Business
Can DRDGOLD Sustain Output Amid Operational Headwinds?
Can DRDGOLD Sustain Output Amid Operational Headwinds?
About this update from Drdgold Ltd.
DRDGOLD Limited DRD delivered solid operational performance for the first half of fiscal 2026 (ended Dec. 31, 2025). The company produced 2,337 kilograms of gold (75,136 ounces), reflecting a 9% year-over-year decline from 2,564 kilograms (82,434 ounces) in the first half of fiscal 2025. Production was driven by the company’s two core tailings retreatment operations — Ergo Mining Proprietary Limited and Far West Gold Recoveries Proprietary Limited (FWGR) — with Ergo producing approximately 1,683 kilograms of gold and FWGR contributing about 654 kilograms. The year-over-year decline in group production can be mainly attributed to lower recovery yields and reduced throughput. Throughput was affected by heavy rainfall and adverse weather conditions during November and December. Lower production was partly due to the depletion of higher-grade material at the base of Driefontein 5 and the subsequent processing of lower-grade material from Driefontein 3 at FWGR. Among peers, AngloGold Ashanti plc AU delivered a solid fourth-quarter performance in 2025 with production of about 799,000 ounces. Growth came from stronger output at key operations and improved grades. The full-quarter contribution from the Sukari mine supported volumes. AngloGold benefited from better processing efficiency and steady output across its asset base. It expects 2026 production to range between 2.8 million ounces and 3.17 million ounces. Gold Fields Limited GFI closed fourth-quarter 2025 on a strong note, with attributable gold-equivalent production of 681,000 ounces, supported by the ramp-up of Salares Norte and steady core asset performance. Higher realized gold prices of approximately $4,184 per ounce further boosted results. Gold Fields expects 2026 production to remain in the range of 2.4-2.6 million ounces, with continued support from its diversified asset base. The company is focused on enhancing operational efficiencies and advancing key growth projects. The Zacks Rundown for DRDShares of DRD have popped 81.5% in a year compared with its industry’s 83.5%. From a valuation perspective, DRD is currently trading at a forward 12-month price-to-sales of 2.94X, lower than the industry’s average of 3.92X.The Zacks Consensus Estimate for 2026 and 2027 earnings implies growth and a decline of 894.41% and 19%, respectively, year over year. The consensus estimates for fiscal 2026 and 2027 ea...