Drdgold Ltd. · JSE:DRD
Drdgold — FY2023 Earnings Presentation
23 slides from Drdgold's earnings presentation, Aug 23, 2023
Slide 1: Results for the year ended 30 June 2023
Niël Pretorius Chief Executive Oficer Riaan Davel Chief Financial Officer Results for the year ended 30 June 2023 Virtual Results Briefing 23 August 2023
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: Group Key Features
GROUP KEY FEATURES as at 30 June 2023 Revenue R5 496.3 m Income tax: Pay as you earn (PAYE): All-in sustaining costs margin R314.8m R183.1m of 21% 7% increase Operating profit 16th consecutive financial year of dividend payment of 65 cents per share 16% R1 819.0 m 8% declared as a final cash increas
Slide 4: Operating Trends
OPERATING TRENDS PAGE 4
Slide 5: Ergo Operating Trends
ERGO OPERATING TRENDS Volume (000t) Yield (g/t) 0.258 11 387 0.255 10 724 0.240 9 842 10 000 0.225 0.210 0.203 0.192 7 492 0.195 0.184 7 500 0.180 0.165 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 Production (kg) 2 400 2 200 2 094 2 062 1 996 2 000 1 935 1
Slide 6: FWGR Operating Trends
FWGR OPERATING TRENDS Volume (000t) Yield (g/t) 3 500 0.260 0.257 0.257 3 079 2 999 3 000 0.255 3 000 2 698 0.250 0.245 2 500 0.245 0.240 2 000 0.235 1 500 0.230 0.228 0.225 1 000 0.220 500 0.215 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 Production (kg)
Slide 7: Group Operating Trends
GROUP OPERATING TRENDS Volume (000t) Yield (g/t) 14 466 0.250 14 400 0.250 13 723 12 842 0.240 12 800 0.230 0.220 0.213 11 200 0.210 0.207 10 190 0.200 0.200 9 600 0.190 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 Production (kg) 3 500 3 000 2 886 2 834 2
Slide 8: Financial Review
FINANCIAL REVIEW PAGE 8
Slide 9: Ergo Financial Results
ERGO FINANCIAL RESULTS Revenue (Rm) Cash operating costs (Rm) 2 500 0 2 150.1 1 900.2 1 958.5 2 000 1 804.7 -400 1 500 -800 1 000 -1 200 500 -1 600 -1 471.8 -1 538.0 -1 594.2 -1 589.0 0 -2 000 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 Operating profit (R
Slide 10: FWGR Financial Results
FWGR FINANCIAL RESULTS Revenue (Rm) Cash operating costs (Rm) 800 0 693.8 719.8 695.8 691.9 700 -50 600 -100 500 400 -150 300 -200 200 -208.4 -250 100 -245.6 -245.3 -259.6 0 -300 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 Operating profit (Rm) 600 500 479
Slide 11: Group Financial Trends
GROUP FINANCIAL TRENDS Operating margin (%) All-in sustaining costs margin (%) 60 40 50 30 40 36.1 23.0 24.1 33.3 32.6 29.9 30 20 16.0 17.0 20 10 10 0 0 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 HY1 FY2022 HY2 FY2022 HY1 FY2023 HY2 FY2023 Free cash flow (Rm) HEPS (cents per share) 800 120 100 600
Slide 12: Financial Review: Statement of Profit and Loss
FINANCIAL REVIEW: STATEMENT OF PROFIT AND LOSS For the year ended 30 June 2023 Year to Year to 30 June 2023 30 June 2022 Rm Rm Revenue 5 496.3 5 118.5 Cost of sales (3 911.0) (3 741.5) Gross profit from operating activities 1 585.3 1 377.0 Other income 10.4 91.3 Administration expenses and other cos
Slide 13: Financial Review: Statement of Financial Position
FINANCIAL REVIEW: STATEMENT OF FINANCIAL POSITION As at 30 June 2023 As at As at 30 June 2023 30 June 2022 Rm Rm Property, plant and equipment 3 909.5 3 084.1 Non-current investments and other assets 998.0 902.6 Deferred tax assets 32.8 14.5 Cash and cash equivalents 2 471.4 2 525.6 Other current as
Slide 14: Financial Review: Statement of Cash Flows
FINANCIAL REVIEW: STATEMENT OF CASH FLOWS For the year ended June 2023 Year to Year to 30 June 2023 30 June 2022 Rm Rm Net cash inflow from operating activities 1 655.6 1 497.8 Cash generated from operations 1 708.7 1 585.6 Finance income received 188.6 111.1 Dividends received 78.3 71.5 Finance exp
Slide 15: Share Price
SHARE PRICE JSE ZAR cents 1 795.00 22 August 2023 NYSE USD 9.42 21 August 2023 PAGE 15
Slide 16: ESG
E Environmental S Social G Governmental PAGE 16
Slide 17: Environmental Performance
E OUR PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2023 decrease in dust emissions spent on tailings Potable water externally sourced exceedances rehabilitation deposition consumption potable water facilities vegetated 10% 0.87% R41.9m 25ha 2 380Mℓ TAILINGS MANAGEMENT Internal Tailings Performance Managem
Slide 18: Environmental Value-Add at a Glance
ENVIRONMENTAL VALUE-ADD at a glance 2023 2022 2021 Hectares of TSFs vegetated Ha 25 58 115 Potable water consumption Mℓ 2 380 2 642 2 968 Dust emission exceedances % 0.87 % 1.98 % 0.27 % Electricity consumption Mwh 333 249 376 513 381 707 Carbon emissions CO2e (t) 368 581 414 835 412 145 Environment
Slide 19: Social Performance
S OUR PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2023 R16.6m R55.3m Employee training spend Total women in mining 25% spent on socio-economic development, including through Broad-Based Livelihoods Programme HDSAs in management 75% (R52.9 million spent in FY2022) PAGE 19
Slide 20: Community Support
COMMUNITY SUPPORT Community support Broad-Based Livelihoods To date, DRDGOLD has had more than 11 200 direct participants in the Company’s Broad- Based Agricultural Livelihoods (BBL) programme since 2018, and this number continues to increase. These are from the communities in Ekurhuleni-Tsakane Ext
Slide 21: Excellence in Integrated Reporting
EXCELLENCE IN INTEGRATED REPORTING DRDGOLD Annual Integrated Report ranks “Excellent” in the EY Excellence in Integrated Reporting Awards for two years in a row. We have been informed that the 2022 report has been placed in the "Excellent" category for the 2023 awards.
Slide 22: Looking Ahead
LOOKING AHEAD FY2024 GUIDANCE ERGO FAR WEST GOLD RECOVERIES • Achieve a gold production • Completion of solar power project • Obtaining regulatory approvals of between 165 000oz and - expected capital investment of and commence construction of the 175 000oz R2.0 billion regional tailings storage fac
Slide 23: Contact Us
CONTACT US Niël Pretorius, CEO Jane Kamau, investor relations Riaan Davel, CFO E-mail: jane@rasc.co.za Tel: +27 (0) 11 470 2600 Fax: +27 (0) 86 524 3061 Email: Niel.pretorius@drdgold.com Riaan.davel@drdgold.com Website: www.drdgold.com Registered office Shareholder data Constantia Office Park (Incor