This was according to an operational update for the quarter ending September 30, released Thursday, which showed that cash operating costs increased by 8% to R179 per ton for its second quarter, while its gold production increased by 2% to 1 191 kg.

The group should benefit more in its third quarter from the current high gold prices; which peaked at its highest price this year at R70,307 per ounce on October 10, or R2.26 million per kilogram. In DRD Gold’s second quarter, it obtained an average gold price of R1.94m per kilogram, which in turn was 1% higher than the first quarter.

The share price was marginally 0.02% lower on Thursday morning at R52.56, but the price has more than doubled from R20.44 a year earlier. The gold price increased by about 52% over a year.

The group that operates the Ergo Plat tailing retreatment facility in Brakpan, east of Johannesburg, and Far West Gold Recoveries mine near Carltonville, said the amount of gold it sold in the three-month period increased by 1% to 37 231 ounces.

Revenue for the quarter remained stable in comparison to the previous quarter, increasing marginally by 2% to R2.26bn, mainly as a result of a sustained high gold price and the increase in gold sold, the directors said.

They said the increase in cash operating costs was mainly driven by annual labour increases at both operations and higher reagent costs – mainly lime and cyanide – at Ergo Mining. Electricity costs increased due to two months of winter tariffs, which Eskom charges between June and August each year, included in this quarter.

Far West Gold Recoveries incurred additional machine hire costs relating to the Driefontein 5 reclamation site clean-up.

The volumes of ore milled fell by 3%. The gold yield improved relatively strongly by 5% to 0.184 grams per ton.

Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by only 1% to R1.09bn. All-in sustaining costs increased by 5% to R1 066 287 per ounce, due to the increase in cash costs, and in spite of a 58% decline in sustaining capital expenditure to R51.5m.

The prior quarter’s all-in sustaining costs included a credit adjustment from a change in the annual rehabilitation estimate. Adjusted EBITDA increased by 1% from the previous quarter to R1.09bn, primarily due to the increase in gold sold and the accompanying higher gold price received.

Cash and cash equivalents fell by R257.1m to R1.05bn as at September 30, 2025, after paying a final cash dividend of R345.7m for the year to June 30, 2025, and capital expenditure of R751.8m incurred during the quarter. The company remained debt-free as at September 30, 2025.