DRDGOLD Limited's management highlighted the South Africa-focused miner's environmental and sustainable credentials in a review of its performance for full year 2022, which saw output come in at the higher end of guidance.
The company released its annual integrated report (AIR) for the 12 months ended June 30, which covers the group's financial, operational and growth, environmental, social, and health and safety performance.
"Stakeholders are paying ever-increasing attention to ESG, on environmental and social delivery and governance. DRDGOLD's business model of retreating mine tailings, and its commitment to sustainable development has positioned it favourably to deliver compelling value in this regard, beyond the financial," the miner said in an accompanying release.
READ: DRDGOLD reports 1% rise in gold production quarter-on-quarter
"We remain as committed as ever to our vision of playing a meaningful and growing role in the drive to roll back the environmental legacy of mining through our various strategic focus points," chairman Tim Cumming and CEO Niël Pretorius said in a statement.
Gold production for the year was described as "satisfactory," coming in at the higher end of guidance at 5,720kg from throughput of 28.2 million tonnes. This was 3kg lower than full year 2021, benefiting gold unit costs which were in line with guidance.
"Although the Rand gold price was down from 2021, it remained favourable and was still 30% up over five years," the company said.
For the year, operating profit was R1 685.1 million, while free cash inflow of R871.6 million was generated. The company has declared a dividend for 15 years, uninterrupted.
R584.1 million was invested in capital projects, the company said, while R60.3 million was spent on environmental management and 24 hectares (Ha) of land was cleared with the National Nuclear Regulator for redevelopment.
"A part of mining that has become very prominent in the recent past, and for good reason, is tailings storage management," said Cumming and Pretorius.
"This year saw the introduction of an external tailings review panel, replacing our former review board, and ongoing enhancement of our line-of-sight management system through interactive, digital technology," they added.
DRDGOLD produces gold from discarded tailings using mostly grey water - a process that is waste neutral with a slight footprint in terms of potable water consumption. The company noted that land cleared this year takes the total area it has cleared in the last decade to 710 Ha.
The company, which is majority-owned by Sibanye-Stillwater, the major platinum group metals and gold producer, operates the Ergo Mining Operations business on the eastern Witwatersrand, and also the Far West Gold Recoveries (FWGR) project.
On its short-term strategic outlook (2022-2023), DRDGOLD said it will continue its focus on Ergo and FWGR to set up the business for the next growth phase.
"The business will achieve this by ensuring cash generation, cost control in a high-inflation environment and efficiency," the company said.
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