JOHANNESBURG (mingweekly.com) – Johannesburg Stock Exchange-listed DRDGOLD on Wednesday declared a final 2025 cash dividend double that of last year, reflecting an increase of 26% in group revenue to R7 878.2-million and an increase of 69% in group operating profit to R3 523.6-million, both mainly factors of a 31% increase in the average rand gold price received of R1 632 275/kg.

The company enjoyed a greater level of stability, much of this resulting from its own endeavours and a robust gold price.

“At Ergo a new normal was established while we progressed projects to extend the operation’s life and continued to pursue our ambitious growth objectives in respect of Far West Gold Recoveries,” DRDGOLD CEO Niël Pretorius stated in a media release to Mining Weekly.

Total headline earnings were 69% higher at R2 246.4-million, headline earnings per share rising by a corresponding 69% to 260.6c a share.

Cash and cash equivalents were 150% higher at R1 306.2-million after accounting for cash applied to capital of R 2 254-million, most of which related to growth capital expenditure. As at financial year end DRDGOLD remained debt-free.

Group gold production was 3% lower at 4 830 kg reflecting 5% lower production at Ergo of 3 473 kg where throughput rose by 21% to 19.5-million tons but yield was 21% lower at 0.178 g/t owing to depletion of high grade material from clean-up activities at completed reclamation sites and a build-up of tonnage from new, lower grade sites.

Gold production at Far West Gold Recoveries was stable at 1 357 kg, with throughput and yield remaining virtually unchanged, in line with current plant and deposition capacity, pending completion of capital projects – the DP2 plant expansion, the new pipelines and the Regional Tailings Storage Facility.

Group cash operating unit costs were 8% higher at R903 824/kg. At Ergo they were 9% higher at R1 064 447/kg but 14% lower in rand per ton terms at R190, indicating a change in Ergo’s cost profile as the operation transitions to recovery from fewer, larger sites.

At Far West Gold Recoveries, cash operating costs rose by 7% to R492 049/kg on expansion-related staff increases, inflationary pressures on labour costs, higher maintenance requirements for ageing plant equipment and reagent and consumables cost increases.

The plan now for Ergo is to expand the operation’s lifespan to beyond 2040 to process a resource base previously thought non-viable. Increasing deposition capacity, however, will be vital; until this can be achieved by resuming deposition on to the Daggafontein tailings storage facility (TSF) by the first quarter of the 2027 financial year, Ergo’s throughput is being throttled at 1.65-million tons a month to ease deposition on the current Brakpan TSF. Longer term, the planned new Withok TSF will take over from the Brakpan TSF.

At the Far West Gold Recoveries operation, near Carletonville, the story is similar – for now – to that of Ergo. The throughput rate at Far West Gold Recoveries Phase 1 has, from inception, been determined by the capacity of its TSF, Driefontein 4 Dam. Phase 2 construction is well under way, with the expansion of the current DP2 plant to double its current throughput capacity to 1.2-million tons, enabled by constructing the new Regional Tailings Storage Facility.

IMPACT BEYOND MINING

Pretorius believes the company’s performance in its 2025 financial year demonstrates its dedicated pursuit of both its core business and environmental, social and governance commitments. “Further it points to the energy driving our intention to grow both – not only to do more of both, but to do both better for the benefit of all our stakeholders,” he said.

Ergo’s solar plant and battery energy storage system (BESS), commissioned in November 2024, is functioning at 97% of designed capacity (60 MW solar plant and 160 MWh BESS), largely meeting the daytime power needs of the operation’s reclamation sites, plant and the Brakpan TSF, and showing a cost saving of approximately R108-million at year-end.

Surplus electricity delivered into the grid of power utility Eskom at year-end was 41 791 804 kWh. Credits for this wheeling of surplus power to Eskom have yet to be fully realised but once these start to flow, they will be used to offset the power use of other sections of the Ergo operation currently drawn from the Eskom grid, further reducing the cost of electricity.

“Our carbon footprint has been reduced by the solar plant and an application for carbon credits has been made, so we expect to be able to also report on the positive impact on our carbon footprint in due course,” Pretorius pointed out.

LOOKING AHEAD

DRDGOLD’s Vision 2028 strategy envisages increasing throughput to three-million tons a month, boosting gold production to more than 200 000 oz/y, reducing the company’s environmental footprint and maximising social impact.

Guidance for financial year 2026 is production of between 140 000 oz and 150 000 oz of gold at cash operating costs of R995 000/kg. Planned capital growth investment to achieve Vision 2028, forecast for the medium-term, is around R7.8-billion.