DRDGOLD Limited Stock Price: Quote, Forecast, Splits & News (DRD)

Company Profile

DRDGOLD Limited Price & Performance (DRD)

Stock Performance

Updated May 12, 8:00 PM UTC

DRDGOLD Limited

$13.82USD

-$1.76 (-11.3%)

Prev Close

$15.58

Market Cap

$1.19B

Day Range

$13.70 - $14.10

Open

$14.16

P/E Ratio

12.8

52W Range

$7.64 - $17.60

24H Volume

$9.18M

Dividend Yield

1.94%

EPS

1.08

Latest News

Surge in Gold Price Offsets DRDGOLD’s Lower Output in Latest Quarter
May 12, 2025
DRDGOLD reported a 4% revenue increase for the quarter ended March 31, 2025, driven by a 10% rise in average gold price, despite a 12% drop in gold production and a 13% decrease in gold sold. The output decline was attributed to wet weather affecting site access and ore yield.1234
Analysts Maintain Positive Outlook for DRDGOLD Amid Market Volatility
Jan 2, 2022
DRDGOLD’s stock has received a consensus "Buy" rating, with analysts forecasting a 16.95% upside over the next year. The company trades at a lower price-to-earnings ratio than sector averages, and recent short interest increased by 8.7%, suggesting cautious optimism among investors.56
Milestone Anniversary Highlights DRDGOLD’s Legacy and Sustainable Focus
May 12, 2025
Celebrating 130 years of uninterrupted listing on the JSE, DRDGOLD emphasized its commitment to sustainability and environmental stewardship. The company’s CEO highlighted ongoing efforts to address mining’s environmental legacy, positioning DRDGOLD as both a historic and forward-looking industry player.34

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H1 2025

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Transcript

1m 41s

So it's specific, it's very deliberate. And then we do believe that those who are shareholders in the company that are long DRD, that this is typically what they would require. I think paying a dividend also and focusing on paying a dividend requires financial discipline and that financial discipline goes through also in the way that we manage our costs. So getting into the essence of the presentation itself, as you could see that the financial performance of the business has been good. And that's on the back obviously of steady performance. We'll elaborate a little bit on the performance, operating performance for the last six months and compare that to some of the previous payers. But in order to take advantage of a very healthy gold price, we need to be able to produce and our operations managed to do just that. The result being a 20% or 28% increase in revenue to just over ZAR3.8 billion, a very healthy increase in operating profit to ZAR1.5 billion, 70 4 percent increase. And headline earnings increasing by 65% to just under ZAR1 billion. And that, plus the fact that we didn't have to dip into our credit facility means that the company is still in a healthy cash position just north of ZAR600 million at the end of the period and that's enabled the board to declare a dividend that represents a 50% increase on the previous interim dividend, up from $0.2 per share.

3m 25s

This time around, it's $0.3 per share. Operating performance. The Ergo profile, and I think that's the main change that we've seen. The operating profile at Ergo has obviously changed from between two years ago to now. We were, I think, really getting to a point where we no longer wanted to tell the market why we didn't achieve volumes for putting while we were still waiting for licenses and so forth and so forth. The decision was taken to extend the Ergo life of mine after its first phase, after it depleted its initial life of mine, so to speak, the one on which the initial acquisition and capitalization of Ergo was placed in 02/2007, '2 thousand and '8. And we've now managed finally to get all of those licenses and all of the sites that are necessary to deliver into its current operating requirements to fund the capital reinvestment program that we'll go into more detail a little bit later. All of those are now up and running. And Ogo is actually running at a slightly throttle value of volume through petroleum at this point in time. Part of the program going forward involves having to extend its tailings deposition capacity.

4m 49s

The tailings dam that we've been using now since the inception of Ergo, It is in a mature phase. It's not going to be able to maintain the deposition rates that we require for very much longer. So we deliberately throttled back our throughput rate to 1,650,000 tonnes per month. It is up though quite significantly from the previous period, as you'll see later on. But the entire profile of Ergo has now changed to the higher volume sites and slightly lower head grades. And that's the offset that's required for an operation going into the phase that it's in now of lower head grades but higher throughput and in that way bringing down your ramp per tonne profile. So a different throughput profile, mostly lower grade, slightly reduced yield but offset by the reduction in cost per ton. Cash operating cost was consistent on a per kilo basis, was consistent with the inflation rate or not higher than the inflation rate. But that, of course, also was assisted by a change in the cost profile, which I'll elaborate on a little bit more deeper into the presentation. And moving on to the sustainability aspect, you could see that we've seen a 16% decrease in electricity from external sources that basically means Eskom.

6m 24s

So we used 16% less power from Eskom, notwithstanding the fact that total power usage increased in order to accommodate for the higher tons. And that is because of the commissioning of the Ergo solar plant that was up and that's up and running now. It's been successfully commissioned And we'll also deal in greater detail on how that is contributing to the future plans for Ergo. As I said earlier, Ergo was actually through its initial life of mine. And part of the capital reinvestment that's required in order for us to extend that life of mine to cover a larger proportion of its existing resource was to build the solar farm and that's not been done successfully. Solar farm is the important part and an expansion of its tailing storage facilities, another important part. We also see that in terms of environmental management, we're still seeing an ongoing vegetation of tailings dams with the rains being a little bit late last year. We saw a slight increase in the total number of gas exceedances on the monitoring points that we manage or that we monitor. That has obviously now been superseded by very, very healthy rains. So at least that part of the business is where it should be at this stage.

7m 56s

So a slight increase in potable water consumption, but as you'll see later on in the ESG slide, the trend in terms of potable water usage has been a very healthy trend over the last few years. In terms of Far West Gold operations, that's been very, very steady. Its tonnage throughput has been steady. Its recoveries have improved and that also contributed towards the increase in total production to 2.5 tonnes for the half year period. So moving on to the next slide, which is the purpose and vision slide. And this is where we want to talk a little bit about what it is that we want to achieve over the next few years to set up the business optimally to take full advantage of our resource endowment. And we've coined a phrase called Vision 28. It's not particularly original, but it says everything that it needs to say, and that is where we want to be in financial year 2028. And the whole idea is to by then establish capital infrastructure that can sustain a throughput rate of 3,000,000 tonnes per month, up from just over 2,000,000 tonnes currently and to take gold production up from just north of five tons per year to six tons per year, so just over 200,000 ounces per year.

