DRDGold expects full-year earnings to rise by as much as 95% after higher gold prices and better-than-expected production.
Key projects in its Vision 2028 expansion also moved forward in July, including the receipt of a long-awaited government licence.
The surface gold producer said earnings per share for the year to end-June would come in at between 481.4c and 507.4c, an increase of between 85% and 95%.
Headline earnings per share are expected at between 481.2c and 507.2c, up by the same percentage range.
CEO Niël Pretorius said the expected earnings rise is a “pleasing outcome”, especially in light of the company’s investments in the future of its business.
DRDGold also cleared a key government hurdle in July when it received the long-awaited Water Use Licence for the Libanon reclamation pump station. The approval paves the way for an expected production increase at Far West Gold Recoveries (FWGR).
Other July milestones included the first deposition of tailings at Ergo’s Daggafontein Tailings Storage Facility on 6 July and the commissioning of the new elution circuit and smelt house at the expanded DP2 plant.
DP2 poured its first gold on 14 July.
The progress is important for DRDGold’s Vision 2028 programme, which is aimed at lifting annual gold production to about 200,000 ounces (oz).
Government approvals have been a source of delays. In late July, Pretorius said DRDGold was waiting on multiple permits, including water use licences.
In the period under review, DRDGold produced 155,577 oz, beating the upper end of its 140,000 to 150,000 oz guidance by more than 5,500 oz.
Cash operating costs of R967,544/kg also came in below guidance of about R995,000/kg.
Revenue increased 42% to R11.16bn, driven mainly by a 40% increase in the rand gold price received. Gold sales rose 1%. Capital expenditure increased 57% to R3.53bn as DRDGold continued spending on Vision 2028.
“The gold price has been supportive,” Pretorius said, “but the operational performance and the discipline with which we have continued to invest are equally important.”
The permitting delays have already affected operating costs. Ergo spent more on trucking material from different sites to maintain throughput while awaiting Water Use Licence approvals for some reclamation areas.
DRDGold ended June with R2.77bn in cash after paying R779.3m in dividends and funding its capital programme.
The group had no bank debt, and its available credit facilities remained undrawn as at 30 June 2026.
DRDGold is expected to release its full-year results on Wednesday, 19 August.
