Media releases

DRDGOLD converts favourable gold price into cash generation and long-term reinvestment

Key features

• Operating profit increased by 72% for the period to R2 712.8 million
• Headline earnings increased by 99% for the period to R1 932.4 million
• Interim cash dividend of 50 SA cps (H1 FY2025: 30cps)
• R1 651.3 million of capital expenditure funded from operating cash flows
• 67 million tonne Kloof #2 mine dump added to FWGR resources
• Gold production decreased by 9% to 2 337 kilograms

Johannesburg, South Africa. 18 February 2026. DRDGOLD Limited (JSE: DRD, A2X: DRD, NYSE: DRD) reported interim results for the six months ended 31 December 2025 (comparative period: 6 months ended 31 December 2024) marked by materially higher cash generation, disciplined reinvestment and continued progress on projects designed to extend the life of its operations.

Revenue increased by 33% for the period to R5 053.2 million from the sale of 2 388kg of gold (H1 FY2025: 2 567kg) as the average gold price received rose 43% to R2 114 227/kg. As an unhedged producer, DRDGOLD captured the full benefit of the higher gold price, resulting in headline earnings of R1 932.4 million, up 99%, and operating profit of R2 712.8 million, an increase of 72%.

Throughput tonnages decreased by 4% to 12.5Mt (H1 FY2025: 12.9Mt) due mainly to rain and weatherrelated interruptions in November and December 2025. Despite lower production, free cash inflow increased to R793.1 million (H1 FY2025: R319.0 million), enabling the Group to fund capital reinvestment of R1 651.3 million entirely from operating cash flows. Cash and cash equivalents increased to R1 734.4 million (H1 FY2025: R661.2 million), while an interim cash dividend of 50 cents per share was declared (H1 FY2025: 30 cents per share).

“Favourable gold prices have allowed us to reinvest meaningfully in extending the life of our operations, to maintain a strong financial position and to continue to create value in a way that remains sustainable for our business and our stakeholders,” said CEO, Niël Pretorius.

Operational performance
Group gold production declined by 9% to 2 337kg (H1 FY2025: 2 564kg), primarily due to a decrease in the yield to 0.188g/t (H1 FY2025: 0.199g/t) and rain and weather-related interruptions in November and December 2025. Cash operating costs increased to R980 042/kg (H1 FY2025: R866 221/kg), while all-in sustaining costs rose to R1 094 188/kg (H1 FY2025: R963 316/kg), reflecting lower gold production and higher input costs. The operating margin expanded to 53.7% (H1 FY2025: 41.5%), supported by higher gold price realisation.

Advancing Vision 2028
DRDGOLD continued to progress the projects underpinning Vision 2028, aimed at unlocking its extensive tailings resource base, increasing production and extending operating life well beyond 2040. At Ergo, construction of infrastructure linking the Ergo plant to the Daggafontein tailings storage facility (TSF) is nearing completion, with first deposition anticipated in the first quarter of FY2027. Regulatory and engineering work required to restart deposition at the Withok TSF also progressed during the period.

At Far West Gold Recoveries (FWGR), growth capital expenditure of R1 290.0 million supported continued progress on the DP2 plant expansion, the regional tailings storage facility (RTSF) and associated pipeline infrastructure. Commissioning of the expanded DP2 plant remains on target for the first quarter of FY2027.

The Group’s resource base increased following the transfer of approximately 67 million tonnes of goldbearing tailings from Sibanye-Stillwater to FWGR at the Kloof 2 dump.

Managing complexity, risk and operational resilience
Operational resilience improved during the period. Electricity costs at Ergo declined by 23% despite Eskom tariff increases, reflecting the contribution of the Ergo solar plant and battery energy storage system (BESS). Production was not disrupted by an industry-wide sodium cyanide shortage due to proactive risk identification and mitigation.

The Group has also concluded a five-year wage agreement at its Ergo operations, bringing certainty for employees and operational stability through guaranteed annual wage increases, performance-linked incentives and enhanced employee support measures.

“Our business must have the flexibility to survive the lean times, and to take full advantage of the good times,” Pretorius said. “That means reinvesting in our assets, managing costs and risk, strengthening energy security, maintaining stable labour partnerships and making decisions that keep the business resilient and competitive over the long term.”

Looking forward
DRDGOLD continues to prioritise the execution of Vision 2028, using current market conditions to secure the long-term sustainability of its operations while planning for the inevitable cyclicality of gold markets.

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