
November 27, 2024
Asara Resources Limited (ASX: AS1; Asara or Company) is pleased to announce that it has recommenced exploration activities at its flagship asset, the Kada Gold Project in Guinea (Kada).
HIGHLIGHTS
- Relogging of core samples.
- Drone survey to identify additional mineralisation recently undertaken.
- Geological and structural mapping of new drone imagery and fieldwork.
- Planning for the commencement of a drill program in early 2025 to upgrade the existing Mineral Resource Estimate.
- Community engagement to strengthen relationships with local communities.
- Preparation for commencement of environmental studies.
Managing Director, Tim Strong commented:
“We are excited to recommence work at Kada following a pause in field activities throughout 2024. Our team is back on the ground, refurbishing camp facilities, re-logging core samples, undertaking geological and structure mapping in the Massan area and establishing important community relationships. In addition, we have deployed a drone to assist in determining the structural orientation of historical work undertaken and identify potential areas of gold mineralisation that may not have been previously recognised.
Looking ahead, we expect drilling to begin in the March quarter of 2025. The drilling program will focus on upgrading portions of the Massan Mineral Resource to the Measured category, as well as testing additional structures that are not currently included in the Mineral Resource Estimate.’’
KADA GOLD PROJECT
Exploration Activities
Activities at Kada recommenced during October with the installation of a new water borehole and a 10,000 litre capacity water tower at the Niandankoro Camp. All camp areas were connected to the new water system providing running water throughout.
The camp has undergone a detailed inventory, and store areas have been prepared in readiness for the commencement of fieldwork and then drilling.
Figure 1: Niandankoro Camp
Figure 2: Geology stores and RC chip storage
Figure 3: New drone imagery of Massan showing structure and geologists inspecting areas of mineralisation
Geological and structural mapping of the workings have commenced. This is a combination of desktop interpretation of recent drone imagery and fieldwork.
Figure 4: Fieldwork at the Massan deposit
Figure 5: Weather station installed at Niandankoro Camp and meetings with local dignitaries and community leaders
Community and Environment
The Company recognises the importance of engaging the local community, strengthening working relationships and to share information and understand local expectations and resolve any issues as and when they arise. To that end, work has commenced to establish social and environmental baselines. Over the last month, meetings were held with Company representatives, local elders, the Mayor of Niandankoro and Sous-Prefet which were beneficial and greatly appreciated by all attendees.
A weather station has been installed at Asara’s Niandankoro Camp giving vital baseline data for the environmental studies that will commence in 2025.
Burkina Faso
As announced on July 14, 2024, the Company entered into a binding Share Purchase Agreement (SPA) with Bic West Africa Limited (BIC) for the sale of its non-core Kouri and Babonga gold projects for total consideration of US$2.2m cash. The Company is continuing to work towards satisfying the Conditions Precedent outlined in the SPA, having recently obtained approval from the Tax Office with approval of the transaction by the Minister of Mines the final step. Following approval from the Tax Office, BIC made an advance payment of US$550,000 (against the final Completion Payment of US$1.1m). It is expected that the final payment of US$550,000 will be made by BIC once the Mininter of Mines has approved the transaction. It is expected that this approval will be obtained by the end of the December 2024 quarter.
Click here for the full ASX Release
This article includes content from Asara Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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The Conversation (0)
07 July
Asara Resources
Investor Insight
With a proven management team and a high-impact flagship asset, Asara Resources is spearheading a new era of gold discovery in West Africa, leveraging the same team that established Robex’s 3.5 Moz Kiniero project. The company holds 923,000 oz of gold in mineral resources with significant upside, delivering a compelling investment opportunity for savvy investors.
Overview
Asara Resources (ASX:AS1,FSE:ALM) is spearheading the next West African gold rush from a strategic foothold in Guinea’s underexplored Siguiri Basin, an emerging gold district with over 30 million ounces (Moz) of historical and current gold production.
The company’s flagship Kada gold project hosts a 923,000 oz, oxide-dominant gold resource located just 35 km south of AngloGold Ashanti’s 6.2 Moz Siguiri mine. Asara is methodically applying the proven “string-of-pits” development model that has driven success across the region, supported by an experienced team responsible for establishing the Kiniero project, now a cornerstone asset for Robex (TSX:RBX). Guinea offers a favorable jurisdiction for mining investment, with more than US$15 billion in resource-sector inflows since 2020 and a planned return to civilian governance, positioning it as one of the more stable West African jurisdictions relative to its neighbours in the Sahel region.
Asara’s near-term strategy includes: rapidly growing its resource base through 33,600 meters of RC and diamond drilling planned for 2025; advancing a low-CAPEX, oxide-first development strategy leveraging free-dig saprolite, high gold recoveries and conventional carbon-in-leach (CIL) flowsheet; and maintaining upside exposure to copper and silver-zinc through its Loreto JV with Teck and the optional Paguanta asset in Chile.
With strong in-country infrastructure, a focused and proven leadership team, and robust gold pricing tailwinds, Asara is advancing the Kada project toward a construction-ready decision on a compressed and capital-efficient timeline.Company Highlights
- Flagship Kada gold project – 923,000 oz gold and counting: 30.3 Mt @ 0.95 g/t gold with 59 percent oxide-transition ounces that show over 90 percent CIL recoveries and <3.5:1 strip ratio; resource remains open in every direction along a 15 km corridor.
