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Drdgold ( (DRD) ) has shared an announcement.
DRDGOLD reported that for the six months ended 31 December 2025 it expects earnings per share of between 216.9 cents and 228.2 cents, and headline earnings per share of between 217.5 cents and 228.7 cents, an increase of 93% to 103% year on year. The jump in profitability was driven by a 33% rise in group revenue to R5.05 billion on a 43% higher average Rand gold price, which offset a 7% decline in gold sold and modestly higher unit cash costs.
Ergo’s revenue grew to R3.61 billion despite lower throughput and yield, helped by the higher gold price and sharply reduced grid power usage from Eskom thanks to its solar and battery storage facility, which cut electricity consumption by 38% and costs by 23%. Far West Gold Recoveries’ revenue rose to R1.44 billion as the stronger gold price outweighed lower yields and volumes during its transition from Driefontein 5 to Driefontein 3 material.
The group lifted capital reinvestment by 74% to R1.65 billion to advance its Vision 2028 growth projects, including the Daggafontein tailings storage facility pipeline at Ergo and the DP2 plant expansion, regional tailings facility and long-distance pipeline at FWGR, where bad weather caused some delays but key installation milestones remain in sight. FWGR also added about 67 million tonnes at an average 0.22g/t to its mineral resource base through the transfer of the Kloof 2 dump from Sibanye-Stillwater at no additional purchase cost beyond rehabilitation obligations.
As at 31 December 2025 DRDGOLD held R1.73 billion in cash and cash equivalents, more than doubling its prior-year balance after paying R345.7 million in dividends and generating free cash inflow of R793.1 million, while remaining free of bank debt. Management says the company is trending toward the upper end of its 2026 production guidance of 140,000 to 150,000 ounces with unit cash operating costs expected to stay around R995,000/kg, supporting its capacity to fund expansion with substantial undrawn credit lines as additional liquidity back-up.
The most recent analyst rating on (DRD) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.
Spark’s Take on DRD Stock
According to Spark, TipRanks’ AI Analyst, DRD is a Outperform.
The score is driven primarily by strong financial performance (profitability, growth, and very low leverage), supported by a clear bullish price trend. Offsetting factors are stretched technical momentum (RSI/Stochastics) and a relatively high P/E with a modest dividend yield.
To see Spark’s full report on DRD stock, click here.
More about Drdgold
DRDGOLD Limited is a South African gold producer focused on the retreatment of surface tailings through its Ergo Mining and Far West Gold Recoveries operations. The group recovers gold from legacy mine dumps around Johannesburg and the Far West Rand, positioning itself as a low-risk, surface retreatment specialist leveraged to the Rand gold price.
Average Trading Volume: 432,061
Technical Sentiment Signal: Buy
Current Market Cap: $2.83B
Learn more about DRD stock on TipRanks’ Stock Analysis page.