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Gold prices started the dayâs session today in the international market slightly lower than its previous close of US$1430.88 (Gold Spot). Post a three-day consecutive rise; the gold prices are now showing a moment of quietness and less volatility ahead of the United States Federal Reserve decision over the interest rate. In the status quo, the gold prices are high over the market expectation of a 50bps cut in the interest rate and FED has indicated time after time over the high possibility of a rate cut to support the domestic economic conditions.
Ahead of the FED decision over the interest rate, the ASX-listed gold miners have released their quarterly report, which shows a promising increase in the production as well as sales; however, despite the jam-packed performance, the share prices of the miners are moving in a narrow range as the market participants are eyeing over the FED decision to fathom the direction of the gold market ahead.
Apart from a jam-packed June 2019 quarter, the ASX-listed gold miners have to build a sharp hedge book to tide over the volatility of the gold market, and investors should dig out deep to gauge or identify how the gold miners, with their healthy hedge book and ramp-up production, hold the potential to outperform the gold industry returns.
Northern Star Resources Limited (ASX: NST)
FY2019 Activities:
NST Group sales for FY2019 stood at 840,580 ounces with an AISC of A$1,296 per ounce or US$907 per ounce, out of which the Australian operations of the company sold a record 639,243 ounces of gold with an AISC of A$1,167 per ounce (or US$817 per ounce).
The Australian operations almost reached the upper range of the sales guidance of FY2019, which was in the range of 600,000-640,000 ounces and sold a record 639,243 ounces during FY2019.
In Australia, both Jundee Gold and Kalgoorlie Gold operations remained in the targeted range for the FY2019. The Jundee Gold operations mined 332,493 ounces of gold, while managed to sell 299,236 ounces with an AISC of A$981 per ounce or US$687 per ounce.
The Kalgoorlie Gold operations mined 366,503 ounces, while managed to sell 340,007 ounces during the FY2019 with an AISC of A$1,330 per ounce or US$931 per ounce.
The Pogo operations of the company mined 215,899 ounces of gold during the FY2019 and managed to sell 201,337 ounces with an AISC of US$1,193 per ounce.
June 2019 Activities:
NST sold 232,042 ounces of gold during the June 2019 quarter with an All-in-Sustaining-Cost (or AISC) of A$1,238 per ounce or US$866 per ounce. The Australian operations of the company sold 184,033 ounces of gold with an AISC of A$1,111 per ounce or US$778 per ounce during the June 2019 quarter.
The U.S-based operation of the company- Pogo managed to sell 48,009 per ounce of gold with an AISC of US$1,207 per ounce.
Finance and Gold Inventories:
Financial Position (Source: Companyâs Report)
Gold Inventory (Source: Companyâs Report)
The total gold inventory during the June 2019 quarter stands at 106,610 ounces, and the company hedged 60,000 ounces of gold at A$1,906 per ounce during the June 2019 quarter for delivery across June 2021 half.
NST Hedge Book (Source: Companyâs Report)
The shares of the company ended the dayâs session at A$13.010 on 31 July 2019, down by 2.983 per cent as compared to its previous close.
Resolute Mining Limited (ASX: RSG)
June 2019 Quarter Highlights:
RSGâs 12-months production on 30 June 2019 stood at 305,436 ounces with an AISC of US$924 per ounce, while the June 2019 quarter production stood at 78,132 ounces with an AISC of US$939 per ounce. During the June 2019 quarter, the company commenced the Syama Underground Mine. RSG is banking high on the Syama UG and mentioned that Syama is now one step closer to becoming a robust, high production and low gold cost operation.
Out of the total June 2019 quarterly production of 78,132 ounces, the Syama operations produced 65,757 ounces or over 84 per cent of the total quarterly output and managed to sell 57,900 ounces of gold at a realised price of A$1,811 or US$1,271 per ounce.
A 69 per cent gain in the Syama sulphide circuit quarterly production in June 2019 quarter underpinned the high output in Syama operations. The company realised an average price of US$1,274 per ounce or A$1,815 per ounce for the total gold sales of 68,900 ounces during the June 2019 quarter.
The Syama UG Mine reached the commercial production rates during the quarter, while RSG added 1 million ounces of Ore Reserves at Ravenswood. The Ravenswood Expansion study during the quarter demonstrated a potential to deliver 200,000 ounces of gold annually for 15 years.
Finance:
(Source: Companyâs Report)
Hedge Book:
The circuit inventory of the company is at 66,917 ounces with a market value of A$134 million or US$94 million, and with a circuit inventory of 66,917 ounces of gold, the hedge book of the company is as:
(Source: Companyâs Report)
The shares of the company ended the dayâs session flat at A$ 1.775 on 31 July 2019, as compared to its previous close.
Future Guidance:
The company revised the FY2019 guidance for the Syama operations at 270,000 ounces with an AISC of US$890 per ounce and changed the group production guidance for FY2019 to 330,000 ounces at an AISC of US$990 per ounce.
Today, 31 July 2019, the company informed the market that it is set to acquire Toro Gold for US$ 274 million, having received all the regulatory approvals required to complete the transaction.
Ramelius Resources Limited (ASX: RMS)
June 2019 Quarter Highlights:
During the June 2019 quarter, RMS produced 47,342 ounces of gold with an AISC of A$1,106 per ounce. Out of the total production, the companyâs Mt Magnet prospect including Vivien accounted for 30,670 ounces or over 64 per cent of the total production with an AISC of A$1,078 per ounce. RMS managed to sell 32,778 ounces of Mt Magnet gold at a realised price of A$1,791 per ounce.
