DRDGOLD Limited American Depositary Shares

Good morning, everyone. Thank you very much for joining us today for this presentation. Before we start, I just want to pause for a moment to remember a very good friend and advisor of ours, John Weber, who was, as long as I've been with the company, he was one of our professional advisors and attorney. with the firm Tiff, Becker & Hofmeyer who passed away the week before last after he was very, very sick. So we all remember him and he was a valuable, he was a dear friend and a valuable service provider. Alright, so it's a privilege again to be presenting to you today. This is the 19th time that I've been doing this. The year-end results were that I was part of the Team that presented the year-end results. Some of you were there the very first time. Many new faces. I'm joined today by my colleagues, Henriette, who's our CFO, and Yaku, who's our Chief Operating Officer. And then there are also several members of senior management who are here. So please, afterwards, we have to eat the food. It's expensive food, so we can't leave before all of it's been eaten. So please ask them questions if you want any clarification on anything. We will be around for a few minutes after the presentation. Please also just take note, there's the customary disclaimer, so there will be forward-looking statements in this presentation, and some of those forward-looking statements are based, or those forward-looking statements rather, are based on Assumptions and some of those assumptions we don't have control over. So just be mindful in the interpretation of those that there are contingents upon a number of factors that we don't necessarily control. It's been a very good year for DRD Gold. It is the 19th consecutive financial year where we'll be paying the dividends and the final cash dividend for the year is 120 cents per share which is just over a billion rand. which was roughly the market cap of the company when I first did the presentation 19 years ago and it was as a consequence of a number of factors working together and obviously in order to have the revenues and the cash flows from which you could pay this cash dividend you need the production so production was pretty teasing we managed to come in just below the 5 tons of production and 5 tons is prominent because you would have seen it in our communications when we talk about Vision 28. And what was pleasing in particular was the fact that it was roughly 5000 ounces higher than the higher end of guidance for the year. And that was because of what I thought was very smart management of the throughput mix of the material going into the mix. You'll see that we achieved an average yield of just under 0.2 gram per tonne. which was a 2% increase, so the plants were working really efficiently. Obviously the big role player this year was the increase in the gold price. and being a deliberately unhedged producer of gold. We've never hedged for the exception of a very small period of time when we needed to protect cash flows in order not to test some of the ratios that form part of a financial arrangement that we had at the time. This was in 2018 when we built Far West Gold. We've never hedged and deliberately so. So we were in a position to take full advantage of the 40% increase in gold price and that translated into revenue for the year of just over 11 billion rand, 42% increase in revenue. Cash operating costs for the year was just under a million rand a kilo, which was also better than and Guidance and a 7% increase year-on-year, which considering the number of double digit increases that form part of the cost basket of coal production in South Africa, I think was testimony to some really good cost discipline. Cash operating costs, slightly higher increase of 10% at R188 per tonne, and that is because there was a larger component of trucking that still formed part of the cost composite this year. And in the current climate, trucking your high grade material, expending the higher costs in order to truck those peanut materials and remnant materials is always a good idea because of the high grade that invariably form part of those tons. And at the current gold price, it does offer a very attractive margin. If the gold price decreases, then obviously that margin decreases. Shares Shares Shares Shares Shares Shares Shares 4.2 billion in headline earnings and 89% increase. Free cash flow, which is a very important parameter for us because as a dividend paying company, generating cash is a very important measure of internal measure of our efficiency. So to generate the 2.2 billion in free cash flow was very pleasing. That was an 85% increase and that was after capital expenditure of 3.5 billion rand for the year. Okay, we'll take you through some of the capital spent this year as well as the capital planned for the next two years. And then it's an important number to remember because we're talking final dividend of just more than a billion against free cash flow of 2.2 and capital expenditure of 3.5 billion. And remember a big part of our story of the Vision 28 story is that at some point in future, this number will is going to become considerably smaller the 3.5 capital expenditure whilst at the time hopefully that number if the gold price holds up will not have shrunk or will not have diminished significantly in fact it could be significantly higher because remember we're targeting about a ton of additional gold production these margins is the margin the cash margin these margins Division 28 Subparts So, my point number 9, that was the free cash flow. My point number 10, that's the capital expenditure. My point number 11 is on the sustainability. This did not come at the cost of our people. This did not come at the cost of the health and the well-being of our people because