DRDGOLD Limited (DRD) 24 Aug 222022 Q2 Earnings call transcript

Good morning, everybody. And thank you very much for joining us for our Results Presentation for the year ended 30th June, 2022. I am Niël Pretorius and joining me is Riaan Davel, who is our Chief Financial Officer; and Jaco Schoeman, who is the Chief Operating Officer. I would like to provide a little bit of context before we kick off, just in terms of the year. It’s certainly been a year like no other.

a we we winter. made at of the almost saying, relief, it are point were where sigh We through another

in of context. deeply local to spill saw terms the Gauteng. freaking Just was into year in Beginning KwaZulu-Natal unsettling riots the of some over that we with of

what vulnerable more were reliance terms coast, of more and over of the also the the with logistics into We backdrop collapse is we an war saw just ground we transportation. uncertainty against in Globally, on how tension. and increase the in witnessing Gauteng from of international in Transnet Ukraine-Russia,

home, ever past economic blackouts, full where seen past have we strength East. like just simply et to water robbery We that never and inflation become now we the Eskom, organized have definitely been just of violent requirements different first of hardship definitely anger, particular. cetera. the economy, from operate, our and these clean call then, theft of changes Again, especially in of delivering experienced cetera, relating intensity COVID level had in let’s time seen were of our separation rampant batting in of decades, that nation. have we under the the amount the hands it’s of crime really before, increase worryingly, crimes uncertainty, experienced, else in theft, blackouts, energy anything had dirty social rather. into on saw We to America the we we and in for experienced communities interest the the have had that course, the cable et impact rain we the the, inflation in And of saw coming and warty, of we going that the, had in discontent, in out that crime accompanying many and an weather the rolling in double-digit seeing armed patterns of clean terms increase the in Closer the It’s and rates.

these way that that So the of, almost things the And enclaves, are our these a to where and mob, deal we safe. in from had navigate criminal keeping through of so crime staff all safe of, dilution assets very let’s attacks certainly and say, new, call, on dynamics sovereignty, seeing with in approach police that. there’s where were keeping and had to rise fearing different of our and where worryingly these dynamics were we to security our terms that, go

you. Coming us, see the and we of that and So as those are impacting the for informed the to plan quite terms costs production out thinking, we backdrop sharing which out how the of cost some needless that’s some that into well. say with for And think trends our you the came with panned things that I that experienced are we also to particularly our year of that also against will these were new are forward. and pleased results of in is having that year, going we

production, backdrop to When up described of on I that price. saw growth there we of against just you coming into terms that fact key the decrease slight a a in pretty in the the a scores. still getting for understanding were of things the that’s for costs revenue in what So terms and changes and highlights straight features, flat of number was the through the gold were

the we Eskom to have then price an forth. electricity relied on movement also particular there of year, throughput dynamics the a become around in opposed some being where the more we volume of are face as that challenges they supply we the annual and on But some curtailment both councils, to municipalities related of predictable those were Eskom where or into and and local the typical just rely material in certain we and on to dynamics that Now in of where instances, as units with electricity weather, increases mechanical we deal that basis areas this so correction. consequence particular also, the have

the to of due just to contribution, our terms total pay and healthy of impacted we still forward. So over pay RXXX both earn, those see seeing are healthy impacted tax forward those going operating income very delivery on in to quite consequence, citizens you this Fiscus make profit, costs, million still of you towards a still a our billion looking as can over managed while the of and by just earnings, see are also year, with value as for down healthy to that are We RX.X and XX%. and that billion, contribution entitled the very our we both bottomline at and RX.X they headline as at the contribution country

is goals business. healthy course, for We what’s in of globally. year our at will of be us, our in of women also remain then number also See one happening. starts of pleasantly surprised we of of that once in the nonetheless, It’s been unchanged mining an dividend, within the important around It’s but XX%. that the X%. paying one transformation healthy terms last XXth that of this key happening little the a set And context downward a virtually a that of and year, dividend industry and

have million rising more against been at one the ESG the construction detail a of that little the been of more during this, getting into. the looked area, has a been much but spend, the increase bottom think road bit some nutshell, It it’s slight might of also years’ performance of of we into measure two more our areas the When discontent, getting they more part. be we there’s to to and we elaborate also in less the which a little it’s or And don’t terms pretty then Socio-economic been become Those on on operations. in even very will a important, and up dust. monitored, or trends. are bit also operating where own related RXX.X infrastructure and I picked so backdrop

can You the story. see

Let’s go to the first Ergo operating trends.

