It is a known fact that whenever we see or experience a global market decline both the currencies and the stocks tend to move downward, in such cases gold comes as a rescue and is considered as a safe investment haven. This is just the case as investors are seeking gold stocks to compensate for the stocks decline so far. Few of the gold stocks on rise are mentioned below:
ST BARBARA LIMITED (ASX: SBM) – According to a recent release, the consolidated gold production recorded from 99,509 oz in Q2FY18 to 85,885 oz in Q3FY18. From the previous quarter, the total Recordable Injury Frequency Rate (TRIFR) increased from 2.4 to 2.6 in Q3FY18, because of single low-severity recordable injury. Total cash at bank and term deposits at FY 2018 was A$343 million and is debt free. The NPAT is of A$227 million which is a fourth consecutive net profit. A$21 million invested in four junior explorers for further expansion and growth. The P/E of the stock is at 7.930 and EPS at 0.443 AUD which stands out among its peers in the industry. The stock of ST Barbara Limited gained 6.268% to a market price of $3.730, the stock has witnessed a performance change of 29.42% over past 1 year.
EVOLUTION MINING LIMITED (ASX: EVN) – The company expects capital expenditure of A$20-25M over FY19-21 for Mt Carlton UG project and for Cowal plant expansion of A$40-45M over FY 20-21. Evolution posted strong numbers for FY18 with underlying net profit after tax from A$206.6 Mn on prior year to A$250.8 Mn which is up 21%. An increase of 4% from A$382.0 Mn reported in FY17, group cash flow was reported at A$395.6 Mn in FY18 and with support from copper price there was a significant rise in the free cash flow and with this, the group is in a better position to pay the debt. Because of the revenue compared to 49% in FY17 the EBITDA margin was up 8% in FY18 at 53%. The stock of Evolution Mining Limited gained 6.273% to a market price of $2.880, the stock has witnessed a performance change of 18.86% over past 1 year.
RESOLUTE MINING LIMITED (ASX: RSG) – The FY 19 guidance was of 300 Koz at US$960/Oz while automation would also give way to longer operating hours which can bring down the unit cost and increase the tonnage. Development progressing well at Syama Underground and is on track for sub-level caving by December 2018. Major gold inventory upgrade, 16.5 Moz Global Resources / 5.9 Moz Global Reserves, to maximize financial stability US$100 million revolver has been secured. With gross profit from operations of A$69 million and return on equity of 12%, Resolute is developing the world’s first custom built, fully automated sub-level cave. The company made Strategic investments in 6 African-focused explorers for further growth. The stock of Resolute Mining Limited gained 2.513% to a market price of $1.020, the stock has undergone a performance change of -8.29% over past 1 year.
SARACEN MINERAL HOLDINGS LIMITED (ASX: SAR) – With over 316,000oz produced from their two operations, Carosue Dam and Thunderbox, Gold production for FY2018 exceeded all previous records. Despite a $71.8m investment during the year in growth capital and exploration, cash and equivalents were over $118m at year end. A 29% increase on last year, a further 73,532oz of gold was contained in closing stockpiles at year end. An increase of 166% on the previous year 2017 of $28.4 million, the Group reported a net profit after tax of $75.6 million and gross profit from mining operations for the year was $117.6 million which demonstrates the efficiency in production. Net cash flow from operations for the year was $191.4 million reasonably up from 2017’s $125.6 million. The stock of Saracen Minerals gained 3.077% to a market price of $2.010, the stock has witnessed a performance change of 40.29% over past 1 year.
Daily price change of SBM, EVN, RSG and SAR; Source: Thomson Reuters.
The Income available from dividends remains attractive for many investors.
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