to make up for a 5% decrease in gold sold to 3 936kg (FY2022: 4 139kg).

Relatively speaking the results were good. What we are seeing lately is that situations are tough, and companies are reporting lower numbers for this period. DRDGOLD was very fortunate in the sense that, though we had a few operational challenges, we managed to produce enough gold for revenues to increase.

Tailings retreatment group DRDGold has produced a 13% rise in headline earnings per share thanks to a higher gold price, which helped offset a fall in output and sales.

Headline earnings per share (HEPS) were 148.2 SA cents per share in FY2023 compared to 130.7 SA cents per share in FY2022, being an increase of 13%. The company also declared a final dividend of 65 SA cents per share for FY2023.

DRDGOLD Limited's revenues and profitability are very sensitive to the price of gold, so the South African operator's shares are positively and very strongly correlated to movements in the price of the precious metal.