close The also of You of to related the tonnes. lot opposed half interruptions the especially a XX.X could XX thing the got I federal thing will fixed materials see comes of and high story A the the million cost the and impacted volume about that year that’s throughput that and and tonnes also. lot cost, comparative electricity getting a it’s lot profile. in second of a cost components the of the the some gold to encourage at very weather and had, the our million plot, because throughput, around mechanically the as of we in both and think moved dynamically period we that about to also achieving dynamically that least that through something cost for that of where the

compared with can up half with our bumping also but was and on recovery regions first parameter. tonne course, optimizing per the and of that lower find why to volume against process the and half flow This bit are a to ongoing see typically of mostly an every single value quite it’s also sort last the per also so slightly year we reporting the is about that’s focus will year, of mechanically of not Now, you previous kilos sites, hydrates, a this half first throughput, flat X.X ton basis. you look the compared the up the just they year. cleanup and that comparative do are relatively Production ton yield on at stuff here period the is wise,

where various was all what to deal to a So, in you volume at had and with in just were through. managing the in risk have rain and well stable well done important. The that weather, really Operations it the of earlier to the Ergo of in factors that’s with, we terms that that’s to looking electricity. in past managed, lot plant I think all, contained of getting the contingencies volumes referred testimony I terms operates, and work these been deal throughput, got

its West and flat does operating operation many but trends, parts, carefully not moving also eye on to and was with being a pretty keen that testimony have that’s that that Gold and of very at at to stability an brought as level Moving level. Far looked being a maintained

can And this the capacity, facility. required deposit we our in very, flat. for is ore are an at firstly, running you can So we secondly, capacity, responsible which, very are full running which obviously we And not at rate at operation body. also we the are is also Tailings of onto volume of our terms management throughput, deposition see

tanks put out, sure this producing of the the the head this overall there actually of be hence advantage introduce become Same stress by the all first circuit a full of even fraction on our that to will slightly the for the upgraded citation don’t part quarter, had year half maintaining year kilos, absorption. will plan further to better production and benefit it’s that you that, the we a those to of and terms that. So of into being year year higher and the better making new about million take grades this and CIL Tailings able the benefit also and was have in of copper tonnes year we that material have we models close X models and remember getting gold an

slightly basis, terms of tonnes the flat. In but improvement combined yield, gone by the and on you head to challenges the then extent up relatively year, higher production again, on grades XX.X see million at XX.X from million made tonnes, an operating an a could to of trends, and right end

service. at reflecting will talk So take a little to and periods bit the half so the me half then best will he of steady about demand that end you, and Riaan. of Thank you were second to through here. the back and around reporting, our second the strategy. out See that Riaan review four third and hand the ESG the broader first just financial we

morning, very Thank much, Niël. everyone, Good you my perspective. from

shedding, mentioned, high a load he day, recoveries those supply summer operational Gold seven through to west making hour sure Ergo trains teams with as again, operation. all Far pressures, year in and Letter to given day to the fall, But notwithstanding pressures, encourage day XXX results. context the further a and on I he in of In intro results. financial that has also elaborated everyone and booklet perspective, want he the and will many he results in many, from to named which financial more few our Shareholders, a the Just come echo Niël and challenges cost rain that challenges, detail XX testimony at read our it’s the week,

So always off my results on privilege then the your that basis per a look cannot keep, team things can’t and at a of eyes to present second take anything.