The Edna May prospect of the company accounted for lower production and higher cost as compared to the Mt Magnet prospect. The total production from Edna May stood at 16,672 ounces at an AISC of A$1,171 per ounce, out of which, the company managed to sell 15,484 ounces at a realised price of A$1,791 per ounce.
The full FY2019 production of the company stood at 196,679 ounces with an AISC of A$1,192 per ounce, which was lower than the previous year production of FY2018 of 208,118 ounces at an AISC of A$1,191 per ounce.
Finance:
(Source: Companyâs Report)
Hedge Book:
(Source: Companyâs Report)
Future Guidance:
FY2020: The company kept the overall FY2020 production guidance in the range of 205,000-225,000 ounces with an AISC in the range of A$1,225-A$1,325 per ounce. RMS kept the Mt Magnet including Vivien prospect FY2020 guidance at 145,800 ounces with an AISC of A$1,100-A$1,200 per ounce. While the company kept the FY202 guidance for Edna May at 68,700 ounces at an AISC of A$1,475-A$1,575 per ounce.
September 2019 Quarter: RMS kept the September 2019 quarter guidance at 43,000-48,000 ounces at an AISC of A$1,375-A$1,475 per ounce, with Mt Magnet contributing 31,000 ounces (AISC A$1,350-1,450) and Edna May contributing 14,000 ounces (AISC A$1,450-1,550).
The shares of the company ended the dayâs session at A$1.010 on 31 July 2019, up by 8.602 per cent as compared to its previous close.
Saracen Mineral Holdings Limited (ASX: SAR)
FY2019 Production:
SAR gold production during the FY2019 stood at 355,077 ounces of gold with an AISC of A$1,030 per ounce, which was in line with the companyâs increased guidance of 345-365,000 ounces for the financial year 2019. The All-in-Sustaining-Cost during the FY2019 (A$1,030 per ounce) stood below the guidance range of A$1,050-A$1,100 per ounce for the financial year 2019.
The company managed to sell 350,904 ounces of gold during FY2019 with a realised price of A$1,722, which in turn, generated a sales revenue of A$604.1 million.
June 2019 Quarter Highlights:
SAR gold production for the June 2019 quarter stood at 88,096 ounces with an AISC of A$1,026 per ounce. Out of the total quarterly production the Carosue Dam produced 45,845 ounces of gold, while the Thunderbox prospect produced 42,451 ounces of gold.
Apart from a decent production, the Thunderbox operations of the company experienced a lower cost. The AISC for the June 2019 quarter stood at A$897 per ounce as the C Zone open pit mine of the prospect progressed steadily towards the higher grade or lower strip ratio ore.
SAR managed to sell 90,230 ounces of gold during the June 2019 quarter, which was higher than the quantity of gold produced. The company realised an average price of A$1,754, which in turn, generated a sales revenue of A$158.3 million during the June 2019 quarter.
The overall mine production during the June 2019 quarter stood at 123,507 ounces, out of which Thunderbox produced 78,984 ounces and the Carosue Dam operations produced 44,523 ounces. The overall mine production underpinned an increase of 45 per cent in mine production in June 2019 quarter as compared to the previous quarter.
Finance:
(Source: Companyâs Report)
The effective quarterly cash (as on 30 June 2019) was at A$20.1 million, post the Box Well acquisition and tax payments, while the company remains corporate debt-free.
Hedge Book:
(Source: Companyâs Report)
Future Guidance:
SAR increased the production guidance for the financial year 2020 and kept it in the range of 350-370,000 ounces. The company kept the cost guidance or AISC for FY2020 in the range of A$1,025- A$1,075 per ounce.
On 31 July 2019, the company declared its takeover bid for Bligh, unconditional. With acceptances of over 91.80% of the entire issued share capital of Bligh.
The shares of the company ended the dayâs session at A$4.190 on 31 July 2019, up by 1.453 per cent as compared to its previous close.
Tribune Resources Limited (ASX: TBR)
During the June 2019 quarter, the company processed 230,188 tonnes of East Kundana Joint Venture (or EKJV) ore at the Kanowna plant and processed 105,183 tonnes of EJKV ore at the Greenfields Mill. A total of 34,120 ounces of gold and 6,347 ounces of silver were credited in the respective billion accounts of Rand and Tribune (75 per cent) during the June 2019 quarter.
At the end of the June 2019 quarter, TBR is entitled to the share of the following stockpiles:
(Source: Companyâs Report)
EKJV:
Raleigh Underground Mine Production:
During the June 2019 quarter, the company mined the contained gold in stope development and stope ore, which were estimated by the grade control face chip sampling. During the June 2019 quarter, the Raleigh UG produced 26,391 ounces of gold from the processing of 73,202 tonnes of ore with an average grade of 11.21 gram per tonne of gold.
The quantity of ore processed along with the grade and production marked an increase in the June 2019 quarter as compared to the previous quarter.
TBR made similar progress with the other mines as well during the June 2019 quarter, which in turn, underpinned a production growth as compared to the March 2019 quarter.
The net cash used in operating activities stood at A$29,060,000, cash outflow from investing activities stood at A$1,015,000 and cash used in financing activities stood at A$967,000. Cash and Cash equivalents at the end of period stood at A$59,239.
The shares of the company ended the dayâs session at A$7.00 on 31 July 2019, down by 1.547 per cent as compared to its previous close.
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