DRDGOLD Limited has told investors that it expects to announce an "exceptional" improvement in full-year earnings per share (EPS) despite an increase in the number of shares in issue.
In a trading statement, the South Africa mine tailings retreatment specialist said EPS for the year to end June are likely to be between 160.1 rand (R) cents and 176.5c, an increase of between 94% and 114% from the 82.5c reported for full year 2020.
The mining group said the expected increases are notwithstanding the full-year impact of the issuance of 168,158,944 shares to Sibanye-Stillwater Limited on 22 January 2020. The weighted average number of ordinary shares for FY2021 increased by 11%.
READ: DRDGOLD says its Ergo Mining subsidiary has begun reclamation of the 2.7 million ton 4L25 mine dump
Revenue is expected to be 26% higher at R5.27 billion (US$355 million), compared to R4.19 billion (US$282 million) in FY2020.
During the year, DRDGOLD generated free cash flow of R1.1 billion (US$74 million) and paid cash dividends of R641 million (US$43 million). Notably it remained free of any bank debt at the end of the year.
DRDGold is majority-owned by Sibanye-Stillwater, a major platinum group metals (PGMs) and gold producer. It operates the Ergo Mining Operations (EMO) business on the eastern Witwatersrand, and also the Far West Gold Recoveries (FWGR) project.
Contact the author at stephen.gunnion@proactiveinvestors.com