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DRD DRDGold

Filed: 18 Aug 21, 10:04am
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
______________________
 
FORM 6-K
 
REPORT OF A FOREIGN PRIVATE
 
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For August 2021
 
Commission File Number 0-28800
______________________
 
DRDGOLD Limited
 
Constantia Office Park
Cnr 14th Avenue and Hendrik Potgieter Road
Cycad House, Building 17, Ground Floor
Weltevreden Park
South Africa, 1709
 
(
Address of principal executive offices
)
______________________
 
Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.
 
Form 20-F
 
Form 40-F
 
 
Indicate by check mark whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-
2(b) under the Securities Exchange Act of 1934.
 
Yes
 
No
 
 
If ''Yes''
 
is marked, indicate below the file number assigned to the registrant in connection
with Rule 12g3-2(b): N/A
 
 
 
 
Attached to the Registrant Form 6-K filing for the month of August 2021, incorporated by
reference herein:
 
Exhibit
 
99.1
 
Release dated
August
18,
2021
 
TRADING STATEMENT
 
AND TRADING UPDATE
FOR THE YEAR ENDED 30 JUNE 2021.”
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
DRDGOLD LIMITED
Date:
August
18,
2021
 
 
By:
/
s/
 
Riaan Davel
 
 
 
Name:
Riaan Davel
 
 
 
Title: C
hief Financial Officer
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 99.1
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1895/000926/06)
ISIN: ZAE000058723
JSE share code: DRD
NYSE trading symbol: DRD
(“
DRDGOLD
” or the “
Company
” or the “
Group
”)
TRADING STATEMENT
 
AND TRADING UPDATE
 
FOR THE YEAR ENDED 30 JUNE 2021
In
 
terms
 
of
 
paragraph
 
3.4(b)
 
of
 
the
 
JSE
 
Limited
 
Listings
 
Requirements,
 
companies
 
are
 
required
 
to
publish a
 
trading statement
 
as soon
 
as they
 
are satisfied,
 
with a
 
reasonable degree
 
of certainty,
 
that
the financial results
 
for the current reporting
 
period will differ
 
by at least 20%
 
from the financial
 
results
of the previous corresponding period.
 
DRDGOLD
 
is
 
in
 
the
 
process
 
of
 
finalising
 
its
 
results
 
for
 
the
 
year
 
ended
 
30
 
June
 
2021
 
(“
Current
Reporting
 
Period
”)
 
and
 
shareholders
 
are
 
accordingly
 
advised
 
that
 
the
 
Company
 
has
 
reasonable
certainty
 
that
 
it
 
will
 
report
 
earnings
 
per
 
share
 
(“
EPS
”)
 
and
 
headline
 
earnings
 
per
 
share
 
(“
HEPS
”)
 
of
between 160.1 cents and 176.5 cents
 
compared to EPS and HEPS of
 
82.5 cents and 82.4 cents
 
for the
year
 
ended
 
30
 
June
 
2020
 
(“
Previous
 
Corresponding
 
Period
”),
 
respectively,
 
being
 
an
 
increase
 
of
between 94% and 114%.
 
The expected increases
 
in EPS and HEPS for the Current Reporting
 
Period compared to the Previous
Corresponding Period are due mainly to movements in,
inter alia
, the following items:
 
1.
 
Revenue
 
Revenue increased by R1,084.0 million, or 26%, to R5,269.0
 
million (2020: R4,185.0 million).
 
Ergo Mining
 
Proprietary Limited’s
 
(“
Ergo
”) revenue
 
increased by
 
R878.7 million,
 
or 29%, to
 
R3,943.0
million (2020: R3,064.3 million),
 
due mainly to a
 
20% increase in the
 
Rand gold price received
 
as well
as a 7% increase in gold sold. Volume throughput increased
 
by 13% to mitigate a 6% decrease in yield
due mainly to the previously reported depletion of high
 
-grade reserves available to the Knights plant.
 
Far West Gold Recoveries’ (“
FWGR
”) revenue increased by
 
R205.3 million, or 18%, to
 
R1,326.0 million
(2020: R1,120.7 million) due mainly to a 18% increase in the Rand gold price received as well as a 1%
increase in gold sold. Volume
 
throughput increased
 
by 2% as yield remained stable at 0.237g/t.
 
2.
 
Cash operating costs
 
The
 
impact
 
of
 
the
 
increase
 
in
 
revenue
 
on
 
earnings
 
and
 
headline
 
earnings
 
was
 
moderated
 
by
 
an
increase in cash operating
 
costs of R446.7
 
million, or 17%, to
 
R3,072.7 million (2020: R2,626.0
 
million).
 
 
At Ergo, cash operating
 
costs increased by R392.5 million, or
 
17%, to R2,666.5 million (2020:
 
R2,274.0
million) due to
 
the 13% increase
 
in volume throughput
 
,
 
an increase in
 
the use of
 
reagents and
 
a 15%
increase in the cost of power in April 2021.
 
 
At FWGR,
 
cash operating
 
costs increased
 
by R54.2
 
million, or
 
15%, to
 
R406.2 million
 
(2020: R352.0
million) mostly as a result of
 
increased costs associated with milling,
 
which was not operational for
 
the
whole of the previous corresponding period.
 
 
3.
 
Weighted average number of ordinary shares
 
EPS and HEPS
 
increased notwithstanding
 
the full-year impact
 
on the Current
 
Reporting Period of
 
the
issuance
 
of
 
168,158,944
 
shares
 
to
 
Sibanye
 
Stillwater
 
Limited
 
at
 
an
 
aggregate
 
subscription
 
price
 
of
R1,085,590,116 on 22 January 2020. The weighted average number of ordinary shares for the Current
Reporting Period
 
increased by
 
11%
 
to 855,113,791
 
from 769,941,874
 
in the
 
Previous Corresponding
Period.
 
4.
 
Liquidity
 
As at
 
30 June
 
2021, DRDGOLD’s cash
 
and cash equivalents
 
was R2,180.0 million
 
(30 June
 
2020: R1,715.1
million), with a revolving credit facility with ABSA
 
Bank Limited of R200 million, available if
 
needed. During
the year ended
 
30 June
 
2021, DRDGOLD
 
generated free cash
 
flow (cash inflow
 
from operating
 
activities
less cash
 
outflow from
 
investing activities)
 
of R1.1
 
billion and
 
paid cash
 
dividends of
 
R640.9 million.
 
The
Group remains free of any bank debt as at 30 June 2021 (30 June
 
2020: Rnil).
 
The financial information
 
contained in this
 
announcement is the
 
responsibility of the
 
directors of
 
DRDGOLD,
and such information has not been reviewed or reported
 
on by the Company’s auditors.
 
The condensed
 
consolidated reviewed
 
provisional results
 
for the
 
year ended
 
30 June
 
2021 are
 
expected
to be published on or about 25 August 2021.
 
Johannesburg
18 August 2021
 
 
 
Sponsor
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