Drdgold Ltd.

Drdgold Ltd. is a junior gold producer headquartered in Johannesburg, South Africa, operating primarily in South America. The business model centers on large-scale, mechanized, on-surface reclamation of historical tailings deposits, positioning the organization as a leader in this specialized field. Operations are technology-driven, utilizing high-pressure hydro-mechanical mining and carbon-in-leach metallurgical processes to achieve high extraction efficiencies from low-grade material. A key operational characteristic is the use of an extensive pipeline network to transport material, with processing plants capturing approximately 40,000 distinct data inputs per minute to maintain stable-state performance. The enterprise's approach is inherently circular, as it generates no new waste, reprocesses existing mine residue, and conducts concurrent rehabilitation to restore land for productive use. This model is further supported by a closed-circuit water system that relies predominantly on recycled and grey water sources, minimizing the consumption of potable water and enhancing operational resilience.

Strategic direction is centered on asset optimization and sustainable development, with a long-term vision to expand and diversify the business by providing solutions for mine waste. Near-term priorities involve a significant capital investment program to expand throughput and deposition capacity at primary operations, funded largely through internal cash flows. This expansion is designed to extend operational life and establish the infrastructure required to substantially increase processing volumes. Growth objectives include replicating the established business model to encompass other metals and consolidating additional tailings operations. The capital allocation philosophy supports this growth while aiming to maintain a strong balance sheet and a consistent record of dividend payments. Operational strategy emphasizes the use of technology and data integration to enhance efficiencies, optimize resource recovery, and minimize environmental impact, embedding resilience across all business functions.

Executive leadership is headed by a Chief Executive Officer with 25 years of experience in the mining industry, who also serves on the boards of the Minerals Council and the World Gold Council. The unitary board is composed of 9 directors, of whom 6 are independent non-executive members, ensuring a clear balance of power and authority. A lead independent director supports the non-executive chairman. Governance is structured around King IV principles, with oversight delegated to specialized Audit, Risk, Social and Ethics, Nominations, and Investment committees. An external evaluation of the board, its committees, and its chairman was conducted in 2024. A recent restructuring of the senior management team promoted two operational heads with nearly 60 years of combined experience to group-level portfolios, a move designed to expand the reach of key skills and support the execution of major projects.

The organization's sustainability approach is integrated into its core business model of reversing the environmental legacy of mining. A key climate action initiative is the development of a 60MW solar PV facility integrated with a 160MWh battery energy storage system, which will significantly reduce the carbon footprint and operational costs. Water stewardship is demonstrated through a closed-circuit water system that minimizes reliance on potable water, which constitutes less than 5% of total consumption, by maximizing the use of recycled and grey water sources, including treated acid mine drainage. Social development programs focus on creating self-sustaining livelihoods and educational opportunities, highlighted by a Broad-Based Livelihoods initiative that has established 215 learning groups and a program supporting maths and science education for local learners. Workplace safety is managed through an integrated risk management system, although one fatality was recorded in the past year following 5 years without such an incident.

The corporate structure is defined by a majority ownership stake of 50.1% held by Sibanye-Stillwater Limited, with an additional 26.2% of shares held through The Bank of New York Mellon as American Depositary Receipts. The group operates through two wholly-owned subsidiaries, Ergo Mining Proprietary Limited and Far West Gold Recoveries Proprietary Limited. A key structural event was the 2018 acquisition of the Far West Gold Recoveries assets from Sibanye-Stillwater, which established the current operational footprint and the significant shareholding relationship. This relationship provides opportunities for intra-group growth through access to the majority shareholder's non-core surface assets. The company also maintains a strategic partnership with the Wits School of Chemical and Metallurgical Engineering, established in 2017 and renewed in 2022, to fund research aimed at improving operating efficiencies.