Drdgold Ltd. · JSE:DRD
Drdgold — FY2024 Earnings Presentation
26 slides from Drdgold's earnings presentation, August 2024
Slide 1: Presentation of results for the year ended 30 June 2024
Presentation of results for the year ended 30 June 2024 Niël Pretorius Chief Executive Officer Riaan Davel Chief Financial Officer Positioning for Growth
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: Performance at a Glance
PERFORMANCE AT A GLANCE as at 30 June 2024 17th consecutive financial year of dividends: Final dividend of 20 cps Financial Operational ESG Revenue Operating profit Production All-in sustaining Fatal accident at Ergo R6 239.7m R2 081.3m 5 002kg costs margin 14% increase 14% increase 5% decrease of 2
Slide 4: Delivering on our Purpose
DELIVERING ON OUR PURPOSE 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 economy Cre
Slide 5: DRDGOLD in Transition
DRDGOLD IN TRANSITION Vision 28: capital infrastructure development designed for FY2028 3mtpm 6tpa Tonnage throughout Gold production and beyond Depleted Ergo sites replaced to fund Ergo 2.0 1.650mtpm Interim throughput capacity FWGR Phase II expansion underway 0.6mtpm to 1.2mtpm To make this a real
Slide 6: Solar Facility on Track
SOLAR FACILITY ON TRACK Project completion by October 2024 • Construction of Ergo's solar PV power plant on track • 20MW operational • 40MW substantially completed • 160MWh battery energy storage system underway • In FY2024, this PV facility generated 13,113,650 KWh of energy (10% of Ergo’s consumpt
Slide 7: Progress at Regional Tailings Storage Facility
PROGRESS AT REGIONAL TAILINGS STORAGE FACILITY • Breaking of ground 5 July 2024 • Leading contractor appointed • Re-mining of all FWGR's current reserves • Potential consolidation of historical tailings dams in West Rand region • Addressing environmental concerns P7
Slide 8: Operating Performance
OPERATING PERFORMANCE P8P 8
Slide 9: Ergo Operating Trends
ERGO OPERATING TRENDS Volume (000t) Yield (g/t) 12 000 0.258 0.260 9 842 10 000 0.240 0.233 8 079 8 022 0.219 8 000 7 492 0.220 0.203 0.200 6 000 0.180 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Production (kg) 2 400 2 200 1 996 2 000 1 935 1 884 1 800 1
Slide 10: FWGR Operating Trends
FWGR OPERATING TRENDS Volume (000t) Yield (g/t) 3 500 0.260 3 086 3 080 3 000 0.245 3 000 2 698 0.240 2 500 0.228 0.227 0.220 0.215 2 000 1 500 0.200 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Production (kg) 800 735 700 663 616 600 400 200 HY1 FY2023 HY2
Slide 11: 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 0.220 0.213 10 190 10 000 0.200 9 000 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Production (kg) 3 000 2 800 2 731 2 600 2 551 2 547 2
Slide 12: Financial Performance
FINANCIAL PERFORMANCE P 12 P 12
Slide 13: Ergo Financial Results
ERGO FINANCIAL RESULTS Revenue (Rm) Cash operating costs (Rm) 2 500 2 331.9 0 2 150.1 2 193.0 1 958.5 -400 2 000 -800 1 500 -1 200 1 000 -1 600 -1 594.2 -1 589.0 -2 000 -1 792.0 -1 779.0 500 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Operating profit (Rm)
Slide 14: FWGR Financial Results
FWGR FINANCIAL RESULTS Revenue (Rm) Cash operating costs (Rm) 1000 0 933.6 -100 800 781.2 695.8 691.9 -200 600 -245.3 -259.6 -300 -305.1 -317.2 400 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Operating profit (Rm) 700 612.0 600 500 458.7 477.8 436.7 400 30
Slide 15: Group Financial Trends
GROUP FINANCIAL TRENDS Operating margin (%) All-in sustaining costs margin (%) 40.0 36.1 35.9 40 29.9 30.6 30 28.7 30.0 24.1 19.4 20.0 20 17.0 10.0 10 0.0 0 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 HY1 FY2023 HY2 FY2023 HY1 FY2024 HY2 FY2024 Free cash flow (Rm) HEPS (cents per share) 400 253.7 10
Slide 16: Financial Review: Statement of Profit and Loss
FINANCIAL REVIEW: STATEMENT OF PROFIT AND LOSS For the year ended 30 June 2024 Year to Year to 30 June 2024 30 June 2023 Rm Rm Revenue 6 239.7 5 496.3 Cost of sales (4 429.9) (3 911.0) Gross profit from operating activities 1 809.8 1 585.3 Other income 2.0 10.4 Administration expenses and other cost
Slide 17: Financial Review: Statement of Financial Position
FINANCIAL REVIEW: STATEMENT OF FINANCIAL POSITION As at 30 June 2024 As at As at 30 June 2024 30 Jun 2023 Rm Rm Property, plant and equipment 6 794.9 3 909.5 Non-current investments and other assets 1 138.5 998.0 Deferred tax assets 23.4 32.8 Cash and cash equivalents 521.5 2 471.4 Other current ass
Slide 18: Financial Review: Statement of Cash Flows
FINANCIAL REVIEW: STATEMENT OF CASH FLOWS For the year ended 30 June 2024 Year to Year to 30 June 2024 30 Jun 2023 Rm Rm Net cash inflow from operating activities 1 845.2 1 655.6 Cash generated from operations 1 738.3 1 708.7 Finance income received 154.6 188.6 Dividends received 29.3 78.3 Finance e
Slide 19: Share Price
SHARE PRICE JSE ZAR cents 1 741.00 19 August 2024 NYSE USD 9.83 19 August 2024 P 19
Slide 20: ESG Performance
ESG PERFORMANCE P 20
Slide 21: Environmental Performance
ENVIRONMENTAL PERFORMANCE Over 10 years: Electricity usage decreased by 17% Potable water decreased by 83% Environmental expenditure of Hectares vegetated R530 million TSFs vegetated 477 ha P 21
Slide 22: Social Performance
SOCIAL PERFORMANCE SED spend of to be updated R357 million over 10 years Our Community Regeneration Model is aimed at sustainable impact, and guides our social programmes FWGR’s Broad-Based Livelihoods Programme entered its 4th, focusing on training and provision of sustainable water supply. R8.2 mi
Slide 23: Governance
GOVERNANCE Tailings management World Gold Council Responsible Gold Mining Principles External Tailings Review Panel appointment (RGMPs) • Internal Tailings Performance Management System (TPMS) implemented for dedicated data collection, storage and • In 2023, DRDGOLD became a World Gold Council proce
Slide 24: Looking Ahead
LOOKING AHEAD P 24
Slide 25: Looking Ahead
LOOKING AHEAD FY2025 GUIDANCE ERGO FAR WEST GOLD RECOVERIES Achieve a gold production of between Expected Regional Tailings Submission of the water use licence for 155 000oz and 165 000oz Storage Facility Brakpan/Withok beneficial occupation @ cash operating cost Tailings Storage Facility in the fir
Slide 26: Contact Us
CONTACT US Niël Pretorius, CEO Investor and media relations Riaan Davel, CFO Email: [email protected] Tel: +27 (0) 11 470 2600 Tel: +27 (0) 84 800 8048 Fax: +27 (0) 86 524 3061 Email: [email protected] Email: [email protected] Tel: +27 (0) 82 372 5816 [email protected] Website: www.dr