With gold flirting at record high, investors are becoming reluctant to Gold Investing assuming that the investments may have limited upside in the short term. However, investing in growth oriented ASX Gold Companies could be a smart diversification move besides deriving benefits of growth, which Top Gold Companies potentially offer.
Santana Minerals Limited (ASX: SMI)
:Santana Minerals Limited (ASX: SMI) announced the findings of its ongoing resource definition programs at the Bendigo-Ophir gold project in advance of its Pre-feasibility Study (PFS). The company received four additional assays from a drill program aimed at infilling and validating sections of the Rise and Shine (RAS) deposit, which features thick, high-grade intercepts defining a higher-grade core along the structure's axis.
All results released so far from the resource definition program at RAS have confirmed the continuity of the high-grade core of the deposit and expanded the extent of the >200 gold metal unit zone (total hole MU).
These results validate the current mine planning being carried out by the study team as part of the PFS, which initially focuses on extracting the high-grade core at RAS.
The company’s Bendigo-Ophir (BOP) RAS Gold Project demonstrates significant commercial potential and exceptional operational feasibility due to its advantageous strategic location.
The BOP Gold Project features several promising gold deposits located in close proximity to each other, with the RAS deposit being the most advanced and high grade. Additionally, three other deposits are progressing through the exploration stages and have established a modest current mineral resource base. Together, these deposits have enabled the company to establish a substantial mineral resource base of 2.46 million ounces of contained gold, with an average grade of 2.1g/t. This supports the potential for extensive future production capabilities and underscores significant scalability prospects beyond the current established mineral resource base at RAS.
Santana is making significant strides in advancing its RAS Deposit towards commercialization, bolstered by robust exploration outcomes, a well-established mineral resource base, and a recently finalized scoping study that underscores its potential as a viable gold producer in the coming years.
Santana is one of the Best Gold Mining Stocks demonstrating promising growth potential, bolstered by its commercial strengths across various dimensions, including resource scale and quality, streamlined regulatory processes, economic viability, operational effectiveness, and robust funding capabilities. These factors, combined with favorable trends in gold pricing, create a compelling opportunity for capital appreciation for shareholders.
Ramelius Resources Limited (ASX: RMS)
In FY24, Ramelius Resources Limited (ASX: RMS) recorded gold sales of 293,966 ounces at an All-In Sustaining Cost (AISC) of A$1,583 per ounce. Revenue surged by 40% to A$882.6 million, while EBITDA rose 76% to A$451.3 million, with underlying EBITDA up 67% to A$462.2 million. Cash flow from operations increased by 75% to A$454.8 million, and net cash and bullion grew 64% to A$446.6 million. Strategic investments included increasing their stake in Spartan Resources Limited to 18.35% by July 2024, with a valuation of A$274.1 million. The company is among the Gold Stocks with Dividends having declared a fully franked dividend of 5.0 cents per share, marking a 150% increase from FY23.
In FY24, Ramelius mined 3.6 million tonnes of ore, down 11%, largely due to the completion of mining at the Edna May hub. Despite this, the mined grade increased by 15% to 2.49g/t, driven by high-grade contributions from Penny and improved grades at Eridanus. Gold production rose by 22% to 293,000 ounces, supported by better grades and increased haulage capacity.
The company's underlying free cash flow reached A$315.8 million, reflecting strengthened cash flows throughout the year. Capital investments totaled A$240.3 million, which included spending on mine development, exploration, the acquisition of Musgrave, and investment in Spartan Resources.
A key earnings driver for Ramelius, Mt Magnet contributes 55% of the company's gold production and revenue, accounting for 69% of the underlying EBITDA. For FY25, production is targeted to increase by around 50%. Mt Magnet features superior margins, with a 70% EBITDA margin and an EBITDA of A$2,121 per ounce.
The company is one of the Top Gold Stocks positioned for growth with enhanced production from the high-grade Penny gold mine, the start of operations at Cue, and potential expansions at Eridanus, including both open pit and underground opportunities, as well as a possible mill expansion.
Source: Company’s Report
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