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Drdgold Limited (DRD)
NYSE:DRD
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Drdgold (DRD) AI Stock Analysis

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DRD

Drdgold

(NYSE:DRD)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$27.00
▲(7.02% Upside)
Drdgold's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. Technical analysis indicates mixed signals, with some bullish momentum but recent weakness. The valuation is moderate, with a reasonable P/E ratio but a lower dividend yield. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust demand for DRDGold's products and effective market strategies, supporting long-term business expansion.
Balance Sheet Health
A strong balance sheet with minimal leverage enhances financial stability and flexibility, allowing DRDGold to invest in growth opportunities.
Profitability Metrics
High profitability margins reflect efficient operations and cost management, ensuring sustainable earnings and competitive advantage in the industry.
Negative Factors
Free Cash Flow Challenges
Challenges in converting income to free cash flow could limit DRDGold's ability to fund new projects or return capital to shareholders, affecting long-term growth.
Cash Operating Costs
Rising operating costs can pressure margins and reduce profitability, necessitating cost management strategies to maintain financial health.
Insider Share Sale
Significant insider share sales may signal concerns about future company performance, potentially impacting investor confidence and stock valuation.

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

Drdgold Business Overview & Revenue Model

Company DescriptionDRDGold Limited (DRD) is a South African gold recovery company involved primarily in the mining and processing of gold from surface tailings. The company focuses on extracting gold from historically mined areas, utilizing advanced technologies and environmentally sustainable practices. DRDGold operates in the Witwatersrand Basin, which is known for its rich gold deposits. Its core products include gold bullion and related services that cater to both domestic and international markets.
How the Company Makes MoneyDRDGold 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 exhibits a strong financial position with impressive revenue growth and profitability metrics. The balance sheet is robust with low leverage, and the company effectively utilizes equity to generate returns. While operating cash flow is healthy, the negative free cash flow growth warrants attention. Overall, Drdgold is well-positioned in the gold industry, with a need to focus on improving cash flow conversion.
Income Statement
85
Very Positive
Drdgold has demonstrated strong revenue growth of 11.47% in the latest year, with robust gross and net profit margins of 39.74% and 28.47%, respectively. The EBIT and EBITDA margins are also healthy at 37.02% and 42.85%, indicating efficient operations. The consistent increase in revenue and profitability metrics highlights the company's strong position in the gold industry.
Balance Sheet
78
Positive
The balance sheet is solid with a very low debt-to-equity ratio of 0.002, reflecting minimal leverage and financial risk. The return on equity is strong at 25.25%, showcasing effective use of shareholder funds. The equity ratio of 72.56% indicates a stable capital structure. However, the slight increase in total debt over the years should be monitored.
Cash Flow
70
Positive
Operating cash flow is strong, with a coverage ratio of 3.51, indicating good cash generation relative to net income. However, the free cash flow growth rate is negative, suggesting potential challenges in cash flow management. The free cash flow to net income ratio of 0.36 is moderate, indicating room for improvement in converting income to free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.88B7.88B6.24B5.50B5.12B5.27B
Gross Profit3.10B3.13B1.81B1.59B1.38B1.88B
EBITDA3.51B3.38B1.86B1.96B1.78B2.07B
Net Income2.24B2.24B1.33B1.28B1.12B1.44B
Balance Sheet
Total Assets12.25B12.25B9.45B8.15B7.08B6.35B
Cash, Cash Equivalents and Short-Term Investments1.31B1.31B521.50M2.46B2.51B2.18B
Total Debt17.40M17.40M29.20M39.70M52.30M54.80M
Total Liabilities3.36B3.36B2.56B1.88B1.64B1.53B
Stockholders Equity8.88B8.88B6.89B6.27B5.44B4.82B
Cash Flow
Free Cash Flow1.26B1.26B-1.14B510.40M913.70M1.18B
Operating Cash Flow3.51B3.51B1.85B1.66B1.50B1.57B
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 Price25.23
Price Trends
50DMA
24.86
Positive
100DMA
19.50
Positive
200DMA
16.40
Positive
Market Momentum
MACD
-0.25
Positive
RSI
46.59
Neutral
STOCH
36.26
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 25.23 is below the 20-day moving average (MA) of 27.39, above the 50-day MA of 24.86, and above the 200-day MA of 16.40, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 36.26 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 1 New Risks
1.
Physical risks including extreme weather Q2, 2024

Drdgold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$10.60B12.9632.05%1.26%29.08%72.12%
$35.03B18.2435.09%2.02%49.62%195.39%
$542.85M14.4215.51%1.99%28.06%208.80%
$2.18B17.6128.11%1.56%30.05%73.23%
$10.43B7.12-0.05%2.87%2.86%-36.73%
$7.57B-38.68-8.31%6.27%93.14%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DRD
Drdgold
25.23
13.81
120.93%
GFI
Gold Fields
38.41
22.61
143.10%
HMY
Harmony Gold Mining
16.51
6.06
57.99%
SBSW
Sibanye Stillwater
10.56
6.03
133.11%
CMCL
Caledonia Mining
28.12
13.90
97.75%
DC
Dakota Gold Corp
4.08
1.82
80.53%

Drdgold Corporate Events

DRDGOLD CFO Executes Significant Share Sale
Oct 21, 2025

On October 17, 2025, Riaan Davel, the Chief Financial Officer of DRDGOLD Limited, executed an on-market sale of 137,067 ordinary shares of the company. The sale, conducted at a volume-weighted average price of R54.599 per share, amounted to a total transaction value of R7,483,745.05. This transaction was carried out in compliance with the JSE Limited Listings Requirements, with prior clearance obtained.

DRDGOLD Reports Increased Gold Production and Revenue for Q3 2025
Oct 16, 2025

DRDGOLD Limited reported a 2% increase in gold production to 1,191 kg for the quarter ended September 30, 2025, despite a 3% decrease in ore milled. The company benefited from a high average gold price of R1,943,398/kg, which contributed to a stable revenue of R2,254.9 million, a 2% increase from the previous quarter. Cash operating costs rose by 3% due to annual labor increases and higher reagent costs, while all-in sustaining costs increased due to higher cash operating costs and growth capital expenditure related to the Far West Gold Recoveries Phase II project. The company remains debt-free, although cash and cash equivalents decreased by R257.1 million after dividend payments and capital expenditures.

DRDGOLD Announces Disposal of Beneficial Interest by VanEck
Sep 26, 2025

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
Aug 22, 2025

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
Aug 20, 2025

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
Aug 19, 2025

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
Aug 14, 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.

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.Date of analysis: Oct 23, 2025