Drdgold (DRD) AI Stock Analysis

• Market Cap: $2.59B
• Dividend Yield: 1.17%
• Average Volume (3M): 449.03K
• Price to Earnings (P/E): 21.2
• 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): 0.80
• Shares Outstanding: 86,739,770
• 10 Day Avg. Volume: 392,106
• 30 Day Avg. Volume: 449,032
• 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: 0.42
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.35
• Enterprise Value/Ebitda: 0.31
• 1Y Price Target: $36.25
• Price Target Upside: 16.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.39
• Revenue Forecast (FY): $501.62M

• Rating: 79 Outperform
• Price Target: $33.00 ▲(5.63% Upside)

Drdgold's strong financial performance and positive technical indicators are the primary drivers of its overall score. The company shows robust revenue growth and profitability, supported by a solid balance sheet. Technical analysis indicates a strong upward trend, although caution is advised due to potential overbought conditions. The valuation is fair but not particularly compelling. The lack of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth reflects strong operational performance and market demand, enhancing long-term business stability.

Balance Sheet Health

Minimal leverage reduces financial risk, providing flexibility for future investments and operational resilience.

Strategic Vision

The strategic plan to extend operational life and enhance industry position indicates a commitment to sustainable growth.

Negative Factors

Free Cash Flow Challenges

Challenges in converting income to free cash flow could impact future investment capacity and shareholder returns.

Leadership Changes

Leadership transitions can disrupt strategic continuity and operational focus, affecting long-term execution.

Rising Operating Costs

Increasing operating costs can pressure margins, necessitating efficiency improvements to maintain profitability.

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

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

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: Positive
• Last Price: 31.24
• 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 Positive. The current price of 31.24 is above the 20-day moving average (MA) of 29.41, above the 50-day MA of 27.94, and above the 200-day MA of 19.35, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 30.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRD.

Drdgold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRD	79 Outperform	$2.59B	21.25	28.10%	1.17%	30.05%	73.40%
GFI	79 Outperform	$39.67B	21.18	35.09%	1.58%	49.62%	195.39%
HMY	77 Outperform	$12.95B	16.23	32.05%	0.94%	29.08%	72.12%
CMCL	73 Outperform	$473.35M	9.37	20.25%	2.34%	38.04%	424.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SBSW	58 Neutral	$9.78B	-50.95	-8.31%	―	6.27%	93.14%

Drdgold Corporate Events

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.

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.

DRDGOLD Celebrates 130 Years with Strategic Vision for Future

On October 28, 2025, DRDGOLD Limited released its Annual Integrated Report for the financial year ending June 30, 2025. The report highlights the company’s strategic objectives, performance, and sustainable business model, emphasizing its ability to create value for stakeholders. Celebrating its 130-year anniversary, DRDGOLD reflects on its transformation from a traditional mining company to a leader in gold tailings retreatment. The report also outlines the company’s Vision 2028, an R8 billion capital program aimed at extending its operational life and enhancing its position in the tailings retreatment industry.

DRDGOLD Announces AGM and Releases Annual Financial Statements

DRDGOLD Limited announced on October 28, 2025, the availability of its annual financial statements and annual integrated report for the year ended June 30, 2025. The company also issued a notice for its annual general meeting scheduled for November 26, 2025, which will be held remotely. The financial statements, audited by BDO South Africa Inc., showed no changes from the previously published condensed consolidated financial statements. This announcement ensures transparency and keeps stakeholders informed about the company’s financial health and governance practices.

DRDGOLD Announces Securities Dealings and Board Changes

On October 24, 2025, DRDGOLD Limited announced significant dealings in securities and changes to its board and committees. The company executed a pooled sale of shares awarded under its long-term incentive scheme, with several executives and directors participating in the sale. Additionally, changes to the board included the resignation of Riaan Davel from the Social and Ethics Committee, replaced by Henriette Hooijer, and a review of the tenure of non-executive directors Johan Holtzhausen and Edmund Jeneker, with plans for their succession at upcoming annual meetings. These changes reflect DRDGOLD’s efforts to maintain board independence and diversity.

DRDGOLD CFO Executes Significant Share Sale

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

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

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.