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    Bruce Williamson • Integral Asset Management

    Bruce Williamson's questions to DRDGOLD Ltd (DRD) leadership

    Bruce Williamson's questions to DRDGOLD Ltd (DRD) leadership • FY 2025

    Question

    Bruce Williamson of Integral Asset Management requested an update on the tax ring fences and unredeemed capital balances for the operations, especially with the new solar plant, and asked about the current cost inflation trends for key inputs like labor, power, and chemicals.

    Answer

    Outgoing CFO Rian van der Merwe explained that Ergo and Far West are treated as separate, integrated ring fences for tax purposes and confirmed the 125% tax incentive claim for the solar system. A member of the finance team stated the unredeemed CapEx balance was approximately R600 million for each operation. CFO Designate Henriette Hoyer detailed cost trends, noting stable labor at Ergo with lower contractor costs, a future full-year benefit from solar, and inflationary increases plus growth-related staffing at Far West.

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    Bruce Williamson's questions to DRDGOLD Ltd (DRD) leadership • FY 2025

    Question

    Bruce Williamson of Integral Asset Management requested an update on the company's tax structure, including the ring-fencing of operations and unredeemed CapEx balances, and asked for commentary on current cost inflation trends for key inputs like labor, power, and chemicals.

    Answer

    CFO Rian van der Merwe clarified that Ergo and Far West operations are treated as separate tax ring-fences and that the solar project qualifies for a 125% CapEx incentive. A finance team member confirmed unredeemed CapEx balances of approximately R600M for each operation. CFO Designate Henriette Hoyer detailed that cost pressures vary by site, with Ergo seeing lower contractor costs while Far West experiences rising labor costs for its expansion, with other inputs facing general inflation.

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