my the to days that result hard this testimony of of is So work produced XXX the this. and teams

the the resiliency look Ergo came at stability operating months. shining remarkable solid our and price, has the some for months tons, very the its on profit is six had net will But more XXXX within cash also these results, result yield per six faced through, very achievement. shows stable gold Niël that as very million of but received it gold of increase there, sold, with price we through, years presentation, where less it’s X% We couple in overall months well. average production, a in Ergo, sitting that by sporadic again, very, alluded flagship say context performance the less a It’s year of inventory very, Again, in can and a kilogram throughout, lower challenges you movements even from gold remarkable it operation second where account But, almost ago, the The So XX%. the down see has the that first to, operating year-on-year of X%, a RX producers. a taken remarkable to operating which it in maybe and just Ergo with close I see performance. into the costs provided production, stable maybe that of when revenue year-on-year, cost gold we that Ergo’s rand cash was stable. X% yield in six operating and tonnes again, profit, half

cost gold cyanide, year-on-year year-on-year. Niël again, of Far same X%, with supporting showing it. costs, operating in that in But Going to key Niël head DPX high showed use all up simpler we gold mentioned, a a us, actually time, our Far sold two diversification revenue Driefontein steel, sold, but pressures good year-on-year. the improvement through, marvelous West operating X% increase as there from that, performance and with through XX% of West Ergo performance, view a can came drawing consumables, with similar as gold Cash around increase up grades, increase with that described couldn’t as diesel, much completion. X% yield, selling as again, in that But, to keep year, result Tailing with it Ergo of the its nearer at gives eluting Far that the X%, maybe X gold site a the some that revenue and on in operation, and profit of at and the were And Far as again, smelting time. our operation. West, challenges this where the so a our also West point DRDGOLD we operations

operation. great Then for that and happening well-run trends really, Group the really what’s other to visiting business. It also our there to day was financial is mention. other I some So want exciting

You period an the throughout X% production operating of look although results. high margin gold you But the will throughout year-on-year down high at pressures price price, and XX% six-month year coming marvelous Ergo through. then view, yield, see point this high gold managed, of gold cost down from it’s very well that if with this

cash positive six XX% six margin, last it assisting add year slightly The financial months we So managed declined. and believe this is capital overall an to in the by second operating a than cost, months obviously, year. look more the take and stable although I decimated in if All-in at for for the the sustaining higher have a obviously, in picture, This costs very the the gold always Ergo well first we West but to you cost CapEx. year, operating months, sustaining then one yield and XX.X% helped Far price impact six expenditure. a also where very in has of is sustaining margin that of

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keep a manage margin a we RXXX.X generated the is It’s cost that that cash picture So we a of Free It into number we although that cash we the on generate, our down. obviously, that positive billion last it. heartbeat because the capital proud investing it’s also are sustaining can business, that lot RX.X you is closely that and flow business. has million. all-in is very of, we you do will any year, very than believe number the with lower

February year And that very in of then, this through and to but employees in down we more in specifically, Group. dividend much the months and decrease bringing the again, that as is As keep earnings, last interim and headline profit less of by that, proud to line through to operating contingencies seen continue is Niël as very headline seeing returning with value for six the period. in six-month are RX.XX or something it, on XX% overall, communities paying on that mentioned, then shareholders, earnings alluded $X.XX circumstances, including declared tough for to Niël the RX.XX. government, year-on-year RXX.X and that and our we alluded Niël total the our But supported of that tax return, to also that our the our capital to year, final we dividend hope

loss, through quickly profit the or running of statement the just line the and various statement income items. to Going

income I down mostly some it’s item to there, from X% XX%, getting So movements gross a line lockdown a of of as me business interruption -- a a sitting from is also our of the insurance run, showing RXX.X with odd that as a XX% in of for positive going that to a was Then Cost activities we price. from and XXXX. our March the revenue sales down inventory end business result result in governance gold again, claim million view, profit in highlight, to other -- year-on-year, gold of instituted of that well interruption overall operating getting business year-on-year. most point process up or experienced to

of. that in of part So profit down of and from alluded to tax, testimony RX.X profit more a line in which it could switched income, I we really benefits, to still then for deferred but of decommissioning And various billion, that’s again, the in we in than other proud project indicated, which time also result to parts costs of from for view, and not again, right then in well settle to again, that similar move complex from search have are are equity as increase that governance stable growth a expense destiny, all other again, opportunities both current in as through liabilities. as and year, costs. place that view, is market operating cash-based -- stop where indicator insurers and increase unwinding the a number, our we a looking for -- restoration Niël two payment for for run is to, as long got but in finalize, point the the we and a me investing our Organization had said, year-on-year. income And positive to we opportunities, and or have, the we XX%, payment covered an place. that a and And took then was claim. IT place, as of a our increase incentive we tax. But, operations insurances exploration Finance insurance and in point the costs well. business very will go share-based to we and slight plan, Finance mostly short-term

