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Drdgold
(NYSE:DRD)
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Rating:78Outperform
Price Target:
$27.00
▼(-10.09% Downside)
Action:Upgraded
Date:08/22/26
DRD scores well primarily due to strong financial performance (rapid margin and earnings improvement, debt-free balance sheet, improving returns) and a constructive earnings outlook with clear operational milestones. The score is moderated by technical overbought signals that raise near-term pullback risk, plus execution/cost and regulatory timing risks tied to a heavy capex program despite an otherwise attractive low P/E valuation.
Positive Factors
Debt-free balance sheet
The near debt-free balance sheet gives DRDGOLD substantial financial flexibility to fund operations, sustain investment, and absorb commodity-cycle pressure without heavy interest obligations. Improving returns on equity also indicate that the expanded asset base is being deployed productively.
Negative Factors
Rising operating costs
Higher diesel, trucking, oil, and reagent costs can erode the unusually strong margins achieved during the latest period. Persistent input inflation would require continued efficiency gains or supportive gold pricing to preserve cash generation and project funding capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
The near debt-free balance sheet gives DRDGOLD substantial financial flexibility to fund operations, sustain investment, and absorb commodity-cycle pressure without heavy interest obligations. Improving returns on equity also indicate that the expanded asset base is being deployed productively.
Read all positive factors
Drdgold (DRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.07B
Dividend Yield4.31%
Average Volume (3M)251.62K
Price to Earnings (P/E)8.1
Beta (1Y)0.42
Revenue Growth52.87%
EPS Growth104.06%
CountryUS
Employees881
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)478.60
Shares Outstanding86,875,656
10 Day Avg. Volume230,454
30 Day Avg. Volume251,617
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.24
Price to Sales (P/S)0.28
P/FCF Ratio1.46
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit0.29
Enterprise Value/Ebitda0.28
Forecast
1Y Price Target
$35.00Price Target Upside16.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.16
Revenue Forecast (FY)$736.50M
Drdgold Business Overview & Revenue Model
Company Description
DRDGOLD Limited is a South African gold mining firm specializing in the retrieval of gold from surface tailings. Its comprehensive activities span the full spectrum of gold recovery, including exploration, extraction, processing, and smelting. The...
How the Company Makes Money
DRDGOLD makes money by recovering gold from surface tailings (historic mine waste) and selling the refined gold into the gold market. Its core revenue stream is the sale of gold bullion produced from its tailings retreatment operations: material i...
Drdgold Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call communicated a materially positive operating and financial performance driven by a strong gold price, improved production (slightly ahead of guidance), substantial margin expansion and robust free cash generation despite a peak capital expenditure program. Key project milestones (Daggafontein, DP2 smelt house, pipeline progress and RTSF construction) were achieved, and sustainability metrics (water, carbon, energy intensity) improved markedly. Near-term headwinds include high ongoing capital spend, input cost inflation (diesel, reagents, trucking), and regulatory/weather timing risk around Withok and RTSF which could delay full throughput benefits. On balance, the positives (substantial profit, cash flow, project progress and sustainability gains) outweigh the manageable challenges and timing risks.Positive Updates
Strong Revenue Growth Driven by Higher Gold Price
Group revenue rose to just over ZAR 11 billion, a ~42% year-on-year increase, driven by a ~40% increase in the average gold price and modest growth in gold sold.
Negative Updates
Peak Capital Expenditure
Capital expenditure peaked at ~ZAR 3.5 billion for the year (the largest reinvestment in ~20 years). Planned capital for the year ahead is just over ZAR 3 billion, constraining near-term free cash flow and requiring continued disciplined allocation.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Revenue Growth Driven by Higher Gold Price
Group revenue rose to just over ZAR 11 billion, a ~42% year-on-year increase, driven by a ~40% increase in the average gold price and modest growth in gold sold.
