South African gold tailings retreatment specialist DRDGold Limited began its 2026 financial year on solid footing, reporting a 2% revenue increase to R2,254.9 million for the first quarter ended 30 September 2025. The steady start was underpinned by record-high gold prices and modest production growth. A subsidiary of Sibanye-Stillwater, the company credited the stability to an average gold price of R1,943,398/kg, up 1% quarter-on-quarter, amid global gold’s climb to R73,362.99/oz—fuelled by geopolitical tensions, inflation hedging, and central bank demand.
Operationally, gold output rose 2% to 1,191 kg (38,291 oz), overcoming a 3% drop in throughput to 6.48 million tonnes through a 5% yield improvement to 0.184 g/t. Gold sales increased 1% to 1,158 kg, supporting the revenue growth. At its Ergo and Far West Gold Recoveries (FWGR) operations, pressures included higher reagent costs, annual labour escalations, and Eskom’s winter electricity tariffs, alongside additional machine hire for the Driefontein 5 site clean-up.
These headwinds pushed cash operating costs per kilogram up 3% to R955,086 (US$1,685/oz), and per-tonne costs by 8% to R179 (US$10). All-in sustaining costs climbed 5% to R1,066,287/kg (US$1,881/oz), while all-in costs surged 6% to R1,745,213/kg (US$3,079/oz), reflecting higher growth capital spending of R781.1 million, focused on FWGR Phase II expansions and plant upgrades. Sustaining capex fell sharply by 58% to R51.5 million.
Adjusted EBITDA edged up 1% to R1,092.9 million (US$62.0 million), highlighting operational discipline in a strong price environment. Cash reserves declined to R1,049.1 million, following the FY2025 dividend and capex outlay, but the company remains debt-free. Management pointed to enhanced liquidity from the gold rally, earmarked for an expanded FY2026 capital programme aimed at sustaining growth in surface retreatment—a low-risk, environmentally sustainable niche within South Africa’s waning underground mining landscape.
The Q1 update follows a robust FY2025 in which revenue jumped 26% to R7.88 billion and profit surged 69%, enabling a doubled 40 cents per share dividend. Analysts maintain a bullish outlook, with H.C. Wainwright reiterating a Buy rating and a price target of US$18.75, citing consistent performance and a supportive gold price environment. While shares traded flat on the JSE today, year-to-date gains exceed 240%, reflecting investor faith in gold’s safe-haven appeal. As demand for gold endures, DRDGold’s tailings-focused model positions it for continued upside—though cost inflation and throughput volatility remain key risks.