Three ASX gold stocks to light up your portfolio as gold prices heat up

Summary

  • De Grey Mining is a AU$1.8 billion gold miner, moving towards its YTD high of AU$1.67.
  • Newcrest Mining is one of the very few miners, aggressively planning to achieve net zero carbon emissions by 2050.
  • Northern Star Resources has numerous opportunities to grow the returns by expanding profitable production.

Gold has kickstarted the week on a bright note as the yellow metal on Monday surged to the highest level in three months. Gold seemed to have bottomed out in March 2021, when it hit a low of around US$1677. However, since then it has been consistently rising.

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The demand picked up after higher-than-expected US inflation data, depicting inflation has risen at the fastest pace since 2008. Since ages, gold has been bought primarily as a hedge against inflation and during this inflationary period, its demand has only risen. With that being said, let us have a look a three ASX-listed gold shares that could become a proxy play to the gold theme.

Read More: 4 Resource-Rich Gold Stocks on ASX

  1. De Grey Mining Limited (ASX:DEG)

De Grey Mining is a AU$1.8 billion gold miner. Recently, the company reported metallurgical testwork results from its Aquila zone at Hemi. Testwork at Aquila was conducted on twelve individual composites representing oxide and overall metallurgical recovery of 94.0% was achieved on a bulk composite of primary mineralisation at Aquila.

Recently, the company also conformed a large gold mineralisation at Diucon and Eagle, located immediately to the west of Crow.

On Monday, the DEG share price was up by 8.7% to AU$1.425, moving towards its YTD high of AU$1.67.

Read More: Three ASX gold stocks to mull over in wake of Janet Yellen’s inflation remark

  1. Newcrest Mining Limited (ASX:NCM)

Newcrest Mining is one of the very few miners, who is aggressively planning to go net zero on carbon emissions by 2050. This AU$23.1 billion company is committed to pursue innovative solutions and adopt new technologies in the long term with multiple near-term GHG reduction opportunities under consideration.

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Its exploration focus is on identifying new resources with tier one potential. The company has a range of potential options and is increasingly seeing the benefits of leveraging technology to identify targets and optimise its drilling program.

The NCM share price was up by 2.6% to AU$28.35 on Monday and is on the verge of a breakout on the price charts above the resistance of AU$28.81.

  1. Northern Star Resources Limited (ASX:NST)

Northern Star Resources is the second biggest company in our list, having a market capitalisation of AU$13 billion. In the March 2021 quarter, the group sold 368,273oz of gold at an AISC of AU$1,598/oz (US$1,235/oz)

The March quarter average realised price of A$2,222/oz translated to a revenue of AU$772 million. The company posted AU$696 million in cash and bullion, as of 31 March 2021 after paying AU$153 million in dividends.

The company has numerous opportunities to grow the returns by expanding profitable production, ensuring there is a strong focus on the assets with highest potential and identifying synergies and savings along the way. On Monday, the NST share price rose by 6.5%to AU$11.22.

Read More: Is this the Hottest Gold stock on ASX?


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