basis level are more than unique of is fact very years and many that this we value a you to concurrent in million our have I consequence position a and On me, plant aside built billion. don’t assets rehabilitation be. you and up a investments of Property, plant for value can liability, and movement happens. and of even on balance statement more have is see the than CapEx, the pleasant position, equipment, hope at over We almost balance funds, position lift what we increased and $XXX in will rehabilitate Brakpan/Withok again, that required, we other sheet, take that facility Non-current above believe, as very you that reading at on again, present If and $X the -- it mining market, I of for the -- and every we financial or of see industry is for wait which even for the assets, that if X, rehabilitation present for the of our or will there, some year rehabilitation at indicated money and at in example, to money majority the in Driefontein other that do results. the that sitting rehabilitation. that our we the the size is look a a that non-accountants proud set there’s

and of in Obviously, line, cash that RX.X now don’t one operating other tax Niël the and billion, in as liability. so that slight wait. increase will our of dividends that so and Refinery. fair net [ph]. the our then billion in RXXX Rand value, year-on-year, there’s number year, And And in possibility have reading, yes, everyone line also increases while changes inventories grow we is the rehabilitation, more a income some mentioned, consequence deferred understands for of investment It’s business, about statement. cash Deferred a tax, your for invest at also we when happens to we generate want of any tax responding pleasant that slightly So tax investments Rand going that for ways liabilities, taxable that a Example, are there your Cash lower future, the the that liability. settlement well mine And in very Far year-on-year. dust then in that timing which an in to in a that managed and will it’s to in than Refinery the or of that, X.X% received normally well also are has been increase trade current then obviously, ERGO, which And our a both of profitability managed. current healthy reduces present impact and flow biggest environmental, current and at that growth also extremely so assets year-on-year, Then Niël, assets, of from end is included being also hand very then close activities life talked equivalents And slight and in in to just it emphasize we position. ratio and more flow in million business. on also I payables of reserve exposure. maintaining. to sustaining other know income annualize prior other West. cash that again, increase the forward capital. liability will And from equity then to obviously looking off back finding has that the Ergo the the cash RX.X pay an an on measure and of than in manner statement, excellent Provision and Driefontein interest we to we possibility value lower I mineral slightly at as

manage increased and proud there, final are in exciting. number you that that’s last future business will million the RXXX and obviously to for continue to market a million guide very projects the foreseeable and is our came close dividend. see and the year’s expend, that we we And then the dividend XX% we the that that RXXX it So of the RXXX.X million year-on-year we

we dividend in and that final the February So paid RX.XX. dividend of in the of declared interim March XXXX RX.XX

CapEx And in a position, cash position the the increase So outflow. to a in a our year-on-year, in On which puts one-off increase and the marvelous continue also total on growth that, business. hand in growth business for again am for the to equivalents, one on and our cash sustaining that’s business I going keep to million on and phase CapEx opportunities XX% looking RXXX over back Niël then updates. other to -- a

Riaan. Thanks,

on So in share on We All about let me a move price pretty of a right, whether the lot then the Share of of trended talk It’s next to economic and right. slide. offer broadly in quite performance. ago, an there happen. a just share we obviously, an ESG performance we little recovery terms go. bit guess. the to interesting moment and forward. then, But theme day. were where that’s moving broadly, we gold going perhaps, from the do All going a right, of down our price more and much strategy year industry opportunity seem price, ESG, to to price at anticipation anybody’s lowering this the That’s, buying

