Should I buy DRDGOLD stock in 2025? Expert Insights for ZA Investors

What is DRDGOLD?

How much is the DRDGOLD stock?

The price of DRDGOLD stock is falling this week. As of now, shares trade at $15.11, with a 24-hour decrease of 0.79% and a robust weekly gain of 5.4%. DRDGOLD’s market capitalisation stands at $1.30 billion, with a 3-month average daily volume of 522,898 shares.

These figures reflect relatively low volatility. For South African investors, DRDGOLD’s stable fundamentals and recent price momentum present an appealing balance of growth and defensive characteristics in the gold sector.

Our full analysis on the DRDGOLD stock

After a comprehensive review of DRDGOLD Limited’s (DRD) FY2024/25 financials, recent quarterly results, and the stock’s stellar multi-year trajectory, it is clear the company’s fundamentals and growth profile stand out in the southern African gold sector. Leveraging a proprietary multifactor analysis—blending technical signals, updated valuation metrics, and close peer comparison—we find several reasons why investor sentiment toward DRDGOLD may be entering a notably bullish phase. So, why might DRDGOLD stock once again become a strategic entry point into the sustainable gold extraction sector in 2025?

Recent Performance and Market Context

DRDGOLD has delivered an exceptional 80.74% share price advance over the past 12 months, with a 6-month rally of 58.72% and year-to-date (YTD) gains surpassing 76%. This level of outperformance, especially within the context of a $15.11 USD share price as of 30 May 2025, reflects not only sector rotation into gold but also confidence in the company’s differentiated model.

• 130th Anniversary of Continuous JSE Listing (May 2025): Reinforces DRDGOLD’s reputation for consistency and resilience.
• Strong FY2024 and H1 2025 Earnings: Revenue increased to R1.87 billion (+4% QoQ), while the adjusted EBITDA remained robust, despite short-term production challenges.
• Secured Strategic Funding: With Nedbank CIB providing R2 billion for mining expansion, DRDGOLD is positioned to increase throughput and future cash flows.
• Strengthened International Positioning: The switch to J.P. Morgan as ADR depositary bolsters global investor appeal.

Macro conditions support optimism: The gold price has continued to reach record levels (notably in ZAR terms), creating a powerful tailwind for all gold producers, but particularly for DRDGOLD’s high-margin, low-capex surface reprocessing model. Comparatively, sector peers have been hampered by both operational setbacks and ESG-related scrutiny; DRDGOLD’s established focus on environmental remediation offers a decisive competitive edge.

Technical Analysis

Technically, DRDGOLD presents a promising pattern, underpinned by several encouraging signals:

• RSI (14 days): 49.15 — firmly neutral, indicating neither overbought nor oversold conditions.
• MACD (12,26): +0.010 — a nascent buy signal, suggesting renewed upward pressure.
• Moving Averages: The share price sits on the cusp of its short-term and medium-term averages:
• MA20 at $15.10 (buy signal)
• MA100 at $14.71 (buy signal)
• MA200 at $14.91 (buy signal)
• Only the MA50 ($15.14) shows a marginal sell, signifying near-term consolidation is possible.
• Support/Resistance: Current daily support at $15.08 offers a strong floor, while resistance at $15.66 caps the short-term upside. Given its 52-week trading band of $7.64–$17.60, recent consolidation towards the lower range of resistance is especially constructive.

Overall, the technical structure suggests DRDGOLD could be in the early stages of a new upward phase; the alignment of long-term moving averages and positive MACD divergence underscores a potentially attractive entry point for technically inclined investors.

Fundamental Analysis

From a fundamental perspective, DRDGOLD stands apart in the JSE gold sector:

• Sustained Revenue Growth: 2024 revenues grew by 13.5% (R6.24bn vs R5.5bn), underpinned by higher realised gold prices and continued tailings retreatment volumes.
• Profitability: Despite a 12% quarterly dip in gold output—attributable to atypical wet weather—EBITDA margins remained strong, highlighting the scalability and operating leverage of the business.
• Valuation: The stock is currently trading at a P/E of 13.77 and a price-to-book of 3.05, below many global gold peers, which—combined with a 1.82% dividend yield—points to an attractive risk/reward profile.
• Structural Strengths:
• Model Innovation: DRDGOLD’s focus on surface tailings not only drives lower extraction costs but satisfies rising ESG requirements.
• Market Share: The company is the preeminent operator in gold surface retreatment across southern Africa.
• Consistency: 18 consecutive years of dividends—remarkable for the mining sector—bolsters its blue-chip credentials.

