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DRDGOLD guides to 160,000-170,000 ounces in fiscal 2027, up from 155,577 ounces in fiscal 2026.
Vision 2028 advances as RTSF reaches 67% completion and the pipeline network about 95% at year-end.
Withok is now targeted for end-2029 as DRDGOLD flags diesel, trucking and reagent inflation pressures.
DRDGOLD Limited (DRD - Free Report) used its year-end call to shift attention from gold-price-driven results toward Vision 2028 milestones tied to its production uplift.
Management paired fiscal 2027 guidance with a cautionary Withok update, while noting fiscal 2026 was peak capital spending and DRDGOLD remained debt-free.
DRD Sets a Higher Fiscal 2027 Production Bar
CEO Daniël Pretorius guided to fiscal 2027 gold production of 160,000 to 170,000 ounces, compared with 155,577 ounces in fiscal 2026. He said throughput, head grade and recovery efficiency underpin the forecast.
CEO Pretorius also guided to cash operating costs of about R1.099 million per kilogram and all-in sustaining costs of about R1.23 million per kilogram, with capital investment of R3 billion.
CFO Henriette Hooijer said Far West Gold Recoveries remains in an expansion phase, with higher costs expected until throughput increases.
DRDGOLD Advances the Vision 2028 Buildout
COO Wilhelm Schoeman said the DP2 expansion, RTSF and pipeline network remain central to Vision 2028. The RTSF was about 67% complete at year-end, while the pipeline network was roughly 95% complete.
COO Schoeman said the new DP2 smelt house was commissioned in July and produced its first gold bar. The rest of the plant is expected to be commissioned this quarter.
COO Schoeman said the RTSF is targeted to support the full 1.2 million-tonne monthly rate in the first quarter of fiscal 2028, with start-up paced around weather.
DRD Manages Withok Delay and Throughput Risk
CEO Pretorius said Withok will miss the original 2028 timeline because extra engineering is required for underground geological features. Completion is targeted for the end of 2029, assuming approvals arrive by December 2026.
The near-term impact is about 150,000 tonnes per month, while Withok provides 310 million tonnes of capacity for Ergo’s plan.
In online Q&A, COO Schoeman said Daggafontein provides schedule flexibility. CEO Pretorius added that a delay beyond 2030 could force Ergo to run at roughly 750,000 to 1 million tonnes per month until capacity is restored.
DRDGOLD Keeps Cost Pressure in Focus
CEO Pretorius said trucking of higher-grade material will remain part of Ergo’s mix for the foreseeable future, while clarifying that management is not planning an increase.
CFO Hooijer identified diesel, machine hire, trucking and reagent inflation as meaningful pressures. CFO Hooijer said diesel exposure is significant at Ergo and also affects RTSF construction.
For fiscal 2027 budgeting, CFO Hooijer said management incorporated diesel assumptions and risk factors. CEO Pretorius said some cost components carry risk factors of 11% to 17%.
DRD Links Lower Capex to Future Dividend Capacity
Fiscal 2026 revenue rose 42% to R11.159 billion, while free cash flow increased 85% to R2.2664 billion after R3.5316 billion of capital expenditure. Cash ended at R2.77 billion.
CEO Pretorius emphasized that the capital program was funded without drawing debt facilities. The board declared a final dividend of 120 South African cents per share, extending the dividend streak to 19 financial years.
Asked about future capital allocation, CEO Pretorius said dividends can rise as capital spending falls, provided conditions remain supportive. CEO Pretorius declined fiscal 2028 and 2029 cost guidance because too many assumptions remain outside management’s control.
DRDGOLD Looks Beyond South Africa
CEO Pretorius said DRDGOLD is exploring tailings-retreatment opportunities in Africa and South America, spanning both gold and copper recovery.
Responding to a Mining Weekly question, CEO Pretorius said DRDGOLD expects 30 megawatts of renewable power through the grid, helping offset higher electricity demand at Far West.
On platinum-group metals, CEO Pretorius said technical participation with Sibanye-Stillwater could be possible if invited, but he did not frame acquisitions as the preferred route.
DRD Keeps Execution at the Center
Management was confident on completed milestones, while also highlighting regulatory approvals, weather, diesel costs and project sequencing as variables that can affect Vision 2028.
CEO Pretorius continued to emphasize an unhedged gold-price strategy and stronger net cash generation after the capital cycle, while keeping attention on project delivery.
DRDGOLD's Zacks Signals Stay Mixed
DRD carries a Zacks Rank #5 (Strong Sell), a Value Score of D, Growth Score of A, Momentum Score of F and VGM Score of B. Style Scores complement the Zacks Rank rather than override it.
The Growth and VGM scores are favorable, but the weak Value and Momentum grades and Zacks Rank #5 point to a less favorable near-term signal. The Zacks Rank can change as estimates are revised after the just-reported results.
