Oct 02nd 2013 - Edison Investment Research today published a report on DRDGOLD entitled "Highly Geared To The Gold Price". In summary, the report says:
We have updated our earnings forecasts and valuation for FY13 results and recent gold price and ZAR/US$ rate movements. We forecast earnings declining to break-even in FY14 due to a lower gold price and rising costs, before strongly recovering in FY15, driven by our assumption of a rising gold price. The balance sheet is strong with ZAR377m cash and we forecast that continuing positive operating cash flows will cover capex, dividends and debt repayments. Our base case and upside case valuations are reduced by 20% and 19% to ZAR4.71/share and ZAR6.87/share respectively.
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