9m 21s

That is the target and that is where most of our efforts and a lot of capital is going into at this point in time. Spoke about where Ergo is in this interim phase, having moved out of its core sites into the existing combination of sites, and that is now running at a throttle throughput rate of 1,650,000 tonnes per month, the idea being for it to go back to 1,800,000 tonnes as and when its tailings storage capacity has been extended. We talk a little bit about Vertok tailings facility and the work that's being done in that regard later on in the presentation. At Far West Gold, it's really just the Phase II that we've been talking about ever since we acquired the Far West Gold recovery operations from Sabonis Stillwater. We started off with the first phase, a plant that has throughput capacity of 600,000,000 tonnes per rather 600,000 tonnes per month to take that up to 1,200,000 tonnes. We've been mining it at 500,000 tonnes per month once again because of the rate at which we could responsibly deposit onto its existing tailings facility. Part of this expansion, part of Phase II, obviously, is also the construction of the regional tailings storage facility, which we started with in June of last year.

10m 50s

We'll give you some insight into where we are in that regard as well. But ideally, where we're going to position ourselves is to, in 2028, financial 2028, be in a position to maintain these three footrates, achieve this output based on what we're seeing in terms of available orebody, in terms of available mineral resource. By then, capital would have been spent, so there will be a sharp production in CapEx. Because of the nature and the construct of reclamation activities, we believe that the trend that we're seeing in terms of ramp per ton will continue and then we'll have the benefit of that additional ton of coal, the revenue associated with that. So we do believe that this would constitute significant step change for the company as and when this materializes. Moving on to the next slide. As I said, a big part of positioning Ergo for its second phase or this next phase was the construction of the solar farm. And we've stayed up to date with regards to communications in this regard. The main thing is that late last year, the second phase of the solar farm detected to a 60 megawatt solar farm that was put into effect, that was commissioned.

12m 8s

The BEST system or the Battery Energy Storage System, that was also commissioned, capacity of 160 megawatt was approved, it's now running. And we've been systematically brought it into the operations. And I think it's important to understand that what this plant is doing and what we embarked upon is really activity at five different levels. So firstly, Ergo generates power through the solar farm. Secondly, it stores power through the best facility. Thirdly, it draws power and there's no meter between the solar farm and where the plant where power is being used and also the rackband tailings facility where power is being used. So it draws power from the solar farm and also from the base facility. It also evacuates power into the grid. And in one part, some of the power that goes into the grid is offset against other Eskimo accounts that are held by Ergo itself. So there's an offset component. And now it's also wheeling power into the grid for the benefit of Far West Gold recoveries or for the future benefit of Far West Gold recoveries. As and when Far West Gold recoveries account has been transferred into the name of Far West Gold recoveries, there will be the benefit of Wheeling as well.

13m 30s

So all of these things, all of these different activities at these five levels, this is the composite of wood we've involved ourselves in, in terms of this particular facility. It's a wonderfully complex facility. It self balances basically in terms of where power is being drawn from and in line with what its particular power requirements are at a particular point in time. We've had a change in thinking also after Eskom's performance improved during the course of last year and when we saw less power interruptions due to load shedding. And of course, we didn't have to shed we wouldn't load shed, but we had to reduce consumption of power by 10. So that was the power curtailment arrangement that we've also had with we've always had with Eskom. But we were going to use draw less power in the eventuality that there would be a requirement for reduced usage for even power cuts due to load shedding. That hasn't happened. And as a consequence, we can actually draw the batteries down to a much lower level, knowing that we'll be able to recharge them during off peak, during the early hours of the morning, late nights and early hours of the morning.

14m 52s

So let's change the usage profile a little bit and it's to the advantage, it's to our cost benefit of being able to use more stored power at nighttime. At the moment, we're still talking about approximately ZAR 15 per ton cost saving. It's an estimate based on the calculations that we did on power usage going forward. We are seeing these sorts of numbers. But in view of the fact that this is not a facility that is being used exactly the same way every single day, every single minute of the day, there is no household that actually does that, there's no factory that does that, that runs 100% at a particular sort of draw for the entire period of time, considering also that we're talking about these five different levels of consumption. So to give an exact number of the amount that we're saving at this point in time, it's not quite that easy. We can say that we've saved 16% on or that we used less, 16% less than last year for the total business. But it will be interesting to see exactly what this benefit is in terms of that range, that ZAR 9 to ZAR 15 range as and when everything that needs to happen in order to see the full benefit is in fact being put into place.

16m 12s

The one thing that we haven't quite seen is that not all of the power units that's been evacuated into the grid is reflected on the Eskom accounts that we received. So there's definitely a bit of an account reconciliation that needs to take place there. On the April 1 or thereabouts, maybe the first, maybe the second, there will be a webinar. And then we hope to be able to expose factor, give a better summary of the exact savings that we've had. But you'll see as and when Rian takes you through some of the cost profiles that the financial benefits are most certainly there. We know how much we've generated, we know how much we've used, we know how much we've put into the grid. It's interesting to see exactly where the numbers end up as and when these accounts have been reconciled. There have been a myriad of tests to make sure that we can responsibly evacuate into the grids or retake test work. That seems to have come to an end now. So hopefully, all of that will now become a little bit more clear as we go along. Second part of Ergo in terms of setting it up for the future is the recommissioning of the Wetok Tailings Dam.

17m 20s

It is a licensed site, but a whole host of regulatory requirements need to be met in order to restore the site and to once again use it as an active deposition site. It's designed for three ten million tonnes and the initial work has started in terms of public participation. That first meeting went well. We've also done some of the initial scoping for the water usage license that's going to be required. So again, there will be engagements with the Department of Water Affairs and Sanitation. In fact, there have been engagements with them as well as the environmental approvals that's required for the recommissioning of this. So that work is happening and we hope to have the design submitted by July 2025. It's a very important part, making sure that Ergo can continue and that at some point into the future as and when this facility is up and running, we can go back to 1,800,000 tons per month. Moving on to Far West Gold, the worst work that's happening there. On the left hand side, you can see a picture of the construction work that's been happening on the regional tailings facility, the RTSF. Here at the bottom of the picture, I hope you could see my cursor over there, those are the two, two or four return water dams.

18m 46s

I can tell you that those return water dams are larger than many of the reclamation sites that Crown used to process, probably not much smaller than the old Topstar site to give you a sense of scale. The dam is 800 hectares in size. At the bottom corner here, that's part of the initial starter wall. It's going to be 26 meters high, it's going to be 100 meters wide. It dips down from north to south. So the starter wall at the top there is going to be a little bit lower, about 1.5 meters high. And we hope to have this in place for commissioning for early occupation during the latter half of twenty twenty six. As of now, we've moved just over 2,000,000 cubes of material that is to both level out the area, these are old maize fields, to level them out. As it is, they're relatively flat, but they need to be leveled to prepare it for the liner and also with the construction of the initial starter wall. So there's a starter wall and then there's also a whole set of trains and the initial downstream construction will take place over these surface trains on the outside of the starter wall.

19m 58s

Wonderful facility, work on this facility is progressing quite nicely. As obviously, it's got to be linked up. So it's a very large footprint, but it'll be linked up with a whole network of pipelines. And there you could see some of the pipeline construction that's already been installed. And then to the right there, you could see a picture of some of the civil work. Those are really more of the excavations that's happened. It's actually progressed quite significantly beyond that point. Some of the foundations having been done, CIL plant, the illusion circuit, the oxygen plant, etcetera, etcetera. That's all happening right next to the existing DP2 plant. There should be some video material in this regard on the website as well. You can have a look at that. But that is going to be taking the DuPontane two plant to a monthly throughput of 1,200,000 tons. We are being, as I said earlier, for all of this, we're going to early commissioning by late twenty twenty six. So we'll work there, the engineering work there is working to plans, working to schedule and it's very encouraging the progress that's being made in that regard as well. So moving on to the next slide.

21m 13s

Just reactivate the remote and then I can move on to the next slide. There we go. So operating performance for the six months. It's all very encouraging, but you also see how the basic construct, the basic composition of what we're doing is changing, especially at Ogo. So the first block on the left hand corner that you could see that volume throughput, notwithstanding the fact that we're throttling is up quite a bit from the two previous half year periods. And that really is not indicative of really the capacity of Ergo at this point in time, but really just the extent to which we were hamstrung by the delays that we experienced during the first half of twenty twenty four and the second half of twenty twenty four when we were waiting for those licenses to come through that we started applying for in 2018. So now they're all through, they're all being done. But there is an interesting consequence to the fact that we've had to rely so much on cleanup material and reclamation material. So whilst the yield is entirely expected, I believe that it would have been marginally better if we still had some of the legacy material to trickle into the feed.

22m 34s

So we are where we wanted to be considering our circumstances of the two previous years. We have increased our volume throughput because we do have access to the new sites. There are lower grade sites there, and you could see that in the yield itself. Obviously, the cost per tonne is significantly lower because of the fact that this is mostly through monitoring through the hydro mining. But the fact is the profile is definitely a changing profile that the lower yields being offset by lower unit costs to more or less maintain margin. And then you could see the production as well. So more tonnes, lower heavyweights giving us exactly the same output as we saw in the first half of twenty twenty four. And then that's really the major difference between surface reclamation and primary mining. So the primary mining, your typical cycle is once towards maturity of mine where your cut off grade goes up and your volumes go down. And our environment is the exact opposite. As your grades come down, you have to increase your tonnage throughput in order to manage your unit costs and maintain economies of scale basically changes. Once the talks up and running and once we've restored tailings capacity and we can go back to 1,800,000 tonnes, the footprint of Ergo would be considerably different by then as well.

24m 2s

We've been systematically reducing the number of dibsides. It's gone down from 15 to about 10. It will go down even further as we get closer to twenty twenty eight. And then the cost per ton, which is on the next slide, if I'm not mistaken, let's go for it. There we go. Sorry, no, this is Far West Gold's operating bid. But maybe just to conclude those remarks on that. Oger, cost per ton would then come back further because you would have seen full benefit of the solar farm, a lot less in terms of mechanical hauling and lifting, far more in terms of hydromining and we'll see a relatively flat margin. In fact, there was a presentation of the latter part of last year where we showed how this stacks up, how how the higher volumes with our gross per ton, how that balances out, how that evens out, not dissimilar to what you're seeing here. Let me just go back to the previous slide. Just wait for the system to respond. There we go, where you see this order number. Although that is different, that is different comparatively speaking, the yield and the volume, you see that the production remains relatively flat.

25m 17s

So that's where the offsetting because all of these things contribute in a different way where you get to more or less a flat profile. So moving into Far West Gold. Its operating trends, obviously, a different story altogether. It has one active site plus one active reclamation site and one cleanup site. So the number five dam has been mined out. Number three dam is now running at full revs. And you could see the volumes we put there is pretty flat, stays at just north of 3,000,000 tons for the six months. The yield has improved at the number three dam. So that first layer, that top layer has been mined out. It's now going into the deeper regions of the dam. So the headwinds are improving. And this plant is also performing really, really well. There you see it also in the production numbers, up from six sixty in the comparative period to seven twenty kilos for the period. So both of these operations actually responded really well, always to the commissioning of the number three dam and Ergo also now to the commissioning of its four new sites since 2024. Moving on to the next slide.

26m 39s

Give the system a moment to respond. And this is the financial performance part of the presentation, and I'll hand over to Rian to take you through those numbers. Thank you, Rian.

26m 58s

Thank you very much, Neil.

27m 3s

Good morning, everyone. Thank you for joining us on this virtual platform. This time now, again, it's my privilege to take you through the financial performance of The OD Gold for the six months ended thirty one December twenty twenty four. As you know, most of our analysis happens to the comparative six months period ended thirty one December twenty twenty three. And I always refer to our booklet that we take great care to prepare. So I encourage you to go and read. Obviously, we can't cover everything in this highlights presentation. As I always do at the start of my section is just recognize the people behind the numbers. As I said, it's my privilege to talk you through and I love doing that. I really want to recognize all the employees, contractors at The Arty Gold, either working in operations, as you have our vast project CapEx, growth CapEx that we're incurring all in support, I believe, all equally important for us to tirelessly pursue our purpose of reversing the environmental legacy of mining, rolling that back, improving quality of life. And as you know, that requires large volumes of material to be moved over a very, very long period of time.

28m 36s

And I know our teams work relentlessly, literally twenty four hours a day to achieve that. And I recognize the team at DRD Gold for this performance. And Neil mentioned on our build outside, it is still raining. But at the start of the financial performance slide, may I say that what I will present, I believe, is rather sunny and very proud to present it. So on the Ergo Financial results side, Neil always provides perfect background for me just to take everyone through what that means then financially for Ergo Farways Gold Recoveries and the group. And may I again say that, sure, these are really good trends to talk to. You'll see it on this slide and also in the following slides. And it's a positive, positive trend that I can talk to. So for Ergo, again, looking at the comparative period '23, so the first six months of the 2024 financial year and the first column compared to the third column for the current six month period that ended thirty one December twenty twenty four, we see a revenue increase of 24%, obviously aided by a raise or increase in the gold price to just under ZAR1.5 million, ZAR1.48 million a kilogram with gold sold down period on period by 2%.

