DRDGOLD Ltd (NYSE:DRD, JSE:DRD, OTC:DRDGF) CEO Niël Pretorius spoke with Proactive's Stephen Gunnion to shed light on the company's financial performance in the first half, which saw a 12% revenue increase and the declaration of an interim dividend for the 17th consecutive year.
This interview not only explores DRDGOLD's recent financial achievements but also delves into its forward-looking investments, including a significant push towards renewable energy and the expansion of its gold recovery operations.
SG: Niël, DRDGOLD has reported a notable 12% increase in revenue. What factors contributed to this growth?
NP: The primary driver behind our revenue growth was a firmer gold price. Despite some operational challenges, including lower gold production and throughput, the higher gold prices played a significant role in boosting our revenue figures.
SG: Can you elaborate on the challenges that led to a 7% reduction in gold production?
NP: Certainly. We faced delays in commissioning two high-volume sites due to community issues and delays in obtaining regulatory approvals. However, we managed to offset some of the production shortfall by sourcing tonnes from a number of legacy and clean-up sites.
SG: DRDGOLD is also making significant strides in sustainability and efficiency. Could you discuss the advancements in this area?
NP: Absolutely. We're committed to enhancing our sustainability efforts, which include the completion of a new solar plant by the end of March, followed by a battery storage system in October. These initiatives are not just about sustainability; they also aim to achieve cost savings and ensure supply consistency.
SG: Looking ahead, what major investments is DRDGOLD planning?
NP: Our next major capital investment is in phase two of the Far West Gold Recoveries. This phase will double our plant capacity and involves constructing an 800 million tonne Regional Tailings Storage Facility. We're close to obtaining the necessary regulatory approvals and are excited about the potential this project has for our future growth.