2020 RESULTS FOR THE YEAR ENDED 30 JUNE 2020 Riaan Davel Chief - - PowerPoint PPT Presentation

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2020 RESULTS FOR THE YEAR ENDED 30 JUNE 2020 Riaan Davel Chief - - PowerPoint PPT Presentation

Jan 25, 2023 441 likes •693 views

Nil Pretorius Chief Executive Officer 2020 RESULTS FOR THE YEAR ENDED 30 JUNE 2020 Riaan Davel Chief Financial Officer Virtual Results Briefing 1 September 2020 PAGE DISCLAIMER Many factors could cause the actual results, performance or

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SLIDE 1 PAGE

2020 RESULTS

FOR THE YEAR ENDED 30 JUNE 2020 Niël Pretorius Chief Executive Officer Riaan Davel Chief Financial Officer Virtual Results Briefing 1 September 2020
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SLIDE 2 PAGE PAGE DISCLAIMER 2 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 general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2019, which we filed with the United States Securities and Exchange Commission on 31 October 2019 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.
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SLIDE 3 PAGE Increase from 21% to 23% of total staff

GROUP KEY FEATURES

3

13th consecutive financial year of DIVIDEND PAYMENT

35 cents per share declared as final divided (85 cents per share for FY 2020)

R1 562.1m

OPERATING PROFIT

R4 185.0m

REVENUE

5 424kg

PRODUCTION

R634.5m

HEADLINE EARNINGS

All-in sustaining costs margin of 29.7% 33% increase in the average rand gold price received to R768 765/kg

WOMEN IN MINING

52%

increase

320%

increase

9%

rise

23%

increase SOCIAL CAPITAL RELATED SPEND

0.52%

DUST EXCEEDENCES DECREASED TO
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SLIDE 4 PAGE PAGE 4

TRENDS

OPERATIONAL

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SLIDE 5 PAGE

ERGO OPERATING RESULTS

5 11 864 11 298 10 906 9 322 2 000 4 000 6 000 8 000 10 000 12 000 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Volume (000t) 0.188 0.200 0.209 0.184 0.170 0.180 0.190 0.200 0.210 0.220 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Yield (g/t) 2 236 2 257 2 274 1 715 900 1 100 1 300 1 500 1 700 1 900 2 100 2 300 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Production (kg)
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SLIDE 6 PAGE

FWGR OPERATING RESULTS

6 140 1 928 3 077 2 975 500 1 000 1 500 2 000 2 500 3 000 3 500 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Volume (000t) 0.314 0.228 0.248 0.226 0.000 0.050 0.100 0.150 0.200 0.250 0.300 0.350 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Yield (g/t) 44 440 763 672 200 400 600 800 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Production (kg)
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SLIDE 7 PAGE

GROUP OPERATING TRENDS

7 12 004 13 226 13 983 12 297 11 000 11 500 12 000 12 500 13 000 13 500 14 000 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Volume (000t) 0.190 0.204 0.217 0.194 0.170 0.180 0.190 0.200 0.210 0.220 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Yield (g/t) 2 280 2 697 3 037 2 387 1 000 1 500 2 000 2 500 3 000 3 500 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Production (kg)
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SLIDE 8 PAGE PAGE 8

REVIEW

FINANCIAL

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SLIDE 9 PAGE

ERGO FINANCIAL RESULTS

9 1 233.0 1 344.5 1 589.6 1 474.7 200 400 600 800 1 000 1 200 1 400 1 600 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Revenue (Rm)
  • 1 135.3
  • 1 175.8
  • 1 200.1
  • 1 073.9
  • 1 250
  • 1 200
  • 1 150
  • 1 100
  • 1 050
  • 1 000
HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Cash operating costs (Rm) 113.0 169.8 364.5 427.6 50 100 150 200 250 300 350 400 450 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Operating profit (Rm)
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SLIDE 10 PAGE

