DRDGOLD (NYSE:DRD) reported higher revenue, profit and free cash flow for financial year 2026, supported by a 40% increase in the gold price, production above guidance and cost discipline. The company also declared a final cash dividend of ZAR1.20 per share, its 19th consecutive year of dividend payments.

Niël said the final dividend totaled just over ZAR1 billion. Combined with the ZAR0.50-per-share interim dividend, DRDGOLD declared 65% of its free cash flow for the year as dividends, according to CFO Henriette.

Revenue and earnings rise with gold price

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Group revenue increased 42% to ZAR11.2 billion from ZAR7.9 billion in the prior year. The company said it benefited from remaining unhedged during a period of sharply higher gold prices, allowing it to receive the full benefit of the increase.

Operating profit rose 83% to ZAR6.4 billion, while headline earnings increased 89% to ZAR4.2 billion. Headline earnings per share rose to 492 cents from 261 cents a year earlier.

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Free cash flow increased 85% to approximately ZAR2.3 billion, after capital expenditure of ZAR3.5 billion. Net cash inflow from operating activities climbed to ZAR5.7 billion from ZAR3.5 billion, and the company ended the year with cash and cash equivalents of just under ZAR2.8 billion. Henriette described the balance sheet as debt-free.

DRDGOLD reported profit before tax of ZAR5.9 billion, compared with ZAR3.1 billion a year earlier. The company paid about ZAR490 million in income tax during the year, primarily related to the Ergo operation, while Niël said the company's broader tax contribution, including pay-as-you-earn taxes, was more than ZAR1 billion.

Production exceeds guidance as costs remain controlled

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Group throughput was held at about 25 million tonnes as DRDGOLD managed its tailings storage facilities within prescribed safety factors. Gold production came in just under 5 tonnes for the year, approximately 5,000 ounces above the high end of the company's guidance. Average yield increased 2% to just under 0.2 grams per tonne.

Cash operating costs were just under ZAR1 million per kilogram, a 7% increase from the prior year and below guidance. Cash operating costs per tonne increased 10% to ZAR188, reflecting a larger trucking component for higher-grade cleanup and remnant material.

At Ergo, revenue rose to ZAR8.1 billion from ZAR5.7 billion, while operating profit more than doubled to ZAR4.1 billion from ZAR2 billion. Unit cash operating costs at Ergo increased 6% to ZAR1.12 million per kilogram.