DRDGOLD (DRD) H2 2026 earnings summary

Executive summary

• Achieved 19th consecutive annual dividend, declaring a final cash dividend of 120 SA cps for FY2026, supported by strong production and financial performance.

• Revenue rose 42% year-over-year to R11,159.0m, driven by a 40% increase in gold price and efficient production just below 5 tons, exceeding guidance.

• Operating profit surged 83% to R6,452.0m, with headline earnings up 89% to R4,253.7m.

• Free cash flow increased 85% to R2,266.5m after R3,531.6m in capital expenditure, enabling a 65% payout ratio.

• Major progress was made on Vision 2028, a R10bn capital investment program to increase throughput and gold output by 2028.

Financial highlights

• Revenue: R11,159.0m (up from R7,878.2m in FY2025); operating profit: R6,452.0m, up 83% year-over-year.

• Headline earnings: R4,253.7m, up 89% year-over-year; free cash flow: R2,266.5m, up 85% year-over-year.

• Cash and cash equivalents at year-end: R2,770.0m, up 112% year-over-year.

• All-in sustaining costs increased 8% to R1,078,068/kg; cash operating costs rose 7% to R967,523/kg.

• Operating margin improved to 61.2% in HY2 FY2026; all-in sustaining cost margin reached 53%.

Outlook and guidance

• FY2027 gold production guidance: 160,000–170,000oz at cash operating cost of ~R1,099,000/kg and all-in sustaining costs at ~R1,230,000/kg.

• Planned capital expenditure for FY2027 is ~R3bn, with key milestones including DP2 plant expansion, RTSF completion, and Withok dam approvals.

• Dividend expected to grow as capital spend declines, assuming stable gold prices and cost control.

• Exploring growth opportunities beyond South Africa, including new tailings retreatment partnerships in Africa and South America.