DRDGOLD Limited said it has concluded definitive feasibility studies for a 'huge' tailings retreatment investment at its Far West Gold Recoveries (FWGR) project west of Johannesburg.
Together with power generation and storage projects at its Ergo Mining Operations on the eastern Witwatersrand, the South Africa-focused mine tailings specialist told investors that the economies of its operations will improve, while reducing its carbon footprint.
“The company continues to literally change the face of South Africa,” chairman Geoff Campbell said in the company’s 2021 annual integrated report.
“We are moving almost 30 million tonnes of dump material every year. That equates to a tonne of material, every second of every day. It is being moved away from residential areas where it has the potential to spread dust and cause other environmental hazards to a safe and contained facility.
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“We operate some of the biggest tailing facilities in the world to contain the material that we treat,” he added.
Campbell said the company achieved exceptional financial results for the 12 months to June 30, due to the combination of a solid operating performance and the high gold price.
It was placed first at the Top 100 Companies awards in the widely-read Sunday Times newspaper last year for the company that generated the highest return to shareholders compared to other companies listed on the Johannesburg Stock Exchange, he added.
The company reported an operating profit of 2.17 billion rand for the year, generating free cash flow of 1.13 billion rand. It paid out 640.9 million rand in dividends, its 14th year of uninterrupted dividend declaration while investing 395.7 million rand in capital projects.
Over the year, it completed a copper elution plant at its FWGR and spent 105 million rand on environmental management and 87.6 hectares of land were lodged with the National Nuclear Regulator for approval for redevelopment. It also spent 48.9 million rand on social and economic development in 25 communities
“DRDGOLD has been very disciplined in its capital investment strategy to provide both resilience during the downcycle and opportunity during the upcycle,” CEO Niël Pretorius said.
The company said its short-term strategic outlook will continue to focus on Ergo and FWGR to set the operations up for the next growth phase.
“The business will achieve this by ensuring cash generation, cost control and efficiency, as well as obtaining regulatory approvals for the development of solar photovoltaic and battery storage facilities,” the company said.
“The company will also look to obtain regulatory approvals for Ergo and FWGR for the Withok Tailings Storage Facility extension and the Regional Tailings Storage Facility building respectively."
DRDGOLD is majority-owned by Sibanye-Stillwater, a major platinum group metals (PGMs) and gold producer.
Contact the author at stephen.gunnion@proactiveinvestors.com