2 Stocks In Red Zone – EVN And SBM

The investors are keeping a close eye on the below two Australia-based gold explorers as their stock prices hit a low.

Evolution Mining Limited

Evolution Mining Limited (ASX: EVN) is based in Sydney and primarily explores for gold, copper and silver deposits. It is engaged in developing and operating gold related projects in Australia and New Zealand. With a large market cap of AUD 6.11 billion, the company has ~ 1.7 billion outstanding shares. At the end of the trading session on March 4th, 2019, the EVN stock last closed the market at a selling price of AUD 3.400, down 5.56%, indicating an intra-day fall of AUD 0.200. Meanwhile, EVN has generated a negative YTD return of 1.10% so far while the stock performance displayed an uptrend in the past six months with a positive return yield of 33.33%. 

Recently, the company acquired 19.9% stake in Tribune Resources Limited (ASX: TBR) through 11.05 million shares for a monetary consideration of AUD 41.3 million in cash. For the half-year ended December 31st, 2018, the Evolution Mining accumulated revenue from ordinary activities at $ 756.22 million, down 3% on the prior corresponding period ended December 31st, 2017. The EBITDA was recorded at around $ 359.66 million, also down by 10% on the previous corresponding period.

Besides, the statutory profit before income tax stood at $ 132.06 million, indicating a decline of 25% while the profit from ordinary activities after income tax attributable to members also reduced to $ 91.11 million, down 26% on the prior corresponding period.

St Barbara Limited

The Melbourne-based St Barbara Limited (ASX: SBM), together with its subsidiaries, is engaged in the mining, development and commercialisation of gold through two primary business segments comprising Leonora Operations and Simberi Operations. It also explores for silver and copper-gold porphyry deposits. The group has a market cap of AUD 2.3 billion with ~ 524.29 million outstanding shares. At the last of the trading session on March 4th, the SBM stock closed at a market price of AUD 4.200, down 4.11%, indicating an intra-day loss of AUD 0.180. So far, SBM has a negative YTD return of 6.01%.

Recently, St Barbara Limited released its report for the half-year ended December 31st, 2018, affirming a reasonably good performance with a strong balance sheet. As per the figures posted, the company recorded a statutory profit after tax of $ 83 million for the half year to December 31st, 2018, indicating a decline on $ 106 million in the prior corresponding period (pcp). The underlying profit after tax stood at $ 77 million, also down on $ 98 million in pcp.

Besides, the Gold production of 187,792 ounces at a Group All-in Sustaining Cost of AUD 1,008 per ounce was achieved with an EBITDA margin of 45% for the whole Group and 57% for Gwalia operations. The net cash contributed by the Gwalia and Simberi operations amounted to $ 150 million for the half year. The company also declared $ 0.04 dividend pay-out (100% franked) to be paid in March 2019. At the end of the period, the net cash was at $ 357 million with no debt.

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