DRDGold headline earnings falls 100%

DRDGold headline earnings falls 100%

2014-09-02 18:48

Johannesburg - Although DRDGold [JSE:DRD] increased gold production and decreased costs for the fourth quarter, headline earnings for the full financial year dropped by 100% from 66 cents the previous period.

The group announced its results for the fourth quarter and the full year on Tuesday.

Lower gold production and sales, together with a 6% decline in the average rand gold price received to R432 775/kg, resulted in a 13% drop in revenue to R1 809.4m for the year.

After accounting for net operating costs – 11% higher at R1 549.4m – operating profit was 62% lower at R260.0m.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) was down 60% at R204.0m with headline earnings of R0.7m.

"The results reflect the negative impact of problems during the year relating to the integration of the High and Low Grade Sections", CEO Niël Pretorius said in a statement.

For the fourth quarter, gold production was up 13% to 34 143oz and cash operating costs were down 5% to US$1 120 per oz.

Pretorius spoke to Fin24 in a video interview about the results.

"We saw a 13% quarter-on-quarter increase in gold production and also a handsome increase in revenue and operating profit."

Ebitda went up by 650% to R114m and headline earnings increased by 251%, he said.

"Because of the better than anticipated end to the financial year, we were also in a position to declare a small dividend of 2 cents."

Watch: DRDGold records 13% drop in revenue

He said this will be the seventh year in a row that DRDGold declares a dividend.

The management and staff of DRDGold did not earn any performance bonuses at end of the financial year.

 - Fin24