Gold Rush and Eight ASX Momentum Gainers- SAR, NST, NCM, EVN, RMS, WAF, GOR, PRU

  • Jul 10, 2020 AEST
  • Team Kalkine
Gold Rush and Eight ASX Momentum Gainers- SAR, NST, NCM, EVN, RMS, WAF, GOR, PRU

Summary

  • Gold trading at multi year highs amidst second wave fears.
  • Gold prices are vaulting higher and higher with each passing day, and many prominent names such as Goldman Sachs are suggesting that there is a lot of steam left in the shiny metal.
  • With every rush in gold prices, ASX-listed gold stocks are experiencing higher and higher upticks with many gaining momentum and reaching their record peaks.

Gold prices are once again knocking the heaven’s door with spot prices vaulting to a new multi-year high of USD 1,818.13 on 8 July 2020.

The rise in gold prices is further turning the attention of the market towards ASX-listed gold stocks, inferred from another round of fresh buying witnessed in many ASX-listed gold stocks such as Saracen Mineral Holdings Limited (ASX:SAR), Northern Star Resources Limited (ASX:NST), Newcrest Mining Limited (ASX:NCM).

The surge in gold prices has been transcending into a strong financial position for many gold mining companies across the continent.

Over strongly rooted financial positions, shares prices of such miners are now witnessing a sentiment splash with many such as Saracen, Newcrest reaching a record and multi-week high, respectively.

ASX-listed Gold Stocks Under Momentum Amidst Gush for Gold

Saracen Mineral Holdings Limited (ASX:SAR)

  • The Company witnessed a record production and cash flow in FY20 with a production of 520,414 ounces of gold, which remained over 4 per cent up against the FY20 production guidance of +500,000 ounces.
  • SAR sold 148,011 ounces of gold during June 2020 at an average price of $2,280 per ounce, leading to a revenue of $337.5 million.
  • Apart from decent earnings in the wake of surging gold price, the miner has recently reduced down on its debt with a payment of $321.5 million.
  • Furthermore, the liquidity position of the miner improved substantially in June 2020 quarter with net cash in hand of $48 million, as compared to the net debt of $21 million as at March 2020 quarter.

The stock of the Company has gained a strong momentum on the exchange with prices surging ~ 123.75 per cent from $2.82 (intraday low on 13 March 2020) to the recent record high of $6.31 (on 9 July 2020).

Northern Star Resources Limited (ASX:NST)

  • NCM recently witnessed a spike in cash generation with its cash, bullion, and investment surging by 40 per cent during the June 2020 quarter to stand at $769.5 million.
  • The Company further decided to distribute cash and declared a fully-franked deferred dividend of $7.5 cents a share.
  • The surge in the cash position during the June 2020 quarter was mainly supported by higher gold production and sales.
  • NCM has further decided to reduce its hedge position in the market to take higher exposure in the gold spot market.

To Know More, Do Read: Elevated Gold Spot Prices Transcending into Strong Financial Position for Saracen and Northern Star

NST has recently climbed the ladder swiftly with stock prices surging from $8.850 (intraday low on 16 March 2020) to the present high of $15.180 (as on 9 July 2020) to mark a price gain of ~ 71.52 per cent.

Newcrest Mining Limited (ASX:NCM)

  • NCM recently received strong drilling results at its Havieron and Red Chris gold prospects, expanding known mineralisation by a further 220m at Havieron while confirming continuity of high grade within East Zone at Red Chris, respectively.
  • Furthermore, the step-out drilling at Havieron continues to demonstrate geological and grade continuity over the upper 600m vertical extent of the high grade crescent sulphide zone.
  • Also, a drill hole identified as HAD059 has returned the best intercept at Havieron so far at 109m @ 6.3g/t of gold and 0.71% Cu.
  • Likewise, at Red Chris, the Company continues to make progress with drilling activities confirming the potential of finding additional discrete high grade pods of mineralisation within the East Zone.

NCM has been on a momentum run surging from its recent low of $20.700 (intraday low on 13 March 2020) to reach a multi-week high of $34.150 (on 8 July 2020) to mark a price appreciation of ~ 64.97 per cent.

Evolution Mining Limited (ASX:EVN)

  • The Company recently conducted an extensive grade control infill program of 204 drill holes at its Mt Carlton Operation post updating its Mineral Resource in December 2019, which further indicated a reduction of ~ 75,000 ounces from the Life of Mine.
  • Furthermore, despite a downgrade in FY21 gold production at Mt Carlton of from 70,000-75,000 ounces to 50,000 ounces, the stock rallied on ASX over rush in gold prices.
  • So far (June), Mt Carlton has generated $665 million of operating cash flow, marking an average return of 19 per cent per annum since commencement.
  • The company recently divested Cracow gold mine for a total consideration of $125 million.

EVN rallied from $3.29 (intraday low on 16 March 2020) to reach a record high of $6.41 (on 9 July 2020) to mark a price gain of ~ 94.83 per cent.

To Know More, Do Read: Evolution Mining Downgrades FY20 Production Guidance By 1.4 per cent, Stock Under Pressure

Ramelius Resources Limited (ASX:RMS)

  • RMS witnessed a turnaround over its many of its projects, bringing positive outcome for the miner.
  • The Company recently updated its June and FY20 production guidance to a record high.
  • The June 2020 gold production surpassed the guidance with a record 86,517 ounces of gold produced.
  • Also, RMS anticipates June 2020 production to surge by 7.14 per cent from its lower range of the guidance of 210,000-220,000 to end in the range of 225,000 to 230,000 ounces.

To Know More, Do Read: Ramelius Upgrades Record Production Guidance for FY20, While NST Offloads Ashburton Project in WA

RMS is moving in a consistent rally on ASX with stock surging from $0.762 (intraday low on 13 March 2020) to reach a record peak of $2.220 (on 24 June 2020) to mark a price gush of ~ 191.33 per cent.

Likewise, there are many other gold stocks such as West African Resources Limited (ASX:WAF), trading at its 52-week high $1.045, up 123% in past 3 months, Gold Road Resources Limited (ASX:GOR), up 132% from its March lows, Perseus Mining Limited (ASX:PRU), up 106% from March lows, are following the same trajectory, and under momentum, and some of them have recently contoured a record high.

 

 


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