DRDGOLD production up 10%, operating profit up 42%, free cash inflow R725m

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Gold tailings mining company DRDGOLD has reported a strong start to its 2027 financial year (FY27), with higher gold production, improved yields and stronger operating profit for the quarter ended September 30.
Gold production increased despite a 5% reduction in tonnage throughput to 6.2-million tonnes. Revenue increased by 31%, supported by a 14% increase in gold sold and a 14% improvement in the average rand gold price received.
"We've 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," DRDGOLD CEO Niël Pretorius stated in a release to Mining Weekly.
DRDGOLD's Vision 2028 capital programme continued to advance, with major infrastructure projects approaching key delivery milestones. Growth capital expenditure decreased by 29% to R555.7-million as certain Vision 2028 projects progressed towards completion, while all-in costs declined by 10% to R1 562 538/kg.
By quarter-end, construction of the Regional Tailings Storage Facility at Far West Gold Recoveries (FWGR) was 77% complete, with 99% of the work required for beneficial occupation completed. The timing of occupation remains subject to regulatory approvals and favourable weather conditions.
The DP2 Plant expansion to double the monthly plant throughput to 1.2-million tonnes a month, is substantially complete, with commissioning scheduled for October 2026.
Construction of the Libanon reclamation station began in September, while Ergo's Daggafontein Tailings Storage Facility was commissioned in July.
Group cash operating costs increased by 12% quarter-on-quarter to R1.3-billion, mainly owing to higher reagent and diesel costs, the purchase and processing of higher-grade third-party material and increased labour and other costs at FWGR ahead of commissioning the DP2 Plant expansion and the elution and smelthouse facility.
DRDGOLD generated free cash inflow of R725.8-million during the quarter and ended September 2026 with cash and cash equivalents of R2.5-billion, after paying a final dividend of R1-billion for FY26.
The JSE–, A2X– and NYSE-listed DRDGOLD remained free of bank debt with the company's strong cash position allowing it to continue to fund its capital programme without taking on debt.
The group is also favourably positioned to consider an interim dividend in February next year.
DRDGOLD remains on track to achieve its FY27 production guidance of 160 000 oz to 170 000 oz of gold, with cash operating costs expected to remain within guidance of about R1 099 000/kg and all-in sustaining costs at about R1 230 000/kg.