Read all positive updates
Company Guidance
Guidance summary: management guided FY2027 production of 160,000–170,000 ounces, cash operating costs of just over ZAR 1.0 million/kg, all‑in sustaining costs around ZAR 1.2 million/kg and planned capital expenditure of just over ZAR 3.0 billion. Key operational milestones include commissioning DP2 (board visit planned in October), achieving beneficial occupation of the RTSF to enable full 1.2 million tonnes/month Far West throughput in Q1 FY2028 (RTSF ~800 million tonnes capacity, ~2/3 complete), commissioning the Libanon reclamation station, and securing Withok permits (Withok ≈310 million tonnes; construction aimed for completion in 2029). Daggafontein is commissioned at 25,000 t/day (≈750,000 t/month; ~120 million tonnes capacity), current managed throughput across the two operations is ~25 million tonnes, Kloof 2 added ~67 million tonnes to reserves (after ~23 million tonnes treated this year), and FY2026 context included ZAR 3.5 billion capex, ZAR 2.2 billion free cash flow and the declared final dividend of ZAR 1.20/share.Drdgold Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
72
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.73B | 7.88B | 6.24B | 5.50B | 5.12B |
| Gross Profit | 5.69B | 3.13B | 1.81B | 1.59B | 1.38B |
| EBITDA | 5.97B | 3.38B | 1.87B | 1.91B | 1.79B |
| Net Income | 4.09B | 2.24B | 1.33B | 1.28B | 1.12B |
Balance Sheet | |||||
| Total Assets | 17.30B | 12.25B | 9.45B | 8.15B | 7.08B |
| Cash, Cash Equivalents and Short-Term Investments | 2.75B | 1.31B | 521.50M | 2.46B | 2.51B |
| Total Debt | 11.31M | 17.40M | 29.20M | 39.70M | 52.30M |
| Total Liabilities | 4.66B | 3.36B | 2.56B | 1.88B | 1.64B |
| Stockholders Equity | 12.65B | 8.88B | 6.89B | 6.27B | 5.44B |
Cash Flow | |||||
| Free Cash Flow | 2.06B | 1.26B | -1.14B | 510.40M | 913.70M |
| Operating Cash Flow | 5.46B | 3.51B | 1.85B | 1.66B | 1.50B |
| Investing Cash Flow | -3.28B | -2.28B | -3.04B | -1.19B | -626.20M |
| Financing Cash Flow | -771.92M | -443.10M | -750.70M | -532.20M | -533.00M |
Drdgold Technical Analysis
Negative
30.03
Price Trends
26.00
Negative
23.81
Positive
27.19
Negative
Market Momentum
-0.19
Negative
43.23
Neutral
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRD, the sentiment is Negative. The current price of 30.03 is above the 20-day moving average (MA) of 24.52, above the 50-day MA of 26.00, and above the 200-day MA of 27.19, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
Physical risks including extreme weather Q2, 2024
Drdgold Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $10.00B | 5.57 | 46.23% | 4.88% | 49.72% | 120.32% | |
81 Outperform | $30.95B | 6.91 | 51.87% | 6.82% | 71.19% | 133.85% | |
80 Outperform | $411.06M | 6.38 | 24.33% | 2.63% | 35.48% | 72.78% | |
78 Outperform | $2.07B | 8.14 | 36.20% | 4.31% | 52.87% | 104.06% | |
74 Outperform | $5.79B | 21.50 | 10.25% | 0.11% | 48.40% | 42.80% | |
74 Outperform | $42.21B | 11.13 | 45.77% | 5.41% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
DRD
Drdgold
23.97
0.85
3.67%
GFI
Gold Fields
34.59
-1.48
-4.11%
HMY
Harmony Gold Mining
15.83
-0.02
-0.13%
SSRM
SSR Mining
28.38
6.23
28.13%
CMCL
Caledonia Mining
21.26
-7.83
-26.91%
AU
Anglogold Ashanti PLC
83.59
21.48
34.59%
Drdgold Corporate Events
DRDGOLD Boosts Long-Term Incentive Scheme With R59.6 Million Share Purchases
Oct 22, 2026
On 20 and 21 October 2026, DRDGOLD Limited acquired a total of 1,414,973 ordinary shares on the open market for its equity settled long-term incentive scheme approved in 2019, at volume-weighted average prices of R41.41 and R42.52 respectively. Th...
DRDGOLD Posts Higher Output but Lower Profit in Q3 2026 as Costs Rise
Oct 21, 2026
For the quarter ended 30 September 2026, DRDGOLD reported a modest increase in gold production to 1,307 kg, up 2% on the previous quarter and 10% year-on-year, driven by higher yields despite slightly lower tonnage throughput. Gold sales rose to 1...
DRDGOLD Sets November Remote AGM as 2026 Annual Reports Go Live
Sep 30, 2026
DRDGOLD Limited has called its annual general meeting of shareholders to be held remotely on 6 November 2026, following the distribution on 30 September 2026 of the AGM notice and summary consolidated annual financial statements for the year ended...
DRDGOLD insiders sell vested shares via pooled on‑market trades after August award vesting
Sep 3, 2026
On 13 August 2026, DRDGOLD implemented the vesting of a portion of deferred share awards granted on 12 August 2025 under its Single Incentive Plan, following shareholder approval of the Deferred Share Plan in November 2023. Qualifying employees, i...
DRDGOLD Names Charmel Flemming as New Audit Committee Chair Ahead of 2026 AGM
Sep 1, 2026
On 1 September 2026, DRDGOLD announced governance changes to its audit committee linked to board succession planning. Following a prior decision that non-executive director Johan Holtzhausen’s tenure would end at the company’s 2026 Ann...
DRDGOLD Discloses Senior Management Deferred Share Awards Under Incentive Plan
Aug 27, 2026
On 26 August 2026, DRDGOLD implemented its shareholder-approved Single Incentive Plan, granting annual deferred share awards to directors, prescribed officers, subsidiary directors and the company secretary at a zero exercise price. The awards, va...
DRDGOLD Delivers Record FY2026 Earnings and Triples Dividend While Advancing Vision 2028 Projects
Aug 19, 2026
For the year ended 30 June 2026, DRDGOLD reported a 42% rise in revenue to R11.16 billion and an 83% jump in operating profit to R6.45 billion, driven by strong output from Ergo and Far West Gold Recoveries and a 40% increase in the average gold p...
DRDGOLD Revamps Board Committees and Disbands Investment Committee Effective September 2026
Aug 13, 2026
On 13 August 2026, DRDGOLD announced governance changes that will take effect from 1 September 2026, including the disbandment of its Investment Committee, with all investment-related matters to be handled directly by the full board. The company a...
DRDGOLD Flags Near-Doubling in Annual Earnings on Higher Gold Prices
Aug 13, 2026
For the year ended 30 June 2026, DRDGOLD signalled a sharp improvement in profitability, guiding earnings and headline earnings per share to rise by 85%–95% to between 481.2 cents and 507.4 cents, compared with around 260 cents a year earlie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.