DRDGOLD Limited ADR

DRDGold reported record production of just under 5 tonnes of gold and an 83% surge in operating profit to ZAR6.4 billion for fiscal 2026. Revenue rose 42% to ZAR11.2 billion, headline earnings jumped 89% to ZAR4.2 billion, and free cash flow increased 85% to ZAR2.2 billion after a record ZAR3.5 billion capital expenditure program. The company declared a final cash dividend of ZAR1.20 per share, marking its 19th consecutive year of dividend payments, and guided fiscal 2027 production of between 160,000 and 170,000 ounces with cash operating costs just over ZAR1 million per kilogram. CEO Daniel Pretorius highlighted the unhedged position's benefit from a 40% gold price increase and said reduced capital spending after the Vision 2028 projects should translate into significantly higher dividend capacity.

Gold futures rallied Wednesday to their highest in nearly three months after the U.S. Treasury announced it will at least double its buybacks of longer-dated government debt. Front-month Comex gold for August delivery jumped 2.8% to $4,489.40 an ounce, its highest settlement since May 29, while August silver rose 2.8% to $65.734 an ounce. The 30-year Treasury yield fell nine basis points to 5.19%, its biggest one-day drop since October, and the dollar index dropped 0.8%, making dollar-priced gold cheaper for holders of other currencies. The Treasury's increase in buybacks to at least $4 billion per operation from a current maximum of $2 billion signals greater official support for the Treasury market and ultimately easier financial conditions, a bullish combination for gold, according to Saxo Bank commodity strategist Ole Hansen. Precious metals miners posted strong gains, including Hycroft Mining up 15.3%, DRDGold up 14.5%, and Hecla Mining up 14.4%.

Gold prices logged their steepest quarterly decline in 13 years, with spot prices falling 15% in the second quarter of 2026, the worst drop since the second quarter of 2013. The selloff was driven by rising inflation concerns following the Middle-East conflict, which pushed energy prices higher and raised the likelihood of an interest rate hike by central banks. In the United States, traders are pricing in a 65% chance of a rate hike in September, per the CME FedWatch tool. The recent correction may have created an attractive entry point into high-quality gold mining stocks for long-term investors, including DRDGOLD Limited, Newmont Corporation, and Barrick Mining Corporation. DRDGOLD remains on track to achieve the upper end of its 2026 production guidance of 140,000 to 150,000 ounces while maintaining a debt-free balance sheet, Newmont ended the first quarter of 2026 with approximately 12.8 billion dollars in liquidity, and Barrick Mining reported roughly 7.1 billion dollars in cash and cash equivalents.