JOHANNESBURG - DRDGold, a world leader in the recovery of the metal from the retreatment of surface tailings, would consider declaring an interim dividend in February, the group said yesterday.
DRDGold said cash and cash equivalents increased by R300.1million to R2.015billion as at September 30, 2020, after paying the final dividend for the year ended June 30, 2020, of R299.1m.
The cash generated during the current quarter would be applied towards the company´s extended capital expenditure programme for the year ending June 30, 2021.
“Despite the capital expenditure planned for the year, management positions the company favourably to, in the absence of unforeseen events, consider declaring an interim dividend in February 2021,” said the group.
DRDGold has been the best performing gold stock on the JSE on the back of record gold prices and the weak rand amid the Covid-19 pandemic economic fallout.
During the current year DRDGold issued a R564m dividend, its largest in history, out of excess income reserves.
The excess income reserves were mainly driven by the increase in the gold price and mitigation plans to reduce the impact of Covid-19 on inventory stockpiles.
Adjusted earnings before interest, taxes, depreciation, and amortisation increased by 110percent to R770.4m during the September quarter, primarily due to a 60percent increase in gold sold and a 6percent increase in the average rand gold price received of more than R1m per kilogram.
DRDGold reported a 45percent quarter-on-quarter increase in gold production to 1514kg, due primarily to a 27percent increase in tonnage throughput to 7260000 tons and a 15percent increase in yield to 0.209 grams per ton.
As a result, cash operating costs per kilogram of gold sold decreased by 10percent to R489750 per kilogram. Cash operating costs per ton of material processed increased by 2percent to R104 per ton.
All-in sustaining costs per kilogram and all-in costs per kilogram were R588239 a kilogram and R613 206 a kilogram, respectively, increasing quarter-on-quarter mainly due to an increase in sustaining capital expenditure
DRDGold is 50.1percent owned by Sibanye-Stillwater and is listed on the JSE, with its secondary listing on the New York Stock Exchange.
DRDGold shares slid 2.59percent to close at R18.84 on the JSE yesterday.