Drdgold (DRD) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: 1.25%
• Average Volume (3M): 330.42K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.60
• Revenue Growth: 22.63%
• EPS Growth: 28.96%
• Country: US
• Employees: 2,956
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Mining
• EPS (TTM): 1.08
• Shares Outstanding: 86,458,870
• 10 Day Avg. Volume: 424,551
• 30 Day Avg. Volume: 330,422
• PEG Ratio: 0.42
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.41
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.25
• Price Target Upside: 24.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Drdgold demonstrates strong financial performance and robust technical indicators, suggesting a stable and promising position within the mining industry. Its valuation metrics indicate potential undervaluation, making it an attractive investment with a solid dividend yield. The main risk lies in its negative free cash flow due to high capital expenditures, which could impact future liquidity if not managed efficiently.

Positive Factors

Financial Performance

DRD's 28% growth in revenue is primarily driven by the average gold price denominated in Rand increasing 26% YoY.

Operational Efficiency

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.

Negative Factors

Operating Costs

Inflation, higher security costs, and labor expenses increased operating costs at both Ergo and FWGR.

Drdgold Business Overview & Revenue Model

Company Description

DRDGOLD Limited is a South African gold producer primarily engaged in the retreatment of surface tailings and waste rock to extract gold. The company operates in the mining and metals sector, focusing on recovering gold from previously mined waste material. DRDGOLD's operations are centered around its two primary assets, the Ergo and Far West Gold Recoveries (FWGR) operations, both located in the Gauteng province of South Africa. Through these operations, DRDGOLD aims to sustainably and profitably extract gold from tailings and contribute to environmental rehabilitation.

How the Company Makes Money

DRDGOLD 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

Drdgold shows stable financial performance with strong revenue growth and profitability. The balance sheet is robust with low leverage, despite negative free cash flow due to high capital expenditures, indicating potential concerns if not managed properly.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 13.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.03 is above the 20-day moving average (MA) of 11.47, above the 50-day MA of 10.35, and above the 200-day MA of 9.69, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 85.84 is Negative, 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
AEM	80 Outperform	$70.51B	27.34	9.42%	1.62%	26.99%	-6.63%
AU	78 Outperform	$15.85B	13.51	0.90%	0.71%	9.18%	―
GFI	77 Outperform	$17.87B	14.51	25.35%	1.55%	13.41%	73.34%
DRD	75 Outperform	$1.15B	12.23	24.89%	1.25%	22.63%	28.96%
K	75 Outperform	$18.74B	15.18	14.66%	1.08%	16.53%	206.89%
NEM	66 Neutral	$47.75B	15.35	11.13%	2.28%	58.27%	―
Sector *	47 Neutral	$2.64B	-4.00	-31.55%	3.33%	2.93%	-29.90%