By: DRDGOLD Limited

DRDGOLD Limited (JSE: DRD, A2X, NYSE: DRD) in an operating update for the first quarter of FY2026 (Q1 FY2026) ended 30 September 2025, reported that revenue was stable compared to the final quarter of FY2025 (Q4 FY2025), ended 30 June 2025, increasing marginally by 2% to R2 254.9 million.

This was mainly due to a sustained high gold price of R1 943 398/kg and a 16kg increase in gold sold to 1 158kg. Despite a 3% decrease in throughput to 6 481 000 tonnes, gold production rose by 2% to 1 191kg, mainly the result of a 0.008g/t improvement in yield to 0.184g/t.

Cash operating costs per kilogram of gold sold were also stable, increasing marginally by 3% to R955 086. The rise was mainly driven by annual labour increases at both the Company’s Ergo and Far West Gold Recoveries (FWGR) operations and higher reagent costs (mainly lime and cyanide) at Ergo.

Electricity costs increased because of two months of winter tariffs, which Eskom charges between June and August each year, included in Q1. FWGR incurred additional machine hire costs relating to the clean-up of the Driefontein 5 reclamation site. Cash operating costs per tonne increased by 8% to R179 due to the cost drivers described above and the decrease in throughput.

All-in sustaining costs per kilogram were 5% higher at R1 066 287, mainly due to the increase in cash operating costs per kilogram detailed above and despite a 58% decrease in sustaining capital expenditure to R51.5 million. In Q4 FY2025, all-in sustaining costs included a credit adjustment related to the change in rehabilitation estimate that is assessed annually.

All-in costs per kilogram were 6% higher at R1 745 213 due to a 9% rise in growth capital expenditure to R781.1 million, mainly relating to the FWGR Phase II project, which includes the construction of the Regional Tailings Storage Facility and DP2 Plant expansion.

Adjusted earnings before income tax, depreciation and amortisation (EBITDA) were 1% higher at R1 092.9 million mainly due to the increase in gold sold and the higher gold price received.

Cash and cash equivalents decreased by R257.1vmillion to R1 049.1 million from R1 306.2 million after paying the final cash dividend of R345.7 million for FY2025 and capital expenditure (including prepayments towards capital items) of R751.8 million incurred during the quarter. The Company remained debt free as at 30 September 2025.

The high gold price has increased liquidity and cash generated during Q1 FY2026 which will be applied towards, amongst other items, the Company’s extended capital expenditure programme for the FY2026.

Note to editors: The information contained in this announcement does not constitute an earnings forecast. The financial information provided is the responsibility of the directors of DRDGOLD, and such information has not been reviewed or reported on by the Company’s auditors.

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R&A Strategic Communications
Jane Kamau
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