DRDGOLD's Leadership Transition: A Pillar of Stability for Vision 2028 Execution

The gold mining sector has long been synonymous with volatility, but DRDGOLD Limited (JSE: DGW) is proving that strategic leadership continuity and proactive governance can turn uncertainty into opportunity. With its recent leadership transition—marked by the internal promotion of Henriette Hooijer to CFO designate and the retention of Riaan Davel as a consultant—the company has positioned itself as a paragon of stability. This transition, coupled with the execution of its Vision 2028 strategy, underscores a compelling investment thesis rooted in operational resilience and sustainable growth.

Leadership Transition: Mitigating Risk Through Internal Talent & Advisory Continuity

The appointment of Henriette Hooijer as CFO designate (effective July 2025, with full role assumption in February 2026) is a masterstroke of succession planning. Hooijer's decade-long tenure at DRDGOLD—from Compliance Manager to General Manager of Group Finance—has been marked by critical successes, including her pivotal role in delivering the Far West Gold Recoveries (FWGR) project. Her deep familiarity with the company's operations and Vision 2028 goals ensures seamless continuity in financial stewardship.

Meanwhile, Riaan Davel, outgoing CFO and a 10-year veteran of the role, will transition to a consultant role until late 2026. This dual-track approach—internal promotion paired with retained expertise—minimizes leadership risk. Davel's advisory role will be particularly valuable as the company navigates capital-intensive projects like the Regional Tailings Storage Facility (RTSF) and solar infrastructure at Ergo, which are central to Vision 2028's throughput expansion targets.

Vision 2028 Execution: Progress Anchored in Real Results

DRDGOLD's Vision 2028 aims to transform it into a low-cost, high-margin gold producer through capital-efficient infrastructure projects. Key milestones include:
- Ergo Site: A 60 MW solar plant and 160 MWh battery system now supply 16% of Ergo's energy, cutting costs and reducing reliance on Eskom.
- RTSF Construction: Over 2 million cubic meters of earth moved for the starter wall, with Driefontein 2's throughput set to double to 1.2 million tons/month by 2026.
- Production Targets: Annual gold output is projected to surpass 200,000 ounces by 2028, up from 155,000–165,000 ounces in 2025.

These achievements are underpinned by financial discipline. Despite investing nearly R1 billion in capital projects over the past six months, DRDGOLD remains debt-free, with cash reserves exceeding R600 million. The company's decision to avoid tapping its R2 billion Nedbank credit facility highlights its confidence in self-funding through operational cash flows—a stark contrast to peers burdened by leverage.

Governance & Board Strength: Andrew Brady's Strategic Addition

The board's proactive governance further reinforces investor confidence. The December 2024 appointment of Andrew Brady—a resources sector veteran with 25 years of corporate finance experience—to the audit, risk, and investment committees adds critical expertise. Brady's background aligns with DRDGOLD's strategic focus on ESG compliance and capital allocation, ensuring oversight of high-risk projects like the RTSF.

Combined with the board's existing leaders—such as Chairman Timothy Cumming and Lead Independent Director Edmund Jeneker—Brady's addition strengthens the governance framework, reducing the risk of missteps in execution.

Investment Thesis: A Resilient Growth Story

DRDGOLD's leadership transition and Vision 2028 execution create a compelling buy case:
1. Low Leadership Risk: Hooijer's internal promotion and Davel's advisory role ensure institutional knowledge remains intact.
2. Proven Project Execution: The FWGR and Ergo projects demonstrate the team's ability to deliver on complex, capital-heavy initiatives.
3. Strong Financial Position: Zero external debt, robust cash reserves, and a 50% dividend hike in H1 2025 signal financial health and shareholder focus.
4. ESG-Driven Growth: Projects like solar energy adoption and biodiversity restoration align with ESG trends, enhancing long-term appeal.

Risks & Considerations

• Project Delays: The RTSF's timeline hinges on regulatory approvals and construction challenges.
• Gold Price Volatility: While current prices (~R1.5 million/kg) buoy margins, a sustained dip could pressure earnings.
• Global Expansion Hurdles: International opportunities remain exploratory, with execution risks.

Conclusion: A Buy With a Long-Term Horizon

DRDGOLD's leadership transition and execution of Vision 2028 exemplify a company prioritizing sustainable growth over short-term gains. With a debt-free balance sheet, proven project delivery, and a governance structure that balances experience and innovation, the company is well-positioned to capitalize on rising gold prices and evolving ESG standards.

Recommendation: Investors seeking exposure to a resilient, ESG-aligned gold producer should consider a buy, with a price target of ZAR 150 per share by 2026 (based on projected 200k+ oz production and valuation multiples consistent with peers). Monitor the RTSF's progress and gold price trends for catalysts.

DRDGOLD is no longer just a mining firm—it is a blueprint for strategic leadership in an industry ripe for reinvention.