DRDGOLD (DRD) Mining Forum Americas 2026 summary

Operational overview

• Focus on reprocessing and reclamation of mine tailings, with no primary mining activity.

• Two main operations: Ergo Mining (1.6 million tons/month) and Far West Gold Recoveries (500,000 tons/month).

• All water used is industrial quality and recycled in a closed circuit.

• Production for the last financial year was flat at 155,000 ounces from 25 million tons processed.

• Sites are rehabilitated for sustainable land use after reclamation.

Financial performance

• Cash operating cost just under $1,800/oz; all-in sustaining cost just under $2,000/oz.

• All-in sustaining margin rose 14% to 53% for FY2026, with revenue up 52% to $660 million.

• Cash and cash equivalents increased 128% to $164 million; largest dividend paid (ZAR 1.4 billion, 65% of headline earnings).

• Free cash flow doubled to $134 million after $209 million in growth CapEx.

• Share price increased 60% year-on-year, with cash operating margin per ounce at $2,455.

Capital allocation and shareholder returns

• Sustaining CapEx prioritized as essential for long-term viability.

• Growth CapEx also prioritized, with significant investments planned over the next two years.

• Dividend payments are a core part of the value proposition, with 19 consecutive years of dividends.

• Retains full exposure to gold price volatility, offering liquidity and upside potential.

• Maintains liquidity and a small cash margin to cover operating and near-term capital expenses.