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JSE- and NYSE-listed gold producer DRDGold’s shares on the JSE rose by more than 10% on Thursday morning after it announced an anticipated 69% year-on-year increase in revenue for the six months ended December 31.
In a trading update, the company also said it expected to report earnings a share of between 47.78c and 49.22c for the six months under review, compared with the loss of 7.2c a share reported for the previous corresponding period.
Headline earnings a share of between 47.68c and 49.12c are expected, compared with the headline loss a share of 7.2c reported for the previous corresponding period.
“The expected increase in earnings a share and headline earnings a share are mainly owing to an R858.9-million increase in revenue to R2.11-billion,” DRD said.
Ergo’s revenue increased by R356.6-million to R1.58-billion as a result of a 3% increase in gold sold and a 26% increase in the average rand-gold price received, while that of Far West Gold Recoveries (FWGR) increased by R502.3-million to R521.8-million owing to the current reporting period being the first period of full production.
Cash operating costs rose by 18% year-on-year to R1.37-billion, largely owing to the inclusion of the R177.2-million in cash operating costs of FWGR.
DRD’s interim results will be published on February 12.
The gold miner’s share price on the JSE rallied by 10.75% on Thursday morning to 979c a share.