- Gold prices settled higher for a third straight session on Monday buoyed by rising inflationary pressure and uncertainty amid the war in Ukraine and the continued rise in Treasury yield.
- The precious yellow metal is considered a safe-haven metal that is usually used to hedge against risks.
Gold prices settled higher for a third straight session on Monday buoyed by rising inflationary pressure, uncertainty amid the Russia-Ukraine war, and continued rise in Treasury yield ahead of US inflation data. The war has further impacted the global supply chains, driving global inflation and commodity prices higher.
Gold future was up by 0.49% at US$ 1,957.70 at the time of writing, after hitting its highest in nearly a month on Monday.
The precious yellow metal is considered a safe-haven metal that is usually used to hedge against risks like geopolitical events, rising inflation, and economic downturns that can cause the price of the yellow metal to be highly volatile. Gold stocks are the shares of companies that are listed on stock exchanges and are into gold mining or exploration of the metal or invest in financial assets that depend on the future value of gold.
Gold stocks have underperformed in recent years as compared to other sectors but since the start of 2022 prices of these stocks have surged with the hike in gold prices by double digits due to inflationary and geopolitical concerns. Investing in gold stocks can be a better option as these companies can give higher returns than investing in physical gold.
However, it is to be noted that not all gold stocks outperformed gold prices and before taking any buy call investors should carefully analyze the company’s potential.
Let us look at 3 FTSE-listed gold stocks in the news today.
Caracal Gold PLC (LON: GCAT)
The company was established to acquire and develop under-exploited gold mining opportunities in East Africa. Currently, it focuses on the optimisation of its existing producing asset, The Kilimapesa Mine in Kenya, and to build the current JORC Resource to more than 2 million ounces.
The Gold producer has recently announced the first gold production from its new heap leach plant at its Kilimapesa Gold mine and it has achieved ahead of schedule and marks. The company also plans for a listing on the Nairobi Securities Exchange (NSE), which will make it the first minerals mining company to be listed on the NSE and will provide investors an opportunity to invest in such stocks.
With a market cap of £14.54 million, the Main Market-listed company’s share value has depreciated by -17.54% since the start of this year, as of 12 April 2022. Caracal Gold Plc’s shares were trading at GBX 0.93, up by 2.78% at 8:05 AM (GMT), as of 12 April 2022.
Thor Explorations Ltd (LON: THX)
Thor Explorations Ltd is a West African-focused low-cost gold producer with a prospective portfolio of gold exploration projects that include the Douta project, Segilola Project, and Central Hounde Project. The company is listed on the TSX Venture Exchange and Alternative Investment Market (AIM) of the London Stock Exchange.
The company has recently reported total gold production of 7,220 ounces in March and 21,343 ounces in Q1 2022, with recovery in March averages of 95.1% and 94.1% in the first quarter. It also reported that its Segilola Gold Mine in Nigeria performed in line with the previous forecast. The company has forecasted to produce 22,000 to 24,000 ounces of gold in Q2 2022, with full-year guidance unchanged at 80,000 to 100,000 ounces.
With a market cap of £118.57 million, the AIM-listed company’s share value has depreciated by -21.66% since the start of this year, as of 12 April 2022. Thor Explorations Ltd’s shares were trading at GBX 18.50, at 8:05 AM (GMT), as of 12 April 2022.
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Rockfire Resources PLC (LON: ROCK)
The company is a precious and base metal exploration company with mineral assets located in Greece and Australia and has JORC-compliant resources of silver, gold, copper, and zinc. Its projects include Lighthouse, Molaoi, Copperhead, Copper Dome, and Marengo.
The company has recently reported that its Copper head project in Australia has delivered a maiden mineral resource of 120,000 metric tons of copper equivalent and 51 samples are taken from the old core of the Molaoi zinc deposit in Greece to verify a spread of original assays.
With a market cap of £3.96 million, the FTSE AIM All-Share listed company’s share value has depreciated by -36.52% since the start of this year, as of 12 April 2022. Rockfire Resources Plc’s shares were trading at GBX 0.37, up by 1.37% at 8:05 AM (GMT), as of 12 April 2022.
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.