DRDGOLD (US:DRD)2021-02-16 20:16Financial Data and Key Metrics Changes - Revenue increased by 41% to just under ZAR 3 billion, with operating profit doubling to just under ZAR 1.5 billion compared to the previous period [5][16] - Headline earnings reached just under ZAR 950 million, resulting in a headline earnings per share of ZAR 1.11, up 129% year-on-year [5][22] - Free cash flow was just under ZAR 760 million, up 87% from the previous period [21] - All-in sustaining costs increased by 17%, while cash operating costs rose by 10% [6][17] Business Line Data and Key Metrics Changes - Gold production slightly decreased to just under 3 tonnes, with Ergo operations performing well in terms of throughput and recoveries [5][10] - Far West Gold production was slightly down, but revenue increased by 36% to just under ZAR 700 million due to higher gold prices [18] - Operating profit for Far West Gold was just over ZAR 500 million, up 43% period-on-period [18] Market Data and Key Metrics Changes - The average gold price was just under ZAR 1 million per kilo, remaining favorable for the industry [7] - The gold price is expected to remain high, but the company is preparing for potential downturns in the market [7][62] Company Strategy and Development Direction - The company is focusing on sustainable development and environmental rehabilitation, spending just over ZAR 50 million on environmental initiatives [9][35] - There is an emphasis on concurrent rehabilitation, ensuring that environmental impacts are managed throughout the mining process [9][36] - The company is exploring opportunities for expansion and collaboration within the Sibanye-Stillwater group, looking to leverage shared values and resources [57][58] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business during COVID-19, attributing success to mechanization and technology [44][47] - The company is aware of the challenges posed by electricity supply and is planning to implement solutions to mitigate these risks [49][50] - Future strategies include focusing on social investment and community resilience to address social risks and support local economies [51][52] Other Important Information - The company declared a dividend of ZAR 0.40 per share, marking the 14th consecutive year of dividend payments [5][32] - Environmental rehabilitation efforts included the rehabilitation of 52.5 hectares of tailings sites [8][36] Q&A Session Summary Question: Have you considered expanding operations internationally? - The company is open to exploring operations outside South Africa but currently has no specific plans [64][65] - There is potential to establish a role in tailings management as a service provider, focusing on concurrent rehabilitation [66][68]