DRDGOLD Limited (DRDGOLD) is a medium-sized, unhedged gold producer with operations and exploration activities in South Africa held through a 74% interest in DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA).

DROOY is a opportunity of a lifetime! This is a no brainer! DROOY is trading less then one times sales and is currently trading under book value! It doesn't get much better than this! Also, a great way to valuate a company is by its enterprise value. In this case, DROOY's enterprise value is only $60 Million!!! This is absurd! In order to find out a company's enterprise value you take the current market cap which in this case is $125 mm and you add in the company's debt which is about $15 mm and then you subtract the company's cash which is $80 mm and you get the company's enterprise value which is only $60 mm!

DROOY has $80 mm in cash and generates about $175 mm in revenue and only has an enterprise value of $60 mm! Also, what is very attractive about this undervalued gold company is the fact that it has been around since 1895!!!

In fact, back in 1981, the last time we had an inflationary crisis like this one DROOY made a run from $15 to $500!

Once gold starts its rally DROOY will become a HUGE winner for us!

DRDGOLD’s empowerment partner, Khumo Gold (SPV) (Pty) Limited, has recently increased its holding in DRDGOLD SA from 15% to 20%, and has facilitated the incorporation of a further 6% into an employee trust. This means that DRDGOLD has met the 26% black economic empowerment equity target set by the South African Mining Charter for 2014, seven years ahead of schedule.

In October 2007, DRDGOLD Limited announced the sale of its 78.9% stake in its Australasian subsidiary, Emperor Mines.

DRDGOLD SA wholly owns and operates the Blyvooruitzicht Gold Mining Company Limited (Blyvoor) and East Rand Proprietary Mines Ltd (ERPM) gold mining operations, and Crown Gold Recoveries (Pty) Limited (Crown), the world’s largest operation recovering gold from disused mine dumps. This aspect of DRDGOLD’s business is set to grow.

The ERGO Joint Venture (ERGO JV) between DRDGOLD Limited and Mintails Limited of Australia was established during the 2007 financial year to explore, evaluate and process approximately 1.7 billion tonnes of surface gold, uranium and sulphur bearing tailings on the East and Central Rand goldfields of South Africa.

DRDGOLD and Mintails have also reached agreement on the formation of a Second joint venture – to explore, evaluate and potentially mine gold and uranium by opencast and underground mining methods in the West Rand goldfield.

In the 2007 financial year (FY07), DRDGOLD SA contributed some 334 496 ounces (oz) – some 70% – of DRDGOLD’s total attributable gold production of 477 157oz.

At 30 June 2007 DRDGOLD’s total attributable resource base was 54.2Moz and its total attributable reserves were 6.3Moz. Some 53.9Moz of attributable resources were in South Africa, where an increase of 33% was recorded compared with FY06, when the resource base was 40.6Moz.

The company is well positioned operationally and in terms of its growth strategy to benefit from the strengthening of the gold price, and thus to continue to deliver value to all of its shareholders.

Start researching DROOY!

Any questions feel free to call us at 1888-9-Club Grand (1888-925-8247).

More Updates To Come ...