The combination of revenue momentum, disciplined capital management, and exposure to global gold price cycles underscores the value DRDGOLD brings to both income-focused and growth-oriented portfolios.

Volume and Liquidity

DRDGOLD’s average daily volume of 522,898 shares (USD listing) reflects sustained investor interest and robust secondary market liquidity. This is critical:

• Depth and Price Discovery: Active trading reduces the risk of large price swings on moderate news and allows for easier position adjustments by both retail and institutional investors.
• Favourable Float: The current market capitalisation of $1.3 billion ensures the company is index-eligible and visible to global allocators, while the float remains broad enough to allow for dynamic revaluation—as evidenced by recent surges.

Strong turnover, combined with major institutional backing (Sibanye Gold ownership), suggests market participants are positioning for continued upward re-rating.

Catalysts and Positive Outlook

Several forward-looking drivers stand to support the next leg of DRDGOLD’s rally:

• Gold Price Resilience: With attention on inflation risks and global macro uncertainty, gold’s enduring appeal as a store of value bodes particularly well for DRDGOLD’s topline.
• ESG Leadership: The unique surface retreatment model supports community rehabilitation and environmental governance, positioning DRDGOLD as a “future fit” mining stock—an underappreciated catalyst as ESG mandates tighten globally and in South Africa.
• Expansion Pipeline: The recent R2bn credit facility brings immediate capacity for plant expansion and renewed investment into high-yielding retreatment sites, beyond what most competitors can fund.
• Consistent Dividend Record: Eighteen years of uninterrupted dividends signal robust earnings quality and management’s commitment to capital return, raising the stock’s appeal in uncertain markets.
• Operational Upside: As weather patterns normalise and plant upgrades come online, management expects production to return to the upper end of 2025 guidance (155,000–165,000 oz).
• Regulatory and Consumption Tailwinds: With global central banks, including the SARB, signalling stable policy and supportive ZAR conditions, DRDGOLD is in a strong position to benefit from broader demand for gold and safe-haven assets.

Investment Strategies

From a portfolio construction perspective, DRDGOLD offers varied entry strategies depending on investment horizons:

• Short-Term: Current price consolidation near support ($15.08) and daily technical reset provide an appealing tactical buy opportunity, particularly for those seeking exposure to gold price momentum or sector rotation.
• Medium-Term: On a 6–12 month view, the expected operational recovery (as weather-related headwinds abate) and pending expansion milestones represent catalysts for renewed EPS and dividend growth—likely supporting further price appreciation.
• Long-Term: DRDGOLD’s proven business model, sector-leading ESG credentials, and stable dividend progression make it a compelling, lower-beta diversifier within mining, suitable for pension and endowment-style strategies.

Regardless of tactical timing, DRDGOLD’s current valuation metrics, coupled with an expected resumption of production growth, offer an inflection point for new and existing investors.

Is it the Right Time to Buy DRDGOLD?

In summary, DRDGOLD brings together a combination of strong financial performance, unique operational moat, proven cashflow, and broad macro and microeconomic tailwinds. The company’s industry-beating share price performance, coupled with a solid dividend, underscores its distinctive risk/return profile. Most importantly, the alignment of technical, fundamental, and liquidity factors currently suggests the stock may be entering a new bullish phase.

While short-term volatility stemming from weather disruptions may temporarily cloud results, the fundamentals justify renewed interest—and the company’s robust outlook, both operationally and strategically, seems to represent an excellent opportunity for investors looking to combine growth, defensiveness, and exposure to future-facing mining practices. For those seeking a well-positioned entry in the gold sector for 2025, DRDGOLD emerges as a stock that could set the pace for sustainable outperformance.

DRDGOLD stands at the intersection of innovation, resilience, and rising market relevance—a combination that justifies close attention from investors seeking quality exposure to both gold and leading-edge ESG in the African market context.

How to buy DRDGOLD stock in South Africa?

Buying DRDGOLD stock online is both straightforward and secure when using a regulated broker in South Africa. Investors can choose between two main methods: buying real DRDGOLD shares for long-term holding (known as spot buying), or trading Contracts for Difference (CFDs) for more flexible, leveraged exposure. Both approaches offer convenient access to DRDGOLD via mobile or desktop platforms, and security is ensured by selecting brokers regulated by the FSCA or recognised global authorities. Below, we’ll walk you through both options in detail, and further down the page you’ll find a side-by-side broker comparison to help you make the best choice for your needs.

