There’s no stopping the gold price as it continues to rise, extending its record high to R73,362.99 per ounce. It seems that all that glitters is gold as South African gold miner DRDGold reports a marginal revenue increase of 2% for the first quarter of FY2026 (Q1 FY2026) ended 30 September 2025. It said that its revenue was stable compared to the final quarter of FY2025 (Q4 FY2025), which ended 30 June 2025.
The company attributes this to a sustained high gold price of R1,943,398/kg and a 16kg increase in gold sold to 1,158 kg.
While there was a 3% decrease in throughput to 6,481,000 tonnes, gold production rose by 2% to 1,191 kg, mainly the result of a 0.008g/t improvement in yield to 0.184g/t.
It adds that cash operating costs per kilogramme of gold sold were also stable, increasing marginally by 3% to R955,086.
Annual labour increases at the company’s Ergo and Far West Gold Recoveries (FWGR) operations and higher reagent costs (mainly lime and cyanide) at Ergo were the main drivers.
Brijesh Patel and Anushree Mukherjee 8 Oct 2025 DRDGold also says costs were influenced by the increase in electricity because of two months of winter tariffs, which Eskom charges between June and August each year, included in Q1.
Moreover, the FWGR incurred additional machine hire costs relating to the clean-up of the Driefontein 5 reclamation site.
The gold miner says that cash operating costs per tonne increased by 8% to R179 due to the cost drivers described above and the decrease in throughput.
All-in sustaining costs per kilogramme were 5% higher at R1,066,287, mainly due to the increase in cash operating costs per kilogramme detailed above and despite a 58% decrease in sustaining capital expenditure to R51.5m.
The company says that in Q4 FY2025, all-in sustaining costs included a credit adjustment related to the change in rehabilitation estimate that is assessed annually.
It says that all-in costs per kilogramme were 6% higher at R1,745,213 due to a 9% rise in growth capital expenditure to R781.1m. This was mainly relating to the FWGR Phase II project, which includes the construction of the regional tailings storage facility and DP2 Plant expansion.
The company reported that adjusted earnings before income tax, depreciation, and amortisation (EBITDA) were 1% higher at R1092.9m, mainly due to the increase in gold sold and the higher gold price received.
While cash and cash equivalents decreased by R257.1m to R1049.1m from R1306.2m after paying the final cash dividend of R345.7m for FY2025, capital expenditure (including prepayments towards capital items) of R751.8m was incurred during the quarter.
It says that the high gold price has increased liquidity and cash generated during Q1 FY2026, which will be applied towards, amongst other items, the company’s extended capital expenditure programme for the FY2026.
