Responding to the needs of deprived communities

Society is looking to the corporate sector to deliver more, says DRDGold CEO

By LYNETTE DICEY

● Investors globally have turned to gold and goldstocks amidthe uncertaintyof aglobal pandemic, helpingmining companyDRD Gold into the top spot.

DRDGold ’score business is the extraction of gold from tailings and sand recovered frommine dumpssituatedacross theeastern, central and western Witwatersrand.

CEO NiëlPretorius attributesDRDGold ’s healthy performance to the setup of the business: “Surface-based, tightly staffed and substantially automated, we were well positioned .” The recipe for the company’s success, he says, is a strategy that best serves the size and quality of its reserve and resource base;a board,executive andworkforce ofpeople withproven skillsand experience; being in the “right ” country; and, morethanever,having therightproduct— gold .

Critically, too,the companyhas demonstrateditstenacity andbuiltiscredibility over time —and learnt from its mistakes.

“Theoutlook forDRDGoldis betterthan ever, ”saysPretorius. “Conventional mining is harder these days, and we exited this at the right time.We would nothave beenable to now start to build the surface retreatment business wehave —the capitalrequired just isn ’t available.”

For thefuture, the company hasaccess to all the resources needed for the next planned growth phase, he says.

In addition,a proventrack recordin responsiblesurface treatmentingold withthe prospect of expanding onthis with regard to platinum group metals (PGMs) and other mineralsisadecided benefit,asisthetechnical ability to mine thewhole of its current reserve and resource.

The company has establisheda good rep-

The company has a good reputation as a dividend payer and a sound cash position.

DRDGold CEO Niël Pretorius.

utation amonginvestors asadividendpaye r, while agood cash positionis theresult of strong cash flows and no debt.

The companyincreased goldproduction year on year by 9% in the financial year to June30 2020,in spiteofthe lockdown.Operating profit was 320% higher at R1.56bn, reflecting the increase ingold produced and sold anda 33% increasein theaverage rand gold price received.

DRDGold declared a finaldividend of 35c a share,making atotal distributionfor the

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DRDGOLD DR

Share price, daily (cents)

2,600

TOP 100 COMPANIES

September 2015: R10,000 August 2020: R175,651

1,950 1,300 650 0

201920182017 2016 2020

Graphic: Ruby-Gay Martin