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Drdgold Limited (DRD)
NYSE:DRD
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Drdgold
(NYSE:DRD)
72Outperform
Positive Factors
Production and Performance
The company's gold production increased by 7% quarter-over-quarter, signaling an improvement in performance.
Renewable Energy Integration
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.
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)
Market Cap
$1.21B
Dividend Yield1.19%
Average Volume (3M)480.12K
Price to Earnings (P/E)12.9
Beta (1Y)0.53
Revenue Growth22.63%
EPS Growth28.96%
CountryUS
Employees2,956
SectorBasic Materials
Sector Strength58
IndustryMining
Share Statistics
EPS (TTM)1.08
Shares Outstanding86,458,870
10 Day Avg. Volume670,050
30 Day Avg. Volume480,116
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)N/A
Price to Sales (P/S)3.59
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.25Price Target Upside12.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Drdgold Business Overview & Revenue Model
Company DescriptionDRDGOLD 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 MoneyDRDGOLD makes money primarily through the extraction and sale of gold obtained from the retreatment of surface tailings. The company processes large volumes of waste material, which are the by-products of previous mining activities, to recover residual gold that was not initially extracted. This process involves the re-mining and re-processing of tailings dams and dumps, which are then treated to extract gold. The sale of this gold constitutes the primary revenue stream for DRDGOLD. Additionally, the company benefits from its strategic partnership with Sibanye-Stillwater, which holds a significant share in DRDGOLD and supports its operations through shared resources and expertise. Factors such as gold market prices, operational efficiency, and cost management are crucial in influencing DRDGOLD's earnings.
Drdgold Financial Statement Overview
Summary
Overall, Drdgold exhibits a stable financial performance with strong revenue growth and profitability. The balance sheet is solid with low leverage, although recent negative free cash flow indicates high capital investments, which could be a concern if not managed properly. The company appears well-positioned in the mining industry, with a strong equity base and efficient operations.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.85
Very Positive
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.80
Positive
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.70
Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.24B | 5.50B | 5.12B | 5.27B | 4.18B | Gross Profit |
| 1.81B | 1.59B | 1.38B | 1.88B | 1.25B | EBIT |
| 1.61B | 1.42B | 1.31B | 1.82B | 937.90M | EBITDA |
| 2.15B | 1.96B | 1.78B | 2.07B | 1.26B | Net Income Common Stockholders |
| 1.33B | 1.28B | 1.12B | 1.44B | 635.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 521.50M | 2.46B | 2.51B | 2.18B | 1.72B | Total Assets |
| 9.45B | 8.15B | 7.08B | 6.35B | 5.68B | Total Debt |
| 29.20M | 39.70M | 52.30M | 54.80M | 47.10M | Net Debt |
| -492.30M | -2.42B | -2.46B | -2.13B | -1.67B | Total Liabilities |
| 2.56B | 1.88B | 1.64B | 1.53B | 1.64B | Stockholders Equity |
| 6.89B | 6.27B | 5.44B | 4.82B | 4.04B |
| Cash Flow | Free Cash Flow | |||
| -1.14B | 510.40M | 913.70M | 1.18B | 947.80M | Operating Cash Flow |
| 1.85B | 1.66B | 1.50B | 1.57B | 1.13B | Investing Cash Flow |
| -3.04B | -1.19B | -626.20M | -446.60M | -202.50M | Financing Cash Flow |
| -750.70M | -532.20M | -533.00M | -653.50M | 509.20M |
Drdgold Technical Analysis
Positive
14.44
Price Trends
11.64
Positive
10.58
Positive
9.98
Positive
Market Momentum
0.81
Positive
64.57
Neutral
50.75
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 14.44 is above the 20-day moving average (MA) of 13.46, above the 50-day MA of 11.64, and above the 200-day MA of 9.98, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 64.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.75 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.50B | 14.84 | 25.35% | 1.52% | 13.41% | 73.34% | |
72 Outperform | $1.21B | 12.94 | 24.89% | 1.19% | 22.63% | 28.96% | |
71 Outperform | $17.90B | 15.29 | 0.90% | 0.63% | 9.18% | ― | |
66 Neutral | $54.55B | 16.59 | 11.13% | 2.11% | 58.27% | ― | |
47 Neutral | $2.71B | -3.60 | -20.77% | 3.28% | 3.41% | -27.70% |
* Basic Materials Sector Average
Performance Comparison
DRD
Drdgold
14.44
6.40
79.60%
AEM
Agnico Eagle
107.83
49.35
84.39%
GFI
Gold Fields
20.96
5.45
35.14%
KGC
Kinross Gold
12.51
6.46
106.78%
NEM
Newmont Mining
48.39
13.35
38.10%
AU
Anglogold Ashanti PLC
36.18
14.61
67.73%
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.