| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 98 | 0.9x | 17.6x | Top tier | |
Growth | 95 | 36.2% | 7.1% | Top tier | |
Quality | 93 | — | 4.5% | Top tier | |
Safety | 85 | — | 2.6x | Top tier | |
Capital Return | 63 | — | 2.15% | Around median | |
Momentum | 38 | 17.7% | 2.3% | Bottom tier | |
Sentiment | 20 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
DRDGOLD Limited reprocesses gold-mining tailings in South Africa, extracting gold from massive volumes of low-grade material through its Ergo and Far West Gold Recoveries operations. Its economic model depends on processing approximately 25 million tonnes annually at high efficiency, with an average recovered grade of slightly less than 0.2 grams per tonne, then benefiting from the spread between the gold price and processing costs. The company deliberately remains unhedged against the gold price, giving revenue and cash flows direct exposure to upward and downward movements in the metal.
In its fiscal 2026 Q4 call, the company announced full fiscal 2026 results without presenting a separate quarterly financial statement. Revenue reached 11.2 billion rand, up 42%, operating profit was 6.4 billion rand, up 83%, and headline earnings were 4.2 billion rand, up 89%. The operating margin rose from 45% in fiscal 2025 to 58% in fiscal 2026, while the all-in sustaining cost margin increased from 39% to 53%.
Ergo accounted for approximately 8.1 billion rand of fiscal 2026 revenue, compared with 3.1 billion rand from Far West, representing approximately 72% and 28% of total revenue, respectively. Ergo’s operating profit doubled from 2 billion rand to 4.1 billion rand, while Far West’s operating profit rose from 1.5 billion rand to 2.3 billion rand at an exceptional margin of 76%. For comparison, the EDGAR statements for fiscal 2025 show revenue of $7.9 billion, net income of $2.2 billion, and earnings per share of 2.589, according to the units stated in the submitted data.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $35 and identical high and low targets of $35; this target is approximately 11% below the 52-week range high of $39.37 and approximately 85% above its low of $18.87. No price-to-earnings multiple is available in the data, so the stock’s valuation depends more heavily on its sensitivity to the gold price, the sustainability of its 58% operating margin, and Vision 2028’s ability to convert high capital expenditure into additional production and cash flow.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
DRDGOLD processes low-grade mining tailings through Ergo and Far West Gold Recoveries instead of relying on deep primary-ore mining. Together, the two operations processed approximately 25 million tonnes in fiscal 2026 at a yield of slightly less than 0.2 grams per tonne and produced just under five tonnes of gold. Ergo’s revenue reached approximately 8.1 billion rand and Far West’s revenue approximately 3.1 billion rand, while Far West’s operating margin reached 76%. Because the company does not hedge against gold, the metal’s price directly affects revenue and margins.
Revenue reached 11.2 billion rand in fiscal 2026, up 42%, driven primarily by a 40% increase in the realized gold price and a 1% increase in gold sold at Ergo. Operating profit rose 83% to 6.4 billion rand, and headline earnings increased 89% to 4.2 billion rand. The operating margin also rose from 45% to 58%, while free cash flow increased 85% to 2.3 billion rand after capital expenditure of 3.5 billion rand.
Vision 2028 includes expanding DP2 from 600,000 to 1.2 million tonnes per month, approximately 135 kilometers of pipelines, and an RTSF facility with a capacity of 800 million tonnes. RTSF construction was approximately two-thirds complete as of June 30, 2026, while the pipelines were approximately 95% complete, and the new smelting facility at DP2 produced its first gold bar on July 14, 2026. The company targets having RTSF available at full capacity in fiscal 2028 Q1 and expects the program to support the addition of approximately one tonne of gold production and a 35-year operating life at Far West.
Free cash flow reached 2.3 billion rand in fiscal 2026 despite capital expenditure of 3.5 billion rand, and the company ended the period with approximately 2.8 billion rand in cash and no debt. It declared a final dividend of 1.20 rand per share, in addition to an interim dividend of 0.50 rand per share, equivalent to approximately 65% of free cash flow. Fiscal 2026 marked the nineteenth consecutive year in which DRDGOLD paid a dividend. However, management linked dividend growth after Vision 2028 to lower capital expenditure and stable gold prices, costs, and production.
The company targets production of between 160,000 and 170,000 ounces in fiscal 2027, but expects cash costs slightly above one million rand per kilogram and all-in sustaining costs of 1.2 million rand per kilogram. Achieving the expansion depends on completing DP2, Libanon, and RTSF, as well as securing regulatory approvals for Withok, which has fallen behind the original fiscal 2028 schedule. Management explained that a delay to Withok until 2030 could reduce Ergo’s throughput to between 750,000 and one million tonnes per month. Margins are also directly exposed to lower gold prices and higher diesel, transportation, carbon, and cyanide costs.
The solar facility generated 146 gigawatt-hours in fiscal 2026 and reduced processing’s dependence on Eskom electricity from 13.6 kilowatt-hours per tonne in fiscal 2024 to 8.6 kilowatt-hours per tonne. Management estimated energy savings at Ergo of between 13.50 and 14.50 rand per tonne, while carbon emissions declined from 303,000 to 233,000 tonnes. Potable water use also fell 23%, saving 900 million liters, and the dust-emissions exceedance rate was 0.5%. The company also plans to source 30 megawatts from a renewable-energy facility through the grid in the coming years.
