By: DRDGold

DRDGOLD Limited (JSE: DRD, A2X, NYSE: DRD) Chairman Tim Cumming and CEO Niël Pretorius, in their Leadership review contained in the Company’s Annual Integrated Report (AIR) 2025 released today, comment on the Company’s ‘exceptional’ year’ marked by progress towards its Vision 2028 growth strategy, constructive engagement on concerns about proposed legislative challenges and plans beyond 2028.

‘Exceptional year’

Steady performance at the Company’s Far West Gold Recoveries (FWGR) operation and increased throughput at Ergo enabled DRDGOLD to take advantage of the higher gold price, Cumming and Pretorius say.

Group revenue rose 26% to R7.88 billion, driven by a 31% increase in the average Rand gold price received to R1 632 275/kg. Operating profit was up 69% to R3.52 billion, as were headline earnings at R2.25 billion.

Operational cash flow allowed R2.3 billion to be re-invested in capital, largely towards the ‘Big five’ projects that underpin Vision 2028, without drawing from the R2 billion Nedbank loan facility.

Our closing cash balance of R1.3 billion meant a final dividend of 40 SA cents per share could be declared, double that of last year.

Vision 2028 progress

Cumming and Pretorius comment on progress made during FY2025 on each of the five main projects comprising Vision 2028, expected to expand throughput to 3 million tonnes a month and increase gold output to six tonnes (200 000oz) a year at a total cost of R7.8 billion forecasted for the medium term.

“At Ergo, work to resume deposition on the Daggafontein Tailings Storage Facility (TSF) is advancing well, as is construction of the slurry and return water pipelines connecting the TSF with the Ergo Plant, with some 14.2 kilometres of pipeline out of a total of 41.3 planned kilometres completed. Approximately 120 million tonnes of Ergo’s total remaining reserve will find its way to Daggafontein.

"The public participation process for the Withok TSF has been completed and other regulatory steps are underway. We expect design approval by mid-2026, enabling construction soon thereafter. Withok will have a deposition capacity of around 1.3 million tonnes per month.”

At FWGR, Phase II is well advanced to double current throughput and to construct a new Regional Tailings Storage Facility (RTSF). 

“Since Phase II development kicked off in June 2024, more than 2.5 million cubic metres of soil have been moved to prepare the floor of the RTSF and to construct its starter wall. At the time of writing, 831 000 square metres of liner have been installed, with 7.7 million square metres more to follow, to completion.

“We estimate that the work on the DP2 plant expansion, which is intended to double monthly throughput from 600 000 tonnes to 1.2 million tonnes per month, is now two-thirds complete. We are on track to complete the project by the first quarter of FY2027 and within the budget. 

“Work on the RTSF is progressing well, and we expect to start with phased deposition from the DP2 plant to this facility simultaneously with completion of the plant’s expansion. We have made significant progress, exceeding the halfway mark, in laying 135km of pipelines connecting our expanded plant to the new RTSF, all within schedule and budget.”

Draft Mineral Resources Development Bill

Cumming and Pretorius note that South Africa’s draft Mineral Resources Development Bill “introduces proposals that could have far reaching implications for the sector, including potential constraints on ownership, transferability and operational approvals all critical for DRDGOLD’s surface retreatment business.

“Investor confidence depends on clarity of title, regulatory consistency and protection of acquired rights,” they said. “These are essential to maintaining South Africa’s competitiveness and the flow of investment capital.”

“We will continue to engage constructively to ensure legislation supports the distinct contribution of tailings retreatment in cleaning up historic liabilities, creating jobs and delivering value.”

Looking ahead

Beyond its core mine dump reclamation, DRDGOLD is exploring a new revenue stream, say Cumming and Pretorius: partnering with mature primary mines to return their tailings below surface into open-cut pits, enabling faster and more responsible closure. “The growing industry imperative for responsible final closure reflects a shift from simply passing on mature assets to ensuring they are rehabilitated responsibly. Increasingly, operators see closure not just as compliance, but as part of their commitment to communities, the environment and long-term licence to operate.”

“Our model – turning mine tailings into income – can help soften the economic impact of closure. We are open to partnerships, and even just one successful project could set the tone for a new chapter in South African and global mining.”

DRDGOLD is also conducting early investigative work into extending its reclamation operations into Africa and South America, with continued focus on gold and potentially copper.

Note to editors:

DRDGOLD’s full report suite for FY2025 comprising the AIR, Annual Financial Statements, Notice of Annual General Meeting and ESG Fact Sheet can be accessed on the Company’s website under Reports and results. In compliance with the United States federal securities laws, DRDGOLD is expected to file its annual report on Form 20-F (Form 20-F) with the United States Securities and Exchange Commission (SEC) on Thursday, 30 October 2025. The Form 20-F may also be accessed electronically from the SEC website and DRDGOLD’s website from or about Thursday, 30 October 2025.

Forward-looking statements

Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a prolonged strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licences or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors.

These risks include, without limitation, those described in the section entitled “Risk Factors” included in our Form 20-F for the fiscal year ended 30 June 2025, which will be filed with the United States Securities and Exchange Commission (SEC) on or about 30 October 2025. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or the occurrence of unanticipated events. Any forward-looking statement included in this report has not been reviewed or reported on by DRDGOLD’s auditors.

Investor and media relations queries:

R&A Strategic Communications
Jane Kamau
jane@rasc.co.za