Drdgold Ltd. · JSE:DRD
Drdgold — 121 Mining Investment Dubai 2024
32 slides from Drdgold's conference presentation, Nov 20, 2024
Slide 1: Positioning for growth
121 MINING INVESTMENT DUBAI 19-20 November 2024 Niël Pretorius Positioning for growth Chief Executive Officer
Slide 2: Disclaimer
Disclaimer Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in genera
Slide 3: Contents
Contents Operating Delivering Who we are Strategic focus and financial In closing our future performance • What makes DRDGOLD unique • What we do • Group operating trends • DRDGOLD in transition – realising • Why invest in DRDGOLD? • Where we operate • How we do it • Ergo operating trends Vision 202
Slide 4: Who we are
Who we are P4
Slide 5: What makes DRDGOLD unique
What makes DRDGOLD unique Large-scale mechanised Inherently part of Significantly reducing carbon Internal funding of capex, ‘on surface’ mining circular economy and footprint, solar photovoltaic largely through cashflows, but sustainability-focused (PV) facility commissioned and with strong financi
Slide 6: Where we operate
Where we operate New York South-Africa-based world leader in large- 17 years scale mechanised, on surface ‘mining’, of uninterrupted dividend focused on environmental sustainability declaration Johannesburg and operational efficiency FWGR Carletonville Our purpose Ergo Two operations located on worl
Slide 7: How we are structured
How we are structured • South Africa’s oldest continuously listed mining company Top 12 ADR holders still in operation, established in 1895 Van Eck Associates Corporation BlackRock Advisors (U.K.), LTD • Listed on the Johannesburg Stock Exchange (JSE) and Renaissance Technologies, LLC BlackRock Inve
Slide 8: Strategic focus
Strategic focus P8
Slide 9: What we do
What we do Identify and Sustainable Process Logistics consolidate solution Minerals Reserves: 5.53Moz Gold produced from Between 25Mt and 30Mt of Permanent solution for Mineral Resources: 9.16Moz reprocessed tailings at two material moved affected land, reversing distinct business per annum the envi
Slide 10: How we do it
How we do it Regeneration Climate Environmental regeneration, Reducing our carbon footprint by through recovery, processing and transitioning to renewable energy, and rehabilitation, making usable land responsible water stewardship available for people and planet. Firmly embedded in the circular eco
Slide 11: Our strategy
Our strategy Our goals: • Operational efficiency and long-term profitability Our strategy is driven by asset • Effective capital allocation optimisation and sustainable • Leave no value behind development • Embed resilience • Add quality to life Core competencies Short-term Medium-term Long-term and
Slide 12: Technological competence
Technological competence Proven technologies and management systems in tailings retreatment and highly mechanised ‘mining’ • Highly mechanised mining operations • Low risk, above-surface • Digitalisation, including 24/7/365 operational surveillance • Small, skilled and experienced workforce • R&D pr
Slide 13: Resilient business proposition
Resilient business proposition We have a portfolio of adaptable and resilient operations, focusing on sustainability and profit while offering full exposure to the gold price 1 processing plant 1 tailings storage facility 1 processing plant with 1 tailings storage facility Mineral Reserves of with a
Slide 14: De-risking gold mining
De-risking gold mining “Mining where the sun shines” By way of comparison: dumps are analogous to a large very low-gold grade copper deficient porphyry deposit. In DRDGOLD’s case the reserves are all on surface and easily processed. • Highly mechanised mining operations Substantial ‘green’ credentia
Slide 15: Operating and financial performance
Operating and financial performance P 15
Slide 16: Group operating trends
Group operating trends Volume (000t) Yield (g/t) 13 000 12 842 0.260 0.250 12 000 0.240 11 165 11 103 0.228 11 000 0.221 10 190 0.220 0.213 10 000 9 000 0.200 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Production (kg) 2 800 2 731 2 600 2 551 2 547 2 455 2
Slide 17: Ergo operating trends
Ergo operating trends ond LIMITED Volume (000t) Yield (g/t) 12.000 0.260 0.258 10 000 9.842 0.240 0.233 0.219 8079 8.022 0.220 8.000 7492 203 0.200 6 000 0.180 HY1FY2023 HY2FY2023. = HY1FY2024. = HY2 FY2024 HY1FY2023 HY2FY2023 = HY1 FY2024 «= HY2 FY2024 Production (kg) 2.400 2.200 1996 2.000 1935 +
