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Highlights
The ASX All Ordinaries Gold Index (ASX:XGD) has lost 1.4% so far this year.
The ASX-listed gold miners are currently under pressure amid a rising rate environment.
On Monday, gold suffered sharp fall as the US dollar rallied on bets for steep interest rate hikes by Fed.
ASX-listed gold miners are currently under pressure amid the prospect of higher rates, which is weighing heavily on the safe-haven asset. On Monday, gold suffered a sharp decline as the US dollar rallied on bets for steep interest rate hikes by the US Federal Reserve, eroding appeal for bullion. US gold futures on Monday shed 2.4% to settle at US$1,829.80. It comes after gold prices hit multi-year highs in March amid rising geopolitical tensions due to the Russia-Ukraine war.
To put it into context, the ASX All Ordinaries Gold Index (ASX:XGD) has lost 1.4% so far this year. Gold has historically been a decent hedge against inflation. But the ongoing inflation concerns are befuddling investors. Additionally, the negative impact of COVID-19 on Australia’s labour force is continuing to raise costs for miners.
On this note, let’s discuss two ASX-listed gold stocks with over 9% year-to-date (YTD) returns:
Southern Cross Gold Ltd (ASX:SXG)
Southern Cross Gold is a natural resources firm which owns three subsidiaries: Clonbinane Goldfield Pty Ltd, Mawson Victoria Pty Ltd, and Mawson Queensland Pty Ltd. The company has a market capitalisation of AU$92.18 million as of 11:45 AM (AEST) 14 June 2022.
Shares of ASX-listed gold explorer Southern Cross Gold Ltd have surged over 169% on a YTD basis. In the past five years, the stock is up over 182%. The stock’s 52-year high and low prices are AU$0.78 and AU$0.19, respectively.
Meanwhile, on 30 May 2022, the firm announced a spectacularly wide intersection of gold-antimony mineralisation grading 119.2 m @ 3.9 g/t AuEq from 106.8 m in drill hole SDDSC033 at its fully owned Sunday Creek Project in Victoria.
Rio Tinto Ltd (ASX:RIO)
An Anglo-Australian multinational company, Rio Tinto Group is the world's second-largest metals and mining corporation.
Shares of ASX-listed gold explorer Rio Tinto Ltd have surged over 9% on a YTD basis. In the past five years, the stock is up nearly 81%. The stock’s 52-year high and low prices are AU$0.137.33 and AU$87.28, respectively.
Meanwhile, in the financial year 2021, Rio Tinto’s net cash from operating activities increased 60% year-on-year to US$25.35 billion. Rio’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 58% to US$37.72 billion, compared to FY20. Also, the mining giant boosted its total dividend payout 87% Y-O-Y to US$10.40.
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