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Highlights
- Gold prices rose on Thursday in line with the US Federal Reserve’s supersized interest rate hike.
- The US Fed on Wednesday hiked key interest rates by 75 basis points – the largest hike since 1994.
- The Fed’s announcement drove US government bond yields lower and pushed the dollar off two-decade highs.
It was a decent week for gold prices as the yellow metal made some decent gains on Wednesday and Thursday. The significant gains in gold prices came as the US dollar and treasury yield retreated in line with the widely expected interest rate hike announcement from the Federal Reserve.
The US Fed on Wednesday hiked key interest rates by 75 basis points, the largest since 1994. The weaker US dollar, coupled with falling US bond yields, pushed the prices of yellow metal higher on economic growth worries. As a result, gold prices jumped as much as 1.9% higher after the announcement.
Also, Fed Chair Jerome Powell stated that the Fed seems most likely to increase the interest rates by 50- or 75-point basis at the next meeting in July.
August delivery gold futures hovered at US$1,833.45 per ounce on Thursday, up 0.76%. However, gold prices fell below US$1,850 per ounce on Friday, shedding some gains made in the earlier two sessions amid a rebound in the US dollar and treasury yields.
Must Watch: Gold stocks that you may consider investing in 2022
Given this backdrop, let's look at three ASX-listed gold miners with a market cap of over AU$6 billion and their performance in 2022.
Northern Star Resources
On Wednesday, Northern Star Resources (ASX:NST) successfully completed the sale of two wholly-owned assets located in Western Australia to Black Cat Syndicate Limited (ASX:BC8) for total cash, scrip, and contingent cash payment consideration of AU$44.5 million.
Additionally, the miner sold 380,075oz of gold in the March-ending quarter at an AISC of AU$1,656/oz. The Company is well-positioned to achieve its FY22 production guidance of 1.55-1.65Moz with a Group FY22 AISC guidance of AU$1,600-1,640/oz.
Also Read: Northern Star Resources’ (ASX:NST) net profit soars 300% in FY21
Evolution Mining
ASX-listed gold explorer Evolution Mining’s (ASX:EVN) JV partner Musgrave Minerals Ltd (ASX:MGV) in April 2022 reported robust assay results from diamond and air-core drilling programs on the Cue Joint Venture.
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During the March quarter, EVN increased gold production by 67% at its Red Lake asset. EVN's ore mined increased by 25% to 243,000 tonnes, including a record month in March of 106,000 tonnes.
Must Read: Evolution Mining (ASX:EVN) signs asset acquisition deal to uplift Mungari Mill
Newcrest Mining
Towards the end of May 2022, Antipa Minerals Limited (ASX:AZY) announced a total of 43 drill holes (7,422m) testing twelve greenfield and two brownfield targets. Additionally, fixed-loop ground electromagnetic (FLEM) surveys were completed at six targets in the Wilki Farm-in Project. The exploration activities at the project are fully funded by Newcrest Operations Pty Ltd, which is a subsidiary of Newcrest Mining Limited (ASX:NCM).
The Wilki Farm-in Project 2022 exploration program includes air core and diamond drilling, soil sampling, and an aeromagnetic survey.
Must Read: Newcrest (ASX:NCM) to acquire Pretium Resources under A$2.8B deal
