DRD vs. GFI: Which Gold-Mining Stock is the Better Buy Right Now?

By Soumya Roy | October 27, 2025, 10:12 AM

DRDGOLD Ltd. DRD and Gold Fields Ltd. GFI are two prominent South Africa–based gold mining companies, each playing distinct roles in the global gold industry. DRD operates primarily in the niche segment of surface retreatment, recovering residual gold from old mine dumps and tailings storage facilities around the Johannesburg region. Its operations are mainly through Ergo and Far West Gold Recoveries, which focus on sustainable, low-cost extraction, emphasizing environmental rehabilitation and efficient resource utilization.

Gold Fields, on the other hand, is a globally diversified gold producer with large-scale mining operations and development projects across South Africa, Ghana, Australia, Peru and Chile.

DRDGOLD and Gold Fields represent two contrasting but complementary approaches within the gold sector, one specializing in tailings retreatment and the other in large-scale global production.

Let’s dive deep and closely compare the fundamentals of these two gold stocks to determine which one is a better investment option in the current gold pricing and demand environment.

The Case for DRD

DRDGOLD’s operations reflect a strategic balance between profitability and sustainability. The company’s core business is the surface retreatment of historical mine dumps and tailings, positioning it uniquely in the gold mining sector as an environmentally restorative operator rather than a traditional underground miner.

DRDGOLD is advancing its flagship FWGR Phase II expansion project, which includes the construction of a new Regional Tailings Storage Facility (RTSF) and the DP2 Plant expansion. This capital program is designed to extend life-of-mine production, lower long-term unit costs and unlock higher throughput capacity.

In the first quarter of 2026, which ended Sept. 30, 2025, DRDGOLD reported a relatively stable operating performance, buoyed by a strong gold price and slightly improved yield. Revenues rose about 2% quarter on quarter to R 2,254.9 million (roughly $124.24 million), driven by gold sales of 37,231 ounces and an average selling price of $3,429 per ounce.

DRDGOLD reported that it remained debt-free as of Sept. 30, 2025. Cash and cash equivalents at the quarter's end were R 1,049.1 million (roughly $57.80 million), down from R 1,306.2 million (approximately $72 million) on June 30, 2025. In the first quarter of fiscal 2026, DRDGOLD incurred capital expenditure of R 751.8 million (roughly $41.42 million). A substantial portion of this growth capex is geared toward the FWGR Phase II infrastructure.

Its growth potential is constrained by its single-region exposure in South Africa and reliance on tailings retreatment yields. Any disruption in processing operations or a dip in recovered grades can significantly affect margins. Additionally, its limited project pipeline makes it more dependent on prevailing gold prices to drive earnings growth.

The Case for GFI

Gold Fields delivered a strong operational performance in the second quarter of 2025, supported by higher output from its core assets and continued ramp-up progress at the new Salares Norte mine in Chile. Salares Norte remained the standout project with full ramp-up targeted for early 2026. Gold Fields’ ESG and decarbonization efforts gained further traction during the quarter. The group advanced solar and hybrid renewable projects at several sites, particularly in Australia and South Africa, aimed at reducing energy costs and carbon emissions.

In the second-quarter results, the company reported producing approximately 2,518 kg of gold (roughly 81,000 ounces), up around 12% sequentially. This increase was primarily driven by improved throughput and grade recovery at the Australian operations and the steady commissioning of Salares Norte.

At the end of June 2025, GFI’s cash and cash equivalents were around $1.05 billion, slightly lower than December 2024 levels of $1.12 billion. The debt-to-capital percentage was 35.44%. Capital expenditure in the first half of the year was about $665 million, with significant spending on ramp-up and growth and sustaining capital across operations.

It faces cost inflation pressures, particularly in energy and labor, as well as operational risks tied to weather disruptions and new project execution. Currency volatility across its operating regions and regulatory challenges in Africa and South America also pose potential headwinds.

DRD & GFI: Price Performance, Valuation and Other Comparisons

DRD stock is up 191.4% year to date, and GFI is up 205.3% compared with the Zacks Mining-Gold industry’s rise of 109%.