Rise in precious metal prices lifts DRDGold
Revenue is expected to rise 26% to R5.27bn in the year to end-June, with the group benefiting from higher prices and sales volumes
Cash-flush DRDGold, one of the world’s largest gold tailings retreatment companies, says it expects revenue to rise by just more than a quarter in its year to end-June, as it cashes in on robust precious metal prices, while also increasing volumes.
Revenue increased 26% to R5.27bn, the group said in a trading update, amid a 20% increase in the rand-gold price received as well as a 7% increase in gold sold.
Gold prices were bolstered in 2020 as Covid-19 prompted investors to look to safer assets such as precious metals, with DRDGold saying on Wednesday that it had increased volumes at some of its operations to counteract a decline in yield, having previously reported depletion of available high-grade reserves.
DRDGold, with a market value of R12.3bn, has seen its share rise almost 88% since the beginning of 2020, and is debt free.
The group said on Thursday it had R2.18bn in cash at the end of June, up more than a quarter year on year.