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MarketScreener Homepage  >  Equities  >  Nyse  >  DRDGOLD Limited    DRD


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DRDGOLD : declares 35 SA cents per share final dividend 13th successive year of distribution

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09/02/2020 | 12:06pm EDT

Johannesburg - DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), has declared a final dividend of 35 SA cents per share for the financial year ended 30 June 2020, following a more than four-fold increase in Group operating profit to R1,562.1 million.

This is the company's 13th consecutive year of distribution. The company has also declared interim dividends of 50 SA cents per share for the year ended 30 June 2020, bringing the total dividend to 85 SA cents per share.

Of DRDGOLD's 2020 financial year, CEO Niel Pretorius says: 'The first half was characterised by solid performance and a sense of confidence about our ability to at the least maintain this, but by the middle of the third quarter the COVID-19 pandemic was upon us all.'

'Amidst the fear, uncertainty and challenges since March, investors globally have turned to gold and gold stocks. This has handsomely reflected in our revenue and margin for the year. Free cashflow was R926.4 million and our market capitalisation mushroomed from R3 billion to more than R23 billion.'

Pretorius attributes DRDGOLD's healthy performance to the set-up of the business: 'Surface-based, tightly staffed and substantially automated, we were well-positioned relative to much of the mining industry to implement the global and national recommended COVID-19 precautionary measures, to leverage the gradual easing in lockdown regulations and to get back into business.'

The Group's total gold production increased by 9% to 5,424kg, reflecting an 8% increase in total throughput and a 5% increase in average yield as Far West Gold Recoveries (FWGR) achieved stable production and made its first full 12-month contribution.

Group revenue increased by 52% to R4,185.0 million due to higher gold production and gold sold, together with an extraordinary 33% rise in the average Rand gold price received to R768,675/kg.

Group cash operating costs were 8% higher at R2,626.0 million, due mainly to the inclusion of the cash operating costs of FWGR for the full financial year, and also reflective of the total volume throughput increasing by 8%.

Headline earnings of R634.5 million (82.4 SA cents per share) were reported compared with headline earnings of R72.7 million (10.9 SA cents per share) in the comparative period.

Looking forward

In FY2021, Pretorius says DRDGOLD is cognisant that the COVID-19 risk will remain for some time, and its impact on the business will need to be continually managed and reviewed. With this, he anticipates larger social obligations and supplier risks, the former requiring continuing support to DRDGOLD's neighbouring communities.

Pretorius adds: 'Good progress has been made in advancing Phase 2 of FWGR and we are well into the planning and permit application processes. In terms of other growth prospects, the business seeks to play a bigger role in the Sibanye-Stillwater environmental value proposition and to leverage the opportunities of other non-core surface assets in their portfolio.'

For the 2021 financial year, Group production of between 165,000 and 185,000 ounces at a cash operating cost of approximately R535,000/kg is planned.


James Duncan

Tel: +27 (0) 11 880 3924

Email: james@rasc.co.za

Forward-looking Statements

Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD's competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled 'Risk Factors' included in our annual report for the fiscal year ended 30 June 2019, which we filed with the United States Securities and Exchange Commission on 31 October 2019 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD's auditors.

(C) 2020 Electronic News Publishing, source ENP Newswire

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Financials (USD)
Sales 2021 364 M - -
Net income 2021 - - -
Net Debt 2021 - - -
P/E ratio 2021 -
Yield 2021 -
Capitalization 951 M 951 M -
Capi. / Sales 2021 2,61x
EV / Sales 2022
Nbr of Employees -
Free-Float 54,1%
Duration : Period :
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Technical analysis trends DRDGOLD LIMITED
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Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 1
Average target price 18,50 $
Last Close Price 11,30 $
Spread / Highest target 63,7%
Spread / Average Target 63,7%
Spread / Lowest Target 63,7%
DaniŽl Johannes Pretorius Chief Executive Officer, Executive Director & MD
Geoffrey Charles Campbell Independent Non-Executive Chairman
Adriaan Jacobus Davel Chief Financial Officer & Executive Director
Edmund Abel Jeneker Lead Independent Non-Executive Director
Johan Andries Holtzhausen Independent Non-Executive Director
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