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Drdgold Limited (DRD)
NYSE:DRD

Drdgold (DRD) AI Stock Analysis

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DR

Drdgold

(NYSE:DRD)

72Outperform
Drdgold shows strong financial health with robust revenue growth and a solid balance sheet. While the technical analysis indicates a bullish trend, caution is warranted due to overbought indicators. The valuation is fair, supporting a moderately positive outlook overall.
Positive Factors
Energy Initiatives
DRD successfully commissioned and integrated its solar plant and battery energy storage system into the national grid, which is ultimately expected to reduce costs and mitigate energy risks.
Gold Pricing
Ongoing strength in gold pricing, especially when calculated in South African Rand, is expected to remain a strong tailwind aiding DRD’s financial performance.
Revenue Growth
DRD's 28% growth in revenue is primarily driven by the average gold price denominated in Rand increasing 26% YoY.
Negative Factors
Inflationary Pressures
Revised estimates account for the ongoing inflationary environment, continued investment in safe-haven assets, and recessionary concerns.
Operating Costs
Inflation, higher security costs, and labor expenses increased operating costs at both Ergo and FWGR.

Drdgold (DRD) vs. S&P 500 (SPY)

Drdgold Business Overview & Revenue Model

Company DescriptionDRDGOLD Limited is a South African gold producer, specializing in the recovery of gold from the retreatment of surface tailings. Operating primarily in the Gauteng province, the company focuses on sustainable and environmentally responsible mining practices. DRDGOLD's core activities include the acquisition, recovery, and processing of residual surface gold resources, utilizing advanced technologies and processes to extract gold from mine dumps, tailings dams, and open pit resources.
How the Company Makes MoneyDRDGOLD makes money by extracting gold from surface tailings, which are the residual byproducts of previous mining operations. The company employs advanced metallurgical processes to recover gold from these tailings, which are then refined and sold in the global market. Revenue is primarily generated from the sale of gold produced from its operations. DRDGOLD's key revenue streams include the sale of gold bullion, which is priced according to the prevailing global gold market rates. The company's earnings are influenced by factors such as the efficiency of its recovery processes, the price of gold on the international market, and its ability to manage operational costs. Strategic partnerships and investments in technology play a significant role in optimizing recovery rates and reducing environmental impact, contributing to its overall profitability.

Drdgold Financial Statement Overview

Summary
Drdgold exhibits strong financial performance with notable revenue growth and profitability. The income statement highlights efficiency, and the balance sheet shows a solid equity base with minimal leverage. Although cash flow is impacted by high capital expenditures, operating cash remains robust.
Income Statement
85
Very Positive
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
80
Positive
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
70
Positive
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
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
6.24B5.50B5.12B5.27B4.18B
Gross Profit
1.81B1.59B1.38B1.88B1.25B
EBIT
1.61B1.42B1.31B1.82B937.90M
EBITDA
2.15B1.96B1.78B2.07B1.26B
Net Income Common Stockholders
1.33B1.28B1.12B1.44B635.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
521.50M2.46B2.51B2.18B1.72B
Total Assets
9.45B8.15B7.08B6.35B5.68B
Total Debt
29.20M39.70M52.30M54.80M47.10M
Net Debt
-492.30M-2.42B-2.46B-2.13B-1.67B
Total Liabilities
2.56B1.88B1.64B1.53B1.64B
Stockholders Equity
6.89B6.27B5.44B4.82B4.04B
Cash FlowFree Cash Flow
-1.14B510.40M913.70M1.18B947.80M
Operating Cash Flow
1.85B1.66B1.50B1.57B1.13B
Investing Cash Flow
-3.04B-1.19B-626.20M-446.60M-202.50M
Financing Cash Flow
-750.70M-532.20M-533.00M-653.50M509.20M

Drdgold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.51
Price Trends
50DMA
14.74
Negative
100DMA
12.45
Positive
200DMA
11.06
Positive
Market Momentum
MACD
-0.15
Positive
RSI
48.94
Neutral
STOCH
40.38
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 14.51 is below the 20-day moving average (MA) of 14.72, below the 50-day MA of 14.74, and above the 200-day MA of 11.06, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRD.

Drdgold Risk Analysis

Drdgold disclosed 46 risk factors in its most recent earnings report. Drdgold reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Drdgold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$295.21M11.5411.16%3.66%29.36%707.68%
DRDRD
72
Outperform
$1.20B13.0224.89%1.48%22.63%28.96%
IDIDR
61
Neutral
$177.07M20.4326.95%67.42%137.01%
50
Neutral
$185.29M-9999.00%18.69%
50
Neutral
$1.98B-1.08-21.29%3.61%1.96%-30.59%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DRD
Drdgold
14.51
5.29
57.38%
CMCL
Caledonia Mining
17.90
7.40
70.48%
CTGO
Contango ORE
16.31
-5.62
-25.63%
IDR
Idaho Strategic Resources
12.82
2.41
23.15%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.