DRDGOLD (NYSE:DRD) H1 2026 Earnings call February 18, 2026 03:00 AM ET Company ParticipantsHenriette Hooijer - CFOJaco Schoeman - COONiël Pretorius - CEONiël PretoriusThank you for again joining us for this DRDGOLD's interim results for financial year 2026. Before we start this presentation, I want to take a moment to remember Jan Nelson, who passed away earlier this week. Jan was a friend, and I'm ashamed to say that in recent times, I wasn't much of a friend to him, but his legacy lives on. He laid the fo ...

DRDGOLD (NYSE:DRD) H1 2026 Earnings call February 18, 2026 03:00 AM ET Speaker2Thank you for again joining us for this DRDGOLD's interim results for financial year 2026. Before we start this presentation, I want to take a moment to remember Jan Nelson, who passed away earlier this week. Jan was a friend, and I'm ashamed to say that in recent times, I wasn't much of a friend to him, but his legacy lives on. He laid the foundation for what has become a very successful company in Pan African Resources, and we ...

for the six months ended 31 December 2025 Niël Pretorius Henriette Hooijer Jaco Schoeman Chief Executive Officer Chief Financial Officer Chief Operating Officer Disclaimer as at 31 December 2025 Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the ...

Core Insights - Gold prices have shown recovery after a sharp decline, closing above $5,000/Oz, supported by geopolitical tensions and a weak U.S. dollar [1][9] - Year-to-date, gold prices have increased nearly 15%, positively impacting gold mining stocks [2][9] - Central banks are actively purchasing gold to bolster reserves amid rising global debt and economic uncertainties [4][5] Gold Mining Stocks - Five notable gold mining stocks include AngloGold Ashanti plc (AU), Gold Fields Ltd. (GFI), New Gold Inc. (NGD), DRDGOLD Ltd. (DRD), and Gold Royalty Corp. (GROY), all carrying favorable Zacks Ranks [3][9] - AngloGold Ashanti (AU) has an expected revenue growth rate of 22.5% and earnings growth rate of 52.9% for the current year, with earnings estimates improving by 8.9% [10][11] - Gold Fields (GFI) is projected to have revenue and earnings growth rates exceeding 100%, with earnings estimates improving by 9.2% [12] - New Gold (NGD) anticipates a revenue growth rate of 10.2% and earnings growth rate over 100%, with earnings estimates improving by 15.5% [13] - DRDGOLD (DRD) expects a revenue growth rate of 67.8% and earnings growth rate over 100%, with earnings estimates improving by more than 100% [14][15] - Gold Royalty Corp. (GROY) forecasts revenue and earnings growth rates exceeding 100%, with earnings estimates improving by 12.5% [16] Market Dynamics - The gold mining industry is facing supply constraints due to a scarcity of new deposits and lengthy exploration processes [6] - Increased industrial demand for gold in sectors like energy and healthcare is expected to contribute to a demand-supply imbalance, further driving gold prices [7]

Core Viewpoint - Precious metals like gold and silver are expected to continue outperforming due to rising geopolitical tensions, making the metals and miners sector an attractive investment opportunity [1]. Group 1: Precious Metals Miners Overview - Six large-cap precious metals miners have been identified as potential investment opportunities, each with a net profit margin of at least 15% and a Benzinga Edge Quality Score of at least 90 [2]. Group 2: Hecla Mining Co. - Hecla Mining (NYSE:HL) has a Benzinga Edge Quality Score of 97.64, a market cap of nearly $17 billion, and generates over $1.2 billion in annual sales with a net profit margin of 16.2% [3]. - The stock is trading above its 50-day and 200-day simple moving averages (SMAs), indicating a bullish trend supported by the Moving Average Convergence Divergence (MACD) indicator [5]. Group 3: DRDGold Ltd. - DRDGold (NYSE:DRD) has a Benzinga Edge Quality Score of 98.47 and a market cap of $3 billion, utilizing surface-tailing retreatment strategies for gold recovery, resulting in a high net profit margin of 28.5% [6][7]. - The stock has experienced a 280% gain over the last 12 months and recently made a new all-time high, supported by bullish MACD signals [9]. Group 4: Kinross Gold Corp. - Kinross Gold (NYSE:KGC) has a Benzinga Edge Quality Score of 97.49, a market cap of $40 billion, and reported annual sales exceeding $5 billion, with a net profit margin of 27.3% [10]. - The stock has rallied over 200% in the last year, supported by a strong balance sheet, although caution is advised as the MACD indicators suggest a potential short-term pullback [12]. Group 5: OR Royalties Inc. - OR Royalties (NYSE:OR) has a Benzinga Edge Quality Score of 94.14, a market cap of $7.68 billion, and net margins exceeding 60% [13]. - The stock has gained over 15% in 2026 and is positioned for potential new all-time highs, supported by bullish MACD indicators [15]. Group 6: Southern Copper Corp. - Southern Copper Corp. (NYSE:SCCO) has a Benzinga Edge Quality Score of 92.36, a market cap of $150 billion, and generated over $12 billion in revenue last year with a net margin of 31% [16]. - The stock has increased by 27% in January 2026, with bullish MACD confirmations indicating strong momentum [18]. Group 7: SSR Mining Inc. - SSR Mining (NASDAQ:SSRM) has a Benzinga Edge Quality Score of 92.96 and a market cap of $4.8 billion, with a net profit margin of 15% [19]. - The stock appears undervalued compared to peers, trading at 23 times earnings and 1.2 times book value, and is poised to resume its rally from 2025 [21].

