DRD Gold's Neil Pretorious lives in "fantasy times"
Coming out with its interim results, DRD Gold saw year-on-year growth of 129 per cent in headline earnings per share. The gold miner has declared an interim dividend of 40 cents per share, up 60 per cent from the previous comparable period. DRDGold CEO, Niël Pretorius joins CNBC Africa for more.
Tue, 16 Feb 2021 10:49:01 GMT
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AI Generated Summary
- DRD Gold reports 129 per cent increase in headline earnings per share, declares 60 per cent higher interim dividend compared to previous period
- CEO Neil Pretorius cites favorable market conditions for gold amid high fiat currency values and escalating debt levels
- Strategic partnership with Subunder's Stillwater Group presents growth opportunities for DRD Gold, emphasis on resilience and preparation for economic cycles
DRD Gold, a South African gold mining company, has reported a significant increase in its interim results, with a year-on-year growth of 129 per cent in headline earnings per share. The gold miner has also declared an interim dividend of 40 cents per share, marking a 60 per cent increase from the previous comparable period. Neil Pretorius, the CEO of DRD Gold, sat down with CNBC Africa to discuss the company's strong performance and future outlook. Pretorius acknowledged the slight dip in the company's share price, attributing it to market impatience and a cautious view on the gold price. He emphasized the need for continued development to optimize the company's resources, particularly in the Coltanville, at 3.10, and Clurf asset sites, which would require a significant capital investment. Pretorius highlighted the favorable environment for gold, citing the current high value of fiat currencies and escalating debt levels, accelerated by the economic consequences of the COVID-19 pandemic. He noted that governments worldwide are resorting to printing money to navigate financial crises, making gold an attractive investment option. Despite the challenging economic landscape, Pretorius remains optimistic about the future of gold mining. He encouraged companies to reinvest in resilience and prepare for the next cycle. The CEO expressed his confidence in the strategic partnership with Subunder's Stillwater Group, highlighting potential growth opportunities within the conglomerate. Pretorius addressed the issue of exploration in the industry, noting that exploration activities are contingent on geological and political factors. While acknowledging the lack of major discoveries in recent years, he stressed the importance of exploring regions with favorable conditions. Looking ahead, Pretorius hinted at potential dividend increases if the gold price sustains its current levels and inflation remains stable. He affirmed the company's commitment to distributing free cash to shareholders, signaling a positive outlook for DRD Gold's future financial performance.