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3 Australian gold mining stocks to buy immediately for portfolio diversification

By: Invezz
buy drdgold stock on q3 gold production

Gold price continued its bull run this week as global risks escalated. It has risen for five straight weeks, the longest winning streak since 2020. This rally continued soaring after the crisis in the Middle East continued on Friday morning, risking a broader conflict in the region. 

Gold mining stocks are rising but are mostly underperforming the metal itself. The VanEck Gold Miners ETF (GDX) is hovering at its highest point since May 2023. It remains sharply lower than its all-time high. So, here are the three Australian gold mining stocks to consider.


Northern Star Resources

Northern Star Resources (NST) is one of the biggest Australian gold mining companies with a market cap of over A$17 billion. It owns vast assets in the Kalgoorlie, Yandal, and Pogo regions of Australia. It also has some assets in North America.

The company will benefit from the rising price of gold. The most recent financial results revealed that its revenue rose by 9% in 2023 to A$4.1 billion. Its underlying EBITDA remained stable at $1.5 billion. It also boosted its capital returns to shareholders by offering A$388 million in dividends and buybacks.

Northern Star Resources will likely continue doing well this year as the price of gold gets supercharged. Indeed, the stock jumped to a high of $16 this year and has jumped in the past four straight weeks. It is also hovering near its all-time high and it could blast higher soon.

Regis Resources

Regis Resources (RRL) is another gold mining stock to consider. It is a big firm that has assets Duketon and Albany-Fraser regions. It is the third-biggest gold mining firm in Australia with a market cap of over $1 billion.

Regis Resources mined 220,632oz in the first half-year of the fiscal year. Its revenue jumped to $550 million as it sold gold at an average price of $2,119. Its EBITDA stood at more than $167 million. 

The company will likely do well this year for two main reasons. First, Regis Resources will receive $20 million in a tax refund from the government. Second, it sees its gold production rising to between 415 and 455koz for the financial year.

Regis Resources’s revenue guidance was based on the gold price remaining between $1,995 and $2315 per ounce. As such, if gold continues soaring, it means that its revenues and profits will be higher than estimated.

Also, Regis Resources is still undervalued considering that it is trading sharply below its all-time high. It was trading at $2.28, down from an all-time high of about $6.

Evolution Mining

Evolution Mining (ASX: EVN) is another big gold mining company with vast assets in key Australia’s regions like New South Wales and Queensland. 

Its stock price has bounced back from last year’s low of A$1.78 to over $4.31 or a 130% increase. 

Evolution Mining produced 651koz of gold in 2023 and another 47kt of copper, a metal whose price is also rising. Its annual revenue rose from $2 billion in 2022 to over $2.22 billion. However, its profit also dropped to $120 million. 

There is a likelihood that the Evolution Mining share price will continue doing well in the coming weeks as copper and gold rises.

The post 3 Australian gold mining stocks to buy immediately for portfolio diversification appeared first on Invezz

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