Spot Buying

When you buy DRDGOLD stock “for cash” through a regulated broker on the JSE or NYSE, you become the direct owner of the shares. This is a popular option for South African investors interested in long-term growth, dividend income, and voting rights. Typically, brokers charge a fixed commission per order – for example, around R100–R150, or $5–$10 if the purchase is made on US markets.

Important example

Concrete example: If DRDGOLD is trading at $15.11 (about R270) per share and you invest $1,000 (about R18,000), you can buy approximately 65 shares, including a brokerage fee of roughly $5.
✔️ Gain scenario: Suppose DRDGOLD rises by 10%. Your shares are now worth $1,100.
Result: That’s a +$100 gain, matching a +10% return on your investment.

Trading via CFD

CFD (Contract for Difference) trading on DRDGOLD shares lets you speculate on the price movement—up or down—without owning the underlying shares. CFDs are offered by most online brokers and allow you to use leverage, potentially multiplying gains (and losses). Instead of commissions, CFD trades typically involve a spread (small difference between buy and sell price) and, if you hold positions overnight, a daily financing cost.

Example

Example with 5x leverage: You open a CFD position on DRDGOLD with $1,000 as margin, using 5x leverage—giving you exposure to $5,000 worth of stock.
✔️ Gain scenario: If DRDGOLD’s price rises by 8%, your position gains 40% (8% × 5), for a profit of $400 on your $1,000 stake (fees excluded).

Final Advice

Before investing in DRDGOLD—whether through cash purchases or CFDs—it’s important to compare brokers’ fees, market access, platform features, and regulatory protection. The right choice depends on your goals: traditional share ownership suits those seeking stability and dividends, while CFDs may appeal to those seeking flexibility and higher risk/reward. For a detailed breakdown, consult the broker comparison table further down this page before making your decision.

Our 7 tips for buying DRDGOLD stock

The latest news about DRDGOLD

DRDGOLD’s share price has delivered an outstanding +80.74% annual increase and a 76% YTD gain. This surge reflects significant value creation for shareholders, with the stock now trading at $15.11 USD on the JSE and NYSE, supported by robust trading volumes and a market capitalisation of $1.3 billion. The high momentum places it close to analyst price targets ($16.25), and technical indicators such as the MACD and 100/200-day moving averages reinforce a positive, buy-oriented market sentiment, particularly attractive for South African investors seeking exposure to gold and the local resource sector.

The company has reported a resilient quarterly performance, with revenues rising 4% despite challenging weather. For the quarter ending March 31, 2025, DRDGOLD achieved R1,873 million in revenue—powered mainly by a 10% increase in the average realised gold price per kg—while weather-driven production setbacks (down 12%) and higher cash costs were partially offset by favourable gold market conditions. This demonstrates effective management and financial flexibility, showcasing the ability to maintain earnings and positive EBITDA (R761.7 million) in uneven operating environments, which is crucial for Johannesburg-based operations subject to erratic South African weather patterns.

DRDGOLD marked its 130th consecutive year of JSE listing, underscoring deep-rooted market presence and stability. The milestone, celebrated in May 2025, accentuates the company’s reputation as one of South Africa’s most enduring public companies. This longevity, paired with 18 years of uninterrupted dividend payments, fosters institutional and local investor confidence in the stock’s governance, reliability, and capacity for long-term wealth creation within the South African financial ecosystem.

Environmental and ESG credentials continue to distinguish DRDGOLD’s business model and enhance its strategic appeal. The company remains a leader in low-impact, sustainable gold extraction through surface tailings retreatment, minimizing environmental footprint and aligning with modern ESG standards. This unique, cash-generative approach not only positions DRDGOLD at the forefront of responsible mining in Southern Africa but also appeals to investors prioritizing sustainability—particularly relevant amid increased regulatory scrutiny and consumer sensitivity in the region.

Recent financial support and a solid cash position strengthen prospects for further growth and security. With a robust cash reserve of R950.5 million as of March 31, and R2 billion in financial backing from Nedbank CIB confirmed in December 2024 earmarked for mining unit expansion, DRDGOLD is well placed to enhance production capacity and deliver on growth strategies. This financial foundation reassures stakeholders that, despite occasional operational headwinds, the company remains equipped not only to weather short-term challenges but also to capitalize on the prevailing uptrend in gold prices, to the benefit of South African investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.