How these resource stocks fared in June ending quarter?

July 22, 2021 08:16 AM AEST

Team Kalkine Media

Author

Team Kalkine Media -
25034 Posts
Team Kalkine Media comprises of experts who understand various markets nuances and are enthusiastic and passionate to provide best possible offerings in the form of insights and stories. The team has rich experience of working across different market...

Image source: © Edhardream | Megapixl.com

Summary

S&P/ASX 200 Resources index has increased 19.89% in the last year due to a solid economic recovery.

ASX-listed miners, South32, BHP Group, Beach Energy, and Perseus Mining have released their June quarter-ending results.

BHP is considering options to get out of the multibillion-dollar petroleum business

Are You Looking for Compelling Stock Ideas from Diverse Sectors? Get Access to Kalkine's Investor/Resource Reports on a 7 days’ Free Trial.

Australia’s benchmark S&P/ASX 200 Resources index has gained 56.50 points or 0.78% to 7,308.70 as of 21 July 2021. The index has gained nearly 18% in the last year due to a solid post-pandemic recovery in economic activity that resulted in robust demand for minerals.

Australia holds a key position in the world's mining industry and contributes significantly to the country's economy.

Four major ASX-listed resource stocks, including South32, leading miner – BHP Group, oil and gas player - Beach Energy, and Perseus Mining have created a buzz among investors this week after releasing their significant operational updates. Let us have a look at the details of announcements done by these companies.

Don’t Miss: Which are the 10 hottest ASX-listed multi-bagger resource stocks?

South32 Limited

South32 (ASX:S32) is a globally diversified metals and mining company with Australia-focused operations. The miner has released its June-ending quarterly report on Wednesday. The diversified metals and mining company has recorded 1,340kt production of metallurgical coal in the last quarter.

Source: © Gavinp101 | Megapixl.com

The miner has recorded a y-o-y growth of 11% in metallurgical coal production; however, the company has recorded a drop of 15% on q-o-q in its fourth-quarter metallurgical coal production.

Apart from coal production, other minerals including alumina, aluminium, manganese, nickel, silver, lead, and zinc have recorded good growth in the last quarter, with both nickel production rising 54% and lead production rising 25% q-o-q.

The shares of S32 closed at AU$2.840, up 1.067% as of 21 July 2021.

Source: © Transversospinales | Megapixl.com

BHP Group Limited

BHP Group (ASX:BHP) is one of the leading resource companies in the world. The group has released its June quarter-ending report on Tuesday. The resource player announced that its petroleum production for FY21 was slightly above the guidance range in the significant update. In contrast, full-year production of copper, metallurgical coal, nickel, and iron ore were delivered as per the updated guidance range.

Must Read: Who owns the most shares in BHP Group (ASX:BHP)

The group is also considering options to get a multibillion-dollar exit from the petroleum business.

BHP shares jumped 1.320% to close at AU$49.890 as of 21 July 2021.

Beach Energy Limited

Another leading resource player of Australia, Beach Energy (ASX:BPT), has increased its revenue by 7% in the fourth quarter ending June, whereas the period's production was lower.

The 7% rise to reach AU$421 million in sales revenue was primarily attributed to a 10% increase in the realised oil price. The overall production was 1% lower in this quarter relative to March ending quarter but remained at the top end of guidance.

The company has announced a downgrade of 2P reserves in the Western Flank project during April. The company has planned seven wells with drilling activities planned from July 2021.

Also Read: Beach Energy shares in choppy waters: What pushed the stock 24% down

The shares of BPT were under pressure yesterday and closed at AU$1.210 on 21 July 2021, down 3.201% from the previous close.

Perseus Mining Limited

Perseus Mining (ASX:PRU) is an Australia-focused gold miner. The company has recorded a record gold production of 102,788oz in the last quarter. The overall production in this quarter is nearly 50% up compared to December quarter and 16% up compared to the previous quarter.

The gold miner has produced 328,632oz gold in the FY21 and 191,246oz during the half-year. Both the production exceeded the top end of their respective production guidance.

Also Read: Perseus Mining (ASX:PRU) Hits Home Run at Yaouré, Pours First Gold

The company achieved a quarterly sales increase of 23% to 106,899oz at an average realised price of US$1,652 per ounce. Weighted average AISC for the quarter was US$48 more than the previous quarter.

The shares of PRU closed 0.653% up today at AU$1.54 as of 21 July 2021.