JOHANNESBURG (miningweekly.com) – The operating profit of Johannesbrg Stock Exchange-listed DRDGOLD increased by 83% to R6.5-billion in financial year (FY) 2026, ending June 31.

Headline earnings increased by 89% to R4.3-billion and free cash flow rose by 85% to R2.3 billion.

Gold production of 4 839 kg exceeded annual guidance and R3.5-billion has been invested in capital expenditure.

Cash and cash equivalents increased by 112% to R2.8-billion, with no debt and a final cash dividend of R1.20 a share has been declared.

The Daggafontein pipeline project has been commissioned and the expanded DP2 plant has poured first gold, the Libanon reclamation pump station has had its water use licence approved and Kloof 2 dump has been classified as a mineral reserve. 

DRDGOLD has invested more than R5-billion in Vision 2028, which has begun translating into new operating infrastructure and capacity.

“This was a year of delivery,” DRDGOLD CEO Niël Pretorius stated in a release to Mining Weekly.

“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.

“What is particularly encouraging is that we are now seeing that 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.”

Vision 2028 is DRDGOLD’s approximately R10-billion programme to increase combined 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 (LoM). More than R5-billion has now 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 approximately 67% complete at year-end, while the pipeline network linking DP2, the RTSF and the Libanon reclamation site was approximately 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 expansion of the DP2 plant in the second quarter of FY2027, and once beneficial occupation of the RTSF has been obtained, Libanon is planned to add 600 000 t a month to FWGR’s throughput profile, to increase to 1.2-million tonnes a month. 

“Daggafontein is receiving tailings, DP2 has poured first gold and approval of the Libanon water use licence brings us another step closer to unlocking the next phase of growth at FWGR,” Pretorius said.

“There is still significant work ahead, but the building blocks are increasingly in place. Our focus now is on bringing these projects into operation safely and efficiently and converting that investment into sustainable production and cash flow.” 

The expected completion of the Withok Tailings Storage Facility at Ergo is now anticipated during 2029, assuming the required regulatory approvals are granted by the end of December 2026. Though the near-term operational impact is expected to be limited (Withok is expected to add 150 000 t a month to Ergo’s deposition capacity to take it 1.8-million tonnes a year) the longer term impact is profound, in that it provides an additional 310-million tonnes of tailings storage capacity to facilitate the remainder of Ergo’s LoM. In the meantime, following the resumption of deposition at Daggafontein, Ergo will be able to maintain throughput of approximately 1.65-million tonnes a month in the absence of unforeseen events.

Following the transfer of Kloof 2 dump from Sibanye-Stillwater to FWGR in December 2025, the dump added 67-million tonnes to the Group’s mineral reserves and extended FWGR’s LoM by four years. 

DRDGOLD maintained its zero-fatality record during FY2026, while its lost-time injury frequency rate improved by 23% and its reportable injury frequency rate by 67%. At Ergo, electricity sourced from Eskom and municipalities, net of wheeling and offsets, declined by 14% as the contribution from its solar plant and battery energy storage system increased. Group potable water consumption declined by 23%.

Pretorius noted: “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.”