- Rising political tensions over Ukraine has sent the yellow metal to an 8-month high.
- The surging gold price has also lifted prices for gold stocks, as a higher realised value of gold would help these gold miners to expand their margins.
- SLR, NST and EVN are some ASX gold stocks that are on investors’ radar.
The escalating geopolitical tensions between Russia and the US are jittering global markets. Fear over World War III has sent investors to glue to safe-haven assets such as gold. Although gold hasn’t had a good run in the last one year, in the last few sessions, there has been a continuous rally in the yellow metal, taking it to an 8-month high of US$1,879 per ounce.
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The surging price of gold has also lifted prices for gold stocks, as a higher realised value of gold would help these gold miners to expand their margins. Appeal for bullion has also been supported by investors looking to hedge their portfolio against surging inflation. Let us have a look at three ASX gold stocks that have been on a run recently.
Read More: Three ASX growth ETFs on investors’ radar
- Silver Lake Resources Limited (ASX:SLR)
Founded in 2004, Silver Lake Resources is a growth-focused gold miner in Australia, having a wide portfolio of gold prospects, including Mount Monger and Deflector camps in Western Australia. The company has a market capitalisation of AU$1.51 billion and had clocked an increased revenue of AU$598.29 million in FY21, over AU$563.44 million in FY20.
SLR shares have risen over 6.87% to the last closing price of AU$1.71 in the last five trading sessions, including today’s 2.7% rally. The volume on 15 February 2022 was recorded at over 8.7 million shares, which is higher than the one-day average for the last 20 days of 6.3 million.
- Evolution Mining Limited (ASX:EVN)
Evolution Mining is a New South Wales-based AU$7.25 million ASX-listed gold exploration company and operates a total of five wholly owned gold mines across Australia and Canada. It is one of the few regular dividend-paying gold miners on the Australian bourse and trading at a dividend yield of 3.03%, having declared AU$0.12 per share dividend in CY21.
Although EVN shares had rallied to a high of AU$4.04 in today’s session, gaining 2% at the peak, profit booking from upper levels made a softer closing of -0.51% to AU$3.94, on 15 February 2022. In the last five days, EVN shares are up 8.24%. Investors have also taken their money off the table before EVN’s upcoming earnings report.
- Northern Star Resources Limited (ASX:NST)
The last stock on our list, Northern Star Resources, is an Australia-headquartered global gold-producing company, having projects in Australia in North America. The company is focused on delivering shareholders return through continuous investment in building assets base on strategic acquisitions.
NST shares have rallied 5.96% in the past five days, to the last traded price of AU$9.06, on 15 February 2022. The shares are also trading at a dividend yield of 2.16%, having declared AU$0.19 cents per share dividend in CY21.
Geo-political tensions between Russia and the US over Ukraine have sent the yellow metal to an 8-month high as investors are looking to park their money in safe-haven assets. However, these short-term sentiments might fade soon if both the countries decide to call a truce. Therefore, investors should keep their guard up while investing in gold stocks on the back of escalating geo-political tensions.