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Cash-flush DRDGold declares interim dividend on higher gold recoveries, prices


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Cash-flush DRDGold declares interim dividend on higher gold recoveries, prices

From Creamer Media picture files
DRDGold CEO Niël Pretorius

16th February 2022

By: Martin Creamer
Creamer Media Editor


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JOHANNESBURG ( – Debt-free surface gold mining company DRDGold on Wednesday declared an interim dividend of 20c a share for the six months to end December.

The strong finish was attributed mainly to an increase in gold recoveries and a higher average gold price compared with the first three months of the period of the company’s 2022 financial year (FY22).


DRDGold ended the half-year financial period with cash and cash equivalents of R2 239.1-million, after paying a cash dividend of R345.5-million in September 2021.

This enabled the Johannesburg- and New York-listed company to declare the 20c a share, half-year dividend without inhibiting its capital investment programme – “and taking the number of years of uninterrupted dividend yield to 15”, DRDGold CEO Niël Pretorius pointed out in a media release to Mining Weekly.


Higher gold recoveries and elevated gold prices contributed to interim headline earnings per share of 58c and free cash inflow of R406.9-million.

Steady performances at Ergo, on the East Rand, and Far West Gold Recoveries, on the Far West Rand, resulted in gold production exceeding forecasts by just over 5 980 oz, softening the impact of the depletion of higher-grade reserves at Ergo and setting the business up favourably to achieve full-year production guidance, the company stated.

Group revenue decreased by 16% to R2 498.5-million compared with the six months ended December 31, mainly owing to a 13% decrease in the average rand gold price received to R863 108/kg as well as a 4% decrease in gold sold to 2 891 kg. Group operating profit decreased by 42% to R832-million from R1 441.8-million, after accounting for cash operating costs, being 11% higher at R1 680.2-million.


With the view of reducing its carbon footprint as well as addressing the uncertainty of the supply and cost of electricity, the company took the decision to construct a solar power plant and a power storage facility at Ergo.

The board has approved the capital expenditure for the first phase, comprising an upgrade to the existing supply line to the Brakpan/Withok tailings storage facility to an 88 kVA line, the construction of an initial 20 MW photovoltaic plant and ten power storage facilities of 10 MW each. 


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