Key Takeaways Gold prices recovered after a sharp drop, supported by geopolitical conflicts and a weak U.S. dollar.AU, GFI, NGD, DRD and GROY are benefiting with gold prices rising nearly 15% year to date.Central bank buying, supply constraints and rising industrial demand are boosting optimism for gold miners.On Feb. 3, the price of spot gold recovered some lost ground after closing above $5,000/Oz. The price of the yellow metal declined sharply after hitting a record-high of nearly $5,600/Oz on Jan. 29. H ...

Core Viewpoint - Precious metals like gold and silver are expected to continue outperforming due to rising geopolitical tensions, making the metals and miners sector an attractive investment opportunity [1]. Group 1: Precious Metals Miners Overview - Six large-cap precious metals miners have been identified as potential investment opportunities, each with a net profit margin of at least 15% and a Benzinga Edge Quality Score of at least 90 [2]. Group 2: Hecla Mining Co. - Hecla Mining (NYSE:HL) has a Benzinga Edge Quality Score of 97.64, a market cap of nearly $17 billion, and generates over $1.2 billion in annual sales with a net profit margin of 16.2% [3]. - The stock is trading above its 50-day and 200-day simple moving averages (SMAs), indicating a bullish trend supported by the Moving Average Convergence Divergence (MACD) indicator [5]. Group 3: DRDGold Ltd. - DRDGold (NYSE:DRD) has a Benzinga Edge Quality Score of 98.47 and a market cap of $3 billion, utilizing surface-tailing retreatment strategies for gold recovery, resulting in a high net profit margin of 28.5% [6][7]. - The stock has experienced a 280% gain over the last 12 months and recently made a new all-time high, supported by bullish MACD signals [9]. Group 4: Kinross Gold Corp. - Kinross Gold (NYSE:KGC) has a Benzinga Edge Quality Score of 97.49, a market cap of $40 billion, and reported annual sales exceeding $5 billion, with a net profit margin of 27.3% [10]. - The stock has rallied over 200% in the last year, supported by a strong balance sheet, although caution is advised as the MACD indicators suggest a potential short-term pullback [12]. Group 5: OR Royalties Inc. - OR Royalties (NYSE:OR) has a Benzinga Edge Quality Score of 94.14, a market cap of $7.68 billion, and net margins exceeding 60% [13]. - The stock has gained over 15% in 2026 and is positioned for potential new all-time highs, supported by bullish MACD indicators [15]. Group 6: Southern Copper Corp. - Southern Copper Corp. (NYSE:SCCO) has a Benzinga Edge Quality Score of 92.36, a market cap of $150 billion, and generated over $12 billion in revenue last year with a net margin of 31% [16]. - The stock has increased by 27% in January 2026, with bullish MACD confirmations indicating strong momentum [18]. Group 7: SSR Mining Inc. - SSR Mining (NASDAQ:SSRM) has a Benzinga Edge Quality Score of 92.96 and a market cap of $4.8 billion, with a net profit margin of 15% [19]. - The stock appears undervalued compared to peers, trading at 23 times earnings and 1.2 times book value, and is poised to resume its rally from 2025 [21].

Group 1 - The core viewpoint of the article highlights a collective rise in U.S. gold stocks, with Harmony Gold leading the pre-market gains at 5.58% [1][2] - The recent signing of a federal government temporary funding bill by President Trump has ended a 43-day government shutdown, improving dollar liquidity and boosting both risk and safe-haven assets [2][3] - Gold prices have rebounded quickly after a brief correction, surpassing the $4,100 resistance level and testing the $4,200 mark [2][3] Group 2 - Citigroup predicts that gold prices could reach $6,000 by 2027, driven by a significant mismatch between global wealth and the small physical gold market [3] - The report estimates that a mere 1.5% increase in global household wealth allocation to gold would require 18 years of mineral supply, indicating that this imbalance can only be resolved through a price surge [3] - The current price increase is primarily driven by U.S. investors rather than central banks, with ETF inflows contributing significantly to the global increase [3]

Group 1 - U.S. gold stocks experienced a pre-market rally, with Harmony Gold leading at a 5.58% increase, followed by DRDGOLD at over 4%, and Coeur Mining at 3.5% [1] - The recent signing of a federal government temporary funding bill by President Trump ended a 43-day government shutdown, improving dollar liquidity and boosting both risk and safe-haven assets [1] - Gold prices have rebounded quickly after a brief pullback, surpassing the $4,100 resistance level and testing the $4,200 mark [1] Group 2 - Citigroup forecasts that gold prices could reach $6,000 by 2027 in a bull market scenario, driven by a significant mismatch between global wealth and the small physical gold market [1] - The report estimates that a mere 1.5% increase in global household wealth allocation to gold would require 18 years of mineral supply, indicating that this imbalance can only be resolved through soaring prices [1] - The current surge in gold prices is primarily driven by U.S. investors rather than central banks, with ETF inflows contributing significantly to the global increase [1]

