The best australian gold stocks Investments

With gold continuing its rise up I have seen a major increase in  gold stocks prices, I have decided to put together a small compilation for you to peruse.

It is interesting to note that physical gold (or equivalent) in Australian dollar terms ranks behind the top six companies while gold in US$ terms ranks behind the top nine companies. Not surprisingly, Australia’s largest gold company, Newcrest Mining represents the best proxy for US$-based physical gold; both improved by around 6% over the ~12month period.

The three smaller companies in the top ten performers were Catalpa Resources, which raised sufficient capital to finance the Edna May Project and locked in a hedged price of A$1,545/oz, believed to be the highest in Australian history; Regis Mining, where the previous Board and management were replaced largely by former Equigold personnel and OceanaGold, which significantly improved its cash cost position and recovered off a very low base.


Perhaps not surprisingly, it was the high cost producers and smaller end of the market which recorded the largest falls when the gold price fell to just above US$700/oz in October last year. Many of these companies have recorded stellar increases from their 12-month lows; in fact, more than half doubled in price from their lows and more than 20% recorded in excess of 300%. By contrast, gold, in both US$ and A$ terms, was only around 30% off its 12-month lows.
Apex Minerals, which was the third worst performing stock over the period, was still trading at its 12-month low on 26 June 2009.

The outlook for gold is bullish. If you choose to invest in any of these company’s you do so at your own risk.

Major – Australian Large GOLD Producers

Newcrest Mining Limited – NCM
Market Cap: $8.3 Billion

Australia’s largest gold producer, has a portfolio of mines located in Australia and Indonesia, recently announced that it is going to eliminate it’s entire hedge book with a couple of billion worth of capital raising.
Oxiana Limited – OXR
Market Cap: $5.1 Billion

While primarily not a gold producer and more of a diversified minerals miner Oxiana does have a decent exposure to gold mining with production of around 200,000 ounces in 2006 and gold mines in Laos.
Lihir Gold Limited – LGL
Market Cap: $6.4 Billion

Located in P.N.G. Lihir Island, has recently reduced power costs significantly by tapping into geothermal activity to provide power for milling and other operations, has a resource estimate of 40 million ounces.
Newmont Mining Corporation – NEM
Market Cap: $19.1 Billion USD (NYSE)

One of the worlds largest producers, managed to mill out almost a massive 6,000,000 ounces of gold last year. Has operations all around the world with 70% of its gold mined in the Americas.
Sino Gold Mining Limited – SGX
Market Cap: $1.1 Billion

One of Chinas largest gold producers with a relatively low cost per ounce of gold mined, operates the Jinfeng mine in China.

Mid – Australian Gold Minor Producers / Speculative:

Oceana Gold Corporation – OGC
Market Cap: $562 Million

Has a large gold resource base to work with and announced a very aggressive producing strategy with aims to be producing half a million ounces of gold annually by 2009.
St Barbara Limited – SBM
Market Cap: $448 Million

Operates the Gwalia Deeps mine, anyone who subscribed to the Rivkin report will remember this mine. (Sons of Gwalia). Work has already begun preparing for a continued underground mining operation.

Citigold Corporation Limited – CTO
Market Cap: $273 Million

Recently received state funding for it’s continued deep underground drilling program which includes a 2000 metre underground exploration program searching for gold grades in the Charters Towers mine.
Dioro Exploration NL – DIO
Market Cap: $96 Million

49% owner of the frogs leg mine in WA. Has an extremely aggressive growth strategy planned including listing on the TSX and recently splitting its nickel assets into splinter company with scrip offer. Also has a JV with CVRD Brazil to explore Uranium tenaments.

Mundo Minerals Limited – MUN
Market Cap: N/A

Mundo is just starting out operations in South America, anybody who subscribes to Fat Prophets Mining should be aware of this company and it’s high grade intercepts on tenements.
Lion Selection Limited – LST
Market Cap: N/A

Lion Selection is an investment group formed recently due to a merger and has significant investments in gold assets all across Australia and the world. It’s primary form of investment is shares in mid cap producers and exploration stock.


2006 Gold Mining Journal Gold Explorer of the Year:

1. Tropicana: AngloGold Ashanti/Independence Group
2. Avoca Resources
3. Goldstar Resources/Navigator Resources
4. Alkane Exploration
5. Mercator Gold
6. Dominion Mining, Integra Mining, Perseus Mining, Troy Resources, Red 5, Wedgetail Mining
7. Cougar Metals, Moto Goldmines, Marengo Mining, Minotaur Exploration
8. Bass Metals, Sino Gold, Oropa, Lihir Gold
9. Monax Mining, Agincourt Resources, Dioro Exploration, Oxiana, Oceanagold, Tianshan Goldfields
10. Tasgold, Medusa Mining, Andean Resources, Echo Resources, Northwest Resources

2006 Gold Mining Journal Gold Miner of the Year:

1. Dominion Mining
2. Troy Resources
3. Barrick Gold
4. St Barbara Mines
5. Newcrest Mining
6. Oxiana, Oceanagold
7. Kingsgate Consolidated, Sino Gold
8. Newmont Mining
9. Equigold, Intrepid Minerals
10. Lihir Gold.

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  1. TASS says:

    Hasn’t the gold stock landscape changed on the ASX?

    Oxiana nearly went under in debt, Sino Gold and Lihir Gold were taken over. Andean Resources is currently talking with potential suitors. Not many gold majors left here!

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