Drdgold (DRD) AI Stock Analysis

• Market Cap: $2.82B
• Dividend Yield: 1.02%
• Average Volume (3M): 341.52K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.24
• Revenue Growth: 30.05%
• EPS Growth: 73.40%
• Country: US
• Employees: 893
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.80
• Shares Outstanding: 86,739,770
• 10 Day Avg. Volume: 358,018
• 30 Day Avg. Volume: 341,517
• 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: 15.82
• Enterprise Value/Revenue: 5.66
• Enterprise Value/Gross Profit: 14.38
• Enterprise Value/Ebitda: 12.70
• 1Y Price Target: $46.50
• Price Target Upside: 46.13% 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: $42.00 ▲(31.99% 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

Very low leverage and strong capital structure

Extremely low leverage and a high equity ratio provide durable financial flexibility to fund operations, weather commodity cycles and pursue the R8bn Vision 2028 program without forcing asset sales or aggressive refinancing, reducing long-term solvency risk.

High and sustainable profit margins

Robust gross, EBIT and EBITDA margins reflect efficient metallurgical recovery and low-cost tailings retreatment economics. Durable margin structure supports cash generation and resilience to moderate cost inflation across a multi-year horizon.

Distinct tailings-based business model

A business model centered on retreating historical tailings yields lower capital intensity, predictable feedstock and repeatable processing flows. This structural specialization can sustain steady production and margins versus higher-risk underground mining over several years.

Negative Factors

Weak free cash flow conversion

Negative FCF growth and only partial conversion of earnings to free cash flow constrain capacity to fund expansion, dividends or unforeseen costs from operating cash alone, increasing reliance on external funding for the Vision 2028 capex plan.

Material exposure to gold price and realized price volatility

Revenue and margins remain structurally tied to gold prices; prolonged price declines would directly reduce cash flows and project economics. This commodity dependence amplifies cyclicality despite low operating leverage and requires prudent long-term hedging or capital planning.

Labor dispute risk at Ergo operations

Recurring wage and profit-share disputes create a structural operational risk: protracted strikes can reduce throughput, raise unit costs and force higher labor settlements. Given Ergo's contribution to production, sustained labor unrest could impair multi-month revenue and margin consistency.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.88B	7.88B	6.24B	5.50B	5.12B	5.27B
Gross Profit	3.10B	3.13B	1.81B	1.59B	1.38B	1.88B
EBITDA	3.51B	3.38B	1.86B	1.96B	1.78B	2.07B
Net Income	2.24B	2.24B	1.33B	1.28B	1.12B	1.44B
Balance Sheet
Total Assets	12.25B	12.25B	9.45B	8.15B	7.08B	6.35B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.31B	521.50M	2.46B	2.51B	2.18B
Total Debt	17.40M	17.40M	29.20M	39.70M	52.30M	54.80M
Total Liabilities	3.36B	3.36B	2.56B	1.88B	1.64B	1.53B
Stockholders Equity	8.88B	8.88B	6.89B	6.27B	5.44B	4.82B
Cash Flow
Free Cash Flow	1.26B	1.26B	-1.14B	510.40M	913.70M	1.18B
Operating Cash Flow	3.51B	3.51B	1.85B	1.66B	1.50B	1.57B
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: Neutral
• Last Price: 31.82
• 50DMA: Negative
• 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 31.82 is below the 20-day moving average (MA) of 34.81, below the 50-day MA of 32.00, and above the 200-day MA of 22.13, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 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	$14.21B	19.24	32.05%	0.87%	29.08%	72.12%
GFI	77 Outperform	$52.69B	29.21	35.09%	1.51%	49.62%	195.39%
CMCL	77 Outperform	$529.72M	11.75	20.25%	2.06%	38.04%	424.35%
DRD	73 Outperform	$2.82B	24.79	28.10%	1.02%	30.05%	73.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SBSW	57 Neutral	$14.69B	―	-8.31%	―	6.27%	93.14%

Drdgold Corporate Events

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.

DRDGOLD Announces CFO Transition and Compliance Report Release

DRDGOLD Limited announced the resignation of its Chief Financial Officer, Riaan Davel, effective January 31, 2026, with Henriette Hooijer set to assume the role from February 1, 2026. Additionally, the company has published its annual compliance report in line with the Broad-Based Black Economic Empowerment Act, which is now available on its website.

The most recent analyst rating on (DRD) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Drdgold stock, see the DRD Stock Forecast page.