Slide 18: FWGR operating trends
FWGR operating trends Volume (000t) 3500 3.000 3 086 3080 3.000 2698 2500 2.000 1500 HY1FY2023. HY2FY2023 HY1FY2024 HY2 FY2024 Production (kg) 800 735 700 663 616 600 . L 200 HY1 FY2023 HY2FY2023 -HY1FY2024 HY2 FY2024 0.260 0.240 0.220 0.200 7 DRD LIMITED Yield (g/t) 0.245 0.228 0.227 0.215 HY1 FY20
Slide 19: Financial capacity
Financial capacity Focus on maintaining a strong balance sheet with a healthy current ratio, strong emphasis on cash flows, a disciplined and conservative capital investment strategy and a history of paying dividends Operating margin (%) All-in sustaining costs margin (%) 40 36.1 35.9 28.7 30 29.9 3
Slide 20: Delivering our future
Delivering our future P 20
Slide 21: DRDGOLD in transition – realising Vision 2028
DRDGOLD in transition – realising Vision 2028 FY2025 to FY2027 Vision 2028 2.150Mtpm 5.1tpa 3Mtpm 6tpa Interim throughput capacity Gold production Tonnage throughout Gold production • • New mega FWGR RTSF constructed to world-class standards Expansion of Ergo’s Brakpan/Withok TSF 15 and 14 years Lif
Slide 22: What this means
What this means Future cash flows will be enhanced: Production – Reduction in Resulting in Positive additional 1t of gold capex – less than additional cash contribution to the per annum by R100 million per generation of fiscus – R500 million FY2028 annum by FY2029 R1 billion per annum per annum from
Slide 23: Planned capital expenditure
Planned capital expenditure R2 billion R3.3 billion R2.9 billion R300 million FWGR: FWGR: Ergo: Ergo: Driefontein 2 Plant RTSF construction Withok recommissioning and Solar project - 60MW, expansion site establishment - piping MV works and line and pumping infrastructure infrastructure upgrades We a
Slide 24: Transition to renewables, delivering climate security
Transition to renewables, delivering climate security Two key risks associated with climate change: Physical risk Potable water scarcity and access and cost of secondary water sources Our actions: • Decarbonising our operations Electricity usage (MWh) Potable water (externally sourced) (Ml) through
Slide 25: PV solar facility tied to the national grid
PV solar facility tied to the national grid PV project completed in October 2024 • 20MW operational • 40MW completed • 160MWh battery energy storage system completed • PV facility generated 13 113 650KWh of energy (10% of Ergo’s consumption) in FY2024 • By FY2025, it will contribute approximately ha
Slide 26: Significant development: RTSF
Significant development: RTSF • 800 million tonne RTSF at FWGR • Breaking of ground: 5 June 2024 • Redesign integrating natural and synthetic liners optimises footprint and cost • Leading contractor appointed • Re-mining of all FWGR's current reserves • Potential consolidation of historical tailings
Slide 27: Environmental care
Environmental care Rehabilitate land through tailings reclamation, using mostly grey, recycled water and now also renewable energy, systematically edging toward a circular model • Reversing gold mining’s environmental legacy Over 10 years: Environmental expenditure of • No new waste created R530 mil
Slide 28: Social commitment
Social commitment Social capital focused through poverty alleviation, youth education and improved quality of life People employed SED spend (R million) We are committed to improving the 1000 60 52.9 55.2 51.3 quality of life of our affected 48.9 800 50 communities both through an 600 40 32.5 improv
Slide 29: Excellence in governance
Excellence in governance Compliance with the standards of assurance and controls of both the JSE and the NYSE Contribution to the UN Sustainable Development Goals World Gold Council Responsible Gold Mining Principles (RGMPs) Aligned with World Gold Council’s RGMPs and • In 2023, DRDGOLD became a Wor
Slide 30: Why invest in DRDGOLD?
In closing Why invest in DRDGOLD? P 30
Slide 31: Why invest in DRDGOLD?
Why invest in DRDGOLD? Track record of delivery and life extension Strong record of Low risk Proven technology dividend payments – highly mechanised and expertise on-surface operations Continued scope for growth • Can play a role in consolidation of tailings operations in South Africa Full exposure
Slide 32: Thank you
121 MINING INVESTMENT DUBAI 19-20 November 2024 Niël Pretorius Thank you Chief Executive Officer