DRDGOLD (DRD) - 2024 Q4 - Annual Report

Financial Performance - Revenue increased by 14% to R6,239.7 million, driven by a higher average Rand gold price received[19] - Operating profit rose by 14% to R2,081.3 million, reflecting improved operational efficiency[19] - Headline earnings per share increased by 4% to 154.1 cents per share, indicating stable profitability[19] - Cash operating costs increased by 20% to R833,536 per kg, impacting overall cost management[19] - All-in sustaining costs margin was reported at 24%, highlighting the cost pressures faced[19] - Income tax expense decreased significantly by 77% to R72.5 million, indicating improved tax efficiency[19] - The company achieved 93% of its planned gold output despite missing its volume throughput target by 17%[25] - The all-in sustaining costs margin increased by 18% year-on-year[25] - Free cash flows generated were R(1,197.4 million), a decline from R469.1 million in FY2023[78] - Market capitalization as of June 30, 2024, was R13.6 billion, a decrease from R17 billion in FY2023[78] Production and Capacity - Gold production decreased by 5% to 5,002 kg, with volume throughput also down by 3% to 22.3 million tonnes[19] - The company processed 18% more tonnes of slurry and produced 20% more kilograms of gold compared to the previous year[25] - The company aims to increase combined throughput capacity from 2.15 million tonnes to 3 million tonnes per month, and gold production capacity from 5.3 tonnes to approximately 6.3 tonnes per year[29] - The company produced 5,002 kg of gold, generating revenue of R6,239.7 million, an increase from R5,496.3 million in FY2023[76] - Monthly throughput capacity is targeted to reach 2.15 million tonnes in the short term, with an annual gold production goal of 5.0 tonnes[149] - DRDGOLD aims to achieve an annual gold production of 6.3 tonnes by FY2028, up from the current production levels, with a combined monthly throughput target of 3 million tonnes[118] Capital Investment and Expenditure - The total capital investment required for Vision 2028 is estimated at approximately R10 billion over the next four years[29] - A R2 billion facility has been secured with Nedbank Limited to support operational cash flows and project financing[29] - Capital expenditure in FY2024 was R2,985.7 million, significantly higher than R1,145.2 million in FY2023[63] - A total capital investment of R3.5 billion was made during the year[128] - The total capital investment required for the strategic plan is estimated at approximately R10 billion over four years, primarily funded from internal sources[118] Safety and Environmental Impact - Fatality rate recorded at one, with a lost time injury frequency rate of 1.15, emphasizing safety performance[19] - The company emitted 325,607 tonnes of CO2 equivalent, a reduction from 368,000 tonnes in FY2023[76] - The company is focused on reducing carbon emissions and electricity costs through renewable energy alternatives[149] - The company aims to reduce potable water consumption to 10% or lower of total water usage[133] - DRDGOLD aims to reverse the environmental legacy of mining, focusing on responsible tailings management and energy efficiency[159] Dividends and Shareholder Returns - Dividend declared per share was 40 cents, maintaining a 17-year uninterrupted dividend declaration record[19] - Dividends declared for FY2024 were 40 cents per share, down from 85 cents per share in FY2023[78] - The company has maintained a dividend record of 17 consecutive years while managing its balance sheet conservatively[29] Strategic Initiatives and Future Plans - The company is developing a 60MW solar PV facility with a 160MWh battery energy storage system, expected to be completed by October 2024[79] - The company aims to process 3 million tonnes of material per month by FY2028, enhancing its reclamation and deposition capacity[62] - DRDGOLD's strategic plan includes expanding its operations to include PGMs and battery metals, aiming to replicate its successful business model[118] - The company is implementing a new mega tailings storage facility (TSF) to consolidate regional TSFs and ensure compliance with world-class standards[118] Risk Management and Compliance - DRDGOLD's risk management strategy is guided by an Enterprise Risk Management Framework, focusing on minimizing threats and maximizing opportunities[176] - The company has identified its top strategic risks, including limited deposit facilities and climate change impacts, with a focus on proactive risk management[188] - Cybersecurity threats have increased in ranking to 6, indicating a growing concern for the company despite existing robust controls[194] - The company emphasizes a strong risk culture, encouraging employees to take ownership of risk management within their areas of responsibility[185] Community and Socio-Economic Development - The company emphasizes socio-economic development through community engagement and employment initiatives[160] - DRDGOLD aims to create self-sustainable communities by providing skills development in entrepreneurship[161] - The company is committed to sustainable development, with ongoing efforts to reduce its environmental footprint and enhance community quality of life[113]