With gold stocks strengthening after the US data, it appears to be starting the next move after some consolidation. As such, time could not be more appropriate to invest in Gold Mining Companies Stocks
Two stocks that draw attention amid top mining stocks are
Resolute Mining Limited (ASX: RSG)
Resolute Mining Limited declared on 19 June 2024 that it received $30 million from Ravenswood Gold Pty Ltd (Ravenswood), the owner of the Ravenswood Gold Mine, which the Company sold on 31 March 2020. According to the original agreements between Resolute and Ravenswood, Resolute was entitled to a Gold Price Contingent Amount after the cumulative ounces produced from Ravenswood exceeded 500,000oz of gold over a four-year period.
The company had previously announced its quarterly results for March 2024.
During the quarter, Resolute poured 76,351 ounces (oz) of gold, meeting expectations at both Mako and Syama. The All-In Sustaining Cost (AISC) for the quarter was $1,487/oz, a figure similar to Q4 2023 ($1,480/oz), despite the lower gold pouring volume during the quarter.
Gold sales for the period totalled 69,000oz, achieved at an average realized price of $1,950/oz. This is compared to Q4 2023, which saw 79,480oz sold at $1,954/oz. Delays in gold sales were attributed to the Easter Weekend Bank Holidays and the fulfilment of the last remaining hedges.
Furthermore, Resolute made a final repayment of $25 million on the Term Loan Facility, making the company completely unhedged. The quarter saw significant cash generation of $34.7 million before debt and interest payments.
As of 31 March 2024, the company reported net cash of $33.9 million and cash and bullion totalling $80.7 million.
Resolute has recently experienced a significant rebound in profitability after a period of substantial losses, signalling potential for robust improvements in other financial metrics and ongoing financial expansion. This positive outlook is particularly promising given the closure of the hedge book and the upward trend in gold prices.
Key expansions of existing projects and the commercialization of newer ventures remain imminent, underscoring the company's solid growth prospects.
Newmont Corporation (ASX: NEM)
Newmont Corporation (ASX: NEM) in its quarterly results for the period ended on 31 March 2024, reported that during the quarter, the firm produced 1.7 million gold ounces and 489 thousand gold equivalent ounces (GEOS) from copper, silver, lead, and zinc; mainly due to the production of 1.4 million gold ounces from Newmont's Tier 1 Portfolio.
The company also revealed gold Costs Applicable to Sales (CAS) per ounce of $1,057 and gold All-In Sustaining Costs (AISC) per ounce of $1,439; Newmont's Tier 1 Portfolio reported CAS of $1,000 per ounce and AISC of $1,378 per ounce.
The company reported Net Income of $179 million, Adjusted Net Income (ANI) of $0.55 per share, and Adjusted EBITDA of $1.7 billion for the quarter.
Newmont has significant plans to advance the development of key projects in its pipeline. The company, with its robust operational base, continues to deliver significant year-on-year revenue growth, increasing from US$9.7 billion in 2019 to US$11.8 billion in 2023. It is poised to further enhance its revenue generation through production expansion over the medium to long term as its expansion plans come to fruition.
Recently returning to profitability, Newmont now shows substantial potential for earnings growth in the coming years, particularly as newer projects are expected to reduce average production costs.
Source: Company's Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.