Drdgold (DRD) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: 1.37%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.14
• Revenue Growth: 30.05%
• EPS Growth: 73.23%
• Country: US
• Employees: 893
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.80
• Shares Outstanding: 86,631,570
• 10 Day Avg. Volume: 881,239
• 30 Day Avg. Volume: 1,015,161
• PEG Ratio: 0.13
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 16.25
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.35
• Enterprise Value/Ebitda: 0.31
• 1Y Price Target: $30.50
• Price Target Upside: 6.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $30.00 ▲(4.79% Upside)

Drdgold's strong financial performance and robust balance sheet are significant strengths, positioning it well in the gold industry. However, technical indicators suggest caution due to overbought conditions, and valuation metrics indicate a fair but not compelling investment case.

Positive Factors

Revenue Growth

The significant revenue growth reflects the company's strong market position and effective operational strategies, enhancing its competitive edge in the gold industry.

Balance Sheet Strength

A robust balance sheet with minimal leverage provides financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.

Employee Retention Strategy

The incentive plan aligns employee interests with company performance, promoting retention and operational stability, which are crucial for sustained growth.

Negative Factors

Negative Free Cash Flow Growth

Negative free cash flow growth suggests challenges in cash flow management, potentially impacting the company's ability to invest in future growth opportunities.

Decreased Gold Production

A decline in gold production could limit revenue potential and market competitiveness, necessitating strategic adjustments to maintain growth momentum.

Rising Operating Costs

Increasing operating costs may pressure profit margins and require efficiency improvements to sustain profitability in a competitive market.

Drdgold Business Overview & Revenue Model

Company Description

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. The company is involved in the exploration, extraction, processing, and smelting activities. It recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited operates as a subsidiary of Sibanye Gold Limited.

How the Company Makes Money

DRDGold generates revenue primarily through the sale of gold bullion, which is produced from its tailings retreatment operations. The company employs a unique business model that focuses on recovering gold from tailings, which are the remnants of previously mined areas. This process involves reprocessing these tailings using modern extraction techniques to yield gold. Key revenue streams include the direct sale of gold to precious metals markets, as well as potential revenues from by-products of the gold recovery process. Additionally, DRDGold benefits from partnerships with various stakeholders in the mining sector, enhancing its operational efficiency and market reach. Fluctuations in gold prices significantly impact the company's earnings, making market conditions and operational costs critical factors in its revenue generation.

Drdgold Financial Statement Overview

Summary

Drdgold demonstrates strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, recent negative free cash flow due to high capital expenditures poses a potential risk if not managed properly.

Income Statement

Drdgold has demonstrated strong growth in its revenue over the years, with a noticeable increase from 2019 to 2024. The company has maintained healthy gross and net profit margins, with the most recent figures showing a gross profit margin of 29.0% and a net profit margin of 21.3% for 2024. The consistent growth in EBIT and EBITDA margins also highlights operational efficiency and management's ability to control costs.

Balance Sheet

The balance sheet of Drdgold reflects a robust financial structure with a low debt-to-equity ratio of 0.004 in 2024, indicating minimal leverage and financial risk. The company has been able to grow its stockholders' equity consistently, which is a positive sign for investors. The equity ratio stands at 72.9%, showcasing a strong equity base relative to total assets.

Cash Flow

Drdgold's cash flow statement shows a mixed picture. While operating cash flow remains strong relative to net income, the free cash flow has been negative in 2024 due to high capital expenditures. However, the operating cash flow to net income ratio remains healthy, suggesting that the company generates sufficient cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.88B	7.88B	6.24B	5.50B	5.12B	5.27B
Gross Profit	3.10B	3.13B	1.81B	1.59B	1.38B	1.88B
EBITDA	3.51B	3.38B	1.86B	1.96B	1.78B	2.07B
Net Income	2.24B	2.24B	1.33B	1.28B	1.12B	1.44B
Balance Sheet
Total Assets	12.25B	12.25B	9.45B	8.15B	7.08B	6.35B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.31B	521.50M	2.46B	2.51B	2.18B
Total Debt	17.40M	17.40M	29.20M	39.70M	52.30M	54.80M
Total Liabilities	3.36B	3.36B	2.56B	1.88B	1.64B	1.53B
Stockholders Equity	8.88B	8.88B	6.89B	6.27B	5.44B	4.82B
Cash Flow
Free Cash Flow	1.26B	1.26B	-1.14B	510.40M	913.70M	1.18B
Operating Cash Flow	3.51B	3.51B	1.85B	1.66B	1.50B	1.57B
Investing Cash Flow	-2.28B	-2.28B	-3.04B	-1.19B	-626.20M	-446.60M
Financing Cash Flow	-443.10M	-443.10M	-750.70M	-532.20M	-533.00M	-653.50M

