3 Affordable Gold Mining Stocks to Buy on the Dip: DRD, IDR, ORLA

Gold mining stocks may return to favor as investors flock to safe-haven assets amid persistent inflation and economic uncertainty tied to geopolitical tensions in the Middle East and the resulting surge in energy prices.

While many precious metal stocks have rallied sharply over the past year, a few gold miners still appear attractively valued after recent pullbacks.

Investors looking to capitalize on the long-term strength in gold prices may want to consider affordable mining names that have strong analyst sentiment. DRDGOLD Limited DRD), Idaho Strategic Resources IDR), and Orla Mining ORLA) stand out in particular thanks to their improving outlooks.

Notably, all three stocks currently carry a Zacks Rank #1 (Strong Buy), reflecting a positive trend in earnings estimate revisions — a key factor that has historically signaled market outperformance and makes now an ideal time to buy the dip. Trading Economics

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DRDGOLD – DRD

Stock Price: $25

South Africa-based DRDGOLD specializes in gold tailings retreatment, giving it a differentiated and relatively low-cost operating model within the mining sector.

Notably, gold tailing retreatment is the process of reprocessing waste material from gold mining operations to recover residual gold and other valuable metals that were not extracted during the initial processing.

DRDGOLD has benefited from operational efficiency and strong leverage to elevated gold prices. Furthermore, DRD stock has continued to make the case for being undervalued at a forward earnings multiple of just 2X.

On top of this, DRDGOLD has an impressive earnings growth profile, making it an appealing option for investors seeking exposure to gold without paying premium valuations.

Plus, DRDGOLD's strong cash-generation capabilities and disciplined cost structure could certainly support more upside if gold prices remain elevated.

Idaho Strategic Resources – IDR

Stock Price: $34

Idaho Strategic Resources is a growing gold producer focused on projects in the Idaho mining region. The company has benefited from rising gold production and improving operational performance, helping drive stronger earnings expectations.

Demonstrating impressive earnings momentum, IDR delivered significant year-over-year EPS growth in its Q1 report last week despite narrowly missing consensus expectations.

Trading more than 35% from its 52-week and all-time high of $54 a share, IDR is starting to offer investors an attractive entry point into a smaller-cap gold producer with improving fundamentals and expanding earnings potential.

Story Continues

Orla Mining – ORLA

Stock Price: $12

Orla Mining has emerged as one of the more compelling mid-tier gold miners thanks to strong production at its core gold and silver mining project in Central Mexico.

Investor sentiment toward ORLA has also improved as the company continues to deliver strong operational execution. Recent quarterly reports have pointed to accelerating earnings and revenue growth, while analysts remain optimistic about future production expansion.

Although ORLA has pulled back recently alongside broader weakness in gold mining stocks, Orla’s growth outlook and improving earnings profile could position it well for long-term upside, especially with its stock trading under $15 a share.

Bottom Line

The Zacks Rank system emphasizes earnings estimate revisions because increasing analyst expectations often signal improving business fundamentals and stronger future stock performance.

Stocks with a Zacks Rank #1 (Strong Buy) are among the top 5% of all stocks covered by Zacks Investment Research based on earnings estimate revision trends. Historically, these stocks have significantly outperformed the broader market over time.

With positive earnings momentum, favorable analyst sentiment, and exposure to strong gold prices, DRDGOLD, Idaho Strategic Resources, and Orla Mining may deserve consideration from investors looking to buy quality gold mining stocks on the dip.

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DRDGOLD Limited (DRD) : Free Stock Analysis Report

Orla Mining Ltd. (ORLA) : Free Stock Analysis Report

Idaho Strategic Resources, Inc. (IDR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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