DRDGold reports 22% profit fall as costs rise

Material from DRDGOLD’s surface tailings deposits on the central and western Witwatersrand is fed to the Ergo plant via an extensive pipeline network. (Image courtesy of DRDGOLD.)

South Africa’s DRDGold on Wednesday reported a 22% fall in profit for the year ended June 30 mainly due to surging costs.

DRDGold’s headline earnings per share (HEPS), South African companies’ main profit measure, fell to 1.307 rand ($0.0767) from 1.684 rand.

Production totalled 183,902 ounces, little changed from 183,999 ounces a year earlier, but all-in sustaining costs (AISC) rose 15%. Increases in the prices of diesel, chemicals and steel drove costs higher, DRDGold said.

The company, which recovers gold from processing mine dumps and tailings dams, declared a dividend of 40 South African cents per share.

($1 = 17.0332 rand)

(By Nelson Banya; Editing by Jason Neely)

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