By: African mining

DRDGOLD Limited reported strong operational and financial results for the quarter ended 31 March 2026, leveraging a 13% increase in the average Rand gold price to R2 565.465/kg to drive significant cash generation and internal project funding.

“The quarter demonstrates the resilience and cash-generating capacity of our business,” said CEO Niël Pretorius. “Improved throughput, disciplined cost management and a stronger gold price enabled us to continue funding our growth programme internally while maintaining a strong balance sheet.”

Revenue increased by 6% to R2 963.1-million (USD181.5-million) as a 13% increase in the average gold price received to R2 565 465/kg (USD4 886/oz) offset a 6% decrease in gold sold to 1 155kg. Adjusted EBITDA increased by 21% to R1 812.8-million (USD111.0-million), while operating profit rose by 19% to R1 854.0 million.

Gold production increased by 6% to 1 219kg following a 5% increase in throughput to 6.27Mt and a slight improvement in yield to 0.194g/t. Throughput improved as drier weather conditions supported a recovery from the early rainfall experienced during the previous quarter.

Cash operating costs increased by 5% to R1 191.5-million, driven mainly by higher reagent consumption and trucking costs associated with increased throughput. However, increased production volumes resulted in cash operating costs per kilogram decreasing by 4% to R960 270/kg, while unit costs per tonne remained stable at R190/t.

The group increased cash and cash equivalents by R581.9-million to R2 316.3-million, paid an interim cash dividend of R433.6-million and remains debt-free.

Growth capital reduced by 16% to R683.2-million as both the expansion of the Driefontein 2 plant and pipeline network, as well as the Daggafontein TSF project, progressed beyond peak capital during the quarter. Investment continued across key strategic projects at Far West Gold Recoveries (FWGR) and ERGO, including the Regional Tailings Storage Facility construction. These projects form part of DRDGOLD’s Vision 2028 strategy to expand processing flexibility, aimed at extending the operating life of its assets and supporting long-term production growth.

All-in sustaining costs decreased by 5% to R1 067 744/kg, while all-in costs decreased by 7% to R1 672 599/kg, supported by increased production and lower non-sustaining capital expenditure.

Operational outlook

DRDGOLD remains on track to achieve the upper end of its FY2026 production guidance range of between 140 000oz and 150 000oz of gold, while maintaining cash operating cost guidance of approximately R995 000/kg.

The Group’s liquidity position continues to support the internal funding of its expanded capital programme while maintaining a debt-free balance sheet. DRDGOLD retains access to a R1-billion revolving credit facility and additional banking facilities should they be required.

“The current gold price environment allows us to continue to strengthen the business for the long term,” Pretorius said. “Our approach remains focused on disciplined reinvestment, extending the life of our assets and maintaining the financial resilience that allows us to remain competitive through the cycle.