DRDGOLD LTD — Earnings Release 2022

Aug 17, 2022

6-K 1 tradingstatement.htm TRADING STATEMENT AND TRADING UPDATE FOR THE YEAR ENDED 30 JUNE 2022 EDGAR HTML document created by Certent CDM HD version: 22.2.0 tradingstatement

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 2022

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)

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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 2022, incorporated by reference herein:

Exhibit

99.1 Release dated August 17, 2022 “TRADING STATEMENT AND TRADING UPDATE FOR THE YEAR ENDED 30 JUNE 2022.”

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 17, 2022 By: /s/ Riaan Davel Name: Riaan Davel Title: Chief 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 2022

DRDGOLD is in the process of finalising its results for the year ended 30 June 2022 (“Current Reporting Period”).

DRDGOLD’s production guidance for the Current Reporting Period was between 160 000 and 180 000 ounces of gold at a cash operating cost of R600 000/kg, with planned capital investment of R600 million. For the Current Reporting Period, DRDGOLD produced 183 902 ounces of gold at a cash operating cost of R600,875/kg, with a capital investment of R584.1 million.

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.

Shareholders are accordingly advised that the Company has reasonable certainty that it will report:
- earnings per share (“EPS”) of between 114.4 cents and 148.0 cents compared to 168.4 cents for the year ended 30 June 2021 (“Previous Corresponding Period”), being a decrease of between 32% and 12%; and - headline earnings per share (“HEPS”) of between 113.6 cents and 147.2 cents compared to 168.4 cents for the Previous Corresponding Period, being a decrease of between 33% and 13%.

The expected decreases 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 For the reclamation operations owned and managed by DRDGOLD, being Ergo Mining Proprietary Limited (“Ergo”) and Far West Gold Recoveries Proprietary Limited (“FWGR”), revenue decreased by R150.5 million, or 3%, to R5,118.5 million (2021: R5,269.0 million).

Ergo’s revenue decreased by R238.1 million, or 6%, to R3,704.9 million (2021: R3,943.0 million), due mainly to a 3% decrease in the Rand gold price received and a 3% decrease in gold sold. The decrease in gold sold resulted from a 4% decrease in volume throughput offset by a 1% increase in yield.

FWGR’s revenue increased by R87.6 million, or 7%, to R1,413.6 million (2021: R1,326.0 million) due mainly to a 9% increase in gold sold. The increase in gold sold resulted from an 8% increase in yield, notwithstanding volume throughput decreasing by 1%.

2. Cash operating costs The impact of the decrease in revenue on earnings and headline earnings was further impacted by an increase in cash operating costs of R391.1 million, or 13%, to R3,463.8 million (2021: R3,072.7 million). The increases in costs at both operations were mainly caused by above inflationary increases in the costs of key consumables, diesel, steel and cyanide.

At Ergo, cash operating costs increased by R343.3 million, or 13%, to R3,009.8 million (2021: R2,666.5 million).

At FWGR, cash operating costs increased by R47.8 million, or 12%, to R454.0 million (2021: R406.2 million).

3. Liquidity As at 30 June 2022, DRDGOLD’s cash and cash equivalents was R2,525.6 million (2021: R2,180.0 million), with a revolving credit facility with ABSA Bank Limited of R200 million, available if needed. During the Current Reporting Period, DRDGOLD

generated free cash flow (cash inflow from operating activities less cash outflow from investing activities) of R871.6 million and paid cash dividends of R513.3 million. The Group remains free of any bank debt as at 30 June 2022 (2021: 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 2022 are expected to be published on or about 24 August 2022.

Johannesburg 17 August 2022

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