Gold Digger: Australia’s big gold miners are getting bigger, and investors should reap the benefits

“When you stop growing you start dying,” is a saying the ASX’s largest gold miners have apparently taken to heart.

While hopefully remaining cognisant of the expensive, value-destroying deals which occurred when gold last peaked in the 2010s, cashed-up majors are stepping up the push for cheap ounces via mergers and acquisitions (M&A), project development, and greenfields exploration.

Newcrest Mining (ASX:NCM) produced 512,000oz gold, 35,000t copper in the March quarter at a very low all in sustaining cost (AISC) of $891/oz. That represented a 49% profit on every ounce sold.

Meanwhile, construction at the mammoth 13 million ounce gold, 3.7 million tonne copper ‘Red Chris’ project in Canada and the 3.4moz Haverion project in WA “is progressing to plan”.

This was Northern Star’s (ASX:NST) first quarterly report following the ‘merger of equals’ with Saracen Mineral Holdings (ASX:SAR).

The miner produced 368,273oz at an AISC of $1,598/oz. That’s a solid profit margin per ounce of 28%.

An extensive exploration campaign will feed into the May Reserve and Resource update, which will—in turn – be a central plank of the company’s ‘Strategy Day’ in July.

“We are still three months away from completing this detailed plan, but the huge opportunities we have in so many areas are already very clear and demonstrate the significant benefits of combining the Groups’ assets and people,” Northern Star says.

Following the end of the quarter Regis Resources (ASX:RRL) announced a game changing acquisition — a 30% interest in the Tropicana gold mine for $903m.

Tropicana is a tier-one asset with a production outlook of 380,000oz to 430,000oz in FY21. It has a current 10 year life with additional upside.

The immediate impact is clear: Regis solidifies its position as a top 5 Aussie gold miner with annual, low cost production of ~500,000oz per year.

Then there’s ~700,000oz per annum behemoth Evolution Mining (ASX:EVN), which acquired TSX-listed Battle North for about $360m in cash.

This expands Evolution’s footprint in the Red Lake region of Canada.

The additional processing capacity from Battle North’s new Bateman mill will accelerate Evolution’s long-term objective of producing +300,000 ounces of gold per year from Red Lake (currently ~140,000oz).

Newcrest, Northern Star, Regis and Evolution share price charts

 

Winners & Losers

Here’s how ASX-listed gold & silver stocks are performing:

