Robust H1 outcomes and dividend: Greater gold costs drove income up ~33% to only over ZAR 5 billion, free money circulation rose 149% to ZAR 791 million and working revenue jumped 72% to ZAR 2.7 billion, enabling an interim money dividend of ZAR 0.50 per share (nineteenth consecutive yr).
Imaginative and prescient 2028 development and useful resource progress: The corporate reinvested ZAR 1.6 billion into tasks—Daggafontein, Witkop, DP2 and RTSF stay on observe (many concentrating on Q1 2027 commissioning)—and reported internet useful resource progress to about 741 million tons and 6.2 million ounces.
Renewables chopping prices and footprint: PV+BESS deployment lowered group grid electrical energy use by ~28% (Ergo down ~38%), reducing electrical energy prices (Ergo -23%) and materially shrinking the corporate’s reported carbon footprint.
DRDGOLD (NYSE:DRD) used its interim outcomes presentation for monetary yr 2026 to focus on stronger earnings and money era amid a better gold worth, whereas emphasizing progress on its Imaginative and prescient 2028 progress program and a pointy discount in grid electrical energy use following the rollout of renewable power initiatives.
Administration additionally opened the decision by paying tribute to Jan Nelson, who lately handed away, noting his position in laying the muse for what turned Pan African Assets. The corporate mentioned Henriette had absolutely assumed the Chief Monetary Officer place efficient February 1, and outlined finance portfolio restructuring that included the promotion of Mpho Mashatola to go company finance and tackle investor relations duties.
The corporate mentioned its board accredited an interim money dividend of ZAR 0.50 per share, marking its nineteenth consecutive monetary yr of declaring a dividend. Administration mentioned it had beforehand anticipated Imaginative and prescient 2028 would require substantial debt, however a surge within the gold worth allowed the corporate to distribute a portion of free money circulation.
Key figures cited on the decision included:
Free money circulation up 149% to ZAR 791 million
Money and money equivalents of ZAR 1.7 billion at period-end
Income up 33% to only over ZAR 5 billion
Working revenue up 72% to ZAR 2.7 billion
Headline earnings up 99%
Capital reinvestment of ZAR 1.6 billion, primarily towards Imaginative and prescient 2028
Henriette mentioned the “star performer” was the gold worth, which elevated 43% from the comparable six-month interval, from about ZAR 1.5 million per kilogram to only over ZAR 2.1 million per kilogram. She mentioned the stronger gold worth “couldn’t have come at a greater time” given the corporate’s capital spending program.
Administration mentioned the Ergo operation’s present design contains lowered throughput and a better proportion of high-volume, low-grade websites. The corporate famous that in late 2024 it was nearly fully reliant on clean-up at mature websites whereas water use licenses for substitute websites have been delayed, altering the mix of fabric being processed.
Regardless of these combine modifications, the group reported 2.3 tons of gold produced within the half-year and mentioned efficiency trended towards the upper finish of steering. Throughput was 12.5 million tons for the interval, which administration mentioned would equate to roughly 25 million tons for the yr on a flat extrapolation. Administration positioned this in opposition to Imaginative and prescient 2028 targets of three million tons per thirty days (36 million tons per yr) and 6 tons of gold output per yr.
COO Jaco mentioned Ergo’s H1 FY2026 volumes have been decrease than each halves of FY2025 attributable to three components: climate and rain interruptions throughout summer season, 4 energy interruptions (regardless of the PV and battery power storage system working at 96% effectivity), and a deliberate technique to restrict deposition tonnage whereas growing infrastructure corresponding to Witkop and Daggafontein to increase lifetime of mine underneath Imaginative and prescient 2028.
Jaco mentioned Ergo’s yield was down about 0.01 gram per ton in contrast with H1 FY2025, contributing to decrease gold output, whereas Far West Gold Recoveries maintained constant throughput volumes however noticed yield decline by 0.023 grams per tonne versus H1 FY2025 attributable to decrease head grade as Driefontein 5 approached the tip of its contribution. Consolidated group output fell 9% in kilograms for the six months, although it was 3% larger than H2 FY2025.
The corporate highlighted improved profitability and margins, supported by the upper gold worth and value containment. Administration cited an all-in sustaining margin of 48% for the interval. Henriette mentioned group working margin rose to 54% for the six months, and all-in sustaining value was about ZAR 1.1 million per kilogram, with all-in sustaining margin ending “simply over 48%.”
On the fee aspect, Henriette mentioned Ergo money working prices rose solely 2% to ZAR 1.9 billion regardless of above-inflation will increase in reagents and consumables. She attributed a part of the resilience to a 23% lower in electrical energy prices at Ergo, regardless of Eskom’s 13% charge improve.
For Far West Gold Recoveries, administration reported income of simply over ZAR 1.4 billion regardless of a 7% lower in gold bought, benefiting from the upper gold worth. Money working prices elevated about 14% year-over-year because the operation gears up for progress and faces larger consumables on an older plant. Henriette mentioned Far West working revenue elevated from about ZAR 750 million to almost ZAR 1.1 billion, representing a 73% working margin.
