Executive Summary
DRDGOLD, a prominent gold producer in South Africa, opted to outsource its treasury operations to TreasuryONE because of our ability to handle intricate financial transactions, adeptness in risk management, and state-of-the-art treasury technology offerings.Client Profile
DRDGOLD Limited is a South Africa-based holding company. The company and its subsidiaries are primarily involved in the retreatment of surface gold. The company’s business includes Ergo, Far West Gold Recoveries (FWGR), Hot Button Features and Resources and Reserves. Ergo business is a surface gold retreatment operation, which treats old slime dams and sand dumps to the south of Johannesburg’s central business district, as well as the East and Central Rand goldfields. The operation comprises three plants: The Ergo and Knights plants operate as metallurgical plants. The City Deep plant operates as a pump/milling station feeding the metallurgical plants. The Company’s FWGR is a surface gold retreatment operation that treats old slime dams in the West Rand goldfields and is located near Carletonville in South Africa’s Gauteng province. Mineral Resources consist of sand dumps, slimes dams and silted areas and dams.
- Headquarters: Johannesburg, South Africa
- Founded: 1895
- Industry: DRDGOLD is a South African gold producer, a world leader in the recovery of gold from the retreatment of surface tailings.
- Company Size: The company is listed on the New York and Johannesburg stock exchanges
TreasuryONE services selected: Managed Treasury Services – including Cash & Liquidity Management, FX Dealing and a Treasury Management System
Solution
DRDGOLD has chosen TreasuryONE as its managed services provider. DRDGOLD now has access to world-class treasury technology and a team of treasury specialists to perform everyday treasury tasks. This includes:
- Daily Cash Management
- 100% Cash Visibility across 56 bank accounts
- Bank Fee Analysis
- Automated Cash Flow Forecast
- Liquidity Planning
- Commodity Price, Interest Rate, and Exchange Rate Risk Management
- Access to a world-class treasury management system
The Treasury Management System, which schedules, controls, stores and reports on all FX, commodities, and other market operations, is used to process all treasury functions. The TMS provides DRDGOLD access to a platform that is much more feature-rich, stable, and secure than is possible with spreadsheets.
The Result
FX Dealing: TreasuryONE’s dealing team works closely with DRDGOLD to protect them from adverse movements in the exchange rate when the risk arises, ensuring that the company is effectively hedged and adverse exchange rate movements are avoided.
100% Cash Visibility: Prior to utilising TreasuryONE’s managed treasury service, DRDGOLD used to log in to each bank account manually in order to obtain bank balances for cash visibility and reporting purposes. Now, an optimally implemented treasury management system initiates and controls the flow of information between all the banks and accounting systems. As a result, DRDGOLD now has 100% visibility of their cash positions on a single view.
Money Market Funds: In addition to Cash Visibility, DRDGOLD now receives monthly feedback on corporate money market funds and is being exposed to new funds. TreasuryONE has extensive knowledge of corporate money market funds and can provide valuable advice. TreasuryONE’s team has seen numerous investment policies and specifically identified money market funds that meet the strictest requirements.
Managed Treasury Services: The introduction of managed treasury services means that DRDGOLD’s treasury team can now communicate with the TMS 24/7 via the web, providing them with relevant information such as cash movements and FX deal requests, as well as receiving up-to-date information that is used for operational and management reporting. The TMS further integrates with third parties such as banks and ERP systems, enabling straight-through processing (STP) of journals and other financial transactions.