FWGR FINANCIAL RESULTS

10 19.5 165.1 521.8 598.9 100 200 300 400 500 600 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Revenue (Rm)
  • 33.5
  • 78.3
  • 177.2
  • 174.8
  • 200.0
  • 150.0
  • 100.0
  • 50.0
0.0 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Cash operating costs (Rm)
  • 10.8
99.8 355.1 414.9
  • 20
30 80 130 180 230 280 330 380 430 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Operating profit (Rm)
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SLIDE 11 PAGE

GROUP FINANCIAL TRENDS

11 8.2 17.9 34.1 40.6
  • 10.0
20.0 30.0 40.0 50.0 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Operating margin (%) 0.8 16.1 26.7 32.7
  • 10.0
20.0 30.0 40.0 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 All-in sustaining costs margin (%)
  • 261.0
246.3 406.6 519.8
  • 300.0
  • 200.0
  • 100.0
  • 100.0
200.0 300.0 400.0 500.0 600.0 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 Free cash flow (Rm)
  • 7.2
18.1 48.4 34.0
  • 20.0
  • 10.0
  • 10.0
20.0 30.0 40.0 50.0 HY1 FY2019 HY2 FY2019 HY1 FY2020 HY2 FY2020 HEPS (cents per share)
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SLIDE 12 PAGE

FINANCIAL REVIEW: STATEMENT OF PROFIT OR LOSS for the year ended 30 June 2020

Year to 30 June 2020 Year to 30 June 2019 Rm Rm Revenue 4 185.0 2 762.1 Cost of sales (2 937.9) (2 553.9) Gross profit from operating activities 1 247.1 208.2 Other income 0.7 7.9 Administration expenses and other costs (309.9) (90.9) Administration expenses and other costs excluding share-based payment expense (85.8) (69.5) Share-based payment expense (224.1) (21.4) Results from operating activities 937.9 125.2 Finance income 109.8 58.3 Finance expenses (68.8) (78.4) Profit before tax 978.9 105.1 Income tax (343.9) (26.6) Profit for the year 635.0 78.5 12
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SLIDE 13 PAGE As at 30 June 2020 As at 30 June 2019 Rm Rm Property, plant and equipment 2 621.1 2 775.3 Non-current investments and other assets 856.3 618.6 Deferred tax assets 8.0 10.0 Cash and cash equivalents 1 715.1 279.5 Other current assets 474.7 376.6 Total assets 5 675.2 4 060.0 Equity 4 040.2 2 688.6 Provision for environmental rehabilitation 568.9 682.6 Deferred tax liability 273.1 193.2 Other non-current liabilities 47.1 37.4 Current liabilities 745.9 458.2 Total equity and liabilities 5 675.2 4 060.0 Current ratio 2.9 1.4

FINANCIAL REVIEW: STATEMENT OF FINANCIAL POSITION as at 30 June 2020

13
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SLIDE 14 PAGE

FINANCIAL REVIEW: STATEMENT OF CASH FLOWS for the year ended 30 June 2020

Year to 30 June 2020 Year to 30 June 2019 Rm Rm Net cash inflow from operating activities 1 128.9 288.3 Cash generated by operations 1 309.6 282.0 Interest and dividends received 68.1 16.8 Interest paid (8.7) (9.3) Income tax paid (240.1) (1.2) Net cash outflow from investing activities (202.5) (303.0) Acquisition of property, plant and equipment (181.1) (347.4) Proceeds on disposal of property, plant and equipment 0.7 5.8 Environmental rehabilitation payments (22.1) (16.6) Funds received from rehabilitation obligation funds
  • 55.2
Net cash flow from financing activities 509.2 (7.9) Proceeds from share issue 1 085.6
  • Borrowings raised
  • 192.0
Borrowings repaid
  • (192.0)
Dividends paid on ordinary share capital (564.5)
  • Repayment of lease liabilities
(11.4) (3.7) Treasury shares acquired
  • (0.3)
Share issue and borrowing expenses (0.5) (3.9) Increase/(decrease) in cash and cash equivalents 1 435.6 (22.6) Opening cash and cash equivalents 279.5 302.1 Closing cash and cash equivalents 1 715.1 279.5 14
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SLIDE 15 PAGE PAGE 15 SA cents 2 545.00 31 Aug 2020
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SLIDE 16 PAGE PAGE 16