Drdgold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRD, the sentiment is Positive. The current price of 28.63 is above the 20-day moving average (MA) of 25.31, above the 50-day MA of 19.80, and above the 200-day MA of 14.53, indicating a bullish trend. The MACD of 2.50 indicates Negative momentum. The RSI at 76.60 is Negative, neither overbought nor oversold. The STOCH value of 73.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRD.

Drdgold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFI	79 Outperform	$37.75B	20.01	35.09%	1.84%	49.62%	195.39%
CMCL	79 Outperform	$711.98M	18.92	15.51%	1.52%	28.06%	208.80%
HMY	78 Outperform	$11.59B	14.28	32.05%	0.95%	29.08%	70.63%
DRD	68 Neutral	$2.46B	19.99	28.11%	1.37%	30.05%	73.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SBSW	56 Neutral	$8.04B	―	-8.31%	―	6.27%	93.14%

Drdgold Corporate Events

DRDGOLD Announces Disposal of Beneficial Interest by VanEck

On September 26, 2025, DRDGOLD Limited announced that VanEck Associates Corporation has disposed of a beneficial interest in the company, reducing its holding to 1.46% of the total issued ordinary share capital. This disposal requires DRDGOLD to file notifications with the Takeover Regulation Panel and the Companies and Intellectual Property Commission, as per the Companies Act and JSE Listings Requirements.

DRDGOLD Announces Acceptance of Deferred Share Awards

On August 21, 2025, DRDGOLD Limited announced the acceptance of awards under its Single Incentive Plan, which includes the Deferred Share Plan. This plan, approved by shareholders in November 2023, grants deferred shares to qualifying employees annually. The awards vest over three to five years, depending on the employee’s band, and are settled in DRDGOLD ordinary shares at no exercise price. The announcement highlights the acceptance of awards by several directors and officers, indicating a significant commitment to employee retention and alignment with company performance. This strategic move is expected to strengthen DRDGOLD’s operational stability and enhance shareholder value.

DRDGOLD Reports Strong Financial Growth and Dividend Increase for FY2025

DRDGOLD Limited announced its reviewed condensed consolidated financial statements for the year ended June 30, 2025, reporting a significant increase in financial performance compared to the previous year. The company achieved a 26% increase in revenue, a 69% rise in operating profit, and a 100% increase in the final cash dividend to 40 South African cents per share. Despite a 3% decrease in gold production, DRDGOLD maintained a strong financial position, supported by a robust gold price and strategic operational adjustments. The announcement also highlighted the company’s efforts to expand deposition capacity at its Ergo Mining operations, aiming to extend the operation’s life and improve environmental sustainability. These developments are expected to enhance DRDGOLD’s industry positioning and benefit stakeholders by increasing production capacity and reducing environmental impact.

DRDGOLD Announces Board Committee Changes Amid Consultancy Appointment

On August 19, 2025, DRDGOLD Limited announced a change to its board committee due to Sibanye Stillwater Limited’s decision to retain Andrew Brady as a consultant for six months starting July 1, 2025. As a result, Brady has stepped down from the Audit Committee but will continue to serve on the Risk and Investment Committees. The company assures that the Audit Committee’s composition remains compliant with relevant governance and listing requirements.

DRDGOLD Reports Strong Earnings Growth for Year Ended June 2025

DRDGOLD Limited has announced its trading statement for the year ended June 30, 2025, reporting a significant increase in earnings per share (EPS) and headline earnings per share (HEPS) by 64% to 74% compared to the previous year. This growth is attributed to a 31% increase in the Rand gold price received, despite a slight decrease in gold sold. The company also reported a 26% increase in group revenue and a 4% rise in cash operating costs. Notably, DRDGOLD achieved its production guidance with 155,288 ounces of gold produced and maintained strong liquidity with R1,306.2 million in cash and no bank debt as of June 30, 2025.