Gold Digger: A weekly recap of the news driving ASX small cap gold stocks
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Barring a slight dip early last week, gold continued its surge back towards record highs with a 2.3 per cent gain to $US1,583.89/oz ($2,355.42/oz) on continued concerns about the impact of the coronavirus on global growth.
Australian tourism has already been smacked around by the dual impact of the recent bushfires and the ban on Chinese tourists, while iron ore prices tumbled earlier this month.
Meanwhile, South East Asian powerhouse Singapore has slashed its 2020 gross domestic product (GDP) forecast to between -0.5 per cent and 1.5 per cent.
China is also planning to launch several stimulus measures to stall the impact of the coronavirus on its economy.
>>>Scroll down for this week’s top 3 small caps
Newcrest Mining’s (ASX:NCM) shares slipped after reporting a 12 per cent decline in gold production for the six months ending December 2019.
Despite this, it reported an 18 per cent increase in underlying profit to $280m due to a higher realised gold price, the favourable Australian to US dollar exchange rate and a lower depreciation expense.
Production at the company’s Cadia mine was down 9 per cent due to lower volumes and a fall in gold grades, while Lihir output fell 12 per cent due to lower head grades.
The company also trimmed production at its Telfer mine by 15 per cent as a delibrate change in its mill operating strategy.
Here’s how ASX gold stocks performed for the period Feb 3 — Feb 10 [intraday]:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Moho Resources (ASX:MOH) +125%
Market Cap: ~ $4m
Moho was a standout performer last week, rising 125 per cent after drilling extended known high-grade gold mineralisation at its East Sampson Dam prospect by 25m to the north and south of previous drilling.
The top result was 2m at 24.61 grams per tonne (g/t) gold from a depth of 56m, within a broader intersection of 5m at 10.36g/t gold from 54m.
The company expects to deliver a maiden resource in March and the results to date make it more likely that it could achieve its goal of bringing the prospect into early production.
Market Cap: ~ $213m
The thick, shallow and high-grade drilling results at the Hemi discovery sent shares in De Grey up 56 per cent.
A top result was 13m grading 8.8g/t inside a larger 40m intersection grading 5.1g/t.
The hits confirm a substantial, steeply dipping zone of high-grade gold at Section A, which is currently 30m wide extending to 130m below surface.
DGO Gold (ASX:DGO) +40%
Market Cap: ~$63m
In a repeat of last week, DGO’s 10.7 per cent shareholding in De Grey has once again granted it a position in the top gainers despite the lack of any news.
DGO itself has 100 per cent-owned tenements adjoining De Grey’s Pilbara ground and has plans to start a drilling program in March 2020.