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Highlights
- Gold prices fell 0.61% to US$1,884 on Monday.
- The fall in bullion prices also led investors to flee from gold miners on the ASX.
- Most of the ASX gold stocks have traded the entire day in the negative territory.
Last week, gold prices ended on a lower note, falling around 1.8% for the week and closing a few ticks below US$1,900 per ounce. On Monday, gold continued its fall and was trading 0.61% lower at US$1,884 an ounce.
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The fall in bullion prices also led investors to flee from gold miners on the ASX as lower prices of gold put pressure on their margins, leading to squeezed profits. Let us have a look at three ASX gold miners and how much heat they are facing.
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- Gold Road Resources Limited (ASX:GOR)
First stock on our list is an ASX-listed gold mining and exploration company having a market capitalisation of AU$1.37 billion. The company owns 50% of the world-class Gruyere gold mine, which was developed in a Joint Venture with Gold Fields Ltd. In FY21, the company clocked a revenue of AU$274.75 million while its profit stood at AU$36.78 million.
GOR’s shares fell to a low of AU$1.505 in today’s session, currently trading 2.57% down at AU$1.515 by 2:40 PM AEST. The stock has fallen over 6.48% in the last one month, while the year-to-date (YTD) return stands at a negative 4.11%.
- St Barbara Limited (ASX:SBM)
St Barbara is another billion-dollar gold mining company in Australia. The company achieved steady gold production of 61,819 oz in Q3 FY22 while sustaining the cost at AU$2,290 per oz. The FY22 guidance for production stands around 180 to 200 koz and a growth capex of AU$10 million to AU$15 million.
SBM shares opened the session at AU$1.315, a gap-down from the previous close of AU$1.335 and fell all the way to AU$1.31, a fall of 1.87% by 2:40 PM AEST. The stock’s YTD return stands at a negative 7.09%.
- Northern Star Resources Limited (ASX:NST)
The last stock on our list is Northern Star Resources having operations in Western Australia and Alaska. The company has a market capitalisation of AU$11.44 billion with 1.16 billion issued shares. NST shares are trading at a dividend yield of 1.98% and have paid a total of AU$0.19 per share dividend in CY21.
NST’s shares tumbled 2.09% to AU$9.62 by 2:40 PM AEST in today’s session. The stock has fallen considerably from the peak of AU$11.59 this year, losing almost 17% value in a couple of weeks. However, the YTD return of the stock is still positive, at 2.02%.
Bottom Line
There has been an increased volatility seen in the gold price in recent times on account of geopolitical tensions, soaring inflation across the world, interest rate hikes and the most recent - the US dollar index hitting a two-decade high.
All these factors have made it difficult to gauge trends in gold prices, therefore, investors must be cautious while making an investment decision.
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