DRD · DRDGOLD Limited

DRDGOLD's operating update for the quarter ended 31 March 2026 reflects strong operational and financial performance. Gold production increased 6% to 1,219 kg (39,192 oz) driven by a 5% rise in ore milled to 6,269 metric tonnes and a marginal yield improvement to 0.194 g/t. The tonnage increase was attributed to drier weather conditions compared to the prior quarter. Revenue grew 6% to R2,963.1 million, primarily due to a 13% increase in the average Rand gold price received to R2,565,465/kg, partially offset by a 6% decline in gold sold. Cash operating costs rose 5% to R1,191.5 million due to higher reagent consumption and trucking costs associated with increased throughput, but cash operating costs per kilogram decreased 4% to R960,270/kg, reflecting operational leverage. Operating profit increased 19% to R1,854.0 million, and Adjusted EBITDA rose 21% to R1,812.8 million, underscoring effective cost management. The company reiterated its FY2026 production guidance of 140,000-150,000 ounces and cost guidance of approximately R995,000/kg, stating it remains on track to achieve the upper end of production guidance. Capital expenditure on growth projects decreased 16% to R693.1 million as key projects near completion. The company ended the quarter with R2,316.3 million in cash and no bank debt, having paid an interim dividend of R433.6 million. Management expressed confidence in considering a final dividend in August 2026, barring unforeseen events. The strong cash position and available credit facilities support the ongoing capital expansion program without incurring debt.