30m 17s

But as Neil alluded to, in the same period, the volume for Ergo was up 22% with the yield then on the sites that we're now tackling, obviously slightly lower grade but higher volume, but really good revenue picture. On the cash operating cost side, even better. And here it is so encouraging to see that what we anticipated and what Neil specifically talked about at our August results is coming true. So as you can see, costs period on period only up by 5%. And clearly, that is one reason for that is the decrease in machine higher costs and then electricity costs only up by 3%, which I believe is a good result also considering the volume up by 22% and double digit increases in Eskom rates. And then the combination of revenue and cash operating costs and again, just just look at the leverage that it creates, operating profit for Ergo up 92% to ZAR828.7 million. So really good performance by Ergo and compliments to the operating team. Moving on to Far West. Very stable performance. Gold sold for Far West for the period up by 10% and you saw some good yield increases, tonnes stable. And that resulted in revenue with the gold price increase of 26%.

32m 3s

Revenue increased 39% to over ZAR1 billion for the six months. Cash operating costs, also stable, up by 8% period on period. Obviously, inflation increases and then higher than inflation increases in areas like security and labor costs. Again, those two in combination with some small coal in process adjustments gets us to operating profit up 57% on the comparative period to ZAR750 million for the six months ended thirty one December twenty twenty four. Again, great solid performance by the Far West team, which we're very proud of. Then putting that all together for the group, as I've mentioned, really wonderful trends that really talks for themselves. You can see the operating margin. And again, I've mentioned it to a couple of people in the last little while. Although we're close to the business, we sometimes underestimate that impact. So if you can keep your costs under control, which is what we've done in the six month period and you have a solid performance plus gold price increase. So the operating margin grows and that margin obviously flows through to the bottom line. So operating margin percentage increased very positive. All in sustaining cost margin obviously on the back of the operating margin, but you would see in the booklet obviously less sustaining CapEx and that's not necessary for us anymore with our focus on growth CapEx.

33m 46s

So that increases the all in sustaining cost margin. And really encouraging for us is free cash flow. So obviously, we have a huge CapEx program. You'd see our cash CapEx for the period just under ZAR1 billion. But because of the good operating performance and high gold price, we still generated free cash flow for the six months, which is a wonderful performance. And all of that, as I mentioned, high gold price, good operating performance, costs under control, all of that flows to headline earnings per share, up 65 period on period to C112.6 dollars per share. Then moving on to the income statement or statement of profit and loss. To summarize, revenue for the period up 28% and with costs under control, up 13% period on period. There's a depreciation increase, more sites, obviously, the solar coming through there as well, leaving us with gross profit from operator activities up 72% to just over ZAR1.3 billion. Administration, expenses and other costs, stable. Finance income, slightly higher without additional cash that we generated. There's also a rand refinery dividend included in that ZAR132.8 million. And finance expense mostly, as you know, in the income statement, the unwinding of our rehab liabilities and only a very small portion of cash finance costs and mostly around securing our facilities.

35m 30s

Income tax, $337,100,000 mostly deferred tax. The operations don't pay current tax at the moment because of the large CapEx investment that we make and the capital deductions that we are allowed. Taking it all to the bottom line, profit for the period, as Neil mentioned as well, ZAR970.1 million, up 65% period on period. Then on statement of financial position, what we call the balance sheet. Again, wonderful trends as you can see there if you look at the Property, Plant and Equipment line. So from December 2023, up more than ZAR3 billion. So essentially, as you know, what we've done there is taken the cash, the ZAR1.5 billion cash in that line and financed our solar farm and battery infrastructure of our own cash on our own balance sheet and then other increases around the projects, CapEx growth projects that Neil alluded to. Non current investments in other assets, REAP funds that we continue to invest in a very responsible way and also mostly our investment in Grand Refinery. Cash and cash equivalents, we'll elaborate on the next slide. Current assets, current liabilities are quite stable across the three periods. And then as I've mentioned, it's great to see total assets and equity growing over time.

37m 10s

Deferred tax liability that I alluded to in the income statement is something that we'll see growing as we utilize our capital deductions that in effect says that at some point in the future, we'll create revenue without a relating capital tax deduction. That's what that deferred tax liability tries to illustrate. And then overall, a very, very healthy current ratio still of 2.3 at the December 2024. Then love ending off. So I always say with my favorite primary financial statement, the statement of cash flows, is something that we've focused on very heavily and will continue to focus to make sure that we generate cash while we grow our business. And as Neil said as well, that we can make sure we want to reward shareholders even though we are prioritizing any cash that we generate towards our ZAR10 billion capital program over the next couple of years. But take a look at cash generated from operations more than doubled in the comparative period over ZAR1.2 billion. Dividend received that I alluded to is from Rand Refinery. Then finance expenses, very small. It's Literally, the facility fees that we have to have our ZAR2 billion up to ZAR2 billion facility with Nedbank in place, which we haven't utilized up until now.

38m 50s

And then income tax, nothing for the operations as I've mentioned. And then there's the number, the cash capital expenditure or acquisition of property, plant and equipment of ZAR947 million for the period. Going down to the financing activity side, the ZAR1.72 million is the dividend, the ZAR0.20, the dividend, final dividend that we paid in September. And we're very proud to follow that up with the ZAR0.30 interim dividend that Neil alluded to. So overall, as I mentioned, we did not tap into any cash resources. So that has grown to ZAR661 million at the December 2024. So really, really healthy cash position and cash generated for the period. Then the handover slide, I'm going to hand back to Neil and he can elaborate. My reflection is just for this distinct period. So let's say from the August, beginning September, quite a healthy increase to where we stand now.

40m 20s

There we go. Thank you very much, Ria. So yes, we are encouraged by what's happening with the share price. Said earlier, big part of our value proposition is the share price that Steve would give to the gold price, but we also want to make sure that we are, that we're in the right range. And at some point, the underlying value of the company finds its way into that range. And we'll continue to work hard to see if at some point in anticipation of what we believe could be potentially very attractive towards 2028 that that range moves to a different level, a more attractive level. So moving on to the latter stages of the presentation. Just wait. So we're going into the sustainable development part. It is a very important part of the business. We do give you some of the headline numbers here. We continue our environmental spend. This is something that we've just been keeping at these levels right from the outset. We're firm believers in concurrent rehabilitation so that as and when the cash flows are over that the rehabilitation is also towards its end, that you don't have that massive liability that matures like at the end after you've sort of run out of cash flows.