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop

CODECOMPANY1 WEEK RETURN %1 MONTH RETURN %6 MONTH RETURN %1 YEAR RETURN %PRICE MARKET CAP
FAUFirst Au504141180.024 $ 13,521,832.59
ARVArtemis Resources4062-202640.12 $ 119,360,253.29
GBRGreat Boulder Resources3131-21550.047 $ 13,012,691.33
HXGHexagon Energy30522131140.15 $ 58,447,528.65
CDTCastle Minerals2515152000.015 $ 10,987,512.27
CSTCastile Resources2543-29710.3 $ 57,915,935.09
SMISantana Minerals2319-24-240.16 $ 18,245,221.76
BBXBBX Minerals20-2-321520.265 $ 115,026,127.64
RGLRiversgold1917287500.068 $ 26,369,784.94
LCLLos Cerros1826224270.195 $ 91,893,954.75
CLACelsius Resources1821523700.047 $ 38,729,595.56
MZZMatador Mining1729-101080.375 $ 63,403,897.79
NAGNagambie Resources17445650.084 $ 39,994,587.68
RDNRaiden Resources1722-243670.028 $ 32,732,185.89
DREDreadnought Resources175-162500.021 $ 51,250,796.27
ZNCZenith Minerals161421425040.29 $ 91,251,609.30
EMREmerald Resources162465980.99 $ 499,935,290.79
SLZSultan Resources167-202140.22 $ 13,906,877.80
AL8Alderan Resources1512-223820.082 $ 24,431,169.54
STKStrickland Metals1528-71680.023 $ 9,686,484.98
NMRNative Mineral Resources15-110.31 $ 8,644,050.00
AQIAlicanto Minerals14-11-23600.12 $ 39,344,095.32
BNZBenz Mining14140.885 $ 30,330,848.53
PUAPeak Minerals131801520.026 $ 15,367,566.30
KCCKincora Copper12380.275 $ 15,000,000.00
FFXFirefinch12741424360.375 $ 281,847,236.04
GNMGreat Northern1111-381000.01 $ 10,579,196.04
CGNCrater Gold Mines11-5821220.02 $ 24,549,917.34
WCNWhite Cliff Minerals1111-433200.021 $ 10,861,124.38
BARBarra Resources110-34500.021 $ 12,874,553.92
NAENew Age Exploration1150626000.021 $ 24,390,858.20
AAUAntilles Gold10-51072390.095 $ 18,538,456.66
VRCVolt Resources10381003400.022 $ 54,747,546.32
CWXCarawine Resources100-14370.28 $ 31,033,622.07
BMOBastion Minerals1050.23 $ 10,916,309.40
TRMTruscott Mining Corp1010153600.023 $ 2,942,655.51
TTMTitan Minerals10100920.115 $ 119,642,505.57
AZSAzure Minerals91133270.35 $ 106,289,573.75
ANXAnax Metals952404340.083 $ 28,715,078.98
PGDPeregrine Gold90.3 $ 8,712,957.00
SAUSouthern Gold98-9-230.096 $ 20,692,889.33
TMXTerrain Minerals9901000.012 $ 7,357,610.09
MRZMont Royal Resources92931400.36 $ 11,291,695.80
PAKPacific American Hld99-41180.024 $ 7,008,867.80
GBZGBM Rsources920-25380.12 $ 54,127,257.50
DEGDe Grey Mining936283101.46 $ 1,908,239,570.28
PKOPeako Limited946153520.038 $ 7,298,058.73
PNMPacific Nickel Mines96-19-490.051 $ 10,532,521.84
BDCBardoc Gold88750.078 $ 135,350,075.33
CXUCauldron Energy88-29900.04 $ 17,175,981.46
SRNSurefire Rescs NL8-4-2912500.027 $ 29,623,331.07
YRLYandal Resources811-211620.49 $ 46,915,261.00
CTOCitigold Corp8882500.014 $ 36,140,000.00
DEXDuke Exploration770.375 $ 22,626,379.13
VANVango Mining7-4-14-400.078 $ 74,398,161.67
EM2Eagle Mountain71572417071.21 $ 242,322,053.16
S2RS2 Resources6-3-38790.165 $ 51,957,044.54
MKGMako Gold610-91380.1 $ 25,724,160.20
BC8Black Cat Syndicate61310980.79 $ 87,186,506.93
MEGMegado66-250.18 $ 7,343,783.64
IPTImpact Minerals6-21-101380.019 $ 33,836,842.38
TARTaruga Minerals528114900.059 $ 26,060,485.84
BATBattery Minerals5-17-262330.02 $ 42,866,744.36
CHNChalice Mining5331565246.99 $ 2,403,477,488.05
FMLFocus Minerals59-17290.315 $ 53,910,826.68
FFRFirefly Resources5-8-444760.11 $ 33,807,348.30
GTRGti Resources5-410690.022 $ 16,112,949.95
NXMNexus Minerals5-2-301280.091 $ 22,217,802.06
MEUMarmota Limited57-2310.046 $ 44,552,549.74
SVLSilver Mines Limited49211730.235 $ 273,302,155.43
CELChallenger Exp48582230.355 $ 197,917,744.42
ARNAldoro Resources4521091920.365 $ 26,891,917.19
CAZCazaly Resources420141230.049 $ 17,369,473.55
DTMDart Mining NL4-17-361190.125 $ 12,493,184.50
NWMNorwest Minerals4-6-30-520.077 $ 9,033,734.86
CHZChesser Resources4-13-441180.135 $ 58,695,276.25
MTCMetalstech4-10-16-160.135 $ 19,053,792.94
KTAKrakatoa Resources33-231000.062 $ 17,294,900.00
NVANova Minerals3-6-142230.155 $ 242,142,263.82
TINTnt Mines Limited3-9-352330.16 $ 15,909,828.00
