Drdgold (DRD) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: 1.02%
• Average Volume (3M): 359.86K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.22
• Revenue Growth: 30.05%
• EPS Growth: 73.40%
• Country: US
• Employees: 893
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.14
• Shares Outstanding: 86,739,770
• 10 Day Avg. Volume: 256,902
• 30 Day Avg. Volume: 359,859
• 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: 16.63
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 11.70
• Enterprise Value/Ebitda: 11.06
• 1Y Price Target: $46.50
• Price Target Upside: 29.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $36.00 ▲(0.45% Upside)

The score is driven primarily by strong financial performance (profitability, growth, and very low leverage), supported by a clear bullish price trend. Offsetting factors are stretched technical momentum (RSI/Stochastics) and a relatively high P/E with a modest dividend yield.

Positive Factors

Balance sheet strength

Extremely low leverage and a high equity ratio (72.56%) give DRDGOLD durable financial flexibility. Strong ROE (25.25%) indicates effective capital use, lowering refinancing and solvency risk and supporting multi-year investments or weathering commodity cycles without pressured capital raises.

High and sustainable margins

Consistently robust gross, EBIT and EBITDA margins reflect a low-cost, efficient tailings retreatment model. Such margin durability supports cash flow generation across commodity cycles, funds maintenance and targeted growth, and provides a competitive cushion versus higher-cost miners.

Secured renewable energy supply

Locking a long-term renewable power agreement and expanding onsite solar/battery capacity materially lowers energy cost and reliability risk. This structural decoupling from Eskom supports lower operating volatility, advances carbon goals and improves margin predictability into Vision 2028.

Negative Factors

Weak free cash flow conversion

Despite solid operating cash coverage, negative FCF growth and only ~36% conversion of net income to free cash flow point to capex, working capital or timing pressures. This constrains internal funding for expansions, dividends or buffering lower-price periods over the medium term.

Rising guaranteed labor costs

A multi-year wage settlement reduces strike risk but locks in substantial annual cost escalation and one-off liabilities. Structural uplift in fixed labor costs raises the company’s operating breakeven and narrows margin resilience if gold prices, grades or recoveries weaken.

Resource and throughput limits

DRDGOLD’s model depends on finite tailings resources and variable metallurgical recoveries and throughput. Scalability is constrained by available tailings access and plant capacity, requiring capital and permits to grow, which can cap medium-term production and cash generation potential.

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

Strong income statement performance (revenue growth and healthy margins) and a very low-leverage balance sheet support a high score, but cash flow quality is mixed due to negative free cash flow growth and only moderate conversion of net income to free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	8.89B	7.88B	6.24B	5.50B	5.12B	5.27B
Gross Profit	4.14B	3.13B	1.81B	1.59B	1.38B	1.88B
EBITDA	4.38B	3.38B	1.86B	1.96B	1.78B	2.07B
Net Income	3.11B	2.24B	1.33B	1.28B	1.12B	1.44B
Balance Sheet
Total Assets	14.63B	12.25B	9.45B	8.15B	7.08B	6.35B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.31B	521.50M	2.46B	2.51B	2.18B
Total Debt	21.48M	17.40M	29.20M	39.70M	52.30M	54.80M
Total Liabilities	3.88B	3.36B	2.56B	1.88B	1.64B	1.53B
Stockholders Equity	10.75B	8.88B	6.89B	6.27B	5.44B	4.82B
Cash Flow
Free Cash Flow	1.55B	1.26B	-1.14B	510.40M	913.70M	1.18B
Operating Cash Flow	4.43B	3.51B	1.85B	1.66B	1.50B	1.57B
Investing Cash Flow	-2.76B	-2.28B	-3.04B	-1.19B	-626.20M	-446.60M
Financing Cash Flow	-611.40M	-443.10M	-750.70M	-532.20M	-533.00M	-653.50M

Drdgold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRD, the sentiment is Neutral. The current price of 35.84 is above the 20-day moving average (MA) of 34.75, above the 50-day MA of 33.34, and above the 200-day MA of 23.32, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 42.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DRD.

Drdgold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMY	78 Outperform	$12.68B	15.82	32.05%	0.87%	29.08%	72.12%
CMCL	77 Outperform	$546.75M	10.82	20.25%	2.06%	38.04%	424.35%
GFI	75 Outperform	$46.66B	24.84	35.09%	1.51%	49.62%	195.39%
DRD	73 Outperform	$2.91B	16.37	34.09%	1.02%	30.05%	73.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SBSW	57 Neutral	$11.19B	-55.93	-8.31%	―	6.27%	93.14%

Drdgold Corporate Events

DRDGOLD Flags Doubling of Interim Earnings on Strong Gold Price and Heavy Growth Spend

DRDGOLD reported that for the six months ended 31 December 2025 it expects earnings per share of between 216.9 cents and 228.2 cents, and headline earnings per share of between 217.5 cents and 228.7 cents, an increase of 93% to 103% year on year. The jump in profitability was driven by a 33% rise in group revenue to R5.05 billion on a 43% higher average Rand gold price, which offset a 7% decline in gold sold and modestly higher unit cash costs.