View the Zacks #1 Rank List
Image: Bigstock
DRD Q4 Earnings Call Balances Vision 2028 Progress and Withok Delay
Key Takeaways
DRDGOLD Limited (DRD - Free Report) used its year-end call to shift attention from gold-price-driven results toward Vision 2028 milestones tied to its production uplift.
Management paired fiscal 2027 guidance with a cautionary Withok update, while noting fiscal 2026 was peak capital spending and DRDGOLD remained debt-free.
DRD Sets a Higher Fiscal 2027 Production Bar
CEO Daniël Pretorius guided to fiscal 2027 gold production of 160,000 to 170,000 ounces, compared with 155,577 ounces in fiscal 2026. He said throughput, head grade and recovery efficiency underpin the forecast.
CEO Pretorius also guided to cash operating costs of about R1.099 million per kilogram and all-in sustaining costs of about R1.23 million per kilogram, with capital investment of R3 billion.
CFO Henriette Hooijer said Far West Gold Recoveries remains in an expansion phase, with higher costs expected until throughput increases.
DRDGOLD Advances the Vision 2028 Buildout
COO Wilhelm Schoeman said the DP2 expansion, RTSF and pipeline network remain central to Vision 2028. The RTSF was about 67% complete at year-end, while the pipeline network was roughly 95% complete.
COO Schoeman said the new DP2 smelt house was commissioned in July and produced its first gold bar. The rest of the plant is expected to be commissioned this quarter.
COO Schoeman said the RTSF is targeted to support the full 1.2 million-tonne monthly rate in the first quarter of fiscal 2028, with start-up paced around weather.
DRD Manages Withok Delay and Throughput Risk
CEO Pretorius said Withok will miss the original 2028 timeline because extra engineering is required for underground geological features. Completion is targeted for the end of 2029, assuming approvals arrive by December 2026.
The near-term impact is about 150,000 tonnes per month, while Withok provides 310 million tonnes of capacity for Ergo’s plan.
In online Q&A, COO Schoeman said Daggafontein provides schedule flexibility. CEO Pretorius added that a delay beyond 2030 could force Ergo to run at roughly 750,000 to 1 million tonnes per month until capacity is restored.
DRDGOLD Keeps Cost Pressure in Focus
CEO Pretorius said trucking of higher-grade material will remain part of Ergo’s mix for the foreseeable future, while clarifying that management is not planning an increase.
CFO Hooijer identified diesel, machine hire, trucking and reagent inflation as meaningful pressures. CFO Hooijer said diesel exposure is significant at Ergo and also affects RTSF construction.
For fiscal 2027 budgeting, CFO Hooijer said management incorporated diesel assumptions and risk factors. CEO Pretorius said some cost components carry risk factors of 11% to 17%.
DRD Links Lower Capex to Future Dividend Capacity
Fiscal 2026 revenue rose 42% to R11.159 billion, while free cash flow increased 85% to R2.2664 billion after R3.5316 billion of capital expenditure. Cash ended at R2.77 billion.
DRDGOLD Limited Price, Consensus and EPS Surprise
DRDGOLD Limited price-consensus-eps-surprise-chart | DRDGOLD Limited Quote
CEO Pretorius emphasized that the capital program was funded without drawing debt facilities. The board declared a final dividend of 120 South African cents per share, extending the dividend streak to 19 financial years.
Asked about future capital allocation, CEO Pretorius said dividends can rise as capital spending falls, provided conditions remain supportive. CEO Pretorius declined fiscal 2028 and 2029 cost guidance because too many assumptions remain outside management’s control.
DRDGOLD Looks Beyond South Africa
CEO Pretorius said DRDGOLD is exploring tailings-retreatment opportunities in Africa and South America, spanning both gold and copper recovery.
Responding to a Mining Weekly question, CEO Pretorius said DRDGOLD expects 30 megawatts of renewable power through the grid, helping offset higher electricity demand at Far West.
On platinum-group metals, CEO Pretorius said technical participation with Sibanye-Stillwater could be possible if invited, but he did not frame acquisitions as the preferred route.
DRD Keeps Execution at the Center
Management was confident on completed milestones, while also highlighting regulatory approvals, weather, diesel costs and project sequencing as variables that can affect Vision 2028.
CEO Pretorius continued to emphasize an unhedged gold-price strategy and stronger net cash generation after the capital cycle, while keeping attention on project delivery.
DRDGOLD's Zacks Signals Stay Mixed
DRD carries a Zacks Rank #5 (Strong Sell), a Value Score of D, Growth Score of A, Momentum Score of F and VGM Score of B. Style Scores complement the Zacks Rank rather than override it.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth and VGM scores are favorable, but the weak Value and Momentum grades and Zacks Rank #5 point to a less favorable near-term signal. The Zacks Rank can change as estimates are revised after the just-reported results.