After the data from China contracted and considering a heavy reliance of mining stocks on the consumption in China, the major stocks like BHP and RIO were impacted on the ASX. However, with the surging demand of the metals and mining sector and support from the government with funding, few stocks took the advantage and gained at the end of the week. Let’s take a deep dive at two such stocks.
SARACEN MINERAL HOLDINGS LIMITED (ASX: SAR) – The company through its ASX platform made an announcement titled ‘two discoveries highlight the potential of the Carosue Dam Corridor’. The total Thunderbox Mine Ore Resources and Reserves being 8.9Mt @ 1.7g/t ~980koz Ore Reserves and 41.0Mt @ 1.7g/t ~2.2Moz Mineral Resources. Total Karari – Dervish Underground Ore Resources and Reserves being 10.5Mt @ 3.0g/t ~1.0Moz Ore Reserves and 20.2Mt @ 3.0g/t ~1.9Moz Mineral Resources. The company finished the year with cash and equivalents of $118m which is after outlaying $71.8 million for growth capital and exploration. At the 2018 year-end, a further 73,532 ounces of gold was contained in closing stockpiles. The company recently increased production guidance for FY2019 to 325-345,000 ounces. It holds more cash flow with cash, bullion, and investments of A$131 million and no debt. The stock price is trading higher by 4.967% or $0.150 to trade at $3.170 which is very close to its 52-week high with increased production. The stock has a high P/E of 32.510 and EPS of 0.093 AUD.
NEWCREST MINING LIMITED (ASX: NCM) – Under the Newcrest 2014, Long-Term Incentive (LTI) Plan and shares held by Pacific Custodians Pty Ltd as trustee for the Newcrest Employee Share Trust 68,124 ordinary fully paid shares were released to Mr. Bond (Finance Director and Chief Financial Officer) and 255,855 ordinary fully paid shares were released to Mr. Biswas (Managing Director and Chief Executive Officer) on 19 December 2018. The company and its Wafi-Golpu Joint Venture partner Harmony Gold Mining Company Limited signed an MOU with Papua New Guinea. Newcrest launched it ‘Forging a Stronger Newcrest’ plan externally in February 2018. During the financial year, the company generated 601 million dollars in free cash flow and continued its run for the fifth year to have cash flow is positive. The operating sites generated positive free cash flow contributing to a statutory profit of $202 million and underlying profit of $459 million. The stock price is trading higher by 3.885% or $0.880 to trade at $23.530 on positive financials which is very close to its 52-week high. The stock has a significantly high P/E of 63.660 and EPS of 0.356 AUD.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.