HUMAN CAPITAL

SUSTAINABLE DEVELOPMENT

2019 2020 21% women in mining 23% 13% women in core positions 14% 18% women in management 19% R8.5m Spend on individual training courses R11.5m

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SLIDE 17 PAGE

0% 0.52% R54.4m 65.5ha 26.6ha

steady use externally sourced potable water dust emissions exceedances spent on rehabilitation tailings deposition facilities vegetated lodged with NNR for approval for redevelopment

SUSTAINABLE DEVELOPMENT ̶ NATURAL CAPITAL

17
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SLIDE 18 PAGE

TAILINGS MANAGEMENT

18

Independent Tailings Review Board in place since 2018

  • Internal Tailings Performance Management

System (TPMS) implemented for dedicated data collection, storage and processing

  • ensures integrity of data for day-to-day

management and oversight Quarterly drone surveillance Review of Historical Interferometric Synthetic Aperture Radar (InSAR) imagery for mapping ground deformation over large areas

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SLIDE 19 PAGE PAGE

SUSTAINABLE DEVELOPMENT ̶ SOCIAL CAPITAL

R20.4m

spent on skills and development projects for local communities, including spend on COVID19 related community relief (R16.6 million spent in 2019)

19
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SLIDE 20 PAGE

RESPONSE TO COVID-19

20 15 March 2020 26 March 2020 16 April 2020 1 June 2020 18 August 2020
  • South Africa declares 21-day
National Lockdown
  • operations temporarily halted
  • dispensation for surface mining
  • perations – regulators, unions
engaged on work resumption
  • Ergo resumes with 34% of staff,
FWGR with 60% of staff
  • screening, hygiene, social distancing,
personal protective equipment measures prioritised South Africa declares State of Disaster
  • perations
continue
  • South Africa eases lockdown regulations
  • underground mining resumes at 50% of capacity
  • health and safety precautions remain in place
  • strong balance sheet allows for continued caution
  • South Africa moves to
lockdown level 3
  • underground mining resumes
at 100% of capacity
  • health and safety precautions
remain in place
  • strong balance sheet allows
for continued caution

South Africa moves to lockdown level 2

  • perations back at
full production
  • Health and safety precautions
remain in place
  • 1.9% of workforce tested positive
  • 3 cases out of 52 still active
  • no fatalities
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SLIDE 21 PAGE

RESPONSE TO COVID-19

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Staff contribute R1.6 million to national-wide COVID-19 Solidarity Fund

BEYOND OUR GATES

The MSE Initiative Support for 5 422 families in need

Our Broad Based Livelihoods programme (urban farming, entrepreneurship development) continues
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SLIDE 22 PAGE

LOOKING AHEAD

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ERGO FAR WEST GOLD RECOVERIES GROUP PRODUCTION, COST GUIDANCE

Positioned well to ramp up to full production under COVID-19 Level 2 regulations with priority

  • n health and safety of staff

and the business Phase 2 advanced to the planning and permit application processes with growth prospects and opportunities within the Sibanye-Stillwater portfolio Gold production of between 165 000 and 185 000 ounces Focus on power storage for resilient capacity in terms of both power supply and quality, whilst expanding environmental clean-up for sustainable land use, reduced pollution and support of neighbouring communities Cash operating cost

  • f ~R535 000/kg
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SLIDE 23 PAGE PAGE 23

DETAILS

CONTACT

Shareholder data (Incorporated in the Republic of South Africa) Registration No.1895/000926/06 JSE share code: DRD ISIN: ZAE 000058723 NYSE share code: DRD Registered office Corporate Office Park Cycad House, Building 17 Cnr 14th Ave / Hendrik Potgieter Road Weltevreden Park 1709 PO Box 390 Maraisburg 1700 South Africa Niël Pretorius, CEO Riaan Davel, CFO 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 James Duncan, investor relations Email: james@rasc.co.za