
DRDGOLD (DRD) Stock Forecast & Price Target
DRDGOLD (DRD) Analyst Ratings
Bulls say
DRDGold Ltd's significant increase in operating profit to R1,578.7M (~$85.6M), representing a 74% year-over-year growth, underscores the company's strong operational performance. The Ergo segment, which generates the majority of DRDGold's revenue, reported a revenue increase to R2,719.0M (~$147.5M) due to a 26% year-on-year rise in the average Rand gold price, reflecting favorable market conditions. Additionally, the company's robust financial health is highlighted by a cash and cash equivalents balance of R661.2M (~$35.8M) with zero debt, and a 50% increase in interim cash dividends signals strong shareholder returns amidst rising gold prices and improved operational efficiencies.
Bears say
DRDGold Ltd has experienced a significant 22% increase in milled tonnage; however, this positive trend is overshadowed by a 20% year-over-year decline in gold grade, dropping to approximately 0.19 grams per tonne. This decline in grade raises concerns about the company's ability to maintain revenue and profitability, particularly since the Ergo segment generates the majority of its revenue. Overall, the combination of increasing operational output with diminishing quality of the mined resource presents fundamental challenges that negatively impact the financial outlook for DRDGold's stock.
This aggregate rating is based on analysts' research of DRDGOLD and is not a guaranteed prediction by Public.com or investment advice.
DRDGOLD (DRD) Analyst Forecast & Price Prediction
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