41m 48s

So this is something that I think distinguishes our company. Also being right here in the middle of the largest sub Saharan city in Africa, it's important that we keep these standards high because if we do it wrong, then the societies around us, their quality of life is affected. So it's a very, very close correlation between our standards of environmental governance and the quality of life for us communities live in proximity to our operations. This will continue. 28 hectares of vegetation that happened this six months, it's up from 15. Percent. Portable water consumption, and this is the number that I was referring to earlier. You could see, comparatively speaking, the 12/31/2022, yes, thirteen eighty eight million liters, thirteen eighty eight, there's 1,300,000,000 liters of photovolta usage in the six months after 2022, December '20 '20 '2. It's more than halved now for this current financial year. And that trend is one that ought to continue as we further expand our coast water circuit and drawing from alternative sources. Many little potable water is also used as processed water. This is by and large for visitation and also for use in pollution and other use, personal use in our plants.

43m 20s

Dust emission exceedances are reflected on that and also the late rains, but that's not been restored. And here you could also see the trend, very healthy trend in terms of external electricity consumption, down from 173,000 to 141,000 megawatts. And that trend will continue as we see the impact of the solar from becoming more and more embedded And for a longer period of time, obviously, now going into the second half of this financial year, closely correlated to that also, the carbon emissions slide. So in terms of environmental performance, I do believe that we are living the values that we profess to have. And moving on to the next one, the social performance here once again. Very deeply embedded as part of our commitment to sustainable development. As you could see, all of these initiatives are associated with self empowerment. So this is the provision of knowledge, the provision of materials, training of people to set them up in a way that they can self empower. And we definitely are now moving also into more sophisticated levels of social capital of that one step up from the initial subsistence farming or the subsistence growing of crops to life skills, business development skills and hopefully, ultimately also to find its way into broader society generally in terms of the environment and optics of those societies and creating something not dissimilar to what we have.

44m 59s

So we have a circular model. We firmly believe that by assisting communities to learn these materials that they still could become a circular model that they inflow capital on a monthly basis through social grants and a little bit of money that's spent into these communities that it stays in that community, that it could spend four, five, six times over. But it doesn't land in that community and then find its way into Pip stores or Checkers or one of those, But there's in fact a repeat spending within the community itself. And that's very much what we're trying to achieve with our social reinvestment programs. And then moving on to the next slide. There we go. There we go. So this is the looking ahead slide. And none of the guidance that we issued earlier in the year has changed. So we still stay within range with regards to production. Same applies to cash operating costs. You can see by extrapolating the numbers that we reported here that we stay within range. Then in terms of EIRGO, obviously, as all systems go to make sure that we submit all of the materials that are necessary for the permission to start construction at the Bittor Tailings facility.

46m 20s

And I did make the point earlier on with regards to wanting to submit the design by July of twenty twenty, by this July in order to be in a position to commence with construction next year. And then of course, we also want to make sure that we take good advantage, not just in terms of consumption but in terms of the financial treatment of basically the reconciliation of the account but this also happens during the course of the six months. From my own personal experience, after I'd equipped my house with solar, took a few months before that account was reconciled. So it does get reconciled ultimately. We know what we consume. We know what we generate. We know what we push into the grid. It's now a case of making sure that the accounts reflect that over time. Huawei's gold recovery. Oil systems also enable the focus both on RTSF and getting DP2 where it needs to be for latter part of 2026 whilst at the same time maintaining its encouraging throughput and output profiles. Then finally, just a very brief slide on delivering to our purpose. And that is something that I think you're familiar with of what it is that we want to do.

47m 38s

So the already gold, the gold producer, but one that is increasingly finding itself within a circular model. So not creating any new waste, but producing gold from mine waste, from material that's already been deposited. So waste neutral increasingly relying on renewable power, a very strong social capital focus and the restoration of land through which we sterilize our mining activities. Ladies and gents, that's our presentation for today. We have a video which we'd like to show you just in terms of the it's a bit of a taster before we do the webinar in April. And then after the video, we'll take your questions. We see that a few questions is starting to come through. Thank you very much for attending and listening to the presentation.

48m 45s

DRD Gold and its subsidiary, Ergo, is an environmental cleanup company. We effectively take the mining waste of the past and we process Ergo facility and replacing it on world class large tailings facilities.

48m 58s

The next area of that is then obviously how do you utilize energy. We decided to venture down the route of installing a solar and battery system. Initially started off with a very small solar plant of only 20 megawatts. That then grew to 60 megawatts. And the same story started with the batteries, eventually ended up at 187 megawatts. The reason we ended up at these size batteries is in order for us to shut down the plant in a controlled manner, we need at least two hours of battery capacity. Ergo at that stage had two feeds. It had one feed into the Brockmont Tailings Dam and one feed into the Ergo plant.

49m 41s

The demand of the Ergo plant is around 14 megawatts and at Brackpant Tailings 7 megawatts. The power is exported along 22 kV overhead lines which were built at 33 kV. From June of twenty twenty four to date, we have produced 47 gigawatt hours. We did this in phases. We first executed the 20 megawatts and then a 40 megawatt.

50m 5s

During this period of construction, we peaked around about three twenty local employees from the local communities in the immediate surrounds, middle twenty twenty four from where it's now ramped down again to about 60 odd employees local and on a permanent basis. ZAR83 million was spent on local small suppliers. So the solar plant consists of 132,500 panels and feed through 188 inverters and those inverters feed through into 42 BES or battery energy storage containers. Each of these containers has got 96 lithium ion batteries in them.

50m 45s

Another advantage of the batteries is that we can arbitrage. This means that we charge the batteries during an off peak period when electricity is at its cheapest. And then we discharge the batteries when electricity is at its peak. This is the first project that has got this TV and a load behind the grid and is exporting into the grid. So our ramp up time, if you can believe on the batteries, is one megawatt a second. I'm very proud to say that this project's avoided carbon tonnes is 186,840 tonnes CO2e.

51m 34s

From a strategic perspective, there were a few reasons why we started with the project. The first one is to make sure that we have continuous production at Urla. Secondly, there's also the cost. If you break down our cost curve, our operating cost, electricity makes up the third largest single cost for our operations between 1417% of our total operating cost comes from electricity. So if you can reduce your electricity cost, you've got a direct impact on your bottom line. There's a very significant sort of reduction in operating cost by somewhere in the order of R14 or R15 a tonne. And the third reason that we did this is due to our carbon footprint. By implementing this program and this project, we've been able to reduce our existing footprint by approximately 52%. For every rand per tonne that we can reduce our operating costs, we can then also in future be able to mine additional resources at a lower head grade because our input cost is so much lower. So it provides us flexibility not only from immediate operating and increasing increasing margin, but also in future being able to combine lower grades into the plant.

