of the precious metal has not abated since then, with numerous gold mines making a better profit than in previous years. Lester Davids, the trading desk analyst at Unum Capital, said the pandemic has created a risk-off sentiment — investors are gravitating towards lower-risk investments such as gold.
After declaring interim dividends during the financial year of 50 cents a share, DRDGold declared a final dividend of 35 cents a share. This is the 13th consecutive financial year the company has been able to pay dividends. This year its shareholders were paid 85 cents a share, four times the dividend declared for the financial year ended 30 June 2019. In addition to this, DRDGold’s market capitalisation has increased by 528% year on year.
This comes after it completed the sale of its South African operating assets on 30 September this year to Harmony Gold. The company said the profits made this year were not tied to the $200-million deal with Harmony Gold. Gold acted as a haven during the 2008 financial crisis. In the first quarter of that year, it rose to $1 000 an ounce. But in the subsequent quarter, its fell to $692.50 an ounce.
This year, gold started its slow decline in August because of the delayed announcement of further stimulus from the US. “Further stimulus announcements are expected to weaken the dollar further and create further inflationary pressures which theoretically is positive for gold,” said Pietropaolo.
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