DRDGold, a prominent gold producer, saw a significant increase in annual profit due to the higher gold price in rand, despite experiencing a decline in gold production and sales.
- The company’s annual profit grew by 14% to R1.3 billion, with headline earnings per share (Heps) rising 13% to R1.48, within the previously provided guidance range.
- DRDGold specializes in gold-tailings retreatment, extracting gold from existing tailings dams and mine dumps.
- Gold production decreased by 8% to 5,282kg, while the amount of gold sold also declined by a similar margin to 5,273kg.
- CEO Niël Pretorius attributed the lower production to challenges in obtaining a water-use license for an emergency spillage dam and global supply-chain delays in importing equipment and goods.
- Total costs, including all-in sustaining costs, increased by 15% to R827,148/kg, while the average gold price received rose by 16% to R1.04 million.
- The company declared a final dividend of 65c per share, resulting in a total payout of 85c for the year, representing a substantial 41.7% year-on-year increase.
DRDGold’s strong financial performance demonstrates its ability to capitalize on favorable gold prices, despite operational obstacles. The company remains focused on addressing licensing and regulatory challenges, improving turnaround times, and optimizing infrastructure to ensure sustained growth and profitability in the gold industry.