The mining company DRDGOLD, which also operates in the Carletonville and Fochville area, is doing very well.
According to their spokesperson, Memory Johnstone, the company has reported a strong start to the 2027 financial year, with higher gold production, improved yields and stronger operating profit for the quarter ended on September 30 compared with the corresponding quarter in 2025.
Gold production increased despite a 5% reduction in tonnage throughput to 6.2 million tonnes. Revenue increased by 31%, supported by a 14% increase in gold sold and a 14% improvement in the average Rand gold price received.
“We have had a good start to the financial year, with higher gold production and with the gold price still working in our favour, allowing us to continue to invest in the future of the business,” says the company’s CEO, Niël Pretorius.
By quarter-end, construction of the Regional Tailings Storage Facility at Far West Gold Recoveries (FWGR) near Fochville was 77% complete, with 99% of the work required for beneficial occupation completed. The timing of occupation remains subject to regulatory approvals and favourable weather conditions.
The DP2 Plant expansion was substantially complete, with commissioning scheduled for October 2026.
Construction of the Libanon reclamation station began in September, while Ergo’s Daggafontein Tailings Storage Facility was commissioned in July.
Group cash operating costs increased by 12% quarter-on-quarter to R1.3b, mainly due to higher reagent and diesel costs, the purchase and processing of higher-grade third-party material, and increased labour and other costs at FWGR ahead of commissioning the DP2 Plant expansion and the elution and smelthouse facility.
The company also generated free cash inflow of R725.8m during the quarter and ended September 2026 with cash and cash equivalents of R2.5b, after paying a final dividend of R1.0b for FY2026. The group remained free of bank debt.
DRDGOLD’s strong cash position allows it to continue funding its capital programme without taking on debt. The Group is also favourably positioned to consider an interim dividend in February 2027, subject to prevailing conditions and unforeseen events.
