DRDGOLD (NYSE:DRD) - Gold Recovery From Historical Tailings

May 16, 2025

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Interview with Niël Pretorius, CEO of DRDGOLD Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/sustainable-gold-silver-producers-showcase-new-value-creation-model-6117

Recording date: 13th May 2025

DRDGOLD Limited (NYSE:DRD) has established a distinctive position in the gold mining industry with its innovative approach of recovering gold from historical mine tailings rather than conventional underground mining. This South African producer combines environmental remediation with profitable gold production in a waste-neutral business model that's proving particularly effective in today's strong gold market.

Under CEO Niël Pretorius's leadership, DRDGOLD is executing a major infrastructure investment program to extend the operational life of its assets through 2040. The company recently completed a 60 MW solar power facility and is implementing a 180 MW battery energy storage system, addressing previous power challenges. Additional investments include new tailings storage facilities and expanded processing capacity at both its Ergo and Far West Gold Recoveries (FWGR) operations.

What stands out about DRDGOLD's growth strategy is that it remains entirely self-funded. Strong gold prices have driven record performance, allowing the company to maintain its 18-year dividend streak while simultaneously funding its capital expansion program without external financing. By FY2028, DRDGOLD targets a combined processing throughput of 3 million tonnes per month and annual gold production of approximately 200,000 ounces.

The company's ESG credentials are compelling. Rather than generating new mining waste, DRDGOLD processes legacy tailings and deposits them into modern facilities with superior environmental standards. This approach enables concurrent rehabilitation of mining sites and reduces final closure costs.

DRDGOLD's business model offers several advantages over traditional mining operations. With approximately 5.5 million ounces of gold resources already above ground in tailings, the company faces minimal geological risk. Its engineering-focused approach emphasizes processing efficiency and consistent output, functioning almost like a gold-processing factory.

The company maintains a no-hedging policy, providing investors with full exposure to gold price increases. This strategy aligns with broader macroeconomic trends supporting gold, including geopolitical tensions, inflation concerns, and growing interest in hard assets.

DRDGOLD also prioritizes organizational continuity and talent development, with nearly half its workforce now comprising women and a new generation of young professionals advancing through the ranks. This stable management team and strong corporate culture support the company's long-term vision of optimized resource recovery coupled with responsible environmental stewardship.

View DRDGOLD's company profile: https://www.cruxinvestor.com/companies/drdgold-limited