Ergo’s revenue grew to R3.61 billion despite lower throughput and yield, helped by the higher gold price and sharply reduced grid power usage from Eskom thanks to its solar and battery storage facility, which cut electricity consumption by 38% and costs by 23%. Far West Gold Recoveries’ revenue rose to R1.44 billion as the stronger gold price outweighed lower yields and volumes during its transition from Driefontein 5 to Driefontein 3 material.

The group lifted capital reinvestment by 74% to R1.65 billion to advance its Vision 2028 growth projects, including the Daggafontein tailings storage facility pipeline at Ergo and the DP2 plant expansion, regional tailings facility and long-distance pipeline at FWGR, where bad weather caused some delays but key installation milestones remain in sight. FWGR also added about 67 million tonnes at an average 0.22g/t to its mineral resource base through the transfer of the Kloof 2 dump from Sibanye-Stillwater at no additional purchase cost beyond rehabilitation obligations.

As at 31 December 2025 DRDGOLD held R1.73 billion in cash and cash equivalents, more than doubling its prior-year balance after paying R345.7 million in dividends and generating free cash inflow of R793.1 million, while remaining free of bank debt. Management says the company is trending toward the upper end of its 2026 production guidance of 140,000 to 150,000 ounces with unit cash operating costs expected to stay around R995,000/kg, supporting its capacity to fund expansion with substantial undrawn credit lines as additional liquidity back-up.

The most recent analyst rating on (DRD) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.

DRDGOLD Secures Five-Year Wage Deal at Ergo Operations

On 2 February 2026, DRDGOLD announced that it has concluded wage negotiations at its Ergo Mining operations with organised labour, ending a wage dispute that had prompted strike notices in December 2025. The company and the National Union of Mineworkers, the majority union in the bargaining unit, agreed a five-year single wage agreement that applies to all employees irrespective of union affiliation and includes guaranteed annual wage increases of 6% to 7.5%, a new 2% performance-based incentive tied to safety, production and attendance, enhancements to living-out and housing benefits, backpay from 1 July 2025 and a once-off R5 000 ex gratia payment. Management said the deal brings certainty for employees and the Ergo operations, aligning remuneration improvements with sector norms while aiming to support long-term operational stability and value creation, which should reduce labour-relations risk and support continuity of production at the flagship tailings retreatment asset.

The most recent analyst rating on (DRD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.

DRDGOLD Sells Stellar Energy Unit and Secures Long-Term Renewable Power Supply

On 19 December 2025, DRDGOLD announced that its wholly owned subsidiary Ergo Mining has sold its 100% interest in Stellar Energy Solutions, a developer of a shovel-ready 150MWh solar power project in Polokwane, to NOA Group Assets for R147.5 million in cash, with implementation set for 23 December 2025. The deal allows DRDGOLD to unlock value from the Stellar Project while simultaneously concluding a long-term electricity supply agreement under which NOA Group will provide 76GWh of renewable power annually from January 2028, supporting the company’s carbon-reduction goals and its Vision 2028 growth plans; this follows the successful commissioning during the 2025 financial year of a 60MWh solar plant and 160MWh battery system at Ergo, which already supplies about half of that operation’s power needs and generates grid credits from Eskom.

The most recent analyst rating on (DRD) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.

DRDGOLD Strike at Ergo Operations Suspended as Wage Dispute Continues

On 18 December 2025, DRDGOLD announced that planned protected strike action at its Ergo Mining operations, called by the National Union of Mineworkers and the Association of Mineworkers and Construction Union, was suspended before it could begin with the morning shift that day. Although the wage and profit-share dispute that triggered the strike notice remains unresolved, the company stressed that its wage offer is above inflation, in line with recent gold-sector agreements and designed to preserve the long-term sustainability of the Ergo operations, noting that another union, the United Association of South Africa, accepted the deal on 12 December 2025 and that Ergo continues to operate without disruption while management seeks further engagement to avoid financial harm to employees and operational interruptions.

The most recent analyst rating on (DRD) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.

Strike Action Announced at DRDGOLD’s ERGO Operations

DRDGOLD has announced a notice of impending strike action at its ERGO operations starting 18 December 2025, led by the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (AMCU). This follows unresolved wage and profit-sharing disputes despite significant proposals from ERGO, including multi-year wage increases and performance incentives. The company has contingency measures to minimize disruption, though operational throughput may see reductions. Management continues to seek a resolution to mitigate financial and operational impact and protect stakeholder interests.

The most recent analyst rating on (DRD) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.

DRDGOLD Approves Key Resolutions at Annual General Meeting

On November 26, 2025, DRDGOLD Limited held its annual general meeting where all proposed ordinary and special resolutions were approved by the requisite majority of shareholders. Key resolutions included the appointment of BDO South Africa Inc. as auditors, the re-election and election of several directors, and the endorsement of the company’s remuneration policy and implementation report. The approval of these resolutions ensures continuity in governance and strategic direction, potentially impacting stakeholders positively by reinforcing investor confidence and operational stability.

The most recent analyst rating on (DRD) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.