Klondex Mines (KLDX) & DRDGOLD Limited (DRD) Financial Analysis

DRDGOLD Limited (NYSE: DRD) and Klondex Mines (NASDAQ:KLDX) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Profitability

This table compares DRDGOLD Limited and Klondex Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DRDGOLD Limited N/A N/A N/A
Klondex Mines N/A N/A N/A

Dividends

DRDGOLD Limited pays an annual dividend of $0.07 per share and has a dividend yield of 1.8%. Klondex Mines does not pay a dividend. DRDGOLD Limited has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DRDGOLD Limited and Klondex Mines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DRDGOLD Limited 0 1 0 0 2.00
Klondex Mines 0 0 1 0 3.00

Klondex Mines has a consensus price target of $6.25, suggesting a potential upside of 76.06%. Given Klondex Mines’ stronger consensus rating and higher probable upside, analysts clearly believe Klondex Mines is more favorable than DRDGOLD Limited.

Insider and Institutional Ownership

20.0% of DRDGOLD Limited shares are owned by institutional investors. 1.0% of DRDGOLD Limited shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares DRDGOLD Limited and Klondex Mines’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DRDGOLD Limited $187.39 million 0.89 $19.61 million N/A N/A
Klondex Mines $240.24 million 2.62 $51.03 million N/A N/A

Klondex Mines has higher revenue and earnings than DRDGOLD Limited.

Summary

Klondex Mines beats DRDGOLD Limited on 6 of the 10 factors compared between the two stocks.

DRDGOLD Limited Company Profile

DRDGOLD Limited is a gold mining company. The Company is engaged in gold production by tailings retreatment. The Company is focused on the recovery of lower-risk, higher-margin ounces primarily from its metallurgical plant located approximately 50 kilometers east of Johannesburg in Brakpan. The Company owns approximately 100% of its holding company, Ergo Mining Operations Proprietary Limited (EMO). Ergo Mining Proprietary Limited (Ergo) is owned by EMO. Ergo has a vast footprint adjacent to Johannesburg on the central and eastern Witwatersrand of South Africa. Its assets cover an area of approximately 62 kilometers from east to west and over 25 kilometers from north to south. The Ergo operation has over two metallurgical plants in operation, including Knights plant and The Ergo plant. The Knights plant in Germiston is treating the Cason dump and depositing waste on the Brakpan tailings facility (BTF). The Ergo plant has a total treatment capacity of 300,000 tons per month (tpm).

Klondex Mines Company Profile

Klondex Mines Ltd is a Canada-based gold and silver mining company. The Company focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, Nevada, the Midas mine and ore milling facility located in Nevada. Its segments include Fire Creek, Midas, True North, and Corporate and other. Its over 1,000 tons per day milling facility processes mineralized materials from the Midas Mine and the Fire Creek Mine. The Midas Mine is a gold-silver vein deposit located a mile from the town of Midas, Nevada. It also owns an underground mine project located in Manitoba, Canada, which includes the Rice Lake Mine and Mill complex, and early-stage exploration properties located in the State of Nevada, the United States, and Manitoba and Ontario, Canada. The Company’s milling and processing facilities are located at Midas process ore from both Midas and Fire Creek in the State of Nevada.

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