ENREncounter Resources3-3-18430.165 $ 52,856,920.25
TAMTanami Gold NL3-7-1670.075 $ 88,132,278.45
RXLRox Resources3-5-32360.038 $ 89,836,338.73
REZResourc & En Grp3-7-611600.039 $ 16,403,869.98
IDAIndiana Resources3-4402760.08 $ 23,829,506.88
GULGullewa Limited35-22820.082 $ 14,954,594.20
GMNGold Mountain2162-120.044 $ 31,981,784.23
KZRKalamazoo Resources26-28110.45 $ 60,693,059.64
ADNAndromeda Metals2-29473900.235 $ 496,967,400.21
BYHBryah Resources124241520.073 $ 11,208,457.08
HRNHorizon Gold1-6-12990.395 $ 41,609,886.24
DGODGO Gold Limited1132683.52 $ 258,902,152.96
OZMOzaurum Resources0-60.17 $ 8,583,300.00
MRRMinrex Resources0-4-191200.022 $ 11,573,878.16
BTRBrightstar Resources0-1366000.035 $ 14,951,525.98
SFMSanta Fe Minerals00-91000.1 $ 7,281,878.90
ZAGZuleika Gold00-41640.041 $ 16,813,828.29
MEIMeteoric Resources0-11-193310.056 $ 74,943,117.72
ALYAlchemy Resource023-16360.016 $ 11,428,138.70
THRThor Mining PLC00-35670.015 $ 7,543,343.91
STNSaturn Metals012-4160.415 $ 48,922,061.85
OKROkapi Resources06-3420.185 $ 9,348,144.78
GWRGWR Group0171073190.31 $ 93,863,797.33
DDD3D Resources Limited0013030.005 $ 18,101,860.46
AOPApollo Consolidated0-3-3430.33 $ 95,244,794.70
CBYCanterbury Resources05-12570.11 $ 13,423,823.64
DTRDateline Resources00601000.004 $ 30,908,773.27
HRZHorizon0249430.12 $ 70,996,900.00
KGMKalnorth Gold00080.013 $ 11,625,120.78
LNYLaneway Res020-14500.006 $ 22,650,395.60
PNXPNX Metals Limited014-2000.008 $ 29,217,548.09
PRXProdigy Gold NL0-4-2190.044 $ 25,547,614.66
RVRRed River Resources0-12-22610.22 $ 113,910,360.74
TMZThomson Res0-8397220.115 $ 54,541,678.92
BCNBeacon Minerals0310-10.035 $ 125,278,878.06
KAIKairos Minerals03-261770.031 $ 50,293,227.72
MHCManhattan Corp0-7-44750.014 $ 21,367,901.70
AQXAlice Queen00-3200.019 $ 20,834,707.81
SPQSuperior Resources0-8-373270.012 $ 17,957,365.28
MCTMetalicity Limited00-284000.013 $ 22,972,615.32
AVWAvira Resources0-13-362500.007 $ 9,625,280.00
ADTAdriatic Metals091932.24 $ 408,446,864.28
AXEArcher Materials-1-7923750.855 $ 197,781,977.75
IVRInvestigator Res-110726170.086 $ 117,169,274.72
MKRManuka Resources.-1-4-110.425 $ 40,121,951.52
MOHMoho Resources-1-15-3110.076 $ 7,729,323.90
BNRBulletin Res-119580.071 $ 12,371,222.11
TBRTribune Res-2-1-26-185.23 $ 280,704,211.95
GIBGibb River Diamonds-2-26-501600.065 $ 13,748,113.93
TIETietto Minerals-2-18-33-50.29 $ 132,293,782.24
MMLMedusa Mining-2-2-1150.805 $ 167,338,007.31
NUSNusantara Resources-2-6-12110.255 $ 58,464,616.79
MGVMusgrave Minerals-215-261940.37 $ 199,958,605.88
M24Mamba Exploration-2-220.235 $ 9,250,000.00
EMUEMU NL-2-13-152130.047 $ 21,249,209.76
WWIWest Wits Mining-2-2737000.08 $ 110,683,456.00
TSOTesoro Resources-3-10-452290.185 $ 94,909,562.85
AWJAuric Mining-3-360.18 $ 7,288,710.84
CMMCapricorn Metals-3130281.73 $ 598,533,309.09
AGCAGC-3-30.165 $ 11,513,638.28
WMXWiluna Mining Corp-3-1-44-20.985 $ 124,953,350.94
MAUMagnetic Resources-30371071.55 $ 346,955,060.09
E2ME2 Metals-32-582390.305 $ 45,798,313.83
SLRSilver Lake Resource-39-19-121.75 $ 1,564,796,184.13
TRNTorrens Mining-3-120.145 $ 9,843,243.37
KCNKingsgate Consolid.-3-171130.85 $ 195,685,438.10
GORGold Road Res-39-6-231.27 $ 1,114,314,007.07
HAWHawthorn Resources-3-3-45-410.056 $ 19,010,389.94
EVNEvolution Mining-410-16-114.65 $ 8,099,081,982.90
NESNelson Resources.-4-37142110.079 $ 11,637,855.36
PRSProspech Limited-4-4000.13 $ 8,777,779.52
MDIMiddle Island Res-4-54-62-530.13 $ 15,299,467.88
KRMKingsrose Mining-41155500.051 $ 36,500,367.60
MM8Medallion Metals.-420.25 $ 20,847,941.66
ALKAlkane Resources-43-42-10.735 $ 437,610,768.00
NSMNorthstaw-4-11-220.365 $ 15,000,000.00
MVLMarvel Gold Limited-4-19-25980.048 $ 24,414,914.78
VMCVenus Metals Cor-4-5-25-50.18 $ 27,194,162.94
PF1Pathfinder Resources-420.23 $ 11,933,805.60
AWVAnova Metals-4-15-151750.022 $ 32,961,166.60
RSGResolute Mining-47-39-480.49 $ 540,907,425.94
SSRSSR Mining Inc.-57-2020.23 $ 374,158,787.82
HWKHawkstone Mng-5-71795500.039 $ 65,435,732.28
RMSRamelius Resources-59-12321.72 $ 1,412,319,956.51
