DRDGOLD (DRD) Stock Forecast & Price Target

DRDGold Ltd experienced a slight quarter-over-quarter increase in gold sales, amounting to 37,231 ounces, coupled with an improved average gold price of $3,429 per ounce, leading to a notable rise in adjusted EBITDA to approximately R1,092.9 million (~$62.0 million). The company is positioned to enhance liquidity and free cash flow, enabling a significant capital expenditure program under its Vision 2028 strategy, which anticipates investments of about R7.8 billion (~$449.7 million) aimed at expanding gold operations. Furthermore, the prevailing record gold price environment supports increased dividends, demonstrating the firm’s ability to balance capital expenditures with shareholder returns while extending the operational life of its plant through planned upgrades.

DRDGold Ltd's financial outlook appears negative primarily due to escalating operational costs, including increased labor and electricity expenses, which were amplified by winter tariffs and additional machine hire costs related to site cleanup efforts. The company's all-in costs rose by 9% quarter-over-quarter to R781 million ($44.3 million), translating to R1,745,213 per kilogram or $3,079 per ounce, marking a 6% year-over-year increase. Despite favorable gold pricing, these rising costs present significant challenges to profitability and overall financial performance.