- The yellow metal is hovering around US$1,750 per ounce, as of 28 September 2021.
- Gold prices are experiencing pressure amid increased bond yield rate and strong US dollar price.
- Investors are closely monitoring fluctuations in prices to make entry into the gold market.
Gold is considered a ‘safe haven’ for investment purposes. The yellow metal acts as a hedge against higher inflation.
A higher interest rate environment allows investors to incur higher opportunity cost on gold investments. Currently, bond yields stand at 3-month highs while the US dollar is also performing well. These are few of the factors resulting in the dismal performance of gold.
Copyright © 2021 Kalkine Media
Investors put their money in gold mainly through four different ways-
- Buy physical gold and bullion
- Invest in the commodity market and buy gold positions
- Invest in gold mining stocks
- Invest in ETFs that give exposure to the gold market
This article will primarily deal with the third option, that is, investment in gold mining companies through the stock market. It is to be noted that one needs to do thorough analysis before injecting funds in the stock market.
Here, we have discussed five gold stocks listed on the ASX.
Newcrest Mining Limited (ASX:NCM)
Newcrest Mining is the largest gold producer in Australia. The Company has its assets in Australia, PNG, and Canada.
NCM produced 542 koz of gold during the June 2021 quarter. The production was up 6% year-on-year, backed by a strong performance from Cadia and Telfer in Australia. The company also achieved its FY21 production guidance.
As of 28 August 2021, NCM stock traded at AU$22.22 with a market cap of AU$18.65 billion. In this calendar year, NCM paid two dividends – AU$0.193 and AU$0.552 to its shareholders.
Related read: Who is the largest gold producer in Australia?
Northern Star Resources Limited (ASX:NST)
Northern Star has its gold mining operations in Australia and North America. The company produced 450.7 koz of gold during the June 2021 quarter.
NST stock traded at AU$8.29 with a market cap of AU$10.04 billion on 28 September 2021. The Company has announced a dividend of AU$0.095 with a scheduled payment on 29 September 2021. The shares of NST are trading 50% down from its 52-week high price.
OZ Minerals Limited (ASX:OZL)
OZ Minerals has given an impressive return of 59% in the last one year. At present, OZL is trading at AU$22.69 with a market cap of AU$7.6 billion. The Company paid a dividend of AU$0.16 per share to its shareholders.
OZ Minerals produced 57,875 ounces of gold during the June quarter and has upgraded its production guidance range for 2021 to 205,000-228,000 ounces.
Sandfire Resources Limited (ASX:SFR)
Sandfire has its assets spread across Australia, Botswana, and the United States. In Australia, SFR operates the DeGrussa Copper Mine, which produces gold and copper. During the June quarter, the Company reported gold production of 9,016 oz and copper production of 18,252 tonnes.
Sandfire has given a handsome return of 38% to its shareholders in the last one year. As of 28 September 2021, SFR is trading at AU$5.395 with a market cap of AU$964 million. SFR paid a dividend of AU$0.26 per share to its shareholders.
Evolution Mining Limited (ASX:EVN)
Evolution Mining has gold projects in Australia and Canada. The company recently acquired the Battle North Gold tenure at its Red Lake operations in Canada.
The shares of EVN traded at AU$3.365 with a market cap of AU$6.54 billion as of 28 September 2021. The shares of EVN are trading at 50% below the 52-week high.
The Company paid a dividend of 5 cents per share to its shareholders.