Core Insights - DRDGold Limited (NYSE: DRD) has experienced a significant increase in share price, rising 152.29% on a total return basis, compared to a 14.58% increase for the S&P 500, attributed to climbing gold prices [1] Company Performance - The substantial rise in DRDGold's shares indicates strong market performance and investor interest, particularly in the context of rising gold prices [1]

Core Viewpoint - The article highlights a bullish outlook on gold prices from multiple financial institutions, with predictions of significant increases in gold prices by 2026 due to strong demand and geopolitical uncertainties [1] Group 1: Market Performance - U.S. gold stocks are generally rising in pre-market trading, with DRDGOLD up approximately 3%, Harmony Gold up 2%, and AngloGold and Kinross Gold up 1.6% [1] - Other companies such as Coeur Mining and Pan American Silver also show gains in pre-market trading [1] Group 2: Price Predictions - UBS maintains a target price of $4,200 per ounce for gold by the end of the year, suggesting that prices could rise to $4,700 per ounce if geopolitical or market risks escalate [1] - Morgan Stanley forecasts that gold prices could reach $4,500 per ounce by mid-2026, driven by strong physical demand from ETFs and central banks amid economic uncertainties [1] - JPMorgan analysts predict that gold prices will average $5,055 per ounce by the fourth quarter of 2026 [1] Group 3: Investment Recommendations - UBS recommends that investors allocate 4%-6% of a diversified dollar investment portfolio to gold [1]

Financial Performance - Revenue increased by 26% to R7,878.2 million in fiscal year 2025 from R6,239.7 million in fiscal year 2024, primarily due to a 31% increase in the average rand gold price received to R1,632,275 per kilogram [393]. - Gold revenue increased by R1,634.6 million, or 26%, to R7,864.3 million in fiscal year 2025, driven by a 31% increase in average rand gold price to R1,632,275 per kilogram, despite a decrease in gold sold from 160,400 ounces to 154,902 ounces [417]. - Cash generated from operating activities amounted to R3,511.1 million for fiscal year 2025, a significant increase from R1,845.2 million in fiscal year 2024 [442]. - Adjusted EBITDA for fiscal year 2025 was R3,317.6 million, up from R1,884.9 million in fiscal year 2024, indicating significant operational improvement [431]. - Income tax charge increased to R824.4 million in fiscal year 2025 from R488.2 million in fiscal year 2024, with a deferred tax charge of R824.4 million [426]. Production and Costs - Gold production decreased to 155,288 ounces in fiscal year 2025 from 160,818 ounces in fiscal year 2024, with gold sold also decreasing from 160,400 ounces to 154,902 ounces [392]. - Cash operating costs per kilogram increased to R903,824 in fiscal year 2025 from R833,536 in fiscal year 2024, reflecting rising operational costs [392]. - Cost of sales amounted to R4,747.7 million in fiscal year 2025, with operating costs increasing by 5% to R4,404.6 million, primarily due to inflation and higher reagent and consumable costs [418]. - Consolidated cash operating costs per kilogram increased by 8% to R903,824 per kilogram in fiscal year 2025, while all-in sustaining costs per kilogram rose by 6% to R1,001,214 [433]. - Cash operating costs for fiscal year 2025 increased by R179.4 million to R4,372.7 million compared to R4,193.3 million in fiscal year 2024 [440]. Capital Expenditure - Capital expenditure decreased by R913.9 million to R2,200.0 million in fiscal year 2025 from R3,113.9 million in fiscal year 2024, mainly due to prior year expenditures on the solar plant [395]. - Non-sustaining capital expenditure decreased significantly from R2,789.1 million in fiscal year 2024 to R1,899.4 million in fiscal year 2025, primarily related to the solar power plant construction [435]. - Total capital growth investment forecast for the medium term is around R7.8 billion, primarily for the FWGR Phase 2 project and Daggafontein TSF pipeline construction [451]. Regulatory and Environmental Factors - The company faces regulatory challenges in South Africa, impacting the execution of key capital projects due to slow turnaround in obtaining permits and approvals [390]. - Future environmental rehabilitation costs are estimated based on current prices and regulatory requirements, impacting financial performance [406]. - The total environmental rehabilitation provision decreased to R558.7 million as of June 30, 2025, from R616.8 million in 2024, reflecting a R98.0 million decrease in the provision recognized in profit or loss [420]. Governance and Remuneration - The company secretary was appointed on October 25, 2023, indicating a recent change in governance [491]. - The total directors' remuneration for the year ended June 30, 2025, was R42.6 million [493]. - The total compensation for executive directors amounted to R35.296 million for the year ended June 30, 2025 [497]. - The Remuneration Committee ensures fair and responsible remuneration for directors and executive management, evaluating performance in relation to reward [546]. - The company has established a Nominations Committee to oversee the selection of director nominees, ensuring a majority of independent directors [527]. Employee and Safety Metrics - As of June 30, 2025, the total number of employees is 3,410, comprising 2,517 specialized service providers and 893 directly employed staff [563]. - The number of employees increased from 2,956 in June 2024 to 3,410 in June 2025, representing a growth of approximately 15.3% [563]. - Approximately 80% of Ergo employees and 75% of FWGR employees are members of trade unions or employee associations, indicating strong union representation [568]. - Safety measures are a priority, with ongoing efforts to create a safe working environment for employees [571]. - The lost time injury frequency rate (LTIFR) for Ergo increased to 1.72 in fiscal 2025 from 1.18 in fiscal 2024, while FWGR's LTIFR rose to 1.23 from 0.92 [571]. Shareholder and Incentive Plans - The company awarded 436,959 conditional shares in October 2023 as part of the new incentive plan, with additional awards scheduled for subsequent years [521]. - The Single Incentive Plan aims to balance financial and non-financial performance measures, recognizing the challenges of setting realistic targets in a volatile economic environment [512]. - The payout structure consists of 67% cash payment and 33% in deferred DRDGOLD shares, with vesting periods of 5 years for certain categories of employees [514]. - The performance shares under the ELTI scheme vest based on total shareholder return (TSR) against a hurdle rate of 15% [582]. - The company aims to enhance board diversity and reflect South Africa's demographics through recent changes in board composition [570].

