DRDGOLD (DRD) H1 2025 earnings summary

Executive summary

• Achieved 18 consecutive years of dividend payments, with a 50% increase in the interim dividend to 30 SA cents per share for the half-year ended December 2024.

• Revenue rose 28% year-over-year to R3,802.3 million, operating profit up 74% to R1,578.7 million, and headline earnings increased 65% to R970.1 million.

• Maintained a healthy cash position above R661 million without drawing on credit facilities.

• Solar plant and battery energy storage system at Ergo commissioned, advancing sustainability goals and reducing Eskom power usage by 16%.

• Capital reinvestment and infrastructure projects underway to support Vision 2028 growth targets.

Financial highlights

• Group headline earnings per share up 65% to 112.6 SA cents; free cash flow generated despite nearly R1 billion in CapEx.

• All-in sustaining costs margin at 35%; cash operating costs increased 6% to R866,221/kg.

• Gross profit from operating activities up 72% to over R1.3 billion.

• Free cash flow improved to R319.0 million from a negative R826.6 million in the previous period.

• Profit for the period reached R970.1 million, up 65% year-over-year.

Outlook and guidance

• Vision 28 targets throughput of 3 million tons/month and annual gold production of over 200,000 ounces by FY2028.

• FY2025 gold production guidance: 155,000oz to 165,000oz at cash operating cost of R870,000/kg.

• CapEx for FY2025 may fall short of R3.5 billion guidance, but project execution is on track for long-term goals.

• No change to production or cost guidance; all major expansion and sustainability projects progressing as planned.

• Focus on optimizing solar plant and BESS to reduce costs.