H.C. Wainwright reiterates Buy rating on DRDGOLD stock amid strong earnings

Published 21/08/2025, 12:30
H.C. Wainwright reiterates Buy rating on DRDGOLD stock amid strong earnings

Investing.com - H.C. Wainwright has reiterated its Buy rating and $18.75 price target on DRDGOLD Ltd . (NYSE:DRD), a prominent player in the Metals & Mining industry with a market capitalization of $1.33 billion, following the company’s fiscal year 2024 financial results. InvestingPro analysis indicates the company maintains GREAT financial health with strong profitability metrics.

The gold mining company reported annual revenue of R7,878.2 million (approximately $445.0 million), representing a 26% increase compared to the previous year. This growth translated to net income of R2.59 (approximately $0.146) per share, significantly higher than the R1.54 per share reported in fiscal year 2023. The company’s strong performance has contributed to an impressive 80.38% year-to-date return.

DRDGOLD’s revenue growth was primarily driven by a 35% increase in the average realized gold price to $2,797 per ounce, which helped boost operating profit to R3,523.6 million (approximately $199.0 million), a 69% year-over-year increase.

The company declared a cash dividend of R0.40 per share (approximately $0.023) for the period, doubling the R0.20 per share dividend paid in the previous fiscal year.

DRDGOLD maintained a cash balance of R1,306.2 million (approximately $73.9 million) at the end of the fiscal year, which H.C. Wainwright expects to increase as the company generates additional cash flow in the future. The company’s strong liquidity position is reflected in its healthy current ratio of 2.34, indicating robust short-term financial stability.

In other recent news, DRDGOLD Limited reported significant financial gains for the year ended June 30, 2025. The company announced a 26% increase in revenue, reaching R7,878.2 million, compared to R6,239.7 million in the previous year. Operating profit saw a substantial rise of 69%, amounting to R3,523.6 million, up from R2,081.3 million the previous year. Earnings per share also experienced a 69% increase, climbing to 260.1 South African cents from 154.3 cents a year earlier. Headline earnings per share mirrored this growth with a similar rise to 260.6 cents. In addition to these financial achievements, DRDGOLD declared a final cash dividend, reflecting its solid performance over the year. These developments underscore a period of robust growth for the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.