ZACKS·2025-10-27 15:16Core 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]