PAF, CMCL, EDV: Gold stocks to watch as UK sanctions Russian gold exports

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Highlights

•    New exports of Russian gold will be banned by the UK, US, Japan, and Canada to pressurise Russian President Vladimir Putin and hit Russia’s ability to fund the war in Ukraine. 
•    Ban on gold imports by the UK will come into force in the coming weeks with legislation introduced in parliament. 

 


New exports of Russian gold will be banned by the UK, US, Japan, and Canada after the G7 countries agreed on new measures to pressurise Russian President Vladimir Putin and hit Russia’s ability to fund the war in Ukraine. In an official statement, the UK government said the move will have a global reach.

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As London is a major global trading hub for gold, last year’s exports to Russia were worth £12.6 billion. The value of the yellow metal has also risen since the Ukraine invasion as oligarchs have rushed to buy bullion to avoid sanctions. 
Since the start of the Russia-Ukraine war in February, Western countries have imposed sanctions on over 100 Russian entities and more than 1,000 individuals. 
The ban on gold imports will come into force in the coming weeks in the UK, where legislation will be introduced in parliament. It will be applied to newly mined or refined Russian gold worth around £13.5 billion. 
However, the Boris Johnson government has no plans to extend its restrictions to Russian gold purchased legitimately before the ban was imposed. Gold Future on 27 June 2022 was up by 0.34% at US$1,836.60, at 2:14 AM (GMT+1).

Let us look at five FTSE-listed gold stocks that you may get impacted because of recent development.  

Pan African Resources Plc (LON: PAF)

The shares of African-focused gold producer, Pan African Resources Plc, were up by 2.82%at 8:30 AM (GMT+1) on 27 June 2022 and were at GBX 19.66. The FTSE AIM UK 50 index constituent has provided its shareholders with a return of 10.70% over the last one year as of 27 June 2022, while its year-to-date return stands at 17.72%. Pan African Resources Plc currently holds a market cap of £425.01 million. 

Caledonia Mining Corporation Plc (LON: CMCL)

With a market cap of £121.66 million, as of 27 June 2022, the shares of the FTSE AIM All-Share listed gold mining company were trading at GBX 948.00, at around 08:36 AM (GMT+1) on 27 June 2022. Caledonia Mining Corporation Plc has given its shareholders a return of 0.26% since the start of this year, while its year-to-date return stands at 4.48%. 

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Endeavour Mining Plc (LON: EDV)

The shares of the multinational gold mining company, Endeavour Mining Plc, were down by 1.77% at 10:53 AM (GMT+1) on 24 June 2022, at GBX 1,716.00. The FTSE 100 index constituent has provided its shareholders with a return of 6.05% over the last one year as of 24 June 2022, while its year-to-date return stands at 2.93%. Endeavour Mining Plc currently holds a market cap of £4,330.05 million. 

Centamin Plc (LON: CEY)

With a market cap of £935.11 million, as of 27 June 2022, the shares of the FTSE 250 listed gold mining company with a focus on the Arabian-Nubian Shield were trading at GBX 82.90, up by 2.50%, around 08:40 AM (GMT+1) on 27 June 2022. Centamin Plc has given its shareholders a negative return of -6.56% since the start of this year. 

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Hochschild Mining Plc (LON: HOC)

The shares of the leading UK-based silver and gold mining business, Hochschild Mining Plc, were up by 3.91% at 08:40 AM (GMT+1) on 27 June 2022, at GBX 109.00. The FTSE 250 index constituent has provided its shareholders with a negative return of -31.50% over the last one year as of 27 June 2022, while its year-to-date return stands at -15.91%. Hochschild Mining Plc currently holds a market cap of £539.06 million. 

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

 


 

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