DRDGOLD Chairman Geoff Campbell, in the Company’s Annual Integrated Report (AIR) for FY2021, reflects on a year that saw the Company deliver a solid operating performance which – together with the high gold price – resulted in exceptional financial results. DRDGOLD was placed first at the Sunday Times Top 100 Companies awards last year for the company that generated the highest return to shareholders compared to other JSE-listed peers.
The Quarterly Gold production increased by 6.8% from the previous quarter to 46,587 ounces primarily due to an 8% increase in yield. DRDGOLD sold 45,912 ounces. The company announced it may declare an interim cash dividend in or around February 2022.
DRDGold (DRD +2.5%) is on the rise after reporting a 7% Q/Q increase in gold production to 46,587 oz. for FQ1 and saying it expects to be in a position to pay an interim dividend. DRD says the higher production is attributable mostly to an 8% increase in yield to 0.195 g/t gold, compared with a yield of 0.181 g/t gold in the prior quarter. Q1 adjusted EBITDA gained 15% to 350M South African rand from 303M rand in the previous quarter, due to higher gold sales and an increase in the average rand gold price received.
SA’s leading gold tailings retreatment specialist, DRDGold, says higher sales volumes helped offset pressure from increased electricity and labour costs in its first-quarter ending September, when core profit rose 16% from the prior three months. Gold production increased 7% from the previous quarter to 1,449kg primarily due to an 8% increase in yield, the group said in an update, with earnings before interest, taxation, depreciation and amortisation (ebitda), or core profit, growing 16% to R350.8m..
The company posted adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of R350-million in the reporting quarter, compared with Ebitda of R303-million posted in the prior quarter, owing to higher gold sales and an increase in the average rand gold price received. DRDGold’s sales were 5% higher quarter-on-quarter at 45 912 oz.
DRDGold dropped costs and increased both its gold production and profit margins in the September quarter setting the dump retreatment operation up to declare an interim dividend in February. According to an operating update the cash generated during the quarter will be used to fund DRDGold’s capital expenditure programme but the update also stated: “ despite the capital expenditure planned for the financial year the company remains in a favourable position to, in the absence of unforeseen events, consider declaring an interim cash dividend in or around February 2022.
Kleynhans (65), a qualified horticulturalist, has worked for DRDGOLD for some 37 years, 27 of these in his present role. He received the NACA award in recognition of his leadership role in addressing dust challenges at DRDGOLD’s active mine tailings reclamation sites, cleared sites and tailings storage facilities (TSFs). He has led the development of cost-effective procedures for the establishment and maintenance of indigenous vegetation on active reclamation sites, cleared sites and TSFs to reduce dust and improve air quality for surrounding communities.
DRDGOLD Limited has said its environmental manager, Louis Kleynhans, has received a Golden Award for Lifetime Contributions to the Cause for Clean Air from the Council of the National Association for Clean Air (NACA). The company noted that Kleynhans, a qualified horticulturalist, has led the development of cost-effective procedures for the establishment and maintenance of indigenous vegetation on active reclamation sites, cleared sites and TSFs to reduce dust and improve air quality for surrounding communities.
DRDGOLD's acquisition of Sibanye-Stillwater's (Sibanye's) West Rand Tailings Retreatment Project assets was finalised on July 31, 2018. Following the successul implementation of the transaction between the two companies, Sibanye owned 38.05% of the issued share capital DRDGOLD.
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SMI - Swiss Mining Institute 2 November 2021 (PDF - 3.63MB)
Annual Integrated Report 2021 (PDF - 11.94 MB)