53m 3s

So there we go. Thank you very much. So that's a bit of a teaser of what's to come on the April 1 when we intend to also get a very nice breakdown, express factor of the savings that we saw, the consumption numbers that we saw at the solar plant from inception itself. We're not doing it now. We're giving the numbers on a consolidated basis over six months. But the intention is to be in a position to take the data that we're collecting, that we have collected and that we have been collected and that we will be collecting for the next month and a half and to give you a detailed picture of all the variables and where we've landed in terms of actual savings. I'm going to go through the questions and answer the ones that I can and the ones that I cannot. I'll pass on to my colleagues. And I think I'll start with the first one from Peter Kromberg, who wants details on the terms of the ZAR2 billion Nedbank facility. Rianne, do you maybe want to take that question and just explain what the terms are of the Nedbank facility?

54m 12s

Sure. Thanks, Neil. Thanks for the question, Peter. So yes, July, we established the terms of that facility. So simplistically, it's a ZAR500 million overdraft that is available to us anytime and then a secured ZAR1 billion facility, a revolving credit facility over five years. And that's the, I think, the positive of that is that it matches our sort of medium term capital program. So it's not only a two or three year facility, it's a five year facility. And then that revolving credit facility has accordion option, so ZAR500 million accordion option. So the ZAR1 billion secured plus the ZAR500 million overdraft then gives us the ZAR2 billion overall facility with Nedbank. Thanks, Neil.

55m 7s

Thanks, Rian. So then moving on to the other questions. There's a question from Nick. PRD calculates a tax rate based on forecasts of profitability. And I think this is your favorite subject, is deferred tax. So he wants to know whether the tax rate that we currently use, and due to the fact that the current H2 outlook must be a lot better than what we anticipated with the tax rate that we use now is still does it still match the current financials? Or should you use a different tax rate?

55m 48s

So thanks for that, Nick. And as you rightly say, Neil, I love talking about the topic. I don't know if I always find the right audience to do it. But if there's a question, let's go for it. So Nick, you're quite right. So what happened last year is that we upped the deferred tax rate for OBER. So last year for the thirty two, twenty twenty four results from 22% to 25%. So you're quite right. So that is an indication because of the gold tax rate formula of future profitability of the operation. What it does then obviously immediately based on deferred tax principles, it charges the income statement on that increased rate. So and then as you know, we go through annual revisions of our life of mine estimates, rehab, all of that. So on a half year basis, on an interim basis, we just do checks. So we don't do a formal review because as you know, it is quite a lengthy process. So we haven't again updated any deferred tax rates looking forward. We believe that our estimates previously still stand. So it's 25% for Ergo and Far West gold recoveries at 29%. Yes, so we hopefully, that answers the question and that roughly gives you that estimate of deferred tax that we calculate for the six months to thirty one December twenty twenty four.

57m 16s

Thank you. Rian, there's also, there's another question from Nick with regards to CapEx. So the CapEx guidance for 'twenty five financial year was DKK3.5 billion, and I think we sort of bumping against DKK1 billion by the end of the six months. And Nick's asking whether the DKK3.5 billion is likely to be achieved. Firstly, you don't spend your CapEx in 12 equal amounts. You don't take your total CapEx forecast divided by 12 because your capital spend is not linear. There's some big cost items that need to come through. Having said that, it's unlikely that we'll spend the full ZAR3.5 billion, but the extent to which we'll fall short of that, I think at this stage is not entirely clear because there are still a few very large items that need to come through. With regards to where the programs are tracking in order to achieve the outcomes that we set for ourselves, delivering to the larger longer term vision, We're encouraged by the trending of where these programs are. So yes, CapEx might fall a little bit short, but I do believe that we're trending favorably in terms of actual execution. Bjarne, I don't know if you want to expand on this, if you want to give any additional detail.

58m 32s

No, I think that's right, Nick. And you saw it previously, we generally have a trend where we seem to look behind or we seem behind by thirty one December of each of our financial years. We did catch up in inverted commas. Some of that, as Niels said, it's all long term projects. Sometimes it spans a couple of months. So we do expect to, again, in inverted commas, catch up some of the SEK 3,500,000,000.0. We probably won't get there fully. But that's not always necessarily an indication of the stage of completion of the project or where we want it to be. So we're not worried from that point of view. So technically, from a cut off point of view, thirty June, we might fall short, but we're not worried. We do look at it as a two to three year capital program that we are managing.

59m 26s

Thanks, Rian. Nick asked a question about the capital costs of the solar farm and the base, which I'm going to hand to Jakku. He also asked a question about the realized savings on a per ton basis at Nogo associated with the cellophones. And we haven't prepared for purposes of this presentation. It's a bit of a disturbance. I hope anyone still hear me. There's bit of a background noise. Let me just switch to a bit. There we go. All right. So in terms of the savings, we did not prepare detailed numbers on a for the month or for the exact period, having commissioned the solar farm during the course of the six months under review. And we've done it specifically because we don't want to come up with another estimate. And the next time that we want to report on the actual numbers per tonne, we want to be able to give you on an ex post facto basis. So these were the trends, this is how much we consume, this is how much we exported, this is what was recognized in terms of our accounting. So this is the exact number per tonne for that period.

1h 40s

It's not going to be exactly the same every day. It's not going to be exactly the same every month. But we'll be able to give you some insight into the trends that we see. What we can say is that we're not off target in terms of the ranges of our estimates. So it's definitely trending in accordance with the ranges that we've offered. And what we can also say just in terms of a on a consolidated basis, just looking at the whole picture, is during the six months, we used 22% more electricity units. If we compare the actual usage of electricity for the six months to the December '24 to the six months of 2023, '20 '2 percent more electricity units were consumed for the output that we achieved. However, the amount of power that we imported from Eskom reduced by 16%. So already, you could see there was a fairly significant swing. And that's not the standing of the fact that we only had the benefit of the soda plant for the silts for 60 megawatts from roughly the November. Before that, it was the first phase, it was 20 megawatts and then also incrementally and not 100% consistent every day.

