DRDGold

Website: www.drdgold.com
Primary ticker: JSE:DRD; NYSE:DRD
Stage of development: Production, Development
Primary minerals: Gold
Project to promote: Far West Gold Recoveries Phase II

Live financials

DRDGOLD is a South African-based, world leader in gold recovery from surface tailings retreatment. It has two operations; Ergo, to the East of Johannesburg, and Far West Gold Recoveries, to the West. It seeks synergies between financial, human, social, natural and manufactured aspects of its business to create value for all stakeholders in the short, medium and longer term. In FY2018, it produced 150 423oz, generated R2 490.4 million in revenue, spent R126.1 million on capital projects and lodged 191ha of rehabilitated land for clearance for re-development. Mineral Resources of 7.3Moz and Mineral Reserves of 3.3Moz were declared.

Management Profile

Niel Pretoriu, CEO

Niel Pretoriu has 20+ years’ experience in the mining industry. He became Chief Executive Officer of DRDGOLD in 2009, having joined as Legal Counsel in 2003. A member of the Board’s Social & Ethics Committee, he has led implementation of several corporate social investment and environmental initiatives during his tenure.


Riaan Davel, CFO

Riaan Davel joined DRDGOLD as Chief Financial Officer in 2015. Previously, he spent 17 years in the professional services industry, focused on the African mining sector. He spent 7 years at KPMG as an audit partner, performing audits of listed companies in the mining industry, including SEC registrants.


What is your rationale for attending 121 Mining Investment?

We would like to engage with institutional investors with an interest in a) Our growth story; and b) in taking a longer-term position in our stock, which is characterised simultaneously by dividend flow, volatility and liquidity.

What recent news would you like to highlight to investors attending?

Our growth story; in particular, our recent acquisition of Sibanye-Stillwater’s gold surface retreatment project, now known as Far West Gold Recoveries (FWGR). This virtually doubles our reserve position and provides a platform for further growth. The first phase of FWGR’s development began in August 2018 and is nearing full production of 500 000tpm; early-stage work has begun on a feasibility study for Phase 2 which envisages establishment of a new retreatment plant and a regional tailings storage facility.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Fully commissioning Phase I of Far West Gold Recoveries

6 Months:

Progressing feasibility work on Far West Gold Recoveries Phase II

12 Months:

Progressing feasibility work on Far West Gold Recoveries Phase II

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

1) Consistent electricity supply 2) Regulatory challenges

What do you think makes your company such a compelling investment?

Integrated value overlap; financial, social, environmental, human, manufactured.