DRDGOLD, a JSE listed company focusing on gold reclamation, ended its 2026 financial year with stable production, materially higher earnings and a debt-free balance sheet, as more than R5 billion invested in its Vision 2028 strategy began translating into new operating infrastructure and capacity.
Revenue increased by 42% to R11.2bn, operating profit by 83% to R6.5bn and headline earnings by 89% to R4.3bn. Gold production was stable at 4 839kg, marginally ahead of the 2025 financial year and above guidance. Cash increased by 112% to R2.8bn, with no debt.
“This was a year of delivery,” said CEO Niël Pretorius. His comments come at a time when the gold price is relatively high. Gold traded at $4,335 per ounce on Wednesday, which is a 126% - 128% gain over 3 years. DRDGOLD’s share price has also risen sharply to R40.54 from R17.79 three years ago.
“The gold price has been supportive, but that is not something we control. What we can control is how well we operate, how we allocate capital and whether we use favourable conditions to leave the business stronger and better positioned for the future,” said Pretorius.
“We maintained production while investing at a level that is fundamentally reshaping the business, and we did that while remaining debt-free and continuing to return value to shareholders."
He said the group was now seeing its investment translate into operating capability. “The infrastructure we have been building is starting to come online and the next phase of DRDGOLD is beginning to take shape,” he said in a statement.
Free cash flow increased by 85% to R2.3bn. DRDGOLD invested R3.5bn in capital expenditure and paid R779.3m in dividends in the year, ending 2026 with R2.8bn in cash.
A final dividend of 120 cents a share was declared.
Vision 2028 is the company’s R10bn programme to increase throughput at ERGO and Far West Gold Recoveries (FWGR), lift annual gold production towards six tonnes by 2028 and extend FWGR’s life of mine.
More than R5bn has already been invested. At ERGO, the Daggafontein Tailings Storage Facility received its first water in June and first tailings in July, marking completion of the first major Vision 2028 project and reducing reliance on the mature Brakpan Tailings Storage Facility.
At FWGR, the expanded DP2 plant’s new elution circuit and smelt house were commissioned in July, with first gold poured on the same day.
The Regional Tailings Storage Facility (RTSF) was about 67% complete at year-end, while the pipeline network linking DP2, the RTSF and the Libanon reclamation site was 95% complete.
The water use licence for the Libanon reclamation pump station was approved in July, enabling construction of the pump station to proceed and paving the way for completion of the final link in the pipeline network connecting the Libanon reclamation site to the expanded FWGR infrastructure.
Following the expected completion of the DP2 plant expansion in 2027, and once beneficial occupation of the regional tailings storage facility has been obtained, Libanon plans to add 600 000 tonnes per month to FWGR’s throughput, to increase to 1.2 million tonnes per month.
Daggafontein was receiving tailings, DP2 had poured first gold and approval of the Libanon water use licence had brought the company another step closer to unlocking the next phase of growth at FWGR,
“Our focus now is on bringing these projects into operation safely and efficiently and converting that investment into sustainable production and cash flow,” he said.
The expected completion of the Withok Tailings Storage Facility at ERGO is anticipated during 2029, assuming the required regulatory approvals are granted by the end of December 2026.
The longer-term impact of the Withok provides an additional 3 million tonnes of tailings storage capacity, ERGO is expected to maintain throughput of about 1.65 million tons per month.
The National
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