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Highlights
- The ASX200 lost another 69.50 points, weighed down by global interest rate fears and a slump in iron and oil prices.
- Metal stocks suffered, with even gold miners bearing the brunt today (10 May 2022).
- While the Metals & Mining Index (MXM) was down 2.7%, ASX All Ordinaries Gold Index (XGD) closed 3.13% lower.
On another day of looming recessionary fears, the Australian markets closed about 1% lower today. The top losing sectors were energy, materials and utilities, facing the gravity of the slump in iron ore and oil prices.
The ASX300 Metals & Mining Index (MXM) was down over 2.7%, dragging down miners like BHP and Chalice Mining. Even the gold miners faced the heat, and the ASX All Ordinaries Gold Index (XGD) closed a 3.13% lower.
While the broader markets and metal and mining industry ended the day’s trade in red, let us go through the performance of three gold miners grabbing investors’ attention today. Covered here are, Firefinch Limited (ASX:FFX), Ramelius Resources Limited (ASX:RMS) and Northern Star Resources Ltd (ASX:NST).
Note- Shares mentioned belong to the materials sector and are of companies focused on gold. Share prices mentioned and used for comparison are as of Tuesday, 10 May 2022.
Firefinch Limited (ASX:FFX)
Shares of the gold and lithium miner Firefinch Limited lost over 5.8% today to close trade at AU$0.89 a share. FFX shares lost shine without any new price-sensitive announcements being released on the exchange today.
Yesterday Firefinch Limited had provided an update on the demerger of Leo Lithium Limited, where the company was reducing its 80% stake to a mere 20%. The share price fell a bit yesterday; today it extended losses further. The reason seems to be a broader sectoral pull-down.
Although the FFX share price has appreciated by 25% in last six months, they have tripped over 16% in the last thirty days. While Firefinch Limited is listed on ASX with a market capitalisation of AU$1.11 billion, its shares have lost more than 19% in the last five trade days.
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Ramelius Resources Limited (ASX:RMS)
Another gold miner whose share price lost shine today is Ramelius Resources Limited. RMS share price was down today by about 3.346% and closed trade at AU$1.3 a share.
Ramelius had shared an investor presentation on the ASX, providing details of its Mt Magnet and Edna May projects. The presentation highlighted Ramelius Resources Limited’s gold production increase in the last eight years. It also reflected the so claimed healthy margins the company had. Despite this the share price loomed in the red, facing the heat of a broader sectoral pull-down.
Holding a market capitalisation of AU$1.16 billion on the ASX, Ramelius Resources shares have lost around 9.09% in the last five trade days. RMS shares seem to be on a losing streak, with its share price dropping almost 25% in a month.
Northern Star Resources Ltd (ASX:NST)
Covered next is Northern Star Resources Ltd., yet another well-recognised gold miner on ASX. As of Tuesday’s close, NST share price hit a new three-month low, dropping over 3.5% to AU$1.297 a share.
In its latest on the ASX, the company had shared its annual resource and reserve statement last week, which underpinned an organic production growth. A noteworthy point in the release was the unchanged long-term gold price assumption taken by Northern Star Resources. However, the company claimed these to be conservative enough to optimise shareholder returns. While Northern Star Resources did not issue any price-sensitive information to investors today, the most probable reason for the price drop is the general mining sector fall.
Looking at its share price in the last five days, NST has witnessed a loss of over 10%, and in the last six months, NST shares have depreciated by a 17.87%. However, on the ASX, the company still trades with a market capitalisation of AU$10.55 billion.
Bottom line
While gold mining companies have closed Tuesday’s trade on a lower note, the gold commodity futures are trading in green. It looks like a positive streak of hope in the fear-hit global markets. However, how well this can translate for the ASX-listed gold miners will only be known with time.
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