DRDGold Limited reports mixed financial results for the year ended June 30, 2024, with earnings per share (EPS) and headline earnings per share (HEPS) showing a slight fluctuation between a 2% decrease and a 9% increase from the previous year.

DRDGOLD Limited (NYSE:DRD – Get Free Report)’s share price crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $8.43 and traded as high as $9.45. DRDGOLD shares last traded at $9.40, with a volume of 201,408 shares traded.

JSE-, ASX- and NYSE-listed DRDGOLD has reported a 14% year-on-year increase in revenue to about R6.24-billion for the financial year ended June 30, which the company said was mainly owing to a 20% increase in the rand gold price to more than R1.2-million a kilogram.

DRDGold has warned shareholders to expect a possible dip in annual headline earnings in its year to end-June, when it missed its production guidance amid production days and rehabilitation efforts at its legacy sites.

Gold miner DRDGold expects annual earnings to rise as much as 9% as revenue grew by double digits. Headline earnings per share (HEPS) for the year ended June are expected to be between 146.c and 161.4c compared with 148.2c a year ago.

DRDGOLD Limited (NYSE:DRD) presents a unique investment opportunity in the gold mining sector. It combines profitable gold production with environmental remediation and sustainable practices. As a long-standing player in the South African mining industry, DRDGOLD has adapted its business model to address the challenges and opportunities presented by the country's rich mining history.

Commenting in a March (third) quarter production update on Friday, DRDGold said it “may fall marginally short of its production guidance due to reclamation sites commencing production later than planned”. It had previously guided to production of between 165,000 to 175,000 ounces.

Production decreased by 3% year-on-year, while adjusted Ebitda increased by 12%. The company realised a higher average gold price in the quarter of $2 071/oz, compared with an average realised gold price of $1 979/oz in the prior comparable quarter.

Throughput for the quarter was 4% lower than the previous quarter, largely due to a poor January, but the trend reversed after commissioning. With a strong finish toward the end of March, Ergo is set up favourably for the final quarter of FY2024, barring the unexpected.

Shares in DRDGold rose the most in four weeks in intraday trade on Friday, after the company reported higher earnings despite lower output in the quarter ending March 31.