
DRDGOLD (DRD) Stock Forecast & Price Target
DRDGOLD (DRD) Analyst Ratings
Bulls say
DRDGold Ltd has experienced a slight quarter-over-quarter increase in gold sales, reporting 37,231 ounces, alongside a notable rise in average gold prices to $3,429 per ounce, which has contributed to an adjusted EBITDA of approximately R1,092.9 million (about $62.0 million). The company is poised for growth through its Vision 2028 strategy, targeting roughly R7.8 billion (approximately $449.7 million) in capital expenditures aimed at enhancing gold operations and extending the operational lifecycle of its processing plants. Furthermore, DRDGold's ability to increase its dividend amid significant capital expenditures underscores its strong liquidity and free cash flow, bolstered by favorable gold price conditions.
Bears say
The analysis indicates a challenging financial outlook for DRDGold Ltd, primarily driven by escalating labor and electricity costs, which have significantly impacted operational expenses. The company's all-in costs rose 9% quarter over quarter, reaching R781 million ($44.3 million), alongside an increase in all-in costs per kilogram of gold produced to R1,745,213 or $3,079 per ounce, reflecting a 6% year-over-year hike. Additionally, the reliance on the Ergo segment for revenue, coupled with rising operational pressures, suggests potential vulnerabilities in maintaining profitability amidst volatile cost dynamics.
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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