DRD Gold Ltd (DRD)

[Vi]

DROOY was once gold bug favourite, back 8-10 years ago.

Here is the key reason:

Price/M&I gold in the ground: $17.2/Oz.
If u include other possible resources: $5/Oz

Typically, a gold Co would be sold for $100/Oz, which is
more than 5x upside for DROOY, although many Canadian miners
trade for $200 per gold Oz of M&I resources.

However, as gold bull roared, all RSA miners lagged, after
a spirited rally in 2001-2002. Especially DROOY, which can
be currently purchased at the price it was back in 2000. Naturally,
everyone left this POS alone.

It is dirt cheap.

But that does not mean it soars to $200 tomorrow.

As you can see, despite gold price soaring 4x since 2001, the
POS remains at the same price, if not below. Last year it
made an all time low. I don't see anything so drastically
wrong with the company, except for general RSA-related issues.

At first 2001-2002 rally in RSA miners was due to drastically
weakening rand. The rand strengthened in 2002-2005, and that,
at first, caused these post a loss. Lately the rand has been
weak, except this year. These companies started to be
profitable, and cheap. Yet, forgotten.

Amazing. All South African gold miners can be bought at
2000-2002 prices. Do you remember where gold was then?

I personally think this is a market mistake, to be corrected
as gold continues to soar higher. If so, the appropriate
price for these SA miners would be up 10-fold from here.