you see That trend is still a good one from 1.65 to 1.25, 0.8 to 0.7 on those lost injury scales and ratios. And that also is not coincidental. Obviously we are very aware of the fact that sometimes there are near misses where it's only the amount of time that you spend on your knees Sustainable development is core to our business is the usage of potable water. DGOLD Limited American Depositary Shares Carbon emissions is an important one. It's still a lot, 233,000 tonnes of carbon that went into the atmosphere because of our activities, but that's down from 303,000 tonnes of last year. And that's obviously because of the solar farm. We haven't stopped. We still have other ambitions with regards to renewable power. We've spoken about some of those in the past, but I think we're on a good trend here with the solar farm working really, really well. and we're seeing that both in the bottom line as well as in the major dividend that we're in pursuit of. I think that's what I'm going to talk to in terms of the first slide. There's obviously quite a lot more detail that my colleagues will talk about as we go forward. So you can report these numbers if you produce. And at this stage we are in an interim phase. We are in a phase where we are managing volume throughput because we need to manage our tailings dams very, very carefully in order to stay within the prescribed safety factors. Some of those are prescribed, some of them are self-imposed, but it's important that we stick to those and therefore we are not sweating our tailings storage facilities. We saw earlier this week again a report of things going wrong on the tailings dam and that is just the unimaginable from our perspective. So, tons are deliberately kept at 25 million tons between the two operations. The yields have been good, and those yields are good for two reasons. It's both the blend and also plant efficiency. Both of our plants are operating extremely well. And the big thing for us this year as well is that, excuse me, Everything that we're producing, that one part of the process where we are most vulnerable, where our products are at its most concentrated, namely when it goes into the smelthouse, that is now universally treated at our own facilities, which was a big, big milestone for us, and Jakob will talk more about that. They get to talk about all the good stuff, the numbers and all the projects and stuff, so I'll slip some of it in here and there. But anyway, the yields were good, and we saw that in the production numbers as well. That is now on the ergo side. Far West Gold, similar. DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares and some of those materials were still being dribbled into the bigger mix. And then production, bang on target, 674 kilos for the last half year and just over 1.3 tons for the financial year. And then on a group basis, these are numbers that you'll see in more detail in retorts to the numbers, but the volumes for the two operations combined DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares

So, maybe just to start off with, it's my privilege to present these excellent financial results that we have achieved during financial year 2026. Just a huge thank you from our side. I mean, we couldn't have done it if we didn't have the exceptional teams that we have in DGOLD. So, from the operational guys, straight to finance team, putting this all together and our support services. Each of us have our role to play, and I believe you've done it exceptionally well this year. Okay. If we move... Good operating, sorry. Okay. Ergo, financial results. So Ergo had an exceptional last six months to the financial year, and they increased their gold production with about 150 kilograms for six months versus the next six months, and really taking advantage of that excellent gold price that we saw in the last six months of just about 2,460,000 rands. Ergo ended their revenue at 8.1 billion Rand for financial year 2026 in comparison to 5.7 billion Rand last year. This was mostly due to the gold price increase of 40% that we already alluded to, but also a 1% increase in gold sold. Then, if we look at the cash operating costs slide, there goes overall cash operating costs increased 7% year-on-year, notwithstanding all of the things that Neil already mentioned. So, I mean, we had a massive oil price increase during the last few months. That influences our machine hire, our trucking expenses, reagent costs. We saw some exceptional high increases on carbon specifically. DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares Excellent operating profit trend that you can see there. Ergo more than doubled the operating profit from 2 billion Rand last year to 4.1 billion Rand in the current financial year. On the far west side, also a very stable operation as you could have seen from the operating trends, performing always on budget, on target, in expectations. So they increased their revenue from 2.2 billion rand last year to 3.1 billion rand in the current financial year. That was mostly due to a 40% increase in the gold price. Cash operating costs increased by 10% from $674 million last year to $744 million in the current financial year. As I already, I think I mentioned it a few times, 4West is in a different operating cycle to Ergo. It is growing, it is getting ready for this expansion project, more labour hire. It is an older plant, only two sites operating, of which one is a clean-up site, Refontine 5. This trend increase in cost is expected to continue next year until we see the upside of that Vision 2028, 1.2 million tons per month kicking in. But again, ending up in a very healthy profit margin, 1.5 billion rand to Refontine. 