Group 1 - The core viewpoint of the article highlights a collective rise in U.S. gold stocks, with Harmony Gold leading the pre-market gains at 5.58% [1][2] - The recent signing of a federal government temporary funding bill by President Trump has ended a 43-day government shutdown, improving dollar liquidity and boosting both risk and safe-haven assets [2][3] - Gold prices have rebounded quickly after a brief correction, surpassing the $4,100 resistance level and testing the $4,200 mark [2][3] Group 2 - Citigroup predicts that gold prices could reach $6,000 by 2027, driven by a significant mismatch between global wealth and the small physical gold market [3] - The report estimates that a mere 1.5% increase in global household wealth allocation to gold would require 18 years of mineral supply, indicating that this imbalance can only be resolved through a price surge [3] - The current price increase is primarily driven by U.S. investors rather than central banks, with ETF inflows contributing significantly to the global increase [3]

Group 1 - U.S. gold stocks experienced a pre-market rally, with Harmony Gold leading at a 5.58% increase, followed by DRDGOLD at over 4%, and Coeur Mining at 3.5% [1] - The recent signing of a federal government temporary funding bill by President Trump ended a 43-day government shutdown, improving dollar liquidity and boosting both risk and safe-haven assets [1] - Gold prices have rebounded quickly after a brief pullback, surpassing the $4,100 resistance level and testing the $4,200 mark [1] Group 2 - Citigroup forecasts that gold prices could reach $6,000 by 2027 in a bull market scenario, driven by a significant mismatch between global wealth and the small physical gold market [1] - The report estimates that a mere 1.5% increase in global household wealth allocation to gold would require 18 years of mineral supply, indicating that this imbalance can only be resolved through soaring prices [1] - The current surge in gold prices is primarily driven by U.S. investors rather than central banks, with ETF inflows contributing significantly to the global increase [1]

Core Insights - DRDGold Limited (NYSE: DRD) has experienced a significant increase in share price, rising 152.29% on a total return basis, compared to a 14.58% increase for the S&P 500, attributed to climbing gold prices [1] Company Performance - The substantial rise in DRDGold's shares indicates strong market performance and investor interest, particularly in the context of rising gold prices [1]

Core Viewpoint - The article highlights a bullish outlook on gold prices from multiple financial institutions, with predictions of significant increases in gold prices by 2026 due to strong demand and geopolitical uncertainties [1] Group 1: Market Performance - U.S. gold stocks are generally rising in pre-market trading, with DRDGOLD up approximately 3%, Harmony Gold up 2%, and AngloGold and Kinross Gold up 1.6% [1] - Other companies such as Coeur Mining and Pan American Silver also show gains in pre-market trading [1] Group 2: Price Predictions - UBS maintains a target price of $4,200 per ounce for gold by the end of the year, suggesting that prices could rise to $4,700 per ounce if geopolitical or market risks escalate [1] - Morgan Stanley forecasts that gold prices could reach $4,500 per ounce by mid-2026, driven by strong physical demand from ETFs and central banks amid economic uncertainties [1] - JPMorgan analysts predict that gold prices will average $5,055 per ounce by the fourth quarter of 2026 [1] Group 3: Investment Recommendations - UBS recommends that investors allocate 4%-6% of a diversified dollar investment portfolio to gold [1]

