Gold prices rose to their one month high following the release of U.S. jobs data. The data reflected softening job market thus lifting expectations of a potential rate cut in September.
Any drop of a hint by Fed of a rate cut it could make bulls take it to the all time high. Investors looking for ASX Gold Stocks can likely benefit from this surge.
The Best Gold Stocks to Invest in are :-
Alkane Resources Limited (ASX: ALK)
Alkane Resources Limited continues to deliver significant financial performance and growth from its current operational base, particularly its gold operations at Tomingley. The company maintains a promising five-year expansion plan for its Tomingley operations.
Alkane Resources Limited announced on 4 July 2024, the FY24 production updates for its Tomingley Gold Operations, highlighting a robust production performance in the final quarter of the financial year to achieve the revised production target of 55,000oz to 58,000oz Au. Tomingley yielded 57,217oz of gold for the 12 months ending on 30 June 2024. Initial all in sustaining costs (AISC) are projected to align with the updated guidance ($2,150/oz to $2,350/oz) for the same period.
As of 30 June 2024, the company's unaudited cash, bullion, and listed investments amounted to $54.5m, comprising $45.5m cash, $8.7m bullion on hand, and $0.3m listed investments. During the quarter, $42.8m was drawn from the $60m debt facility provided by Macquarie Bank.
Furthermore, the company released additional findings from its drilling initiative at the Northern Molong Porphyry Project (NMPP) in Central New South Wales. The program targeted the most critical areas within the tenement package.
At Boda 2-3, the high-grade hydrothermal breccia identified by drill hole BOD094 was explored along strike by two diamond core holes. BOD159 intersected a chalcopyrite cemented breccia 40m north and along strike of BOD094, while BOD158 encountered a more distant hydrothermal breccia 120m north along strike.
The company continues to drive significant Financial Growth, with its revenues increasing from $92 million in 2019 to $190 million in 2023. During the same period, its earnings have grown from $23 million to $42 million, and cash generation has nearly tripled from $36 million to $95 million. These improvements reflect a substantial enhancement in the company’s Financial Position, leading to significant growth in its book value over the years.
Evolution Mining Limited (ASX: EVN)
Evolution Mining boasts a portfolio characterized by long life, low cost, and high margin assets. These assets are strategically positioned to deliver sustainable value to shareholders over the long term. By leveraging these key attributes, Evolution Mining reinforces its position as a leading player in the mining industry, maximizing profitability while minimizing operational risks.
With an average mine life of approximately 15 years in Tier 1 jurisdictions, Evolution's portfolio stands out for its quality and longevity.
EVN's implementation of Battery Electric Vehicles and fleet upgrades has doubled daily loader rates, enhancing productivity and minimizing operational disruptions.
The acquisition of Northparkes enriches Evolution's portfolio with a dependable and well-established copper and gold operation boasting a long mine life.
A restructuring initiative within the Balance Sheet is expected to unlock approximately US$290 million in cash over the next three years. This strategic move aims to optimize EVN's financial position and enhance liquidity, providing flexibility for future investments, debt reduction, or dividend payments. The released cash will strengthen EVN's financial stability and further its growth objectives.
The company recorded a substantial 28% increase in underlying EBITDA, amounting to $573 million, reflecting strong operational efficiency and revenue growth. Notably, EVN achieved a remarkable 10% improvement in underlying EBITDA margin, reaching 43%, indicative of enhanced profitability. Furthermore, underlying net profit after income tax surged by an impressive 53% to $158 million, underscoring the company's ability to translate revenue growth into profitability.
Source: Company's Report
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