DRDGOLD Limited (DRD) Bundle
A Brief History of DRDGOLD Limited (DRD)
Formation and Early Years
Formation and Early Years
DRDGOLD Limited was formed in 1895 and has its origins in the mining industry of South Africa. It is primarily focused on the extraction and processing of gold from the surface, particularly from tailings dumps. The company was listed on the Johannesburg Stock Exchange (JSE) under the ticker symbol DRD.
Significant Milestones
- 1996: DRDGOLD was established following the merger of several mining companies.
- 2004: DRDGOLD acquired the assets of several other gold mining companies, expanding its operational footprint in South Africa.
- 2013: The company undertook a significant restructuring to focus on surface gold recovery.
Financial Performance
In the financial year ending June 30, 2023, DRDGOLD reported a revenue of ZAR 2.55 billion. The company’s operating profit for the same period was ZAR 565 million.
| Financial Metric | 2023 | 2022 | 2021 |
|---|---|---|---|
| Revenue (ZAR) | 2.55 billion | 2.36 billion | 2.12 billion |
| Operating Profit (ZAR) | 565 million | 475 million | 410 million |
| Earnings per Share (ZAR) | 1.23 | 1.15 | 0.98 |
| Market Capitalization (ZAR) | 3.1 billion | 2.8 billion | 2.5 billion |
Operational Highlights
As of 2023, DRDGOLD operates the Ergo and Far West Gold recoveries, processing more than 1 million tons of material monthly. The company employs around 1,500 people across its operations.
Stock Performance
As of September 2023, DRDGOLD's stock price was ZAR 12.50 per share, reflecting a market capitalization of approximately ZAR 3.1 billion. The stock has gained approximately 20% over the past year.
Environmental and Social Responsibility
DRDGOLD emphasizes environmental sustainability and is involved in various rehabilitation projects. The company spent ZAR 35 million on environmental management initiatives in 2023.
Future Outlook
DRDGOLD aims to increase production by 10% by 2025, focusing on improving operational efficiencies and exploring additional tailings resources.
A Who Owns DRDGOLD Limited (DRD)
Ownership Structure
Ownership Structure
As of the latest available data, DRDGOLD Limited (DRD) has a diverse ownership structure comprising institutional and retail investors. The significant shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 55% | 150,000,000 |
| Retail Investors | 30% | 80,000,000 |
| Company Insiders | 15% | 40,000,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of DRDGOLD Limited:
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| BlackRock Inc. | 10% | 27,000,000 |
| The Vanguard Group, Inc. | 9% | 24,000,000 |
| Fidelity Investments | 6% | 16,200,000 |
| JPMorgan Chase & Co. | 5% | 13,500,000 |
| HSBC Holdings PLC | 4% | 10,800,000 |
Directors and Executives
The executive team and board of directors also hold a significant portion of shares, thus impacting company decisions:
| Name | Position | Shares Owned |
|---|---|---|
| Niresh Singh | CEO | 5,000,000 |
| Graham S. B. Baird | Chairman | 3,000,000 |
| Christine M. S. M. Munro | COO | 2,000,000 |
| Marc A. A. Cormack | CFO | 1,500,000 |
Market Capitalization
As of the latest financial reports, DRDGOLD Limited has shown a market capitalization of approximately:
- Market Capitalization: $500 million
Stock Performance
Recent stock performance statistics indicate:
- Current Stock Price: $5.00
- 52-Week High: $7.00
- 52-Week Low: $4.00
- Year-to-Date Return: -10%
Dividend Information
DRDGOLD Limited has provided the following dividend information:
- Annual Dividend: $0.50
- Dividend Yield: 10%
- Dividend Payout Ratio: 30%
Recent Financial Performance
The recent financial highlights of DRDGOLD Limited are as follows:
| Financial Metric | Amount (USD) |
|---|---|
| Revenue (Last Year) | $250 million |
| Net Income (Last Year) | $50 million |
| Total Assets | $300 million |
| Total Liabilities | $100 million |
| Shareholders' Equity | $200 million |
DRDGOLD Limited (DRD) Mission Statement
Overview of DRDGOLD's Mission
DRDGOLD Limited is committed to being a leader in the recovery of gold from tailings. The company aims to create value through sustainable practices, innovative technology, and responsible stewardship of the environment.
Core Values
The mission of DRDGOLD revolves around several core values:
- Sustainability: Focused on environmentally friendly and sustainable mining practices.
- Innovation: Continuous investment in new technologies and processes to improve recovery rates.
- Community Engagement: Commitment to the socio-economic development of communities surrounding its operations.
- Safety: Ensuring a safe working environment for its employees.
Financial Performance
The financial performance of DRDGOLD is pivotal in achieving its mission. The following table summarizes key financial figures from the past fiscal year (2023).
| Financial Metric | Value (in ZAR) |
|---|---|
| Total Revenue | 4.9 billion |
| Operating Profit | 1.4 billion |
| Net Profit | 970 million |
| Earnings per Share (EPS) | 2.45 |
| Market Capitalization | 12 billion |
Environmental Responsibility
DRDGOLD emphasizes its environmental responsibility through initiatives such as:
- Water Management: Investment in water treatment facilities to minimize water usage.
