DRD - DRDGold Should Have A Strong Second Half Of FY24
2024-04-23 12:18:43 ET
Summary
- The company’s gold production and unit costs deteriorated in H1 FY24 due to delays in the commissioning of two high-volume sites.
- The issues have been resolved and I expect gold production for the second half of the fiscal year to be around 90,000 ounces.
- I think high gold prices and improved production could boost the EV/EBITDA ratio above 10x by the end of the calendar year.
Introduction
South African gold producer DRDGold (NYSE: DRD ) is the first company I covered on SA back in 2017, and I’ve written a total of 13 article about it to date. The latest of them was in November 2022 when I said that this is a stable and predictable gold company that could weather a long period of low gold prices thanks to its large cash position....
DRDGold Should Have A Strong Second Half Of FY24