In terms of rising input costs, Pretorius told Mining Weekly that seen is a slight moderation in the rate at which prices have been increasing, with a slightly better outlook going forward. “Diesel costs seem to have moderated somewhat, so we don't anticipate as steep a profile in costs as we did last year,” he explained.
DRDGold came out with its [interim] results today, also issuing us with some real, real talk on how it felt South Africa’s economy was being run right now, essentially saying that the state is in consistent default of its constitutional mandate, and the state has become a threat to the economy and the quality of life of ordinary South Africans. So a very big and bold and critical statement to make about the state right now.
DRDGold said it had processed less ore due to power cuts, which have intensified over the past several months as South Africa’s state-owned power utility Eskom struggles to supply adequate electricity. The share was down half a percent on Wednesday afternoon.
The company, which recovers gold from processing mine dumps and tailings dams, reported revenue of 2.65 billion Rand (R) for the six months ended December 31, 2022 mainly as a result of an 11% increase in the average rand gold price received to R961,022 per kilogram (kg).
"It seems as though certain elements within the ruling party – desperate to cling to the state’s monopoly on electricity supply – are frustrating efforts to decentralise and privatise power generation," DRDGold CEO Niël Pretorius wrote in the company’s half-year results statement.
DRDGold said it had processed less ore due to power cuts, which have intensified over the past several months as South Africa's state-owned power utility Eskom struggles to supply adequate electricity.
Pretorius cited the impact on business from the collapse of both Eskom and Transnet as the main reasons, but he also highlighted the social knock-on from the implosion at Transnet which has “placed commuters at the mercy of the mini-bus industry”.
On payment date, dividends due to holders of certificated securities on the SA share register will either be electronically transferred to such shareholders’ bank accounts or, in the absence of suitable mandates, dividends will be held in escrow by the Company until suitable mandates are received to electronically transfer dividends to such shareholders.
DRDGOLD is in the process of finalising its results for the six months ended 31 December 2022 (“Current Reporting Period”) and shareholders are accordingly advised that the Company has reasonable certainty that for the Current Reporting Period it will report earnings per share (“EPS”) and headline earnings per share (“HEPS”) of between 59.5 cents and 68.1 cents per share compared to EPS and HEPS of 58.0 cents per share for the six months ended 31 December 2021 (“Previous Corresponding Period”), being an increase of between 2.6% and 17.4%.
This was largely down to an 11% increase in the rand gold price as well as a 10% lift in yield from the company’s sites which lifted revenue to R1.96bn, an increase of R153.8m compared to the same period last year. Gold sales were 2% lower partly owing to lower volumes. DRDGOLD said throughput fell 14% owing to “unprecedented” loadshedding, unscheduled electricity trip-outs at its Ergo plant related to the Eskom grid and “excessive” rain.
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Results for the six months ended 31 December 2023 14 February 2024 (PDF - 11.41 MB)
Results for the six months ended 31 December 2023 (PDF - 34.46 MB)