Gold is sailing high in the international market supported by the positive winds of global cues despite technically being in the overbought zone. The prices of the gold spot are comfortably holding the level of US$1,500 per ounce. While the gold prices are high, the ASX-listed gold miners are showcasing at the Denver Gold Forum, world’s most prestigious precious metal equities investment forum.
To Know More About the Gold Rush, Do Read: Global Gold-Backed ETFs Pushes Gold; ASX-listed Gold Stocks Under Pressure Over Bearish Signs
A Quick View Over NCM
Newcrest Mining Limited (ASX: NCM)
Global gold major NCM, in its briefing report for the investors and analysts, emphasised on the company’s operating assets and low-cost profile.
- The company achieved 6 per cent higher gold production in FY2019 of 2,488k ounces, and also achieved 36 per higher copper production in FY2019.
- NCM achieved a 12 per cent lower AISC of $738 per ounce in FY2019
- The free cash flow of the company inched up by 34 per cent at the end of FY2019 to $804 million.
- NCM’s total dividend for the financial year 2019 stood at $0.22 a share, up by 19 per cent as compared to the previous corresponding period (pcp) dividend of $0.185 per share.
Focus on the Organic Growth
- The Cadia operations of the company, which delivered an output of 913k ounces of gold in FY2019 with an AISC of $132 per ounce is expected to complete an expansion Feasibility Study before the end of 2019.
To Know More About Cadia Performance, Do Read: Newcrest Beats Industry Expectation; While GOR’s Gruyere Leaps For 100,000 Shiny Ounces
- The Molybdenum plant of the company is gated for execution, and the first production is expected in the calendar year 2021.
- The Lihir operations of the company, which delivered 933k ounces of gold in FY2019 with a high AISC of $887 per ounce, operated at a sustainable annualised milling rate of 15 million tonnes per annum.
Havieron Exploration Results
The company announced additional 3,366m of drilling results from its Havieron prospect. The company received strong results, and the best intercepts were as below:
The drill hole identified as HAD012 returned 43.0m @ 7.9g/t of gold and 0.83 per cent copper from 900m.
The drill hole identified as HAD013 returned 36.0m @ 4.1g/t of gold and 0.84 per cent copper from 481m.
The drill hole identified as HAD014 returned 244.6m @ 2.0g/t of gold and 0.40 per cent copper from 450m, which further included:
- 3m @ 4.0g/t of gold and 0.86 per cent copper from 465m
- 4m @ 4.3g/t of gold and 0.82 per cent copper from 557m
The same hole also retuned 75.3m @ 3.4g/t of gold and 0.43 per cent copper from 816.6m, which further included:
- 2m @ 16g/t of gold and 0.93 per cent of copper from 859m.
A Quick View Over NST
Northern Star Resources Limited (ASX: NST)
NST is the operator of the Jundee gold prospect, which is among the top-tier gold prospect in Australia.
- NST manages a portfolio with a robust organic growth outlook, and the portfolio contains three Tier-1 assets.
- The company delivered a record production in FY2019, and the Australian operations of the company demonstrated five years of y-o-y growth.
- NST acquired the Pogo operations recently, and the operation is now in the process of transitioning to the business model of the company.
- Northern Star kept the FY2020 guidance in the range of 800k ounces to 900k ounces with an AISC of A$1,200 to A$1,300 per ounce, and the company mentioned in the briefing that FY2020 would be a year of growth in mineral inventory, production, cash flow and dividends.
Northern Star announced a 31 per cent increase in Resources to 20.8 million ounces with an average grade of 4.1 gram per tonne. The company also inched up the Reserves to 5.4 million ounces with an average grade of 4.4 gram per tonne, which in turn, increased the resources per share of the company.
FY2020 Production and Cost Guidance
The group production guidance as mentioned above is in the range of 800,000 to 900,000 ounces of gold. The guidance of individual prospects is as below:
The company anticipates the second half of the year 2020 to be stronger than the first-half amid Pogo gold operation.
A glance over NST Operations
The Jundee Gold Prospect
The Jundee operations sold 299k ounces of gold in FY2019 with a decent AISC of A$981 per ounce. Northern Star increased the Resources of the prospect by 4.55 million ounces and also increased the Reserves by 1.6 million ounces.
The Pogo Operation
Pogo is a 10 million ounces gold endowment that generated an output of ~4 million ounces at an average grade of ~ 13 gram per tonne over the past 13 years with an average rate of 300k ounces per annum.
Pogo Plant Expansion
NST decided to invest US$30 million for the expansion of the processing plant at the Pogo gold mine in Alaska.
- The annual throughput capacity of the plant would increase by 0.3 million tonnes to stand at 1.3 million tonnes.
- The company plans to start the expansion in the current financial year with an initial investment of US$10 million. NST anticipates the expansion work to get completed in CY2021 with an additional expanse of US$20 million, which would be invested in FY2021.
A Quick View Over RRL
Regis Resources Limited (ASX: RRL)
RRL is an A$2.7 billion company with 8.2 million ounces of Resources and 4.0 million ounces of Ore Reserves. The company kept the FY2020 production guidance in the range of 340,000 to 370,000 ounces of gold with an AISC of A$1,125 to A$1,195 per ounce.
RRL is among the top low-cost gold producer in the global market with consistent resource and reserves replacement.
Regis is focused on replacing the reserve depletion through reserve growth, which, in turn, provides longer life to the prospects of the company.
In FY2019, the company conducted extensional drilling, which contributed substantially to the near replacement in Ore Reserves. The maiden underground Ore Reserve at Rosemount is at 123,000 ounces. The 89,000 ounces extension at the Moolart Well provided the prospect an extra year of mine life till FY22.
An aggressive exploration programme at the Duketon Project with focus over high potential areas for Mineral Resources expansion is underway.
In a nutshell, while the gold prices are knocking the heaven doors, the ASX-listed gold miners are focusing on their production ability and long-term sustainability, to gain the stakeholders’ interest, which could further provide a boost to the miners to utilise the funds to enhance their production capabilities to leap with the gold rush ahead.
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