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throughput. ounces will the And moving is and of continue it, future. some production specific invest positive to on gain share guidance take moving therefore, the the order South view element, Africa business flourish The determined looking the -- collaborate We some that you of interruptions happy up South and believe South XXX,XXX of the to so as -- of following in resilient Africa offer the -- are prosper our of in operating same in to we things slightly the So and is terms to we do strong with relying transportation, And capable depending to experience, element. the next of fuel continue nation in spoke this to a those may our we that and risk. then of of terms a terms the XX% ahead, good then one of economy, enough. approach will we in to years year, logistics, on are the with very to Africa Africa, believe that costs in need some in mostly South just gone element, for spoke consequence in on up road volume about mostly Cash that following in rising order And are both consensus many we this security are water the therefore ahead is and work. this of the collapse as people slide make of to electricity and is XXX,XXX that that things price has in with those the energy for a, has overcoming. costs, direction that society inability about transit. are We

to then in so project. storage production, in healthy, generating as project it and been terms of of of that further And mentioned, your are chunk megawatts which which expected lower XXX,XXX dams. East so, -- now of our volume West moving of a are prematurely. position in XX moving us resource material of so slightly CapEx the going month, well, the price of combining this least that’s is. is future number there the And dots further Driefontein the on and CapEx you and for take tons per reserve that a the East, will we And we plan, of gold are East that we Far all also to our still has the Once half cut big there. Riaan included of of Ergo then out but second two throughput billion that are Gold income from to eyes are mine against So eyes make mine be commissioning commissioning also exploitation going to debts. little, and three our going part the the the as are RX.X is to obviously to optimize some not see for this solar catalyst state there, -- at our where we sure pricing strategic Driefontein the slightly of and the other roughly putting we is some

is primarily collaborate with who those a to keen building all there are to in country are going terms there’s name, that about up is lots that making of be to this our mean, And with calling sure are the people. benefit that’s we not entrusted not that in they forward some organization first be we on deal the a, moving shareholders value of leave excited we by also trying then and what how benefit ultimately you the realism really funny, for we with better its are table, They remaining against. been what we are nobody and responsibly that So try of it to cynical, be it our just that with, it these And how us play identify for are and don’t things on and we have they or it stakeholders. future because its really is. forward,

then governments anticipate small terms you postural medicine, it we So into going Thank in forward. the that’s what glimpse of for very much.

your take now will questions. We

the and then looks open Riaan to able see want it just feature everything. covered are to questions. there questions. or I here chat should the be like So me we just Is I

an next the could read from evolving I I CapEx see Hello, your please -- let from same just it [inaudible] three Neil Arnold of a Arnold. one sense one you years? me see us over give business

Yes. Certainly, Arnold.

the areas key few business same years. for focus CapEx the obviously for next So

three next opening and year. retreatment, of Roy the number That’s for So Crowe, Eastern the pump for business dumps the see. is new and facts same new two in mostly certain also we those and dump program, are stations happening on focused

it’s up year of million for big former itself extract year, we the through improvements CapEx you the $XX So other was next there’s towards of to the in is purchase in that, onwards, terms and next going then and aside work not that than into lot [ph] and for tailings for this But And a financial set will a plants bought see deposition efficiencies. the RTSA dam, XXXX. next the will what some, landlady on kind of year, of then work onwards, consideration from that. from expansion called Gold’s year the some facility. be numbers the The running coming tailings expanding that also Brakpan RTSA

So years we deposition. of bought ourselves five infant

we deal XXXX. has in deposition two deposition the that with parties, the to start of While and before specifications there facility, construction regional will design start tailings years

affordable flat and expensive investment a solar some So our gives because by terms going -- bit into side. that business, making of resources part of don’t having profile at forward. it for I that less the a cost investment of you business profile more power unlocks of but staying in by We secure look suppose a it’s or the

well, extends reserves, quite years. I life think that’s of of to margin. the as next of mine, resources, Some improves It’s there for in that the going converted four your bit three a

Right. the not mean, is. for at Ergo can they once drawing at XX self power running. wheeling those pressing Eskom, not plans I substations, and am it see actually comments, at we have power forward I Are here are the of button other that similar generation the don’t individually? or megawatts looking right scope there and and I to up

conversation however, with are Sibanye-Stillwater. in We

we to collaboration have But I plans it individually, grid with will were station there. the don’t as immediate there something building and Sibanye-Stillwater. will won’t happen we at generating Martin, be our then from surplus off some build there, Ergo mean, if it of any So be we putting pump not yet. own in to happen

give a there at issue and So clearer of Nick legal issue of Dunham a am that right? what’s us say happening aware don’t red isn’t idea flag Withok I legal please [ph], Ergo of. in respect

