On Tuesday, an analyst from H.C. Wainwright adjusted the price target for DRDGOLD Ltd. (NYSE: DRD), a gold mining company, raising it to $15.50 from the previous $13.25, while maintaining a Buy rating on the stock. The new target comes after DRDGOLD's recent announcement of its financial results for the third fiscal quarter of 2024.
The company disclosed its production figures for the quarter on May 10, 2024, reporting gold production of 39,449 ounces, a slight 3% decrease from the previous quarter. Gold sales also saw a 4% quarter-over-quarter decline, totaling 39,160 ounces. Despite the dip in production and sales, the average gold grade remained consistent.
The company experienced a 4% drop in overall throughput due to a slow start in January. However, March saw a significant improvement in performance, which supports the analyst's positive outlook for DRDGOLD's operations in the upcoming fourth fiscal quarter of 2024.
Financially, DRDGOLD saw an increase in adjusted EBITDA, which rose by 12% quarter-over-quarter to R494.5 million. This boost in earnings was attributed to a 5% increase in the average realized gold price over the quarter.
InvestingPro Insights
Following the recent update by H.C. Wainwright on DRDGOLD Ltd.'s price target, InvestingPro data and tips provide additional context for investors considering the stock. DRDGOLD is currently trading at a low P/E ratio of 1.03, which is attractive relative to near-term earnings growth, suggesting that the stock may be undervalued. The company holds more cash than debt on its balance sheet, indicating a strong financial position. Additionally, DRDGOLD has shown a significant return over the last week with a 7.56% price total return, and a robust 28.59% return over the last three months.
Investors should note that while the company's net income is expected to drop this year, DRDGOLD has maintained dividend payments for 17 consecutive years, which may be of interest to income-focused investors. The company is also a prominent player in the Metals & Mining industry and analysts predict it will be profitable this year.
For those looking for deeper insights and additional metrics, there are over 10 additional InvestingPro Tips available at https://www.investing.com/pro/DRD. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to an extensive range of financial analytics and tools to help make informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.