Core Viewpoint - The article upgrades the rating of DRDGOLD Limited (DRD) from "Hold" to "Buy" on the NYSE, indicating a positive outlook for the company's stock performance [1]. Company Summary - DRDGOLD Limited is publicly traded on the NYSE under the symbol "DRD" [1]. - The upgrade reflects a shift in investment strategy that accommodates various investor profiles, including those focused on dividends, value propositions, or growth opportunities [1].

Core Insights - DRDGOLD Ltd. and Gold Fields Ltd. are two significant players in the South African gold mining industry, each with distinct operational focuses and strategies [1][2][3] Group 1: Company Overview - DRDGOLD specializes in surface retreatment, recovering residual gold from old mine dumps and tailings, primarily in the Johannesburg region [1][4] - Gold Fields operates large-scale mining projects across multiple countries, including South Africa, Ghana, Australia, Peru, and Chile, positioning itself as a globally diversified gold producer [2][9] Group 2: Operational Performance - DRDGOLD reported a 2% increase in revenues to R 2,254.9 million (approximately $124.24 million) in Q1 2026, driven by gold sales of 37,231 ounces at an average price of $3,429 per ounce [6] - Gold Fields produced approximately 2,518 kg (about 81,000 ounces) of gold in Q2 2025, a 12% increase sequentially, attributed to improved throughput and grade recovery [11] Group 3: Financial Position - As of September 30, 2025, DRDGOLD remained debt-free with cash and cash equivalents of R 1,049.1 million (around $57.80 million) [7] - Gold Fields had cash and cash equivalents of approximately $1.05 billion at the end of June 2025, with a debt-to-capital ratio of 35.44% [12] Group 4: Growth and Expansion - DRDGOLD is advancing its FWGR Phase II expansion project, which aims to extend production life and lower long-term costs [5] - Gold Fields is ramping up production at the Salares Norte mine in Chile, with full ramp-up expected by early 2026, and is also investing in renewable energy projects to reduce costs and carbon emissions [9][10] Group 5: Valuation and Dividends - DRD is trading at a forward earnings multiple of 20.11X, a 46.2% premium over the industry average of 13.75X, with a dividend yield of about 1.46% [14][16][20] - Gold Fields trades at a forward earnings multiple of 10.81X, below both the industry average and DRD, offering a dividend yield of approximately 1.60% [19][21] Group 6: Future Outlook - The Zacks Consensus Estimate for DRD's fiscal 2026 sales implies a year-over-year growth of 35.20%, while GFI's estimates suggest a 69.44% increase [23][25] - DRDGOLD's growth is limited by its single-region exposure, while Gold Fields benefits from diversified operations and rising output, making it a more attractive option for investors seeking growth [8][26]

Group 1 - The stock market has reached record highs following a cooler Consumer Price Index (CPI) report, indicating a positive economic outlook [1] - Gold stocks have experienced a significant pullback, with major companies like Agnico-Eagle Mines, Gold Fields, Kinross Gold, DRD Gold, and Newmont facing declines as gold prices fell from their record highs [1] - Despite the downturn in gold stocks, Agnico-Eagle Mines has been recognized among top-rated stocks and earned a spot on investment lists, highlighting its potential as a strong investment opportunity [2][4] Group 2 - Clean energy stocks are outperforming fossil fuel stocks, even amidst backlash against Environmental, Social, and Governance (ESG) criteria, indicating a shift in investor sentiment towards sustainable investments [4] - Analysts are becoming increasingly bullish on specific stocks, including a data center play, suggesting potential growth opportunities in the tech sector [4] - The Russell 2000 index has led a pullback in the stock market, with gold stocks falling sharply, reflecting broader market volatility [4]