Tailings retreatment company DRDGOLD’s interim results for the six months ended December 31, 2025, reflected 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 R5.05-billion from the sale of 2 388 kg of gold as the average gold price received rose 43% to R2.11-million a kilogramme.

As an unhedged producer, DRDGOLD says it captured the full benefit of the higher gold price, resulting in headline earnings of R1.93-billion, up 99%, and operating profit of R2.71-billion, an increase of 72%.

Throughput tonnages decreased by 4% to 12.5-million tonnes from 12.9-million tonnes in first half of the prior financial year, mainly as a result of rain and weather-related interruptions in November and December last year.

Despite lower production, free cash inflow increased to R793.1-million from R319-million in the prior comparable period, enabling the group to fund capital reinvestment of R1 651.3-million entirely from operating cash flows, it highlights.

Cash and cash equivalents increased to R1.73-billion from R661.2-million in the prior comparable period, while an interim cash dividend of 50c apiece was declared.

“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,” CEO Niël Pretorius says.

Group gold production declined by 9% to 2 337 kg, primarily owing to a decrease in the yield to 0.188 g/t from 0.199 g/t and rain and weather-related interruptions in November and December 2025.

Cash operating costs increased to R980 042/kg from R866 221/kg in the prior comparable period, while all-in sustaining costs rose to R1.09-million a kilogramme, compared with R963 316/kg in the prior comparable period, reflecting lower gold production and higher input costs.

The operating margin expanded to 53.7% from 41.5%, supported by higher gold price realisation.

DRDGOLD continued to progress the projects underpinning Vision 2028, aimed at unlocking the company’s tailings resource base, increasing production and extending operating life 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 the 2027 financial year.

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 R1.29-billion supported continued progress on the DP2 plant expansion, the Regional TSF and associated pipeline infrastructure.

Commissioning of the expanded DP2 plant remains on target for the first quarter of the 2027 financial year.

The group’s resource base increased following the transfer of about 67-million tonnes of gold-bearing tailings from Sibanye-Stillwater to FWGR at the Kloof 2 dump.

Operational resilience improved during the period, the group highlights.

Electricity costs at Ergo declined by 23% despite State-owned utility Eskom tariff increases, reflecting the contribution of the Ergo solar plant and battery energy storage system.

Production was not disrupted by an industry-wide sodium cyanide shortage owing to proactive risk identification and mitigation.

The group has also concluded a five-year wage agreement at its Ergo operations.

Looking ahead, DRDGOLD will endeavour to continue 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.