1h 1m 51s

We're also reporting 3% increase in total electricity costs for that same period. So 22% more units used, 16% less from Eskom and a 3% increase in total electricity costs. And that is not normalized for the Eskom increase that we saw year on year. That is actual numbers compared year on year. So from that, Nick, I think there's maybe some information with which one could use to do some sort of a calculation. We've done the calculation, but as I say, it's not the same exactly the same every week. It's not exactly the same, but it's not exactly the same every day, it's not exactly the same every week, it's not exactly the same every month. We want to be in a position where we could give you the contingencies where the accounts having been reconciled and also with the actual consumption patterns that we saw up until March to give an indication as to what the key dynamics are that drive this and how we see that coming through on the actual finance performance on the cost numbers as well. The other question with regards to the final capital cost of the solar farm and BES.

1h 3m 4s

I think that you've got a fairly good idea as to what that actual number is. If you want to take that question and maybe unpack that a little bit for Nick.

1h 3m 14s

Sure. Thanks, Neil. Yes. So, we ended up on approximately $2,900,000,000 Taking into consideration rate of exchange, That means we were approximately 2% above budget.

1h 3m 38s

I think there's a further question. So the tax book tells us. So Herbert, Karibe is asking, how should we think about the grades at Ergo? Is this a step change or an anomaly? And do we revert to what we've seen in the past two years? Ergo, it's definitely a step change. The profile for Ergo changes. In fact, I would encourage you to see if you could find the presentation that I did last year on what the changes have been at EIRGO in particular and what we are targeting for financial twenty twenty eight. If it's not there, then I'll find it and I'll try to get it to you. But essentially, what you're looking at at PIRGO is a higher volume profile, but a lower grade. So the grades that you saw last year, those were clean up grades. They managed to get us to a point where we had respectable numbers, but below what we wanted to produce because we weren't into the new sites because of waiting for licenses to be processed and issued. But now we are there and the profile going forward would be pretty much along the line of what you see now.

1h 4m 56s

The grades are going to be lower, the volumes are going to be higher. And the whole idea is to manage economies of scale. So lower cost per tonne or a positive downward trend in terms of cost per tonne to offset the slightly lower yields, the 0.04 roughly gram per tonne lower yield that we're seeing coming out of the lower grades. So Martin Kramer is asking when's wheeling of electricity too far Westgold likely to begin? We know that's when the transfer of the account itself is going to take place. Jako, I don't know if you've got a better idea as to or detailed idea as to when you think that account will have been transferred and when Far West would actually also have the benefit of those units that have been put into the grid.

1h 5m 47s

Thanks, Neil. So exactly when that happens, Maarten, I'm not 100% sure. We're in the process. It's like Neil mentioned previously, it's a reconciliation of firstly of accounts and then secondly also a transfer of the account from Sibanye to ourselves. The wheeling is happening, so we're metering all of that and then it will be an offsetting of the account at a later stage as soon as that has happened. So we do anticipate that to happen during this quarter, however.

1h 6m 33s

You just have to, there we go. You can hear me now, hey? Seems to be okay. Good. All right. So then the last question that I have is on Zamasamas and the impact that Legal Mine is having. So the question, is, are there any Zamasama operating on areas linked to DoD? And what are the implications? So firstly, in terms of the resource that we're mining, we're not in competition with Zamasama. So they do primary mining. So they go into Virgin Reef and they pack it out in some way or another. They put it through a mill and then they dissolve it in mercury. Outgrades are just much too low. So we have in the region of a third of a gram of gold per tonne and the methodologies that they use is not conducive to that. There are certain areas where maybe over time there may have been some spillages or some maybe carbon spillages, etcetera, etcetera. But those are very, very localized and those don't really come in conflict with our operations. Having said that, they do operate in areas where we have infrastructure here and there, they do operate. So outcrops or some of these other areas that they might find attractive.

1h 7m 52s

So we do need to be aware of them. Also, the holdings that they're opening up, remember, our footprint extends from Kvaan in the West or Central Rand all the way the Springs in the East. So and this is along the reef. This is along the Barthesrand Reef. And these are the areas where they do operate. So we need to be mindful of them in terms of the safety of our staff and also our property. So it's an ongoing topic. Same applies to Far West Gold operations, obviously. They do use shafts to gain access into underground workings. So we need to be mindful of that as well. But as long as those who engage in this activity, as long as they are not removed out of the system and for longer periods of time. And we do think that, that is starting to happen where if you get arrested today for stealing gold out of an underground mine, instead of simply just getting deported and finding your way back into this area, if that cycle is not broken, firstly, and if those who perpetrate these crimes are not taken out of the system for longer periods of time, three months, six months, nine months, twelve months and incarcerated before deportation.

1h 9m 18s

And if more severe penalties or consequences do not flow from again sort of entering the country after having been deported, after having perhaps served a short sentence or a first offense, then it's going to be hard to really break the cycle. That's the one thing. And as I said, I think the signs are positive that government is taking this on. And secondly, if that network is not broken, if the head of the snake is not chopped off, then we're always going to have to deal with this issue, which is closely also associated, I believe, with the destruction of public property and cable theft and so forth and so forth. These syndicates need to be eliminated and those in charge need to be locked up. And those who sort of feed the system also need to be dealt with in a different way. But in terms of direct impact in our operations directly competing with them, That is fortunately something that we have spared because of the nature of our ore body. And I think that is it. Those are all the questions. Ladies and gentlemen, thank you very much for attending this presentation. We hope that we've answered your questions to your satisfaction and that we also provided you with the details that you require to inform your investment decisions.

1h 10m 34s

We can assure you going forward, we'll remain focused not to disappoint and to optimize this ore body for the benefit of our shareholders and our stakeholders as a whole. Thank you very much for attending.

Key Insights

DRD Gold reported strong financial performance for the six months ended December 31, 2024, with revenue up 28% to over ZAR3.8 billion, operating profit up 74% to ZAR1.5 billion, and headline earnings up 65% to just under ZAR1 billion; the company remains in a healthy cash position with over ZAR600 million and declared a 50% higher interim dividend of $0.3 per share.
Operationally, the Ergo plant transitioned to higher volume, lower grade sites, resulting in increased throughput (up 22%) but lower yields; cost per tonne decreased due to economies of scale and the commissioning of a solar plant, which reduced external electricity consumption by 16% despite higher total power usage.
The company is executing a significant capital reinvestment program, including the expansion of tailings storage facilities and the successful commissioning of a 60MW solar farm and battery energy storage system, which is expected to deliver cost savings of ZAR9–15 per tonne and has already reduced carbon emissions by approximately 52%.
DRD Gold’s “Vision 28” targets for FY2028 include increasing monthly throughput to 3 million tonnes (from just over 2 million currently) and annual gold production to over 200,000 ounces; major infrastructure projects are on track, with key tailings facility expansions and plant upgrades scheduled for completion by late 2026.
The company maintained its production and cost guidance for the year, continues to prioritize environmental rehabilitation and social investment, and has not needed to draw on its ZAR2 billion Nedbank facility; CapEx for FY25 may fall slightly short of the ZAR3.5 billion guidance due to project timing, but management is confident in long-term execution.

