Gold Watch 2024: These two South African Gold Miners Results are exceptional and there’s lots more to come

The recent earnings season on the JSE. highlighted two small cap gold miners results – and boy do they look good.

These gold miners are completely dependent on the gold price

These smaller gold miners are only gold producers. As such any changes in the gold price affect them. Even a small increase in the gold price (or the rand weakening to the US dollar) stands to increase their profitability big time. There are calls for gold to hit $2,200 this year… If it does these stocks are going through the roof.

#1. DRD Gold – profits grow 15% and shareholders receive a dividend

DRD grew revenue for the six months ended December 2023 by 12%, while operating profit is up 15% from R792 million to R909 million! Earnings per share increased from 62.3cps to 68.4cps. The company also declared an interim dividend of 20cps.

The share price is around R13.55 – so these results put the stock on a PE ratio of around 10 – with its rolling 12-month dividend yield at 6.27%.

The company managed these results despite missing out on around 90kg (or R100 million) worth of gold production due to delays in receiving water use licenses for new areas opened in 2023.

The company also invested in a mammoth solar power plant, with battery storage, that will be completed in October 2024 – and will start contributing to its bottom line this year.

I expect higher production in the coming twelve months, and lower production costs. And that means an even bigger increase in profits is on the way…

Red Hot Penny Shares readers made + 519% on this gold stock pre-covid. And that’s why it’s on my watch again.

#JSE Gold miner #2 to add to your watch

If anything, this little gold producer is one I’m even more excited about. Because the big gains are about to come with major new projects coming online in the next twelve months. Just go here to learn more about this gold miner and read the complete Gold Watch 2024 report, it’s 100% free.