South African mining companies among best performers on JSE: Sunday Times report

South African newspaper the Sunday Times has published its annual Top 100 Companies of the Year Awards, which has ranked miner DRDGold as the best performing stock on the Johannesburg Stock Exchange (JSE) over the last five years.

DRDGold was one of 13 mining companies placed in the top 20 of the ranking, which is determined by the highest shareholders returns (based on a theoretical initial investment of R10,00) provided by JSE-listed firms with a minimum market cap of R5 billion as of August 31.

Tailings retreatment firm DRDGold increased its year-on-year production to June 30 by 9% despite South Africa’s COVID-19 lockdown, while operating profit rocketed by 320% due to increasing gold sales and a 33% rise in the average rand gold price received.

The company also declared a final dividend of 35c per share and said its share price of R26.95 at June 30 was 528% higher than at the start of the financial year.

CEO Niel Pretorious said: “We are very proud to have set the business up in such a way as to take full advantage of the higher gold price, and we are very pleased with the market response to our performance!”

Harmony Gold and Kumba Iron Ore came in second and third place respectively. “This is Harmony’s seventieth anniversary year,” said CEO Peter Steenkamp.

“More than any other South African gold mining company, we believe we demonstrate true sustainability – from our enduring history and the product we mine to the way we mine it, taking care to preserve the environment and to support our communities.”