Why these two ASX Gold Mining stocks are sprinkling glitter?

  • March 31, 2021 07:00 PM AEDT
  • Team Kalkine
    Team Kalkine
    Team Kalkine
    22317 Posts

    Team Kalkine comprises of experts who understand various markets nuances and are enthusiastic and passionate to provide best possible offerings in the form of insights and stories. The team has rich experience of working across different markets with...

Why these two ASX Gold Mining stocks are sprinkling glitter?

Source: Phawat, Shutterstock

Summary

  • Newcrest Mining and Resolute Mining are among the hot stocks of the day after both the companies released significant updates.
  • Newcrest has announced the initial Mineral Resource for Red Chris, whereas Resolute reaffirmed its 2021 guidance.
  • Resolute has reaffirmed that its gold mining operations remain on track to achieve the 2021 cost and gold production targets.

Copyright © 2021 Kalkine Media Pty Ltd

In a significant update made on 31 March 2021, the gold industry's heavyweight Newcrest Mining (ASX:NCM) announced the initial Mineral Resource estimate for Red Chris. Another peer in the group, Resolute Mining Ltd (ASX:RSG), sees the best day in the past three months after it reaffirmed its 2021 guidance. Let us have a closer look at both the updates to understand why these stocks created a buzz among investors.

Newcrest Mining Limited

Newcrest Mining Limited (ASX:NCM) announced its initial mineral resource estimate for the Red Chris mine in British Columbia, Canada. NCM and Imperial Metals jointly operate the mining operations.

According to the company's latest release, the total measured and indicated resource totaled 980 Mt with 0.41 g/t Au & 0.38% Cu containing 13 Moz gold and 3.7 Mt copper. Inferred resources were estimated at 190 Mt of ores with 0.31 g/t Au and 0.30% Cu containing 1.9 Moz gold and 0.57 Mt copper.

Newcrest said that the underlying Mineral Resource estimate is a vital contribution to the Pre-Feasibility Study of Red Chris mine, which is anticipated to deliver before the end of September this year. The company also expects the reserve estimates for Red Chris to be delivered within the same period.

Good Read: 3 Stocks to evaluate to beat pandemic woes

Source: NCM Company Announcement, dated 31 March 2021

NCM’s Red Chris gold-copper porphyry project is located on the north flank of the Skeena Mountains in British Columbia. The first production from the Red Chris mine was delivered in July 2015 after the construction work of the open-pit mining operations was completed in November 2014.

NCM closed at $24.42 a share on 31 March 2021.

Resolute Mining Limited:

Copyright © 2021 Kalkine Media Pty Ltd

The Resolute Mining stocks (ASX:RSG) jumped around 4.7 per cent Wednesday, registering one of the biggest intraday gain since 16 December 2020. In the company's significant release Wednesday, the company stated that Senegal's Syama and Mako gold operations were on track to achieve 2021 cost and production guidance. The company also assured that the performance of March quarter is on target.

The company enjoyed a strong financial position with cash and bullion balances of $106 million at the end of 2020. The company expects sufficient cash flows in 2021 to support $50 million in debt repayment. 

In addition to that, the company will take proceeds of $105 million from the sale of Bibiani to Chifeng. The amount will be used to fast-track the company's debt repayment. RSG is working to resolve its position with the Ghanaian Government on the recently terminated lease of Bibiani.

Must Read: 3 quality gold stocks to hold for 2021

Apart from that, the company has provided production guidance for Syama and Mako. Syama is determined to increase production by more than 25 per cent, with an AISC to lie between A$1,200/oz and $1,275/oz. Mako is forecasted to produce 115-120koz at an AISC between $1,175/oz and $1,225/oz.

RSG closed at $0.44 a share on 31 March 2021.

All financial information pertains to Australian Dollars unless stated otherwise.

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK