After China, Australia is the world’s second largest gold producer with production at the highest levels in 13 years. This certainly makes Australia a key player in the global gold industry. Australia has 16.3 percent gold resources which are globally known, which makes the largest share in the world. Few of the stocks under the gold segment are discussed below:
OCEANAGOLD CORPORATION (ASX: OGC) – Oceana has increased its gold production guidance for the year. On a year on year basis cash position increased by 58% and net profit increased by 45%. Up by 21% compared to the FY17 corresponding period, revenue from the ordinary activities for the company came in at US$402 Mn. Among the projects Waihi Mine Life extension is on track, Haile Expansion is in progress, Exploration delivering significant results. Driven by growth in exploration program and organic growth opportunities were decent results. For the first half 2018, the company reported an increase of 45% in the net profit after tax at $89.1 million. The stock has dipped by -0.469% to $4.240 as at October 4, 2018. It has undergone a performance change of 10.36% over the last one year.
Q2 Results, Source: Company Reports
GOLD ROAD RESOURCES LIMITED (ASX: GOR) – With available cash and cash equivalents at the end of the period $160.45 million and no debt facility the company represents a healthy balance sheet. The company had total current assets of $163.7 million, at the end of the six-month period, and current receivables of $2.5 million. In 1H FY18 from the previous six months, the current ratio substantially increased from 5.25x to 13.97x on the financial front. On the back of the number of factors such as leadership transition and new discoveries the company is expected to grow. The stock has however dipped by -3.356% to $0.720 as at October 4, 2018. Over the last one year the stock has undergone a performance change of 6.43%. The earning per share (EPS) however is currently negative 0.006 AUD indicating restricted profit in future.
Capital Structure as at 1H 2018, Source: Company Reports
RESOLUTE MINING LIMITED (ASX: RSG) – FY 19 guidance stands at 300 Koz at US $960/Oz or A $1,280/Oz. Cash, bullion and listed investments of A $112m. On the increased capacity of gold globally the company looks well positioned to capitalize on it. The company managed to earn a profit and pay dividends during the development phase. In the FY 18 net profit after taxation for the company came in at A$78 Mn. The Board of Directors declared 2.0 cents per share representing strong shareholder returns, cash or gold dividend payment which equates to 3.3% of the FY18 revenue. With record date of September 03, 2018, the payment date for the dividend has been set to 12 October 2018. The stock has however dipped by -1.826% to $1.075 as at October 4, 2018. Over the last one year, the stock has undergone a performance change of 7.35%. The company also posted a decent return on equity of 12%.
Company financials as at 1H 2018, Source: Company Reports
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
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