2.3 billion Rand in the current financial year. This is a very high margin operation, so 76% profit margin, which is exceptional operating profit margin. Just even with the increase in the gold price, this is still an operation running at 561,000 Rand per kilogram cash operating cost, and then all interest trading costs of 639,000 Rand per kilogram. So if that operation can maintain this, DGOLD Limited American Depositary Shares DGOLD Limited DGOLD Limited American Depositary Shares So if you take that interim dividend into account of 50 cents per share, we paid out 65% of our free cash flow, or we declared 65% of our free cash flow for the financial year 2026. Just then, headline earnings per share, also nice upward trend, 261 cents per share, last year to 492% in this year. This then all translated into a very healthy statement of profit and loss. If you look at that revenue line, $7.9 billion increasing to $11.2 billion. Again, just taking into account the 40% increase in the gold price, but also standing still on what Neil said. So we really did not expect to have a production year as we are. You would have seen our production guidance list quite lower than the previous year. So to achieve that 5,500 ounces is quite substantial. If you look at the cost of sales line, that increased 9% year on year. I already explained some of the increases in cash operating costs. Other than that, depreciation increased. And we had, last year, we had a big credit of 98 million relating to our challenging estimate in our provisions, which we didn't have in this current financial year. Administrative expenses and other costs, it's increased relating to our single incentive and our long-term incentive. The share price has increased. Then going into finance income, increased due to our cash balances. That's much more in this current financial year, although we didn't actually get a dividend from Rand Refinery, which was about 56 million Rand last year. So that cash balance increase would have looked even better if we had that 56 million dividend from Rand Refinery again. Finance expenses mostly relate to our unwinding on our provision for environmental rehabilitation. That takes us then to very healthy profit before tax of $5.9 billion in comparison to $3.1. Income tax, quite a big line if you look at that. Most of that relates to deferred tax, which I'll just stop on the balance sheet. But we also paid about $490 million in tax, mostly relating to ERGO due to the profitability of that operation and the immediate cap that we actually used during the year. Statement of profit of the balance sheet. Excellent balance sheet. Again, date-free. I don't think we thought in 2024 when we actually undertook this debt facility at MedBank, that we would be in the position that we are in today. But yeah, standing still on property, plant and equipment, nice increase, 8.5 billion loss year to 11.9, showing that 3.5 billion reinvestment in capital that we incurred mostly for Vision 2028. Investments in rehabilitation and other funds increased nicely with our interest. Maybe just to highlight, included in there, or most of that balance, actually is our guardrails and cell captives, that's ring things for rehabilitation. During the current year, we actually celebrated going over the 1 billion Rand mark for that environmental trust fund, which is an amazing achievement. If you look at other investments, most of that relates to our 11% investment in Rand Refinery, which is measured at fair value. We had a 220 million uplift in fair value that went through that account. Cash and Cash Equivalents Other Current Assets Fairly Stable Year-on-Year Maybe just to highlight that included in that balance, we've got $117 million receivable from Subania, which relates to the proof to dump transfer. So we expect to receive that money regarding the environmental trust funds as soon as all regulatory approvals have been obtained. In moving over to liabilities, provision for environmental rehabilitation, that increase that you see there from 558 million to 721. mostly relate to updated quotes that we got for demolition that was quite more substantial than what we expected, but then also the expansion on the OOS side. So DD2, doubling up that plant, and the RTSF increased that balance quite substantially. DGOLD Limited American Depositary Shares Included in that balance is actually a rate change, so our weighted average rate for ergo increased from 25% to 27%, and then on the four-way side from 29% to 30%, that had a $150 million swing in that line. Current liability is fairly stable, increasing a little bit just due to our accelerated capital spend. If we move over to the cash flow statement, and what a beautiful statement this is. Net cash inflow from operating activities, 3.5 billion last year to 5.7 this year, mainly driven by that cash generated from the operations of 6 billion rand. Finance income received, so there you can nicely see the increase in finance expenses DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares in the past 20 years anyway, the biggest capital reinvestment program that we have done in one year. So quite substantial amount. Then environmental rehabilitation payments, although small, we're very proud of always continuously, concurrently rehabilitating our mining sites. So that is money spent on the Brakpan, on cladding on Brakpan and on our Drieferntein facilities. And then proceeds from assets held for sale. I'm sure you're already all aware of the NOA that we sold NOA in December. So that's just the proceeds that we received from that sale. Dividends paid, that's $780 million, relate to our final dividend that we paid last year of $0.40 and our interim dividend of $0.50 that we declared earlier this year. ending up in an increase of 1.5 billion rand to a closing cash-in-cash equivalence balance of just under 2.8 billion rand. I'll hand over to Yaku to take us through Vision 2028.