- Energy Efficiency: Implementation of renewable energy sources, aiming for a 30% reduction in carbon emissions by 2025.
- Waste Management: 95% of waste materials are recycled or reused.
Stakeholder Engagement
Engagement with stakeholders is crucial for DRDGOLD, which includes:
- Investors: Regular financial updates and transparency in operations.
- Employees: Comprehensive training programs and safety workshops.
- Local Communities: Initiatives aimed at education, health, and local economic development.
Technological Advancement
DRDGOLD invests significantly in technology to achieve its mission, focusing on:
- Tailings Recovery Technology: Innovative processes for improving gold recovery rates by up to 30%.
- Data Analytics: Utilization of big data for operational efficiency and predictive maintenance.
- Automation: Implementation of automated systems to enhance safety and reduce operational costs.
Future Goals
The company aims to enhance its mission by setting the following long-term objectives:
- Increase Gold Production: Targeting a production increase of 10% annually over the next five years.
- Expansion of Operations: Exploring opportunities for acquiring additional tailings resources.
- Community Investment: Committing ZAR 200 million over the next three years towards local community projects.
How DRDGOLD Limited (DRD) Works
Company Overview
Company Overview
DRDGOLD Limited, trading on the Johannesburg Stock Exchange as DRD, focuses primarily on the recovery of gold from tailings. As of October 2023, the company operates in the East Rand region of South Africa.
Operational Model
DRDGOLD utilizes a process of surface mining whereby it extracts gold from previously mined areas. The company’s operations are characterized by:
- Processing of tailings through its advanced metallurgical plants.
- Utilization of low-cost extraction methods.
- Focus on environmental sustainability and responsible mining practices.
Production Statistics
For the fiscal year ended June 2023, the company reported the following production metrics:
| Metric | Value |
|---|---|
| Gold production (Kg) | 9,796 |
| Gold recovery rate (%) | 40.3 |
| Operating profit (ZAR millions) | 1,200 |
Financial Performance
As per the latest financial report for the year ending June 2023, DRDGOLD's financial highlights are as follows:
| Financial Metric | Value (ZAR millions) |
|---|---|
| Revenue | 4,500 |
| Net profit | 600 |
| Cash and cash equivalents | 1,200 |
| Total liabilities | 1,000 |
| Earnings per share (ZAR) | 1.30 |
Market Positioning
DRDGOLD holds a significant position in the South African gold mining sector, with a market capitalization of approximately ZAR 6 billion as of October 2023. The company's shares are actively traded and have shown a, 12-month price performance of:
| Period | Share Price Performance (ZAR) |
|---|---|
| 1-Year High | 24.50 |
| 1-Year Low | 12.50 |
| Current Share Price | 21.00 |
Environmental and Social Responsibility
DRDGOLD is committed to reducing its environmental footprint. The key initiatives include:
- Rehabilitation of mining sites.
- Water management systems in place.
- Community development programs valued at ZAR 50 million annually.
Future Outlook
Looking forward, DRDGOLD has outlined targets for the next fiscal year:
- Projected gold production increase of 10%.
- Further investment in technological advancements totaling ZAR 300 million.
- Expansion of tailings processing capacity.
How DRDGOLD Limited (DRD) Makes Money
Gold Production
DRDGOLD Limited primarily generates revenue through the processing of gold-bearing materials. In the financial year ended June 30, 2023, the company reported gold production of approximately 12,500 kilograms (or 402,000 ounces), contributing significantly to its revenue stream.
Revenue Breakdown
The total revenue for DRDGOLD in the 2023 financial year was ZAR 6.4 billion (approximately USD 425 million), with the majority derived from gold sales. The average gold price per ounce sold was approximately USD 1,860.
| Revenue Source | Amount (ZAR) | Percentage of Total Revenue |
|---|---|---|
| Gold Sales | 6,200,000,000 | 97% |
| Other Income | 200,000,000 | 3% |
Cost Structure
The total production cost for DRDGOLD in 2023 was approximately ZAR 5 billion (around USD 330 million). Key components of the cost structure include:
- Mining and Processing Costs: ZAR 3.5 billion
- Administrative Expenses: ZAR 1 billion
- Other Costs: ZAR 500 million
Profitability Metrics
The operating profit for DRDGOLD in the same period was reported at ZAR 1.4 billion (approximately USD 92 million). The net profit margin stood at around 22%.
| Metric | Amount (ZAR) |
|---|---|
| Operating Profit | 1,400,000,000 |
| Net Profit Margin | 22% |
Investment in Technology
DRDGOLD is heavily investing in technology to enhance its operational efficiency. In 2023, the company allocated approximately ZAR 500 million towards technological upgrades and automation processes.
Geographic Focus
DRDGOLD primarily operates in the Gauteng province of South Africa, focusing on surface retreatment of tailings from previous mining operations. This geographic focus allows for lower-cost production and reduced environmental impact.
Future Outlook
Looking ahead, DRDGOLD projects an increase in gold production of approximately 5% in the next fiscal year, aiming for 13,125 kilograms (or 422,000 ounces) of gold. The anticipated average gold price is expected to be around USD 1,900 per ounce.
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