Gold stock market is showing signs of stability though gold prices continue to be muted following uncertainty about further rate cuts, However, best gold mining stocks are showing their potential to shine brightly in this year.
Regis Resources Limited (ASX: RRL)
Regis Resources Limited (ASX: RRL) reported strong operational and financial performance for the December 2024 quarter, producing 101.3koz of gold, bringing FY24 total to 417koz at an AISC of $2,286/oz. Cash and bullion increased by $149M in the quarter to a record $529M, supported by robust operational delivery and record unhedged gold prices. H2 FY24 operating cash flow of $349M nearly tripled H1’s $126M, reflecting the strategic benefit of closing legacy hedging positions. Despite this, FY24 statutory net loss after tax was $186M, driven by $194M in non-cash impairments (primarily McPhillamys) and $179M in hedge-related losses. Management’s decision not to declare an FY24 dividend reflects its focus on balance sheet strength, hedge removal, and reinvestment.
Operationally, underground production increased 15% YoY, with new developments at Duketon (Garden Well Main and Rosemont South) expected to contribute from FY26. At Tropicana, a third underground mine under the Havana pit received approval post-yearend. Exploration spending remained high, with over 243km drilled, including 151km at Duketon, to support resource growth and mine-life extension. Sustainability initiatives advanced, with a 9MW solar farm commissioned at Duketon and Tropicana’s 62MW clean energy system nearing completion. Over 200ha of land was rehabilitated, underscoring ESG progress.
The McPhillamys project faced a major regulatory setback. A Section 10 Federal protection order, despite full Commonwealth and State approvals and overwhelming local support, has rendered the project unviable in its current form, resulting in the withdrawal of declared reserves and a $194M impairment. This decision highlights ongoing regulatory risks despite the project’s strong fundamentals. Regis continues to deliver operationally while maintaining a strong balance sheet and unhedged gold exposure, positioning the company to capitalize on favorable gold price dynamics. However, cost pressures ($2,286/oz AISC) and regulatory headwinds remain areas for caution. Upcoming project contributions and exploration upside provide potential catalysts for medium-term growth.
Turaco Gold Limited (ASX: TCG)
Turaco Gold Limited (ASX: TCG) has made significant progress at its Afema Project in Cote d'Ivoire, particularly with its drilling activities. Recent diamond drilling at the Jonction Deposit has confirmed high-grade gold mineralisation, including results like 9m @ 9.88g/t Au and 10m @ 7.32g/t Au. These results are helping to improve the confidence in the mineral resource estimate (JORC MRE 660k @ 2.0g/t gold) and have confirmed the continuity of high-grade material at depth. Additionally, shallow drilling at the Affienou prospect along the southern portion of the Niamienlessa trend has yielded promising results, with intercepts such as 7m @ 3.78g/t Au and 23m @ 1.19g/t Au. Mineralisation at Affienou is still open in all directions, and the potential for further discoveries is high given its proximity to other key discoveries on the Niamienlessa trend.
Turaco is one of the gold companies to invest in as it has secured the option to expand its Afema Project by acquiring an additional 366km² of exploration tenure. This land is located adjacent to the existing project and lies within the prolific Sefwi greenstone belt. The exploration permit is under application, and Turaco can acquire 100% of it within 12 months following a reconnaissance exploration program. This expansion will increase the total project area to over 1,600km² and further consolidate Turaco’s dominant position in the region. The area is highly prospective, with indications of mineralised shear zones and regional structural trends favorable for gold mineralisation.
Additionally, Turaco has accelerated its earn-in agreement, increasing its stake in the Afema Project to 80%. This will be achieved through a payment of US$8.395 million, adding to previous payments already made. The deal also includes a reduction in the net smelter royalty to 1.5% and a potential discovery payment of US$1 million upon reaching a JORC resource of 2.0 million ounces. With three drill rigs operating and ongoing exploration activities, Turaco is poised for further growth at Afema.
Source: Company’s Report
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