Gold slides to 11-week lows; Ten ASX stocks under $1

Summary

  • Gold prices have recorded the worst monthly decline since 2016.
  • The prices dipped to 11- week low levels after the US Federal Reserve's shift to a hawkish policy stance.
  • Several ASX listed gold share prices are under pressure thanks to the bearish gold price movement.

Gold prices head for the worst monthly decline since 2016. The prices dipped to US$1,759.59 per ounce on Wednesday, touching their lowest since 15 April 2021 after US Federal Reserve sped up their expected pace of policy tightening earlier in the month.

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The market players are closely tracking the implications of the recent travel restrictions in Asia-Pacific and Europe amid the latest outbreak of delta variant of coronavirus. The bullish sentiment for the greenback, i.e., the US dollar has also put pressure on the yellow metal.

The US Federal Reserve Governor, Christopher Waller, said on Tuesday that he is very optimistic about the economy; however, he declined to say when the Fed should start increasing interest rates. For the month, gold prices are set to decline by 7.6%, the highest since November 2016.

Must Read: Who is the largest gold producer in Australia?

In this backdrop, let us skim through ten gold stocks under AU $1.0 and how they are performing amid gold price retreat.

Bellevue Gold Limited

Bellevue Gold Limited (ASX:BGL) is an Australia focused gold miner with its flagship Bellevue Gold Mine project located in Western Australia. The mine is one of the highest-grade gold mines that was operational between 1986 to 1997 and produced nearly 800,000 ounces of gold.

The Bellevue Gold Project is situated in a major gold and nickel producing district with mines such as Jundee, Agnew & Lawlers, Darlot and Bronzewing etc. BGL is expanding its current resources with further exploration, step out and grade control drilling ongoing at the site.

The shares of the company have given a return of 17.32% in the last three months as of 30 June 2021. However, the prices have plummeted by 9.25% in the last one year.

Medusa Mining

Medusa Mining (ASX:MML) Medusa Mining is an Australia based publicly listed, growth-focused gold producer in the Asia Pacific region.

The company operates Co-O project located in Central Eastern Mindanao in the Republic of the Philippines, comprising an area of nearly 410 sq. km. Apart from this, the company also holds several exploration projects in its portfolio.

As of 30 June, MML shares have given a return of 18.12%.

Also Read: Which are the best gold stocks on the ASX?

Benz Mining Corp

Benz Mining Corp (ASX:BNZ) is a Toronto based gold exploration company with Quebec focused operations. The company’s key objective is to expand the high-grade gold resources at the Eastmain Mine in Quebec. The mine has produced 40,000oz of gold at an average grade of 10.58g/t Au during 1994-95.

The management of the company believes that new exploration technologies, geological interpretations and exploration capital will drive rapid growth in the current project.

The explorer gave a return of 5.23% in the last three months, and the price of shares plummeted nearly 50% in the past one year.

Resolute Mining Limited

Resolute Mining Limited (ASX:RSG) has more than 30 years of experience as an explorer, operator and developer. The company focuses on gold exploration projects in Africa. The company holds two producing assets, including Syama Gold Mine and the Mako Gold Mine in Mali (Syama) and Senegal, respectively.

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The company also holds various exploration projects with drilling campaigns underway in the African tenements, focusing on Mali, Senegal, Guinea, and Côte d’Ivoire.

RSG shares have delivered a return of 20.24% in the past three months, however, in the last one year the shares are down 55.51%.

Must Read: Gold rush on the cards amidst rising inflation and weak dollar

Calidus Resources Limited

Calidus Resources Limited (ASX:CAI) is an ASX listed gold exploration and development company that operates the 1.5Moz Warrawoona Gold Project and the Blue Spec Gold Project in Western Australia.

The management of the company believes that the recent consolidation of the goldfield will transform the company into a new Australian gold development company.

As of 30 June, the shares of the company have delivered a return of 11.90% in the last three months.

Yandal Resources Limited

Yandal Resources Limited (ASX:YRL) is a gold exploration company with a focused portfolio in the Yandal Greenstone Belt of Western Australia. The company's projects include the Mt McClure gold project, the Ironstone Well and Barwidgee gold project, and the Gordons gold project.

The company recently announced an update on its Gordons Gold project, where YRL intercepted high-grade RC drills, expanding the company's pipeline of discovery targets.

YRL shares have appreciated by 87.72% in the last one year.

Interesting Read: Going for gold? Three ASX-listed stocks that racked up 5% gain today 

Ardea Resources Limited

Ardea Resources Limited (ASX:ARL) is an Australia focused multi-commodity exploration and development company with the flagship Kalgoorlie Nickel Project (KNP), located in Western Australia.

The company's primary focus is on producing battery metals amid higher demand for lithium-ion batteries, but it holds various gold exploration projects in Australia too.

Source: Copyright © 2021 Kalkine Media

ARL shares have given a return of 115.38% in the last one year.

Horizon Gold Limited

Horizon Gold Limited (ASX:HRN) is a Western Australia based gold exploration and development company with a flagship Gum Creek gold project. The project presents an exciting exploration and development opportunity in the historically proven gold province.

The project covers around 620 sq. km with a track record of producing 1.1Moz gold. The company also believes that there are various new gold drilling targets in the project area.

The shares of the company have given a return of 22.22% in the last three months.

Big River Gold Limited

Big River Gold Limited (ASX:BRV) is a specialized mineral exploration and development company that holds and operates Borborema Gold Project in northeastern Brazil. The project contains mining leases covering an area of more than 29 sq. km.

Must Read: Why investing in gold stocks can add feather to your portfolio cap

The project is technically considered a low-risk operation in terms of resource definition, metallurgical processing and mining operation. Additionally, the project has got strong support from the government and community at both local and state levels.

 As of 30 June, the shares of the company have appreciated by 63.33% in the last one year.

Firefinch Limited

Firefinch Limited (ASX:FFX) is an ASX listed gold miner that holds and operates an outstanding project in Mali. The miner holds 80% interest in the Morila Gold mine that has a strong track record of 7.5Moz gold production since 2000, with one of the highest-grade gold mines in the world.

The company intends to increase gold production by open pit mining from large pits, satellite pits, and Massigui projects located adjacent to the Morila project.

The miner has delivered outstanding returns of 271.43% in the last one year.

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