Will a Minority Stake Sale Amid Gold's Surge Shift DRDGOLD's (DRD) Investment Narrative?

• On September 26, 2025, an undisclosed buyer acquired a minority stake in DRDGOLD Limited (NYSE:DRD) from Van Eck Associates Corporation, leaving Van Eck with 1.46% of the company's total issued ordinary share capital.
• This transaction comes amid a period marked by all-time high gold prices and intense market interest in gold mining companies like DRDGOLD.
• Let's explore how the surge in gold prices and supply concerns shapes DRDGOLD's current investment narrative.

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What Is DRDGOLD's Investment Narrative?

Owning DRDGOLD right now means buying into a gold bull market, balanced by production risk and investor sentiment. The big-picture thesis centers on historically strong performance, rapid revenue and profit growth, and considerable value relative to consensus price targets, all set against the backdrop of gold prices climbing to record highs and global interest in gold mining. The recent minority stake transaction, with Van Eck Associates reducing its holding, does little to change short-term catalysts like surging gold prices, demand-supply imbalances, and continued operational execution, given the undisclosed buyer and unchanged operational course. Key near-term risks remain: inconsistent production yields, the challenge of sustaining higher margins as ore quality trends lower, and the potential impact of executive leadership changes mid-cycle. For now, the ownership shuffle seems more symbolic than market-moving, given the continued strong price momentum and robust earnings improvements reported just prior.

But with ore yields trending downward, there’s more to consider about future earnings than first appears. DRDGOLD's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Simply Wall St Community members peg DRDGOLD’s fair value anywhere from ZAR11.62 to ZAR74.01, a striking diversity across seven perspectives. This difference in outlook comes amid rapidly rising gold prices and recent momentum, making it especially important to weigh how current mine output and yield risks could affect long-term returns. Explore these community opinions to see why views can be so far apart.

Explore 7 other fair value estimates on DRDGOLD - why the stock might be worth less than half the current price!

Build Your Own DRDGOLD Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DRDGOLD research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free DRDGOLD research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DRDGOLD's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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