Half Year 2025 DRDGOLD Ltd Earnings Call Transcript
Key Points
- DRDGold Ltd (DRD) reported a 28% increase in revenue to over ZAR 3.8 billion, driven by a healthy gold price and steady production.
- Operating profit surged by 74% to ZAR 1.5 billion, with headline earnings increasing by 65% to just under a billion rand.
- The company declared a 50% increase in its interim dividend, from ZAR 0.20 to ZAR 0.30 per share, marking the 18th consecutive year of dividend payments.
- DRDGold Ltd (DRD) successfully commissioned a 60-megawatt solar farm, reducing electricity consumption from external sources by 16%.
- The company maintained a strong cash position of over ZAR 600 million, without needing to utilize its credit facility.
- The Ergo operation is experiencing a shift to lower grade sites, resulting in slightly reduced yields, although this is offset by lower cost per ton.
- There was a slight increase in potable water consumption, despite efforts to reduce it over the years.
- The company faces challenges with the reconciliation of power units evacuated into the grid, affecting the clarity of cost savings from the solar farm.
- DRDGold Ltd (DRD) is throttling back throughput rates at Ergo due to mature tailings deposition capacity, impacting production volumes.
- The company anticipates falling short of its ZAR 3.5 billion CapEx guidance for the 2025 financial year, although it remains on track with long-term project execution.
Good morning everyone. Thank you very much for joining us. With me on the panel today is Riaan Davel, our CFO and Jaco Schoeman, our COO. We're going to take you through the presentation and then we'll have a short video, and afterwards we happy to take your questions.
We are doing this webinar from an overcast and rainy Johannesburg and having grown up in a farming community and having prayed for rain as often as I did. I find myself intuitively happy when it rains, but now that we have a 60 megawatt solar farm, I'm also looking out for a bit of sunshine. So, With Half sun, half rain has become my latest preference, but be that as it may, let's get into the presentation. And I'm going to go straight into the third slide where we give a summary of the highlights for the half year ending, excuse me, December '24, assuming that you've had a look at the disclaimer.
The highlights obviously for us is the fact that this is the 18th year that DRD is paying a dividend, and it's very much part of our value proposition. I
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