Thanks everybody. I would just like to agree with what Henrik has just said to the operational staff and even our contractors and our consultants all the way through to the board. I think everybody right from the cleaning staff to the top to the board, everybody had to fire on all cylinders to achieve the results. It feels like you've got to celebrate the wins. So hopefully this feels like the Springboks will win on Saturday 50-0. So that's the feeling we get here. But yeah, it's a privilege to present the operational results to you of everybody's hard work. That's just a picture of Dagafontein, which we'll speak to just now. So just to remind you of the five projects, DAGAFONTAIN I'll talk about that a little bit later on. And that is at an estimated cost of about half a billion rand. And that is to reduce the deposition capacity or deposition rate onto Brakman by approximately 750,000 tons per month. Second one, at Ergo, I'm going to jump to number five. is VTOK, so the VTOK tailings dam, that one is still in the authorization phase, and the purpose of that one is for us to get off the Brockpond tailings dam in totality, in conjunction with ERGO, and to then maintain the deposition capacity for the ERGO operations, and that is at approximately 3 billion rand. 2, 3 and 4 is actually one project with three different legs to it. The first one is the DP2 plant expansion and that is essentially doubling up of the existing capacity of 600,000 tonnes to 1.2 million tonnes and we'll talk a little bit about that and that's at an estimated 1.9 billion tonnes. Then the pipelines for BP2 to RTSF, that's the deposition site, but then also the Lebanon Reclamation Station. In total, approximately 135 kilometers of pipeline, and then that is at a cost of 1.2 billion. And then the RTSF, which I think you all know about by now, one of the biggest, largest tailings dams constructed on a liner in the world. 800 million tons facility we approximately 2 thirds through the construction of this facility but again we'll go through that at a cost of about 3.4 billion alright so just an update quickly At Erdang, Dagafontein, as I've mentioned to you, I'm very proud to say that in June we started commissioning of the tailings dam and we have achieved the rate that we expect to achieve, which is 25,000 tonnes per day, which gives us 750,000 tonnes per month. This facility gives us an additional capacity of about 120 million tonne deposition onto this facility. Together with VITOC, it will sustain our mining operation for 21 years at Irga. Now VITOC, as mentioned to you, that's currently in the authorisation phase. We've completed our public participation process. Our design engineer and his team has been approved by the Dam Safety Office and then our environmental authorisation, waste management licence as well as the water use licence has been submitted to the department and we are awaiting approval of this. We hope to obtain these approvals by the end of this year. If we can achieve that, we then aim to complete construction of the dock during 2029. and that will make sure that we then, on to VTOK, VTOK is about 310 million tons deposition capacity, so between the two of them, it will then sustain us for the last, for the 21 year life of mine of Irva going forward. On to Far West, again, very happy that we've ticked the box on DP2 plant. On the 14th of July, we commissioned the spelt house, which is one section of the plant, and also produced our first gold bar from this facility. I'm glad to see Kevin is also here. It was a gold bar, not a copper bar. And we do expect to have the balance of this plant commissioned during this quarter. Just bear in mind that once we've got this plant commissioned, it doesn't mean that we're going to immediately go up to the 1.2 million tonnes. So we're going to commission this plant move over to this plant, operate this plant, and then do some refurbishment and maintenance work on the old plant so that once RTSF is ready to take the full 1.2 million tons, we can then fire up both plants. So we will maintain that 500,000 tons per month throughput capacity until we're ready with RTSF to deposit onto that one. The pipelines, we were waiting specifically for the water use license for the Lebanon Reclamation Pump Station and that we have received during July. So another obstacle is out of the way. and we are about 95% complete with the pipelines and we can now start with the construction of the Lebanon Reclamation Station to be able to put us into a position where we can produce the 1.2 million tonnes of material to RTSF. RTSF, as of 30 June, we were about two thirds through the construction and that's the picture you can see in the background. So there you can see the black, that's the liner. This is the starter wall going around and for those of you that missed it, in July we provided the market with a full market update and we spent some significant DGOLD Limited American Depositary Shares We have mentioned during the market update that we obviously are aiming to achieve beneficial occupation a lot sooner, but depending on what the weather does and how it rains, we will then make an informed decision before we start up that facility in all earnest. It's, as I've mentioned to you, one of the biggest in the world. It provides a 35-year life of mine for the operations. and it doesn't help us compromising this facility at any given point in time. So hence being very very prudent in starting this facility up. All right, and just want to spend a little bit of time on this slide. I think what you can see here is that 2026 this year was our peak, peak capital spending here. This was also the year, a very important year for us as operational teams, and well done again to the projects team. This year we had to hit a few milestones. If we missed these milestones, we would have made it very, very difficult for ourselves to achieve the final DGOLD Limited American Depositary Shares The majority being spent obviously on DP2 expansion and then RTSF. Going forward, you can see that DP2 is very, very little, just essentially rollovers. UPFLOW REACTORS UPFLOW REACTORS RTSF Spending RTSF Spending RTSF Spending So although we are about halfway through our capital expenditure program, a very, very important year for us and as a team, very important milestones to achieve to set us up for achieving the balance of our requirements going forward. DGOLD Limited American Depositary Shares DGOLD Limited American Depositary Shares But we've made that up by bringing online QOOF2, which provides us with about 67 million tonnes, so overall increasing the mineral reserves with about four years added to the life of mine of Far West Gold Recovery. I'm going to hand back to Neil, since he's a farmer, specifically I have the sheep up there for you now.