Jan 28th 2013 - Edison Investment Research today published a report on DRDGOLD entitled "Low-risk Gold Price Exposure". In summary, the report says:
DRDGOLD is a relatively low-risk way for investors to gain exposure to the gold price. It has a strong balance sheet, with net cash of ZAR268m at end June 2012, and we forecast strong cash flow generation leading to its dividend yield rising from 1.4% to 3.9% over the next two years. Earnings and valuation are highly geared to the gold price and we see 39% upside potential to our ZAR5.31 base case valuation through the implementation of several low-cost near-term projects.
Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »