DRDGold

Website: www.drdgold.com
Primary ticker: JSE:DRD; NYSE:DRD
Stage of development: Development, Production
Commodity: Gold
Project to promote: Far West Gold Recoveries Project
Project location: South Africa
Company presentation: Click here

Live financials

Cash: ZAR543.4M as at 31/12/2019  
Debt: Zero as at 31/12/2019

Major shareholders:
Sibanye Gold Limited – 50.1%
Bank of New York Mellon – 20.7%
FIL Investment Management – 2.7%
Ninety One – 2.4%
Government Employees Pension Fund –  2.3 %
Management ownership – 0.17% – Refer to Annual Financial Statements on www.drdgold.com

DRDGOLD Limited (DRDGOLD) is a South African company that reclaims surface gold resources (tailings), a legacy of more than a century of gold mining and, through the astute use of technology, produces gold and releases rehabilitated land for redevelopment.

Management Profile

Niel Pretoriu, CEO

Niël Pretorius 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. Niël is also an elected Council member of the Minerals Council of South Africa (MINCOSA).


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?

Grow support for DRDGOLD’s share register and market the DRDGOLD story.


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

DRDGOLD’s existing assets at Ergo and the newly acquired Far West Gold Recoveries (FWGR) assets combined to produce very encouraging operating and financial results for the six months ended 31 December 2019, with no debt, an interim dividend declared, and exciting growth prospects for both Ergo and FWGR.


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

3 Months:

To stabilises production while dealing with the COVID-19 pandemic.

6 & 12 Months:

Continue with plans to expand FWGR.

Reference to the short-term: 2020, medium-term: 2020-2025 and long-term: 2025 and beyond, is detailed on page 23 of 2019 DRDGOLD Integrated Annual Report which is available on the DRDGOLD website. Please also refer to the website for updates on the ongoing operational activities and community initiatives taking place.


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

COVID-19 pandemic; DRDGOLD is working in close collaboration with the SA Government, other regulatory authorities and labour unions for limited resumption of reclamation activities, in line with strict health and safety protocols. Electricity supply; DRDGOLD is looking at alternative solutions. Crime and gold theft; increased focus to increase security response.


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

DRDGOLD is a surface gold miner with access to vast resources and is rolling back the environmental legacy of mining. The company has paid consecutive dividends for the last 12 years and is looking at exciting prospects with its anchor shareholder, Sibanye Stillwater.

Analyst Insight – provided by Independent Investment Research

DRDGOLD is a JSE and NYSE-listed, South African-based, world leader in gold recovery from surface tailings retreatment. DRDGOLD has a proud history and its undisputed 19th century origins can be traced back to the frenzied prospecting and business activities that followed the discovery of gold in Johannesburg in the mid-1880s.

The company has two operations – Ergo to the east of Johannesburg – and Far West Gold Recoveries to the west.

Ergo Mining Proprietary Limited (Ergo) has a vast footprint adjacent to Johannesburg on the central and eastern Witwatersrand of South Africa. Its assets cover an area approximately 62km from east to west and 25km from north to south. This large, single footprint was created as part of a rationalisation process and in order to simplify the structure of DRDGOLD’s companies. A single retreatment business also has the effect of improving synergies and saving costs.

The company’s flagship metallurgical plant, Ergo, some 50km east of Johannesburg in Brakpan, and the Knights plant in Germiston, together comprise what is arguably the world’s largest gold surface tailings retreatment facility. Together with the milling and pump station at Crown Mines and City Deep (both former plants), the new consolidated Ergo operation processes 2.0Mt to 2.1Mt of gold-bearing material a month.

Ergo’s assets include access to some 750Mt to 900Mt tonnes of tailings deposited across the western, central and eastern Witwatersrand. Initially, four plants were involved in the retreatment of tailings. Rationalisation and restructuring has resulted in the decommissioning of the Crown and City Deep plants, and their conversion into milling and pump stations.