Gold Digger: The top performing junior gold stocks for July
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Strong consumer buying and modest institutional investment helped create gold demand of 955.1 tonnes over Q2 – a 9% rise from Q1 2021, and in line with the equivalent period last year.
While both consumers and retail investors were purchasing again, institutional investors were less consistent, according to the World Gold Council’s latest Gold Demand Trends report.
There were only modest net inflows of 40.7t during Q2 (worth US$2.4bn) into gold Exchange Traded Funds (ETFs) – financial instruments backed by physical gold whose flow “swings” are often driven by institutional buyers.
These inflows only partially offset the heavy outflows the industry witnessed in the previous quarter — making 2021 the first time since 2014 with net outflows in the first six months of the year.
Central banks were net buyers of 333.2t, 39% above the 5-year H1 average.
“Looking ahead, we expect continued improvement in the consumer elements of demand for the rest of the year,” Louise Street, senior markets analyst at the World Gold Council says.
“And while ETFs will most likely not repeat the record performance of 2020, the need for effective risk hedges and the continued low-rate environment supports our view that investors will add to their strategic allocations throughout the rest of the year.”
Here’s how ASX-listed gold & silver stocks are performing:
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Market Cap: $200 million
Performance in 2021: +145%
Predictive has uncovered more bonanza grade gold results — like 17m at 31.9 g/t — from deeper drilling at its ‘Bankan’ project in Guinea.
In April last year, the long-time West African prospect generator rocketed from 0.5c to 7c per share – a 900 per cent gain – on a new gold discovery.
The stock has since increased those gains to an eye-watering ~2900%.
Until now, NE Bankan has been shaping up as a large gold deposit with excellent geometry for a large-scale open pit mine, managing director Paul Roberts said.
“These new results have added a whole new dimension to the project as it now appears that the core of the deposit contains consistently higher grades in a zone which is expanding at depth,” he said.
Market Cap: $26 million
Performance in 2021: -23%
Earlier this month ex Newmont/current Northern Star dealmaker Dave Hall joined the board. Then the explorer hit more visible gold in ‘step out’ drilling 165m north of the historical workings at the ‘First Hit’ project:
Prior to closure in 2002 due to depressed gold prices below $US320/oz, First Hit produced ~30koz ounces of gold at an average grade of ~7.7g/t gold.
“What is exciting is that we have seen gold in a quartz vein in one of the step out holes located ~165m north of the historic underground workings and in a shallow position below surface,” Viking boss Julian Woodcock says.
“This confirms that the structures hosting the First Hit mineralisation contain gold beyond the previously defined limits of mineralisation.”
Market Cap: $21.5 million
Performance in 2021: -35%
In April this year industrious explorer Nexus executed an option to purchase the 194sqkm ‘Bethanga’ porphyry copper-gold project in Victoria.
It has now hit the ground with some early-stage exploration.
“It’s been a very positive start with what is being observed during the early stages of the ground-based soil sampling program, and the associated geological mapping and sampling program.” managing director Andy Tudor says.
Earlier in the month, Nexus pulled thick high grades – like 10m at 6.42g/t – at the ‘Crusader’ prospect, within the Company’s Wallbrook gold project in WA’s eastern goldfields.
Crusader mineralisation currently a very extensive at +600m long and +500m deep, the company says. A substantial 6000m RC drill program has now kicked off at the ‘Templar’ prospect.