Financial Performance - Revenue increased by 26% to R7,878.2 million in fiscal year 2025 from R6,239.7 million in fiscal year 2024, primarily due to a 31% increase in the average rand gold price received to R1,632,275 per kilogram [393]. - Gold revenue increased by R1,634.6 million, or 26%, to R7,864.3 million in fiscal year 2025, driven by a 31% increase in average rand gold price to R1,632,275 per kilogram, despite a decrease in gold sold from 160,400 ounces to 154,902 ounces [417]. - Cash generated from operating activities amounted to R3,511.1 million for fiscal year 2025, a significant increase from R1,845.2 million in fiscal year 2024 [442]. - Adjusted EBITDA for fiscal year 2025 was R3,317.6 million, up from R1,884.9 million in fiscal year 2024, indicating significant operational improvement [431]. - Income tax charge increased to R824.4 million in fiscal year 2025 from R488.2 million in fiscal year 2024, with a deferred tax charge of R824.4 million [426]. Production and Costs - Gold production decreased to 155,288 ounces in fiscal year 2025 from 160,818 ounces in fiscal year 2024, with gold sold also decreasing from 160,400 ounces to 154,902 ounces [392]. - Cash operating costs per kilogram increased to R903,824 in fiscal year 2025 from R833,536 in fiscal year 2024, reflecting rising operational costs [392]. - Cost of sales amounted to R4,747.7 million in fiscal year 2025, with operating costs increasing by 5% to R4,404.6 million, primarily due to inflation and higher reagent and consumable costs [418]. - Consolidated cash operating costs per kilogram increased by 8% to R903,824 per kilogram in fiscal year 2025, while all-in sustaining costs per kilogram rose by 6% to R1,001,214 [433]. - Cash operating costs for fiscal year 2025 increased by R179.4 million to R4,372.7 million compared to R4,193.3 million in fiscal year 2024 [440]. Capital Expenditure - Capital expenditure decreased by R913.9 million to R2,200.0 million in fiscal year 2025 from R3,113.9 million in fiscal year 2024, mainly due to prior year expenditures on the solar plant [395]. - Non-sustaining capital expenditure decreased significantly from R2,789.1 million in fiscal year 2024 to R1,899.4 million in fiscal year 2025, primarily related to the solar power plant construction [435]. - Total capital growth investment forecast for the medium term is around R7.8 billion, primarily for the FWGR Phase 2 project and Daggafontein TSF pipeline construction [451]. Regulatory and Environmental Factors - The company faces regulatory challenges in South Africa, impacting the execution of key capital projects due to slow turnaround in obtaining permits and approvals [390]. - Future environmental rehabilitation costs are estimated based on current prices and regulatory requirements, impacting financial performance [406]. - The total environmental rehabilitation provision decreased to R558.7 million as of June 30, 2025, from R616.8 million in 2024, reflecting a R98.0 million decrease in the provision recognized in profit or loss [420]. Governance and Remuneration - The company secretary was appointed on October 25, 2023, indicating a recent change in governance [491]. - The total directors' remuneration for the year ended June 30, 2025, was R42.6 million [493]. - The total compensation for executive directors amounted to R35.296 million for the year ended June 30, 2025 [497]. - The Remuneration Committee ensures fair and responsible remuneration for directors and executive management, evaluating performance in relation to reward [546]. - The company has established a Nominations Committee to oversee the selection of director nominees, ensuring a majority of independent directors [527]. Employee and Safety Metrics - As of June 30, 2025, the total number of employees is 3,410, comprising 2,517 specialized service providers and 893 directly employed staff [563]. - The number of employees increased from 2,956 in June 2024 to 3,410 in June 2025, representing a growth of approximately 15.3% [563]. - Approximately 80% of Ergo employees and 75% of FWGR employees are members of trade unions or employee associations, indicating strong union representation [568]. - Safety measures are a priority, with ongoing efforts to create a safe working environment for employees [571]. - The lost time injury frequency rate (LTIFR) for Ergo increased to 1.72 in fiscal 2025 from 1.18 in fiscal 2024, while FWGR's LTIFR rose to 1.23 from 0.92 [571]. Shareholder and Incentive Plans - The company awarded 436,959 conditional shares in October 2023 as part of the new incentive plan, with additional awards scheduled for subsequent years [521]. - The Single Incentive Plan aims to balance financial and non-financial performance measures, recognizing the challenges of setting realistic targets in a volatile economic environment [512]. - The payout structure consists of 67% cash payment and 33% in deferred DRDGOLD shares, with vesting periods of 5 years for certain categories of employees [514]. - The performance shares under the ELTI scheme vest based on total shareholder return (TSR) against a hurdle rate of 15% [582]. - The company aims to enhance board diversity and reflect South Africa's demographics through recent changes in board composition [570].