More bang in the Roodepoort Rocket?
As the gold price shoots into orbit, DRDGold is using the bonanza to boost capex without taking on debt
20 March 2025 - 05:00
Shares such as DRDGold — aka the “Roodepoort Rocket” — are proof that traditional sell signals have weakened in precious metals. The gold tailings miner was said to be fully priced in mid-February when its share was trading at R19. Since then, the stock is 600c higher — taking full-year gains to 64%.
“What I’m learning fast in this market is that the traditional relationships and fundamental indicators have broken down,” says Arnold van Graan, an analyst for Nedbank Securities, who made the sell call on DRDGold. “But I still think gold needs to correct at some point. And with it the stocks.”..
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