Gold miner, DRDGOLD, has declared a final cash dividend for FY2025 of 40 South African (SA) cents per share (cps), double that of FY2024, reflecting an increase of 26% in Group revenue to R7 878.2 million (FY2024: R6 239.7 million) and of 69% in Group operating profit to R3 523.6 million (FY2024: R2 081.3 million), both mainly factors of a 31% increase in the average Rand gold price received to R1 632 275/kg (FY2024: R1 248 679/kg).
CEO Niël Pretorius says the company “enjoyed a greater level of stability during the year compared to FY2024, much of this resulting from its own endeavours and a robust gold price.
“At Ergo a ‘new normal’ was established while we progressed projects to extend the operation’s life and continued to pursue our ambitious growth objectives in respect of Far West Gold Recoveries (FWGR).”
Total headline earnings were 69% higher at R2 246.4 million (FY2024: R1 327.2 million), headline earnings per share rising by a corresponding 69% to 260.6 SA cps (FY2024: 154.1 SA cps). Cash and cash equivalents were 150% higher at R1 306.2 million (FY2024: R521.5 million) after accounting for cash applied to capital of R 2 254.9 million (FY2024: R2 985.7 million) most of which related to growth capex. At the end of FY2025, the Company remained debt-free.
Group, operations' operating performance
Group gold production was 3% lower at 4 830kg (FY2024: 5 002kg), reflecting 5% lower production at Ergo of 3 473kg (FY2024: 3 639kg) where throughput rose by 21% to 19.5Mt (FY2024:16.1Mt) but yield was 21% lower at 0.178g/t (FY2024: 0.226g/t) due both to depletion of high grade material from clean-up activities at completed reclamation sites and a build-up of tonnage from new, lower grade sites. Gold production at FWGR was stable at 1 357kg (FY2024: 1 363kg), throughput and yield remaining virtually unchanged. This was in line with current plant and deposition capacity, pending completion of capital projects (the DP2 plant expansion, the new pipelines and the Regional Tailings Storage Facility (RTSF)).
Group cash operating unit costs were 8% higher at R903 824/kg (FY2024: R833 536/kg). At Ergo they were 9% higher at R1 064 447/kg (FY2024: R974 764/kg) due to lower gold production but 14% lower in R/t terms at R190 (FY2024: R222), indicating a change in Ergo’s cost profile as the operation transitions to recovery from fewer, larger sites. At FWGR, cash operating costs rose by 7% to R492 049/kg (FY2024: R458 207/kg) due to expansion-related staff increases, inflationary pressures on labour costs, higher maintenance requirements for ageing plant equipment and reagent and consumable cost increases.
Determining growth
Pretorius says the plan now for Ergo is to expand the operation’s lifespan to beyond 2040 to process a resource base previously thought non-viable. Increasing deposition capacity, however, would be vital; until this could be achieved by resuming deposition on to the Daggafontein tailings storage facility (TSF) by Q1 FY2027, Ergo’s throughput is being throttled at 1.65Mtpm to ease deposition on the current Brakpan TSF. Longer term, the planned new Withok TSF would take over from the Brakpan TSF.
“At our FWGR operation, near Carletonville, the story is similar – for now – to that of Ergo. The throughput rate at FWGR Phase 1 has, from inception, been determined by the capacity of its TSF, Driefontein 4 Dam. Phase 2 construction is well under way, with the expansion of the current DP2 plant to double its current throughput capacity to 1.2Mt, enabled by constructing our new RTSF.”
Impact beyond mining
Pretorius says he believes the company’s performance in FY2025 demonstrates its dedicated pursuit of both its core business and ESG commitments. “Further it points to the energy driving our intention to grow both – not only to do more of both, but to do both better for the benefit of all our stakeholders.”
Ergo’s solar plant and battery energy storage system (BESS), commissioned in November 2024, was functioning at 97% of designed capacity (60MW solar plant and 160MWh BESS), largely meeting the daytime power needs of the operation’s reclamation sites, plant and the Brakpan TSF, and showing a cost saving of approximately R108 million at year-end, Pretorius says.
Surplus electricity delivered into the grid of power utility Eskom at year-end was 41 791 804kWh. Credits for this ‘wheeling’ of surplus power to Eskom have yet to be fully realised but once these start to flow, they will be used to offset the power other sections of the Ergo operation currently draw from the Eskom grid, further reducing the cost of electricity.
“Our carbon footprint has been reduced by the solar plant and an application for carbon credits has been made, so we expect to be able to also report on the positive impact on our carbon footprint in due course,” Pretorius says.
Looking ahead
On DRDGOLD’s Vision 2028 strategy, which envisages increasing throughput to 3 mtpm and boosting gold production to more than 200 000oz/pa, Pretorius says reducing the company’s environmental footprint while maximising its social impact are ‘moving targets’ predicated on success with its core business.
Guidance for FY2026, he says, is production of between 140 000 and 150 000oz of gold at cash operating costs of approximately R995 000/kg. Planned capital growth investment to achieve Vision 2028, forecast for the medium-term, is around R7.8 billion.