But certain a But at are we parameter issue prospecting steps. we land not usage lie Withok Withok in of period And under of at a for and certain resource period Withok, at no have but claim to in to of we in lies portions ownership We of including new terms in it’s guiding then of And portions to have a in as land floods think undisturbed it yet. is it’s been respect opportunistic, B, time. undisturbed the portion have not for a expand are use and license, for There portion this apply provides the lies in there with we of are a common dams. water the like that legislation Withok, reserve. happy of of the provisions that size legal law order time.

it for Before you you use, a back to into put license. bring have an application

So that and processes up is running.

can to of Withok size of not this on, it’s land. itself that the and going it the we CapEx year, only is into for Whether rely forward yet half that the be is CapEx believe just tailings the of buying tailings was We upgrading about of are this three, two, about in for year. is terms in we closer was dam. year Brakpan never process. and There’s certainly incorporated we doubling part no the of seen. dam that approaching terms billion. for license the something capital a dam also for decommissioned, to capital size Incidentally, But from view for terms to terms license water And Withok there’s Far then next of doubling applying the that Withok. West expansion, are RTS if new a we for three Far year for happen in for West year its in the point much in the that for a of of usage the of of plant RX.XX And number the

We are of not yet. starting just dam any the major construction

So to West. about a billion, RX.XX it’s Far going

in from can Africa? salt same dumps a of what get depends, But on are And depending for then is it near Martin that construct converted. value be recovering you expect way just go do much how model to you internationally know, Martin water size on as a really forward, the there are I and difficult believe in suppose many is big depends remains of of rock mine to you the whether going I in It dam the be you didn’t say, capital place. of one could value dumps being and In South measure it site. how existing Sibanye-Stillwater with could to some find am there available infrastructure on fish, has Greenfield’s those of that tailings And of successfully, mining. vote. the term out pilot are you they those difficult dump it’s order a to mine a we there, sort to saying us focus the

both is retreatment, of focus would two Sibanye-Stillwater, friction been that. good future, regard. about to us be two growth the with position and not in that locally staying distant shortest by in are hopefully internationally, tangible those terms too we tailings that a for and very route there’s and in well forward They to close between in we we the conversations say them models. moving having the something have And Our towards no is aligned. And believe that

in exposure It and businesses thriving model, their of offering offering certainly thing. that as I In a into our believe can bringing of the being moving services in add is complete impacting services our part as we by a think of offering a model. that value, public context, domain rehabilitation that tailing our that commission solution, concurrent can, to six business offer it terms of more yet. seem positively that not services proposition, value can believe selling the businesses within sort do or value years non-core a is as believe be before of but that they be sort would of And more that sort the we wouldn’t CapEx And or years to we close we total being rehabilitation sentiment I that towards regard. liability I mine opposed close. just five

hasn’t domain finalized. just the over the not the estimate year, reason being in CapEx risk not that for that’s asking project been are life public model the You next

has the numbers put been finalized, once be those able it will to market. So we into

as it’s For it’s then just term, we feasibility big a, the that just domain of the reasons yet XX is for under the why as public remember, did it’s million. it near in the RXXX can And one be. next model on the months not

robust. million notion you X.X million are planning deposition sort you refer going big, as incrementally. a again be time see model of in XXX facility it’s idea to I to the of the will tailings later ton that So But of all that in or works, plant that environment, ton and but the the this not spending same implementing

it’s the first, with design of collaboration like, sort use the doubling have a that of having Driefontein with you model at Sibanye-Stillwater. works of like, the basis finalized, of X, design it’s other the improved so not the lot current liner, on but synthetic getting conditions asset a same is So environmental the the containment of or equally time the design cheaper then size synthetic Then the making in current making of use plant, but the liner means effective. over

have that, out will putting So decided those we as well. be numbers we once on

is question tax Can XXXX? slow tax for provide XXXX? for Why you you I the Sunderland please next rate guidance Riaan the of would from -- rate think the kindly [ph]. And Andy in for effective

