ASX-listed gold miners have seen an impeccable rally in recent quarters over a bull rush in gold. An unprecedented rally in gold prices amidst COVID-19 outbreak has paved the way for many ASX-listed gold miners to focus on development to boost production for taking the high price business advantage.
Image Source: © Kalkine Group 2020
Also, a high price scenario, along with fundamental reasons, has cemented robust financial health for many ASX-listed gold stocks.
Perseus Mining Limited (ASX:PRU)
Perseus has released its quarterly earnings figures, reporting quarterly revenue of USD 44.6 million for the period ended 31 December 2020. The earnings of USD 44.6 million from operations ballooned the half-year earnings to USD 88.3 million.
- The period’s earnings remained strong as the Company realised healthy production and higher market prices for gold.
- The half-year gold production for the period ended 31 December 2020 surged by 12 per cent against the previous period (June 2020 HY) to stand at 137,386 ounces. The period’s output also remained close to the top end of the production guidance range of 125,500 - 139,000 ounces.
- The all-in sustaining cost for the December 2020 half year stood at USD 1,000 per ounce, slightly low compared to the previous period and well within the guidance range of USD 940 – USD 1,025 per ounce.
- For the quarter ended 31 December 2020 (December 2020 quarter), gold sales surged by 10 per cent while the average realised gold price increased by 6 per cent to stand at USD 1,687 per ounce.
PRU kept the production guidance in the range of 175,000 to 190,000 ounces with the ASIC guidance of USD 950 – USD 1,150 per ounce for the June 2021 half year.
Bellevue Gold Limited (ASX:BGL)
BGL remained primarily focused on development amidst the gold rush with the Company making considerable progress on Feasibility Study of its Bellevue Gold Project in Western Australia, set for a release in the next quarter.
- The Company upgraded its Resource estimates during the period with Indicated Resource surging by 20 per cent to stand at 1.04 million ounces at an average grade of 11.4g/t of gold, which would now underpin the Feasibility Study.
- BGL also underwent extensive exploration during the period with its drilling program resulting in high grades, which paved the way for boosting the total resource of 2.4 million ounces at an average grade of 10.0g/t of gold.
Apart from an extensive exploration, the Company also focused on project development with its total development during the period surpassing 600m of advance from the single heading; 778m advanced project to date.
During the December 2020 quarter, Bellevue appointed Orimco Pty Ltd as independent debt advisors to support the management in arranging and analysing Bellevue Gold Project financing.
At the end of the period, the Company’s cash position remained strong with A$127.6 million in cash.
Apart from that, Bellevue also finalised and released an inaugural sustainability report during the period, outlining the Company’s commitments to sustainable operations while focusing on ESG initiatives.