Australia’s Gold Outlook vis-à-vis Advanced Gold Explorer, Alice Queen Limited

  • Jan 20, 2020 AEDT
  • Team Kalkine
Australia’s Gold Outlook vis-à-vis Advanced Gold Explorer, Alice Queen Limited

Whenever there is a volatility in the market, investors prefer to park their funds in some safe asset that can deliver them good returns. Over the years, dozens of new instruments have come into existence with evolving investment market. However, lure of the yellow metal is ancient and considering the current growth trends, it is expected to grow in the coming years.

Australia – Record for Largest Gold Nugget in the World

Australia is the second largest gold producer and holds the record for the largest gold nugget in the world. Gold production in the country grew by 6.4% to 322 tonnes in the financial year 2019 (FY19) in comparison to the prior corresponding year, according to the Australian Department of Industry, Innovation and Science.

In FY20 and FY21, the average annual production is expected to increase by 4.9% and 2.7%, respectively.

What are the Opportunities for Australian Gold Explorers/Producers?

Given the higher gold price and increased export volumes, gold exports from Australia registered growth of around 48% to $ 7.3 billion in the third quarter of 2019 when compared with the same period a year ago. During the reported quarter, gold exports to the UK grew by 1,384% to $ 5.3 billion, primarily backed by fund flows into ETFs; however, rising local currency gold prices took a toll on exports to Hong Kong and China, as Australian gold exports declined by 66% and 45%, respectively, in Q319. In the coming financial years- FY20 and FY21, Australia’s gold export volumes are expected to further go up.

Globally, consumption of gold is projected to registered growth of 1.3% and 3.1% in 2020 and 2021, respectively, on the back of demand for gold jewellery, retail investment and gold purchases by central banks.

  • Jewellery demand is forecast to grow by 9.1% to 2,332 tonnes and 4.6% to 2,440 tonnes in 2020 and 2021, respectively
  • Retail investment is projected to increase by 20% and 3% in 2020 and 2021, respectively
  • Gold purchases from central banks is forecast to increase by 8.1% annually over the next two years to reach 840 tonnes by 2021

Lens Over Advanced Gold Explorer Alice Queen Limited

Alice Queen Limited (ASX:AQX) is an advanced gold explorer with key assets in Queensland and New South Wales. The company has confirmed surface sampling programs at its flagship Horn Island gold project returning anomalous gold in soil and rock chips samples, with a maximum assay result of 215 g/t Au from rock chip sampling and a maximum assay result of 2.31 g/t Au from soil sampling over the current Mineral Resource.

Flagship Horn Island Gold Project in the Torres Strait in far north Queensland

  • A brownfields gold project prospective for gold-bearing Carbo-Permian style vein/breccia;
  • Well serviced with an airport, ferry terminal and port, water supply and 4G telecommunications;
  • Pit deposit, Inferred Resource (JORC 2012) 7.9Mt @ 1.9g/t Au for 492,000oz;
  • Earn-In and JV Agreement with established gold miner St Barbara Limited;
  • Maiden program under the JV completed and Horn Island IP Survey underway;

The company has another key gold project located in New South Wales - Highly Prospective Cu/Au Porphyry Project – Yarindury.

  • Enhanced prospectivity of the project, following the discovery of significant porphyry Au-Cu mineralisation at the Boda project of Alkane Resources;
  • Recommenced drilling program in December 2019, focusing on a total of 11 targets to test a wide range of basement magnetic features under younger cover in EL8646 (Yarindury).

Please read to know more about the projects: Acquaint Yourself With Horn Island and Yarindury Projects Of Alice Queen

The coming years seem to be highly optimistic for Alice Queen, considering the way AQX is progressing with its key prospective projects, in addition to increasing gold price, opportunities in the global market and higher export volumes of Australia.

Interesting Read: A 360-Degree View on Gold; Alice Queen Riding High on Legacy Asset Class

Stock Up Over 7%

The stock of Alice Queen closed the day’s trade higher at $ 0.029 on 20 January 2020, up 7.407% or $ 0.002 from its previous closing price. The market capitalisation of the company stood at $ 21.87 million with approximately 810.16 million outstanding shares. The last six-month return of the stock was 107.69%.

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