The ASX gold sector finished the June Q with a strong performance thanks to continued gains in AUD gold prices. In the June Q, the weighted average all in sustaining cost (AISC) was $1,055/oz (vs $1,064/oz in March Q, -1%) versus a gold price of $1,726/oz ($1,691/oz in Mar Q +2% Q-o-Q). The gold price reached a high in AUD terms of A$1,769/oz (US$1,314) in May, its highest since September 2016. Argonaut’s gold coverage universe trades at ~1x P/NAV (vs 1.2x in early Sep Q). Production and costs bounced back following rain related impacts in the March Q. The mid-tiers continue to trade on premium metrics vs our NAV despite little or no production growth forecasts in FY19-20. We continue to believe the smaller producers and emerging miners offer value and upside against their mid-tier peer group having been left behind in the recent surge in top end valuations.
To access Argonauts Gold Sector & Diggers Wrap report please log in under the Client Area Log In at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
+61 8 9224 6888
+852 3557 4888