DRDGOLD

Financials:

Primary ticker: NYSE:DRD, JSE:DRD
Stage of development: Production
Primary minerals: Gold
Project to promote: Far West Gold Recoveries and Ergo Projects aligned with Green Mining / ESG initiatives
Project location: South Africa
Website: www.drdgold.com
Corporate video: Click here

DRDGOLD LTD is a South African company and world leader in reclaiming surface gold resources (tailings) and, through the astute use of technology, produces gold and releases hundreds of hectares of rehabilitated land for social + industrial development, empowering host communities, reversing gold mining’s environmental legacy, in alignment with “Green Mining” principles. Business is conducted to be profitable and to create value for all stakeholders in the short-, medium-, and longer-term, seeking synergies between financial, human, social, nature and manufactured aspects of the business.


Cash:
 ZAR$2 239.1M
Debt: Nil


Major shareholders:

SIBANYE GOLD – 50.10%
THE BANK OF NEW YORK MELLON – 26.75%
GOVT EMPLOYEES PENSION FUND – 3.34%
JPMC-VANGUARD BBH LENDING – 1.28%
CLEARSTREAM BANKING SA LUX – 1.28%
Management Ownership – 0.01%

Management Profile

Niël Pretorius – Executive Director and Chief Executive Officer – BProc, LLB, LLM
• Member: DRDGOLD Risk Committee
Niël Pretorius has two decades of experience in the mining industry. He was appointed Chief Executive Officer designate of DRDGOLD Limited on 21 August 2008 and Chief Executive Officer on 1 January 2009. Niël also serves as an elected Council Member with the Minerals Council of South Africa.
 
Niël initially joined the company on 1 May 2003 as a legal adviser and was promoted to the position of Group Legal Counsel on 1 September 2004 and General Manager: Corporate Services on 1 April 2005. Niël was subsequently appointed Chief Executive Officer of Ergo Mining Operations (formerly DRDGOLD SA) on 1 July 2006.
 
He has been instrumental in implementing several corporate social investment strategies and environmental, educational and rehabilitation policies during his tenure, in line with the Company’s strategy to deploy its resources to maximise economic value through sustainable and responsible mining, while releasing land back to the greater Johannesburg for re-development.

What is your rationale for taking part 121 Mining Investment?

To grow support for DRDGOLD’s share register and market the success of the Company’s story in its next growth phase.

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

DRDGOLD reported a strong finish to the six months ended 31 December 2021, attributable mainly to an increase in gold recoveries and a higher average gold price. This enabled the Company to declare an interim dividend; taking the number of years of uninterrupted dividend yield to 15. Steady performances were recorded on the part of both the plants of Ergo and Far West Gold Recoveries resulting in gold production exceeding forecasts, setting the business up favourably to achieve full-year production guidance.

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

3 Months:
DRDGOLD aims to continue to fully develop the potential of the existing asset base by harnessing technology, systems and skill-sets to deliver a competitive return to shareholders and real benefits to other stakeholders, specifically local communities and the environment, and to leverage both in its relationships and its footprint to grow the business as a key partner with Sibanye-Stillwater in a greener future. Solar power plant development has commenced, reserve upgrade plans and plans to increase deposition capacity continue at Ergo, and development of the interim phase as part of the Phase 2 Far West Gold Recoveries project.

6 Months:
Ongoing, as above, including the continuation in the medium term growth phase, employee safety, development + transformation, expansion of our role in environmental clean-up for sustainable land use, reduced pollution + societal upliftment; optimal use of technology for increasing overall yield, extending storage facilities and increasing the life of mine. Our approach in the FWGR Phase 2 is to explore the feasibility of a design as extensive and ambitious as the footprint, accessible resource and available services will allow, and then incrementally implement in accordance with our capacity and risk appetite, careful not to compromise the ultimate model in the process. Key to Phase 2 is a regional tailings facility and we will investigate the feasibility of an interim phase to extend and consolidate existing deposition capacity and upgrade our existing Driefontein 2 plant.

12 Months:
Ongoing, as above, including the closer alignment with Sibanye-Stillwater’s value accretive growth and positioning in future “green metals.” Potentially adding to the Company’s proven capability in gold tailings optimisation into the extraction, from tailings, of metals used for “green energy” generation and storage.

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

Carbon footprint and power supply risk – We have resolved to construct a solar power plant and a power storage facility. Eskom power supply, social unrest, increased crime + gold theft and availability of water risks are therefore being consistently addressed using technology, information to enhance operational performance, to minimise impact on the environment, with focus on employee safety and well-being, and improving the quality of life of communities surrounding the operations.

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

The legacy of adaptability and ESG; DRDGOLD is 126 years old – it has survived thus far by adapting to an ever-changing environment, taking full advantage of lucky breaks as and when they happen, and maintaining a disciplined approach. Its established relationship with Sibanye-Stillwater places it in a very strong position to continue to play a role in the future of mining in South Africa, and perhaps even internationally. Our early adoption of sustainable development, as the primary idea in shaping its thinking and informing the deployment of resources and capital, has meant that the ESG work has been done and foundations laid to continue on this path of sustainable, responsible mining.

What are the top 3 key investor takeaways?

1. Awarded No.1 status among Top 100 JSE-Listed Companies in 2020.
2. Highest shareholder returns over the previous 5 years.
3. 15 years’ uninterrupted dividend payments.