Gold prices bounce smartly, how are top gold players performing on ASX

By - Team Kalkine Media


  • The S&P/ASX 200 Materials sector and gold prices have jumped 3.34% and 5.45%, respectively, in the last one month.
  • Newcrest, the largest gold mining company, recorded a 31% increase in June quarter gold production.
  • ASX-listed gold space players such as Northern Star and Evolution Mining recorded a strong performance in last quarter.  

During the present market conditions, where world economies are facing global stagflation and investors are concerned about a possible sharemarket crash, investment in gold is serving as a safe haven for investors by protecting their purchasing power.

It can be justified by reviewing the last one-month performance of the yellow metal, whose price rose 5.45% to USD1811.5 per ounce as of 16 August 2022. This is also reflected in the performance of the S&P/ASX200 Materials sector, which has gained 3.34% in the last one month.

Moreover, considering the high level of importance that gold mining companies have in the development of the Australian economy and with the ASX achieving its recent two months high, we are currently seeing a tailwind effect as gold prices have bottomed out during the last month only.

In this article, we have discussed five ASX-listed gold stocks with the highest market capitalisation.  

Newcrest Mining Limited (ASX:NCM): Newcrest Mining Limited is the largest ASX-listed company operating in the gold market based on its market capitalisation.

In the quarter ended on 30 June 2022, the company recorded an All-In-Sustaining Cost (AISC) of AU$896/oz with an ASIC margin of AU$958/oz.

The company reported a total gold production of 637,032 oz, which was 31% higher than the prior period, with a gold recovery percentage of 79.6%. These numbers state that the company achieved FY22 gold production guidance with Cadia achieving the lowest-ever annual AISC of - AU$124/oz as noted in the quarterly report.

NCM shares have gained over 2% in the last one month; however, went down by over 22% in the year-to-date period.

Northern Star Resources Limited (ASX:NST): Northern Star Resources Limited is the second-largest firm operating in the Australian gold mining business.

The All-In-Sustaining Cost (AISC) stood at AU$1,650/oz for the quarter ended on 30 June 2022, bringing the FY22 AISC to AU$1,633/oz.

The total gold sold for the quarter came out to be 402,000 oz, which took the total gold sold for FY22 to 1,561,000 oz.

All vital parameters of the company were in line with the guidance for the year. Gold sold and AISC, as mentioned above, were according to the guidance for the year.

Exploration expenditure stood at AU$121 million, which was even less than the guidance value of AU$121 million. With AU$528 million in cash as of 30 June, the company boasts a strong balance sheet.

NST shares have gained over 19% in the last one month; however, went down by nearly 13% in the year-to-date period.

Evolution Mining Limited (ASX:EVN): Evolution Mining Limited saw the green signal for two shared value projects during the June 2022 quarter. The first one was the Murra Wolka Art Project located at Mt Rawdon, while the second project is related to the development of Elliot Heads Wetlands, Research Centre, and Seagrass Nursery. The Elliot Heads project is in partnership with the Burnett Mary Regional Group.

In the June 2022 quarter, the company saw a 16% increase in the group gold production, which accounted for 172,722 oz, with All-in Sustaining Cost (AISC) coming out to be AU$1290/oz.

Gold production of 640,275 ounces at AU$1,259/oz for FY22 helped Evolution Mining to be among the lowest-cost producers of gold at the global level.

EVN shares saw a 16% gain the last one-month period. 

Perseus Mining Limited (ASX:PRU): Perseus operates three gold mines, out of which Yaouré and Sissingué are in Côte d'Ivoire, West Africa, while the third is Edikan, which is located in Ghana.

The cumulative gold production of the company stood at 122,327 ounces in the June 2022 quarter, bringing the annual gold production to 494,014 oz for the first time in the company’s history.

Based on the company’s quarterly report, the weighted average gold production cost was US$881/oz, whereas the weighted average AISC was US$1,004/oz for the June quarter.

In the last one month, PRU shares have appreciated over 6%.  

Capricorn Metals Ltd (ASX:CMM): The company reported exceptional results with gold production of 32,018 oz for the June quarter with AISC at AU$1,199/oz.

One major point highlighted was the value of AISC at the Karlawinda Gold Project, which managed to be among the lowest in the Australian gold industry.  

The company expects gold production of 115,000–125,000 ounces at an AISC of AU$1,160 - 1,260 per ounce for FY22.

CMM shares have delivered a return of over 29% to its shareholders in the last one month.