DRDGOLDRamaco Resources

DRDGOLD vs Ramaco Resources

DRDGOLD and Ramaco Resources Inc are compared here to outline their business models, financial performance, and market context in a neutral, accessible way, helping readers understand each company's p...

Which Baskets Do They Appear In?

Gold Miners (Record High Rally) Investment Guide

Gold Miners (Record High Rally) Investment Guide

Gold prices have reached a record high as concerns over a U.S. government shutdown and potential interest rate cuts drive investors to seek safe-haven assets. This trend creates a potential investment opportunity in the companies that explore for and produce gold and other precious metals.

Published: October 2, 2025

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Gold Mining Stocks | All-Time High Opportunity

Gold Mining Stocks | All-Time High Opportunity

Gold prices have surged to a new all-time high, driven by Federal Reserve interest rate cuts and economic uncertainty. This rally creates a potential investment opportunity in the shares of gold and precious metals mining companies, which stand to benefit from the increased demand and higher commodity prices.

Published: September 23, 2025

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Russian Market Exposure: Commodity Risks & Alternatives

Russian Market Exposure: Commodity Risks & Alternatives

As global commodity markets shift, Nigerian investors may find new diversification opportunities in sectors historically influenced by Russia. This basket offers thematic exposure through major US and EU-listed multinational corporations operating in the global energy and materials sectors.

Published: September 9, 2025

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Investment Analysis

Pros

  • DRDGOLD extracts gold from surface tailings, leveraging a unique, low-cost method distinct from traditional underground mining.
  • The company operates the world’s largest gold surface tailings retreatment facility, enabling large-scale production with environmental rehabilitation benefits.
  • DRDGOLD’s acquisition of Far West Gold Recoveries increased its gold reserves significantly, supporting its growth strategy.

Considerations

  • Operations are dependent on the efficiency and cost-effectiveness of retreating low-grade tailings, which may limit margins.
  • The business is exposed to environmental and regulatory risks associated with tailings dam management and land remediation.
  • Revenue is inherently tied to gold market prices, impacting profitability in periods of gold price volatility.

Pros

  • Ramaco Resources has a diversified coal property portfolio across multiple US states, supporting steady metallurgical coal supply.
  • The company serves both domestic blast furnace steel mills and international metallurgical coal consumers, providing market diversification.
  • Ramaco offers a dividend yield around 2.7%, which provides income potential to shareholders.

Considerations

  • Ramaco’s financial metrics show negative price-to-earnings ratios, indicating it is currently unprofitable with valuation uncertainties.
  • The company is exposed to cyclical risks inherent in the coal industry and to regulatory pressures on fossil fuel-based energy sources.
  • A relatively high price-to-book ratio suggests the stock might be overvalued compared to sector peers.

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