Three Miners Hovering Close to 52-Week Highs- PRU, SVM, and NST

  • Jun 03, 2020 AEST
  • Team Kalkine
Three Miners Hovering Close to 52-Week Highs- PRU, SVM, and NST

Summary

  • The market is now under a recovery mode post a massive correction in the primary uptrend, which is now supporting the share price of many ASX-listed miners.
  • The recent recovery in the benchmark indices across the exchange has seen many stocks to even reach 52-week high, and some stocks are showing impeccable returns while making 52-week highs.
  • Despite recent shares being offloaded by substantial shareholders in the gold mining stocks such as Perseus Mining Limited (ASX:PRU) and Northern Star Resources Limited (ASX:NST), the bullish market sentiment around gold is supporting the ASX-listed gold miners with some of them again climbing to their 52-week high.

The market has now entered the secondary phase post a massive correction in the primary uptrend, with many ASX-listed stocks recovering after a plunge in the wake of halted economic activities due to the COVID-19 outbreak.

The recent recovery in the benchmark indices across the exchange is now prompting many stocks to even reach 52-week high, and in the status quo, gold, rare earth elements, and iron ore stocks are under a sentiment gush and contouring 52-week highs.

The rush in iron ore prices along with bright earnings perspective has led the share price of Fortescue Metals Group Limited (ASX:FMG) to mark a new 52-week high.

To Know More, Do Read: Fortescue Metals Breaking All Records!! Here’s Why?

However, these stocks are not just the only one skyrocketing in the market; many other ASX-listed resource stocks are under the same price gush and are now entering in the top-performing list.

Also Read: Top Five Metals & Mining Performers with Returns More Than ASX200

ASX-listed Resource Stocks Scaling 52-week Highs and their Future Outlook

The stock is under the momentum from its recent low of $0.630 (intraday low on 16 March 2020) and is presently at a 52-week high of $1.345 (as on 2 June 2020 4:46 PM AEST), which underpins a price appreciation of ~ 113.49 per cent.

While continuously rallying from its low of $0.900 (intraday low on 1 May 2020) to the present level, the stock witnessed a deep fall on 28 May 2020 when Franklin Advisers Inc., a substantial shareholder in the gold miner reported its holding details to the bourses. The advisor offloaded 13.50 million shares, which marked the second-largest offloading in the Company since the beginning of the year after Van Eck Associates Corporation offloaded 23.90 million shares until the end of April 2020.

 

Source: Refinitiv Eikon Thomson Reuters

 

However, despite a substantial change in the shareholding pattern, the stock is yet making new highs in the wake of prevailing sentiments around gold.

On 3 June 2020, Perseus announced that it is set to wholly acquire Exore Resources Limited (ASX: ERX) in an all share transaction, which if sails through will see Exore shareholders receive 1 Perseus for every 12.79 Exore shares held. PRU shares were down 12.6% (as on 3 June 2020, AEST: 1:46PM) on the bourses and trading at $1.170.

Also Read: Gold Rush And the 52-Week High Landers- WAF, EVN, and AGG

  • Sovereign Metals Limited (ASX:SVM)

The ASX-listed copper, gold, mineral sands, and graphite junior miner has shown an impeccable price rally with the stock rising from $0.080 (low in March 2020) to the present 52-week high of $0.180, which marks a price gain of ~ 125.0 per cent.

SVM Extends Rutile High-Grade Mineralisation at Kasiya

On 26 May 2020, SVM notified stakeholders that the phase 3 drilling results as the Kasiya prospect displayed the highest grade and thickest drill intercepts, footprints of which continues to grow and presently covers 5.5Km strike length with surface widths averaging 2.5km.

The phase 3 drilling comprised of 24 hallow hand-auger holes for 252m over four drill-lines, which in turn, brings the total number of holes at the prospect to 62 over nine east-west drill lines.

Some of the significant intercept from phase 3 drilling are as below:

  • 9m of 1.19 per cent rutile including 3m of 1.86 per cent rutile from surface.
  • 11m of 1.37 per cent rutile including 5m of 1.82 per cent rutile from surface.
  • 11m of 1.33 per cent rutile including 5m of 1.79 per cent rutile from surface.
  • 11m of 1.14 per cent rutile including 3m of 1.77 per cent rutile from surface.
  • 10m of 1.12 per cent rutile including 3m of 1.66 per cent rutile from surface.
  • 13m of 1.32 per cent rutile including 4m of 1.58 per cent rutile from surface.
  • 14m of 1.04 per cent rutile including 4m of 1.27 per cent rutile from surface.

 

Post announcing the result, the stock gained further momentum and rose from $0.155 (intraday low on 26 May 2020) to the present 52-week high of $0.180 (as on 3 June 2020, AEST: $0.180)

  • Northern Star Resources Limited (ASX:NST)

The stock has again climbed near its previous 52-week high of $15.280 (intraday high on 24 February 2020) after plunging to the low of $8.850 (intraday low on 16 March 2020) and is presently testing the 52-week high with prices reaching $15.270 (as on 2 June 2020), which marks a price gain of ~ 72.54 per cent. On 3 June 2020, NST shares were down by 6% and trading at $14.220 (AEST: 1:50PM).

Until now, the Company has witnessed a substantial change in the shareholding pattern with BlackRock Investment Management (U.K.) Ltd offloading 11.17 million shares while BlackRock Institutional Trust Company, N.A. increasing holding by 0.08 million shares and 0.15 million addition by BlackRock Investment Management (Australia) Ltd.

 

Source: Refinitiv Eikon Thomson Reuters

 

Return Profile

On a YTD basis, all the three above stocks have considerably outperformed the return from the improving S&P/ASX 200 index.

 

YTD Returns of PRU, SVM, and NST  (Source: Refinitiv Eikon Thomson Reuters)

YTD Returns of PRU, SVM, and NST  (Source: Refinitiv Eikon Thomson Reuters)

 

From the return chart, it could be seen that the junior mineral sands miner- SVM has outperformed all while simultaneously outperforming the S&P/ASX 200 index. The YTD return provided by SVM stands at 80.0 per cent while returns from PRU and NST stand at 15.52 per cent and 34.68 per cent, respectively (as on 2 June 2020).

Though on the YTD basis, the S&P/ASX 200 has given a negative return of 11.50 per cent on the MTD basis, the index has delivered a positive return amid its recent price gain.

To Know More, Do Read: ASX indices Showing Interesting Developments- Benchmark ASX200, IT, and Financial Index

 


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