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DRDGOLD shares jump as 2019 trading statement highlights major top and bottom line growth

The Johannesburg-based gold producer expects earnings per share to be between $0.48 and $0.49 per share, up dramatically from a loss of $0.07 per share in the prior reporting period

Gold nuggets and $100 bills
The reason behind the growth, the company said, is a boost in revenue from its acquisition Ergo Mining Proprietary Limited

DRDGOLD Limited (NYSE:DRD) issued a trading statement Thursday covering the last six months of 2019, revealing that it expects to report significant earnings and revenue growth in the period. 

The Johannesburg-based gold producer expects earnings per share to be between $0.48 and $0.49 per share, up dramatically from a loss of $0.07 per share in the prior reporting period.  

Revenue will likely come in at roughly R$2.1 billion (US$142 million), a 69% increase of R$858.9 million (US$58 million).

DRDGOLD stock climbed 6.6% to US$6.28 in New York.

READ: DRDGOLD eyes higher end of output guidance for full year as Sibanye-Stillwater ups stake to 50%

The reason behind the growth, the company said, is a boost in revenue from its acquisition Ergo Mining Proprietary Limited. Ergo saw its revenue increase R$356.6 million (US$24 million) to R$1.6 billion (US$107 million) thanks to a 3% jump in the amount of gold sold and a 26% higher average price received.

Additionally, in its first full period of production, its Far West Gold Recoveries operation saw revenue skyrocket from R$19.5 million (US$1.3 million) to R$521.8 million (US$35.2 million).

The revenue growth was tempered slightly by an 18% increase in operating costs from R$1.17 billion (US$79 million) to R$1.37 billion (US$93 million).

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: DRDGOLD Limited

Price: 9.85 USD

NYSE:DRD
Market: NYSE
Market Cap: $842.29 m
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