Gold Digger: The froth (and more) has been knocked off the ASX gold sector
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Gold – seen as a hedge against broader market volatility — is at five-month lows after vaccine hopes and the prospects of a smooth Biden transition improved risk appetite.
Precious metals stocks have followed.
For gold bugs, it looks something like this:
Which isn’t the end of the world if you believe the consensus view — that gold prices are going to leg up again pretty soon — and as see it as an opportunity to buy the dip.
Keep the faith.
This week 50 ASX gold stocks went up, 142 went down, and 25 didn’t move.
It’s been a tough month, with 158 – or 72 per cent – of the stocks on our list in the red.
Here’s how ASX-listed gold stocks performed November 23 – November 27 [intraday].
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Gateway retained some glow after last week making a “breakthrough” high-grade discovery at its Gidgee project in WA, with one hole hitting a remarkable 10 metres at 9.2 grams per tonne gold.
The hole was part of a reverse circulation drilling campaign designed to test for gold between Gateway’s cornerstone +240,000oz Whistler and Montague-Boulder deposits at Gidgee.
The explorer subsequently scored a $150,000 government grant to drill four 600m deep holes to guide “long term exploration targeting of the gold-rich system”.
Pilbara explorer Anax – formerly Aurora Minerals –intersected significant near surface copper, zinc and lead sulphides at the Whim Creek farm-in.
Anax Metals added that it intends to start exploration work for gold at its Whim Creek project in early 2021.
The stock is now up ~150 per cent since relisting earlier this month.
Explorer Viking Mines is looking to buy the historic, high grade First Hit gold project in WA.
The project includes the historical First Hit Mine and numerous advanced exploration targets, “each with the potential to be repeats of the First Hit Mine as no mining or exploration has been undertaken on the project for ~ 18 years”, the company says.
The 90-year-old First Hit mine last operated between 2001-2002, producing 30,830oz at grades of about 13g/t.
The 3.6moz Misima gold project in PNG would create $1.5 billion in free cashflow over 17 years, making it “one of the best undeveloped projects in the Asia-Pacific region”, Kingston managing director Andrew Corbett says.
The low cost operation would produce 130,000oz of gold a year at an all in sustaining cost (AISC) of ~$1,159/oz, according to a new project study.
The current gold price is ~ $2469/oz. Nice profit margin.
Early stage drilling was completed at Sabre’s aspirationally named ‘Bonanza’ gold project in WA on November 19, with assays pending.
The explorer then received binding commitments for $4.8m in a cap raise — well above the $3m originally sought.