DRDGOLD expects earnings for year to June to soar
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JOHANNESBURG - Gold producer DRDGOLD said on Tuesday it expected headline earnings per share of between 10.73 and 11.07 cents for the year ended June, up sharply from 1.7 cents the previous year.
In a trading statement and operational update, DRDGOLD said revenue increased by 11 percent to R2.762 billion (2018: R2,490.4 million).
It said its Ergo operation's R2.578 billion contribution to revenue was three percent higher than the previous corresponding period due to the higher average rand gold price received moderating the impact of four percent lower gold sold.
Far West Gold Recoveries (FWGR) made its maiden contribution to revenue of R184.6 million, the majority of it from April 1 when commercial production commenced.
The increase in revenue was moderated by an increase in cost of sales of R206.2 million, or nine percent to R2.554 billion
DRDGOLD said headline earnings per share increased notwithstanding the issuance of 265 million shares to Sibanye-Stillwater in July 2018 in
respect of the FWGR acquisition.