H.C. Wainwright has adjusted its price target on shares of DRDGOLD Ltd. (NYSE: DRD) to $13.25, down from the previous $15.50, while maintaining a Buy rating on the stock. This adjustment follows the company's announcement of its fiscal year 2024 financial results.
DRDGOLD reported a year-over-year (YoY) revenue increase of 14%, with figures rising from approximately $307.6 million in FY2023 to around $349.2 million in FY2024. The growth was attributed to a 20% rise in the average Rand gold price received, despite a 5% decline in the total gold sold, which amounted to roughly 160,400 ounces.
Net income also saw an uptick, reaching about $74.3 million or $0.086 per share, up from the previous year's $71.7 million or $0.083 per share. The company's earnings were bolstered by the higher revenue and gold prices.
Significant capital expenditures were noted, with the company investing approximately $167.5 million during FY2024, a substantial increase from the $64.2 million spent in FY2023. The funds were primarily allocated to the construction of a solar power plant and a battery energy storage system at the Ergo mining site.
Looking forward, H.C. Wainwright anticipates that DRDGOLD will continue to benefit from robust gold prices and the operation of its newly commissioned reclamation sites.
InvestingPro Insights
As DRDGOLD Ltd. (NYSE:DRD) navigates through its fiscal year, the InvestingPro platform provides a deeper financial perspective to complement the recent analysis by H.C. Wainwright. With a market capitalization of $79.6 million, DRDGOLD's financial health and growth prospects are encapsulated in key metrics. The company boasts a low P/E ratio of 1.08, which is particularly attractive when aligned with its near-term earnings growth potential. This is reinforced by a PEG ratio of 0.77 over the last twelve months as of Q2 2024, indicating a favorable growth to earnings ratio.
InvestingPro Tips spotlight DRDGOLD's position as a prominent player in the Metals & Mining industry, trading at a low earnings multiple, which may interest value investors. Moreover, the company has demonstrated a strong commitment to shareholder returns, maintaining dividend payments for 17 consecutive years, with a current dividend yield of 1.66%. This consistency is a testament to its financial resilience and strategic planning.
Revenue growth remains robust with a 10.27% increase over the last twelve months as of Q2 2024, while gross profit margins stand at a healthy 28.87%. These figures underscore the company's efficient operations and ability to capitalize on favorable market conditions. For investors seeking additional insights, there are 12 more InvestingPro Tips available, offering a comprehensive analysis of DRDGOLD's financial performance and market position.
Overall, the InvestingPro data and tips provide a multi-faceted view of DRDGOLD's financial health, aligning with H.C. Wainwright's positive outlook and supporting the notion that the company is well-positioned to leverage the ongoing strength in gold prices and its operational advancements.
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