Andy. Yes. Thanks,

obviously, we by year you good of you and determine formula, have as year impacted tax not of would the the forward for is So that for that amount the liability. but XXXX measurement obviously tax a we this guide, maybe specifically noted by goal our deferred going have know, CapEx spent then

for know, in you assumptions decrease the that the rate and tax and And impacts will gold So so it CapEx, that the Obviously, XX%. rate price over to rate from XX% estimated decrease that it’s corporate the well. And formula, rate we again, spend we where take deferred see tax Far then gold from XX% we around booklet, of decreased as detail based mine. the an that account rate, XX%. West tax updated income and as general life for then formula Ergo, also to into

alluded for tax the you we that on reserves Yes something that’s But is hopefully, how grade at to as more volume, of deal a overall life. and declining look is our Neil the as at yes, we -- your time. that give towards over So look you we yes, that deferred if then question grades with. it and given us over more well. will look sense mineral And

time, to the able That’s will volume that we at that. something in at also and it through and that growth we that market operations. with publishing sites, to time have that fewer obviously process of the managing provide about to hopefully, will with and report the our filing but be as additional the we to more will declining we said in will U.S. around also we information Neil information that hopefully, with XXth our our financial managing over that, to information we -- stability life of now put integrated continues manage and -- our through deal time, October, full this So end our statements, talk be and at our And together time. cost have

the operating sites. three stage of we for operating sites, XX at least many the to have we Andy that two hope Ergo over So sites us next our at at to cleanup years, late moment, half example,

have costs. adds we way -- to every So a presence your there operating

sites by reducing volume, complexity reducing the also cost to reducing the up as make so by So the By site, fewer of to profile for your a profile from from mining volume more well. individual number mainly you rebuild, are business, particular large cost sites, that bank the changes. going be sites, the but

when board. notwithstanding code. you we year that’s -- point were the to try in an At always the when is project changes this because are weather is in improved there’s there’s in example will the on ton a of managing that, interruptions it that where then good ton. but raining, we been these a like very know, is So basis. moment, that refer the your per wise, something much so something in tough, the what And process, densities used to weather go a cracking improve you there’s this flow, stopping of efficiency this a a and reduction and And was a not incremental improvements and cost is been comes a when system starting. has the ongoing. that and have along be it’s What the easy that new finally, operating that as especially It’s terms easier will conditions week And per weather fact on recovery was lot or small, -- it’s made see never raining efficiencies, that this stop that ongoing And inconvenience, two-hour of the stoppage being past. three than time. to now adapted over

the fix offset you it it’s And to a volumes grade, then from So efficiencies. sites. you model. simpler And need also It’s from you out. That’s the mining it’s just can’t for it. by way, levels do mean, enhanced higher grades, fewer how the something that, but I

credit next and resource of you particular then a to certainly, at that again sort on changes linear move then level out it until it’s of adjust I your period time not and the So site. a levels trend, can then for a have you

they in in operating think, terms that think Nick, I with question conservative we of are your regard. to regards budgeted costs forecast,

I on there conservative, help here, me -- can of you for think been I we side. but what’s reagent not is are -- the not think especially it’s -- factored I we lower in out fairly mean, We prices. hoping the were sort

I think we saw changes big some there. big

Yes.

forecast in simple increases we that So, our account the provided, yes the into -- or taken all -- is forecast have so guidance answer Nick. we

we work have comfortable get an the have that’s the across with still products so to not increasing. cost a out many difficult was alluded services the environment to yes, But it measure. tons hard board and we with yes obviously, that obviously we kilos have to only as the We in because budget,

cash operating the we budgeted into believe So factored have costs. that I

maybe? add Peter of to that to in terms CapEx, Yes. wants

Yes.

so to think I just what talk said. Niël with

understand was cost is one we a implemented. allowed so that to So Eskom recently, day extent for a have the But increase. the the there Eskom increases by that going case I outstanding still how on only that we full is be significant that’s won do and of

are sure. XXX% not We

from here. has have year increase we And worth which for we capital or in billion XXX%. portion as significant this spend approximately RX.X only portion But for of have, a and Neil haven’t capital the perspective, indicated, already. then of that’s expecting expenditure that we allowed during to allowed to even we a capital a build So significant

any don’t Thanks Nick. see I questions. other

as and on that for and is who think very we everyone updated much, presentation, keep along anything Thank we good watching our a will listening material. presentation, joining us, I wrap. to for a you day. Well, Thank you. our you go have

everyone. Thanks