HCHHot Chili-5-10-27860.038 $ 120,023,578.94
ERMEmmerson Resources-5-6-9-130.075 $ 36,869,648.19
LCYLegacy Iron Ore-52010017000.018 $ 115,285,293.31
GRLGodolphin Resources-5-5-37500.18 $ 16,401,532.29
GSNGreat Southern-5-9-41260.053 $ 24,571,102.68
A1GAfrican Gold .-5-7771860.265 $ 24,585,617.88
G88Golden Mile Res-5-27442260.088 $ 12,928,704.50
AAJAruma Resources-613-351270.068 $ 7,205,343.04
AGSAlliance Resources-60-241040.17 $ 35,362,912.78
MTHMithril Resources-6-11-391830.017 $ 39,953,961.70
AMIAurelia Metals-65-10200.42 $ 518,417,140.50
WAFWest African Res-615-4290.96 $ 869,802,156.88
BGLBellevue Gold-614-18620.95 $ 813,465,014.85
BRVBig River Gold-6-8-12980.395 $ 86,632,610.68
AUCAusgold Limited-6-10-82130.047 $ 59,816,078.89
PRUPerseus Mining-6110211.24 $ 1,514,674,234.45
CAICalidus Resources-6-10-35260.385 $ 150,349,694.50
MATMatsa Resources-6-4-41-410.076 $ 23,532,102.98
ASOAston Minerals-6112337820.15 $ 135,113,101.50
SKYSKY Metals-60-27-530.15 $ 35,764,225.06
CY5Cygnus Gold Limited-6-9-123170.15 $ 16,263,014.70
RNDRand Mining-6-2-36-191.5 $ 90,781,808.53
AUTAuteco Minerals-60-26930.089 $ 136,344,567.43
PDIPredictive Disc-61147270.088 $ 92,699,141.26
AMEAlto Metals Limited-627-15490.094 $ 44,125,454.03
NCMNewcrest Mining-77-9-326.74 $ 22,140,377,756.28
TLMTalisman Mining-72222820.14 $ 26,127,973.90
PNRPantoro Limited-753370.205 $ 295,763,627.88
KSNKingston Resources-7-16-21460.205 $ 56,747,389.20
XAMXanadu Mines-7-13621340.068 $ 74,245,223.50
TRYTroy Resources-70-44-140.067 $ 53,787,027.53
ONXOrminex-751165-210.053 $ 25,750,020.90
GSMGolden State Mining-7-10-50-190.13 $ 11,171,028.33
ICGInca Minerals-7191273340.125 $ 48,409,488.00
REDRed 5 Limited-89-35-30.185 $ 434,069,800.70
MSRManas Res-8001400.006 $ 16,561,641.59
RDSRedstone Resources-89-251400.012 $ 8,627,988.76
AMGAusmex Mining Gp-8-81540.047 $ 27,714,788.95
CYLCatalyst Metals-83-10-272.07 $ 205,438,061.07
NSTNorthern Star-84-29-1910.58 $ 12,669,889,031.91
RRLRegis Resources-8-11-35-402.62 $ 1,846,213,519.55
GMRGolden Rim Resources-8220830.011 $ 32,044,196.15
SBRSabre Resources-8-8-214500.0055 $ 10,098,381.89
VKAViking Mines-8-201124440.033 $ 35,233,415.87
AGGAngloGold Ashanti-9-2-18-325.39 $ 492,426,862.80
OAUOra Gold Limited-911-13170.021 $ 16,816,904.44
M2RMiramar-9-5-440.21 $ 9,712,329.60
KAUKaiser Reef-9-13-24290.31 $ 32,914,840.36
MBKMetal Bank-9-9-17490.01 $ 11,845,083.04
RMXRed Mount Min-9-9-382330.01 $ 12,513,224.89
SVYStavely Minerals-10-3-19580.57 $ 151,357,642.16
WGXWestgold Resources.-103-15-12.17 $ 945,197,252.10
OKUOklo Resources-10-15-45-510.14 $ 73,084,322.74
TNRTorian Resources-10-12452610.045 $ 38,602,133.15
GMLGateway Mining-10-4441170.026 $ 49,494,525.60
OBMOra Banda Mining-10-14-31110.215 $ 197,922,159.90
RMLResolution Minerals-11-4-38-600.025 $ 11,493,349.58
KWRKingwest Resources-120-44-250.11 $ 18,097,991.01
ARLArdea Resources-120-3840.46 $ 62,558,585.18
BRBBreaker Res NL-13014-110.21 $ 68,426,595.09
ADVArdiden-13-22-662500.014 $ 27,941,604.81
AARAnglo Australian-130-33-290.1 $ 61,845,880.32
SBMSt Barbara Limited-13-9-29-261.87 $ 1,338,164,961.21
SI6SI6 Metals Limited-13-24305500.013 $ 18,109,165.93
SIHSihayo Gold Limited-13-7-48-160.013 $ 51,596,459.78
PURPursuit Minerals-14-2445816980.067 $ 58,710,524.60
DLCDelecta Limited-14-140200.006 $ 6,051,727.23
NMLNavarre Minerals-14-25-5090.12 $ 71,011,479.63
DCXDiscovex Res-14-140500.006 $ 15,411,984.46
HMXHammer Metals-1581243950.094 $ 73,508,505.62
GEDGolden Deeps-150-271200.011 $ 8,523,365.84
DCNDacian Gold-160-1-50.35 $ 296,147,805.62
WRMWhite Rock Min-16-21-8150.46 $ 35,626,569.16
NPMNewpeak Metals-17-17-3800.0025 $ 14,185,403.25
XTCXantippe Res-1725-17250.0025 $ 10,186,411.01
TSCTwenty Seven Co.-17-29-29-290.005 $ 10,642,758.25
AYMAustralia United Min-18-10-183500.009 $ 18,425,774.85
LEXLefroy Exploration-19-103385361.05 $ 112,809,086.98
SNGSiren Gold-24-25-320.28 $ 19,307,825.46
ANLAmani Gold-33-50-50-500.001 $ 21,573,993.49
MLSMetals Australia-33-2001000.002 $ 10,567,970.12