Recent Transcripts

DRD Gold delivered strong H1 2024 results with revenue up 28% and operating profit up 74%.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	ZAR 4.2B	ZAR 5.3B	ZAR 5.1B	ZAR 5.5B	ZAR 6.2B
Cost of Revenue	ZAR 2.9B	ZAR 3.4B	ZAR 3.7B	ZAR 3.9B	ZAR 4.4B
Gross Profit	ZAR 1.2B	ZAR 1.9B	ZAR 1.4B	ZAR 1.6B	ZAR 1.8B
Gross Profit %	30%	36%	27%	29%	29%
R&D Expenses	ZAR 0	ZAR 0	ZAR 0	ZAR 0	ZAR 0

2020

2021

2022

2023

2024

Revenue

ZAR 4.2B

ZAR 5.3B

ZAR 5.1B

ZAR 5.5B

ZAR 6.2B

Cost of Revenue

ZAR 2.9B

ZAR 3.4B

ZAR 3.7B

ZAR 3.9B

ZAR 4.4B

Gross Profit

ZAR 1.2B

ZAR 1.9B

ZAR 1.4B

ZAR 1.6B

ZAR 1.8B

Gross Profit %

30%

36%

27%

29%

R&D Expenses

ZAR 0

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	ZAR 979M	ZAR 1.4B	ZAR 1.1B	ZAR 1.3B	ZAR 1.3B
Dep. & Amort.	ZAR 271M	ZAR 253M	ZAR 268M	ZAR 218M	ZAR 270M
Def. Tax	ZAR 344M	ZAR 524M	ZAR 334M	ZAR 405M	ZAR 0
Stock Comp.	ZAR 224M	-ZAR 28M	ZAR 18M	ZAR 22M	ZAR 26M
Chg. in WC	-ZAR 92M	-ZAR 195M	ZAR 78M	ZAR 57M	-ZAR 111M

2020

2021

2022

2023

2024

Net Income

ZAR 979M

ZAR 1.4B

ZAR 1.1B

ZAR 1.3B

Dep. & Amort.

ZAR 271M

ZAR 253M

ZAR 268M

ZAR 218M

ZAR 270M

Def. Tax

ZAR 344M

ZAR 524M

ZAR 334M

ZAR 405M

ZAR 0

Stock Comp.

ZAR 224M

-ZAR 28M

ZAR 18M

ZAR 22M

ZAR 26M

Chg. in WC

-ZAR 92M

-ZAR 195M

ZAR 78M

ZAR 57M

-ZAR 111M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	ZAR 1.7B	ZAR 2.2B	ZAR 2.5B	ZAR 2.5B	ZAR 522M
ST Investments	-ZAR 626M	-ZAR 652M	-ZAR 711M	ZAR 0	ZAR 0
Cash & ST Inv.	ZAR 1.7B	ZAR 2.2B	ZAR 2.5B	ZAR 2.5B	ZAR 522M
Receivables	ZAR 126M	ZAR 135M	ZAR 143M	ZAR 130M	ZAR 353M
Inventory	ZAR 323M	ZAR 340M	ZAR 389M	ZAR 414M	ZAR 460M

2020

2021

2022

2023

2024

Cash

ZAR 1.7B

ZAR 2.2B

ZAR 2.5B

ZAR 522M

ST Investments

-ZAR 626M

-ZAR 652M

-ZAR 711M

ZAR 0

Cash & ST Inv.

ZAR 1.7B

ZAR 2.2B

ZAR 2.5B

ZAR 522M

Receivables

ZAR 126M

ZAR 135M

ZAR 143M

ZAR 130M

ZAR 353M

Inventory

ZAR 323M

ZAR 340M

ZAR 389M

ZAR 414M

ZAR 460M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

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Earnings

Report Date

—

Rev Estimate

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Avg 1d Change

—

Report Period

H1 2025

EPS Estimate

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Implied Move 1d

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26m 39s

Give the system a moment to respond. And this is the financial performance part of the presentation, and I'll hand over to Rian to take you through those numbers. Thank you, Rian.

26m 58s

Thank you very much, Neil.

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1h 3m 4s

I think that you've got a fairly good idea as to what that actual number is. If you want to take that question and maybe unpack that a little bit for Nick.

1h 3m 14s

Sure. Thanks, Neil. Yes. So, we ended up on approximately $2,900,000,000 Taking into consideration rate of exchange, That means we were approximately 2% above budget.

1h 3m 38s

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Key Insights

DRD Gold reported strong financial performance for the six months ended December 31, 2024, with revenue up 28% to over ZAR3.8 billion, operating profit up 74% to ZAR1.5 billion, and headline earnings up 65% to just under ZAR1 billion; the company remains in a healthy cash position with over ZAR600 million and declared a 50% higher interim dividend of $0.3 per share.
Operationally, the Ergo plant transitioned to higher volume, lower grade sites, resulting in increased throughput (up 22%) but lower yields; cost per tonne decreased due to economies of scale and the commissioning of a solar plant, which reduced external electricity consumption by 16% despite higher total power usage.
The company is executing a significant capital reinvestment program, including the expansion of tailings storage facilities and the successful commissioning of a 60MW solar farm and battery energy storage system, which is expected to deliver cost savings of ZAR9–15 per tonne and has already reduced carbon emissions by approximately 52%.
DRD Gold’s “Vision 28” targets for FY2028 include increasing monthly throughput to 3 million tonnes (from just over 2 million currently) and annual gold production to over 200,000 ounces; major infrastructure projects are on track, with key tailings facility expansions and plant upgrades scheduled for completion by late 2026.
The company maintained its production and cost guidance for the year, continues to prioritize environmental rehabilitation and social investment, and has not needed to draw on its ZAR2 billion Nedbank facility; CapEx for FY25 may fall slightly short of the ZAR3.5 billion guidance due to project timing, but management is confident in long-term execution.

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What's Happening

Peers

Earnings

Report Date

Rev Estimate

Avg 1d Change

Report Period

EPS Estimate

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

Latest News

Recent Transcripts

Earnings

Report Date

Rev Estimate

Avg 1d Change

Report Period

EPS Estimate

Implied Move 1d

Transcript

Key Insights