Niël Pretorius Chief Executive Officer 121 Mining Investment Conference Cape Town 3-4 February 2020 Page
amongst JSE’s TOP PERFORMERS in 2019 Page
JSE 1 000 800 600 400 200 Apr 2019 Aug 2019 Dec 2019 6 NYSE 5 4 3 2 1 Page
GROUP STRUCTURE WORLD 50.1% 49.9% LEADER Other shareholders Sibanye-Stillwater in gold production from surface tailings retreatment 100% Only South African gold producer 100% focused exclusively on this FWGR ERGO Page 4
MINING WHERE THE SUN SHINES No underground mining risk Page Page 5
AT 30 JUNE 2019 SIZE Resource Reserve EASILY ACCESSIBLE 9.8Moz 5.8Moz surface up 34% up 76% year-on-year year-on-year stockpiles Page 6
WHAT WE DO Recovered water reused TAILINGS Brakpan TSF Ergo plant Driefontein 4 Knights plant Extensive pipeline infrastructure TSF DP2 plant Gold doré bars Land for Rehabilitation redevelopment Page Page 7
MECHANISED Small, highly skilled workforce Fit-for-purpose plants Page Page 8
REHABILITATION THROUGH MINING Hundreds of hectares cleared for development Page Page 9
TWO OPERATING FOOTPRINTS FWGR ERGO Page Page 10
STABILITY Ergo Page Page 11
GROWTH FWGR Page Page 12
STRATEGY Profitably and sustainably mine large surface gold resources Improving the quality of life of Key differentiator our communities Established pipeline and infrastructure with growth Key differentiator prospects Substantial contribution to the societal needs Growing our business through rehabilitation, poverty alleviation and Key differentiator youth education • Proven technologies and tailings reclamation track record Being serious Using technology to minimise • Strong anchor shareholder with about employee economies of scale impact on the environment wellbeing • Low gearing Key differentiator Key differentiator Substantial contribution to environmental needs • Exciting medium and long term prospects through rehabilitation of land integrated in core Low labour intensity and through diversification and innovation business strategy safety risks Page 13
PERFORMANCE IN 2019 FINANCIAL 11% 5% 4% 12th R279.5m increase in revenue increase in operating profit rise in all-in consecutive year of cash balance at year end, to R2 762.1 million to R371.8 million sustaining costs dividend payment borrowings fully paid at year end OPERATIONAL ENVIRONMENTAL 6% 0.197g/t 21% R45.8m 135.5ha rise in production yield decline in externally spent on rehabilitation land clearance received to 4 977kg sourced potable water for redevelopment usage GROWTH SOCIAL R17m FWGR transaction effective – increasing Mineral Reserves from 3.28Moz to 5.77Moz spent on skills and development projects for local communities Invested R330.7m in new capital infrastructure and refurbishment of FWGR Phase 1 which was in production within four months Page 14
PRODUCTION UPDATE, TRADING STATEMENT: for the six months ended 31 December 2019 vs 31 December 2018 33% increase in gold 69% production to 3 037kg 26% increase in revenue to R2 111.4 million increase in average Rand gold price received Interim results FWGR expected to be released on EPS between first period of 12 February 2020 47.78 and 49.22 cents full production Page 15
GROWING CASH POSITION R543.4 million cash and cash equivalents 31 December 2019 Page Page 16
NO DEBT R192m 0 during FY2019 31 December 2019 Page Page 17
Longest, uninterrupted DIVIDENDS of any South African gold mining company and JSE Top Five performing company in 2019 Page Page 18
GUIDANCE GROUP PRODUCTION, FAR WEST GOLD ERGO COST GUIDANCE RECOVERIES Benefit of attaining Gold production of steady-state operations between 175 000 and Full benefits of from Phase 1 190 000 ounces completed expected to show capital projects expected to show Cash operating cost Advance of planning of ~R490 000/kg for Phase 2 Page 19 Page
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 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. Page Page 20
CONTACT DETAILS Registered office Shareholder data Niël Pretorius, CEO James Duncan, investor relations 1 Sixty Jan Smuts Building (Incorporated in the Republic of South Africa) Riaan Davel, CFO Tel: +27 (0) 11 880 3924 2nd Floor - North Tower Registration No.1895/000926/06 Tel: +27 (0) 11 470 2600 Email: james@rasc.co.za 160 Jan Smuts Avenue JSE share code: DRD Fax: +27 (0) 86 524 3061 Rosebank ISIN: ZAE 000058723 Email: niel.pretorius@drdgold.com 2196 NYSE share code: DRD riaan.davel@drdgold.com PO Box 390 Website: www.drdgold.com Maraisburg 1700 South Africa Page
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