 

SMALL CAP STANDOUTS

FIRST AU (ASX:FAU) +50%

Drilling results are about due from the ‘Snowstorm’ gold project in the Victorian goldfields, where initial assays – including 3.1m at 11.6g/t gold from 53m — have been very promising.

FAU geologists anticipated the diamond drilling campaign to be completed in late April 2021 “with results following”.

Snowstorm is part of the historic Swifts Creek goldfields, which produced over 100,000 ounces of gold between 1845-1926.

Many of the workings were producing over an ounce a tonne, FAU says.

 

ARTEMIS RESOURCES (ASX:ARV) +40%

It has been a busy 7 days for explorer Artemis.

On Friday, it announced high grade drilling results like 5m at 24.32g/t gold, 3.39% copper and 0.24% cobalt from 166m at the 418,000oz ‘Carlow Castle’ project in the Pilbara.

A resource upgrade is due this quarter.

On Tuesday, it kicked off drilling at the 70%-owned Munni Munni project, “one of Australia’s largest undeveloped palladium deposits”.

And on Thursday it said advanced planning was underway to drill test high priority exploration targets in the Paterson Province.

All these targets are interpreted to sit within the same geological and structural corridor as the Havieron gold-copper discovery that is now under development, Artemis says.

 

GREAT BOULDER RESOURCES (ASX:GBR) +31%

The explorer has picked up a major zinc-lead project right next door to the Rumble Resources (ASX:RTR)Zenith Minerals (ASX:ZNC) Earaheedy discovery in WA.

Rumble’s recent drilling results underpin a shallow, mammoth exploration target of 40 to 100 million tonnes at 3.5% to 4.5% Zn and Pb over 40km of strike.

Great Boulder’s 1,134sqkm ‘Wellington’ project covers ~60km of prospective rocks.

‘Nearology’ for the win.

But while this project is an “exciting addition” to Great Boulder’s exploration portfolio, its focus remains on the Whiteheads and Side Well gold projects.

The post Gold Digger: Australia’s big gold miners are getting bigger, and investors should reap the benefits appeared first on Stockhead.

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