DRDGold’s full-year earnings rise

27th August 2019 By: Simone Liedtke - Writer

JSE- and NYSE-listed DRDGold expects to report headline earnings per share (HEPS) of between 10.73c and 11.07c for the financial year ended June 30, compared with the HEPS of 1.7c a share reported for the 2018 financial year.

Earnings per share (EPS) are expected to be between 11.65c and 11.95c a share, compared with EPS of 1.5c a share in the prior corresponding period.

Revenue increased by R271.7-million, or 11%, to just over R2.6-billion, while being moderated by an increase in the cost of sales of R206.2-million, or 9%, to just over R2.5-billion.

Ergo’s R2.5-billion contribution to revenue was 3% higher than the previous corresponding period owing to higher average rand gold prices. Far West Gold Recoveries also made its maiden contribution to revenue of R184.6-million, the majority of it from April 1, when commercial production started.

DRDGold ended the financial year with cash and cash equivalents of R279.5-million, and no borrowings after R192-million was raised and repaid on a revolving credit facility during the year.