DRDGold said dividend for the year to June was 20c a share, four times the interim dividend declared in the financial year ended in June last year. Photo: Supplied
JOHANNESBURG – Shares in JSE-listed gold tailings treatment company DRDGold rose 5.19 percent after the group said on Tuesday that it had put money in the pockets of its investors without interruption for 12 years.

It said the dividend for the year to June was 20 cents a share, four times the interim dividend declared in the financial year ended in June last year.

Chief executive Nië* Pretorius said the company was taking advantage of the stronger gold price.

Gold hit record highs this year amid the uncertainty created by the ongoing trade tiff between the US and China.

“Time will tell if this is sustainable, but while it lasts, the impact this has on our cash flows is nothing short of remarkable,” Pretorius said.

DRDGold increased its revenue 11 percent to R2.76 billion - R2.57bn from Ergo's surface gold retreatment operation to the south of Joburg’s central business district and R184.6 million from the Far West Gold Recoveries (FWGR) project which was acquired in July last year from Sibanye-Stillwater.

Revenue from Ergo rose 3 percent due to the higher average rand gold price which reduced the impact of lower gold sales, the group said.

Pretorius said total gold production increased 6 percent to 4977kg on the back of 484kg produced by FWGR.

He said that production from Ergo was, however, disappointingly 4 percent lower at 4493kg due to a 5 percent decline in ore milled to 23.16tons.

“For the 2020 financial year, we are planning group gold production of between 175 000 and 190 000 ounces at a cash operating cost of approximately R490 000 a kilogram,” he said.

Consolidated operating profit was up 5 percent to R371.8m after accounting for consolidated cash operating costs of R2 422.9m.

FWGR’s contribution was R89m after accounting for cash operating costs of R111.8m, while that of Ergo was 20 percent lower at R282.8m after accounting for cash operating costs 7 percent higher at R2 311.1m.


Pretorius said that the year under review had been tough.

DRDGold shares closed 5.19 percent higher on the JSE at R710.

BUSINESS REPORT