DRDGOLD Limited Q2 FY2024 earnings call

• Gold Price Impact: Strong gold price enabled 17th consecutive interim dividend (ZAR0.20) and revenue growth. Operating profit increased 15% to ZAR909 million. - Production and Volume Trends: ERGO faced volume delays due to site commissioning issues but is ramping up production from new sites. Far West had production challenges but recovery efforts like high shear agitators improved recovery efficiency. - Environmental Initiatives: Dust emissions reduced to 0.6% exceedances, water consumption down by ~60%, solar plant and BES system in progress for carbon emission reduction. - Plant Operations: Driefontein saw improved recovery efficiency with the high shear agitator, boosting production to 663 kilos for the half year.

ERGO: Revenue increased by 12%, operating profit rose 29% period-on-period. Gold sold was down 8% period-on-period, with costs up 12% due to continued reclamation and machine hire costs. Far West Gold Recoveries: Revenue was up 12% period-on-period, operating profit increased 4% period-on-period. Gold sold was down 8% period-on-period, with costs up 24% due to reagent use, electricity costs, and cleanup work. Revenue contribution: ERGO and Far West Gold Recoveries are key segments contributing to the overall financials.

• Cash operating costs expected to be below ZAR800,000 per kilo for the remaining 6 months. - Capital investment revised, with progress on solar plant and BES system. - Licensing and site approvals challenges but improving relationships with regulators, expecting to ramp up production from new sites.

• Regulatory and licensing complexities causing delays in site approvals. - Social dynamics and community unrest affecting project timelines. - Logistics issues with equipment importation through harbors and ports.

Q: Transcript availability?

A: Not a transcript, but the session is recorded and the presentation is on the website.

Q: Cost savings from solar plant?

A: Detailed webinars planned (first in March) to explain actual cost savings once the solar plant is fully operational and running on full capacity.