DRDGOLD, a South African gold mining company, has been on a steady rise in the stock market over the past few months. And according to one analyst, the stock still has another 10% upside from its current price.
The analyst, who wishes to remain anonymous, believes that DRDGOLD’s recent acquisition of Sibanye-Stillwater’s West Rand Tailings Retreatment Project will be a major catalyst for the company’s growth. The project is expected to increase DRDGOLD’s gold production by 50% and reduce its costs by 20%.
In addition, the analyst notes that DRDGOLD has a strong balance sheet and is well-positioned to weather any economic downturns. The company has a debt-to-equity ratio of just 0.06 and a current ratio of 2.27, indicating that it has more than enough liquidity to meet its short-term obligations.
Furthermore, DRDGOLD has a solid track record of delivering value to its shareholders. The company has consistently paid out dividends over the past few years, and its dividend yield currently stands at 2.5%.
Overall, the analyst believes that DRDGOLD is a strong buy at its current price and has the potential to deliver significant returns to investors in the coming months. While there are always risks associated with investing in the stock market, DRDGOLD’s strong fundamentals and growth prospects make it an attractive option for those looking to add some gold exposure to their portfolio.