Headline earnings per share practically doubled, rising from ZAR 1.12 per share to ZAR 2.23 per share. Henriette mentioned administrative and different bills rose 23%, pushed primarily by long-term incentive share-based cost expense, which elevated alongside the share worth.
The corporate additionally mentioned a ZAR 5 million loss on the sale of an asset tied to the sale of Stellar to Noah. Administration mentioned proceeds have been about ZAR 147 million, “recouping most of our prices,” and described the transaction as paving the way in which for future agreements.
Administration repeatedly framed the interval’s efficiency round funding and executing Imaginative and prescient 2028. On the steadiness sheet, Henriette mentioned property, plant and tools continued to develop attributable to funding in this system and was anticipated to maintain rising over the following two to 3 years.
Jaco offered updates on main capital tasks throughout Ergo and Far West Gold Recoveries:
Daggafontein (Ergo): Pipeline set up described as just about full, with remaining tie-ins remaining. The challenge was mentioned to be on schedule and on price range, with begin anticipated in Q1 2027. Administration mentioned it offers 120 million tons of deposition capability and a 20-year lifetime of mine.
Witkop TSF (Ergo): Within the authorization stage. The corporate mentioned it appointed an unbiased skilled individual as a part of the Division of Water and Sanitation dam security course of, whereas environmental approvals stay pending. Commissioning was described as anticipated inside the subsequent three years, with focused capability of 310 million tons and deposition of 1.3 million tons per thirty days for not less than a 20-year life.
DP2 enlargement (Far West): Enlargement from 600,000 tons to 1.2 million tons per thirty days. Jaco mentioned the plant was about 80% full, on time and on price range, with commissioning anticipated in Q1 2027. He additionally highlighted development of a smelt home, focused for commissioning in Q1 2028, noting Far West at present doesn’t have its personal smelt home services.
RTSF (Far West): Designed for 800 million tons of deposition capability at 2.4 million tons per thirty days and a 30-year lifetime of mine. Administration mentioned liner set up was progressing, with helpful occupation aligned to a Q1 2027 begin.
Pipelines (Far West): 135 km of piping infrastructure, with 104 km accomplished (about 77%), linking DP2, the RTSF, and the brand new Lebanon website.
On sources, Jaco mentioned the Kloof 2 dump from Sibanye was added to mineral sources, contributing about 67 million tons and 480,000 ounces. After depletion over the six months, the corporate reported a internet improve of 55 million tons to 741 million tons of sources, and a rise of 350,000 ounces to six.2 million ounces.
Administration emphasised sustainability metrics, with the photo voltaic and battery power storage system (BESS) contributing to lowered grid electrical energy consumption. Jaco mentioned group grid electrical energy consumption decreased about 28%, whereas Ergo was down 38% when evaluating six months in H1 to H2 FY2025, given the asset has operated since November of the prior yr.
He mentioned electrical energy prices declined 23% at Ergo regardless of a 12.7% improve in tariff charges, and the corporate recorded slightly below ZAR 50 million in wheeling and offsetting revenues used in opposition to different Eskom accounts within the group.
Administration distinguished the Ergo PV and BESS system from the Stellar/Noah transaction. Jaco mentioned Stellar is a deliberate 150 MW photo voltaic facility in Polokwane; DRDGOLD bought its 100% curiosity after growing the challenge to viability, whereas securing 30 MW (about 20%) of the long run energy at what he described as a “very, very aggressive worth.” The corporate mentioned this was aimed toward anticipating larger energy demand and potential carbon footprint will increase as Imaginative and prescient 2028 tasks come on-line.
Within the highlights portion, administration mentioned the corporate’s carbon footprint shrank by 93.4% and that grid electrical energy consumption was down 28%. Later, the CEO additionally referred to a 34% lower in carbon footprint whereas discussing environmental efficiency tendencies, attributing the electrical energy consumption swing largely to utilizing much less energy from the grid fairly than lowered complete utilization.
On social efficiency, administration mentioned it spent ZAR 25.6 million on socioeconomic improvement and described the spending as targeted on constructing platforms members might leverage, fairly than one-off handovers.
Wanting forward, administration mentioned its key focus stays delivering manufacturing and value steering whereas prioritizing execution of Imaginative and prescient 2028, together with regulatory engagement and early occupation milestones. The corporate additionally famous it’s in discussions with different corporations about its mannequin of reprocessing mine waste utilizing present infrastructure, and referenced getting into into an settlement associated to a tool aimed toward enhancing extraction effectivity, with extra data to be offered sooner or later.
DRDGOLD (NYSE: DRD) is a South African gold producer targeted on the retreatment of floor tailings from historic mining operations on the Witwatersrand Basin. The corporate recovers fantastic gold particles from low‐grade tailings utilizing an built-in, carbon‐in‐leach (CIL) processing circuit that’s designed to maximise yield and reduce environmental impression. DRDGOLD’s operations are centered on sustainable useful resource utilization, reworking beforehand discarded materials into saleable gold doré bars.
The corporate operates two major tailings retreatment services on the West Rand and East Rand of Gauteng Province.
