DRDGOLD has opened its 2027 financial year with a 10% rise in gold production and a 42% jump in operating profit, the tailings retreatment specialist said on 20 October 2026.

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The Johannesburg-based producer, listed on the JSE, A2X and NYSE, recovered 1,307 kg (42,021 oz) of gold in the quarter ended 30 September 2026, compared with the same quarter a year earlier. Operating profit rose to R1.6 billion and revenue climbed 31% to about R3.0 billion.

More gold from less material

"We have had a good start to the financial year, with higher gold production and with the gold price still working in our favour, allowing us to continue to invest in the future of the business." — Niël Pretorius, CEO, DRDGOLD

The higher output came from better recoveries rather than more tonnes. DRDGOLD said yield improved by 15% even though throughput fell 5% to 6.2 million tonnes. Gold sold rose 14%, and the average rand gold price received was also 14% higher.

"We have had a good start to the financial year, with higher gold production and with the gold price still working in our favour, allowing us to continue to invest in the future of the business," CEO Niël Pretorius said.

Cash strong, capex easing

The company generated R725.8 million in free cash during the quarter. It ended September with R2.5 billion in cash and cash equivalents, after paying a final dividend of R1.0 billion for FY2026, and it carries no bank debt.

Growth capital expenditure fell 29% to R555.7 million as several Vision 2028 projects neared completion. Miningmx noted that this was less than half the R1.16 billion spent in the June quarter. DRDGOLD said all-in costs declined 10% to R1,562,538 per kilogram.

Group cash operating costs rose 12% to R1.3 billion. The company put this down to higher reagent and diesel costs, the purchase and processing of higher-grade third-party material, and extra labour and other costs at Far West Gold Recoveries ahead of new plant coming on stream.

Vision 2028 milestones

At Far West Gold Recoveries (FWGR), the new Regional Tailings Storage Facility was 77% complete at quarter-end, with 99% of the work needed for beneficial occupation done. DRDGOLD said occupation still depends on regulatory approvals and the weather. The DP2 plant expansion was substantially complete, with commissioning scheduled for October 2026.

Construction of the Libanon reclamation station started in September, and Ergo's Daggafontein Tailings Storage Facility was commissioned in July. According to Miningmx, Vision 2028 aims to lift annual output to about 200,000 oz.

DRDGOLD said it remains on track for FY2027 production of 160,000 to 170,000 oz, with cash operating costs of about R1,099,000/kg and all-in sustaining costs of about R1,230,000/kg. It added that it is well placed to consider an interim dividend in February 2027, subject to conditions at the time.

Why it matters

DRDGOLD recovers gold from old mine tailings on the East and West Rand rather than from underground ore. Funding a multi-billion-rand expansion from its own cash, without bank debt, supports jobs on the Witwatersrand and shows how surface retreatment can extend the life of the country's gold industry.

Source: DRDGOLD media release, 20 October 2026; additional reporting from Miningmx.