- Aggressive growth runway: Three contiguous licence applications (Talico, Banan and Syli) would lift the land package to 348 sq km and extend strike control to 35 km, only ~6 percent of which is drilled.
- Experienced team who took the Kiniero project from an exploration resource to construction: Senior executives previously turned Robex’s Kiniero from 1 Moz to ~3.5 Moz and into a C$750 million market cap company, bringing an identical on-ground team, in-country relationships and proven workflows to Asara.
- Strategic Land Package: Kada is in the heart of the prolific Siguiri Basin (>30 Moz gold endowment), just 35 km south of AngloGold Ashanti’s Siguiri Mine.
- Strong Institutional Support: Top 20 shareholders control 70+ percent of the company.
Key Projects
Kada Gold Project
The Kada gold project, located in the heart of Guinea’s prolific Siguiri Basin, is Asara’s flagship asset and the primary focus of its development strategy. The project currently hosts a JORC 2012-compliant mineral resource estimate of 30.3 million tons (Mt) grading at 0.95 grams per ton (g/t) gold for 923,000 oz of contained gold, comprising 391,000 oz oxide, 145,000 oz transitional, and 387,000 oz fresh mineralization. Approximately 59 percent of the resource lies within the oxide-transitional profile, with 24 percent of the total resource already classified as indicated.
The resource is hosted within the Massan and Bereko deposits, both of which remain open along strike and at depth and sit along a regional-scale 15 km gold-bearing corridor. The Massan deposit alone accounts for 906,000 oz of the total resource and is characterized by shallow, broad zones of saprolitic mineralization ideal for low-strip, open-pit mining. Gold mineralization is associated with quartz-sulphide-tourmaline stockworks hosted in metasediments with deep saprolite (>100 m) and is amenable to simple processing.
The mineralized zones are free-milling, with metallurgical testwork confirming cyanide leach recoveries of 95 to 97 percent for oxide and 88 percent for transition/fresh ore. Conventional CIL processing is suitable, with rapid leach kinetics (less than 24 hours for oxide) and no need for gravity recovery or oxygen injection. The ore has medium hardness, with a grind size optimized at 80 percent passing 75 microns. Geotechnically, the project exhibits a low strip ratio (<3.5:1), and the saprolite is potentially free digging, minimizing mining costs.
The project is within 60 km of the mining centre of Siguiri and benefits from existing infrastructure, including paved roads and ready access to water. Asara plans to carry out 33,600 metres of drilling in 2025, including 24,000 m RC and 9,600 m diamond drilling, to upgrade confidence in the core of the resource and test extensions at depth and along strike. These campaigns will target mineralization north, south and west of Massan. Auger drilling will be used to define and explore kilometre-scale gold-in-soil anomalies on the Talico, Banan and Syli license application. If granted, these licenses will expand Asara’s landholding to 348 sq km and provide a 35 km contiguous footprint along the Siguiri gold trend, where artisanal workings have already been mapped along key lithologic contacts.
The Bereko deposit, situated 10 km north of Massan, currently hosts an inferred resource of 18,000 oz gold grading at 0.94 g/t from shallow oxide, transitional and fresh material.
Importantly, this MRE only covers 400 metres of a >5.5 km strike length with confirmed bedrock gold anomalies. Historical drilling at Bereko includes notable intercepts such as 1.2 g/t gold over 27 m, 3.3 g/t gold over 9.3 m, and 8.8 g/t gold over 3.3 m. Mineralization remains open in all directions, providing significant upside potential with further drilling.
Asara envisions a low-CAPEX, staged development, anchored by starter pits at Massan and Bereko, followed by centralized processing infrastructure capable of supporting future satellite deposits. This approach mirrors the multi-pit strategy successfully deployed at Kiniero and Siguiri.
Loreto Copper Project
The 100 percent owned Loreto project is a large-scale porphyry copper exploration project in northern Chile, located between tenements held by mining majors BHP and Codelco. Under a joint venture with Teck Resources, Teck can earn a 75 percent interest in the project by making US$0.6 million in staged payments and spending US$17 million on exploration. The project hosts a 2.3 km x 1.0 km alteration footprint with evidence of a deeper porphyry system, supported by mapping, geochemistry and ZTEM geophysics. Teck is currently advancing social license and environmental studies to enable drilling. Asara is fully carried under the JV structure and maintains strategic exposure to a world-class copper opportunity with no capital obligations.
Paguanta Project
Asara holds a 75 percent interest in the Paguanta project in Chile. The asset is an advanced silver-zinc-lead-gold project with a defined JORC 2012 mineral resource totaling 2.4 Mt grading at 5 percent zinc, 1.4 percent lead, 88 g/t silver, and 0.3 g/t gold. The Patricia deposit contains a silver-equivalent resource of 18.2 Moz (236 g/t silver equivalent) and a zinc-equivalent resource of 514 Mlb (9.7 percent zinc equivalent). Mineralization is hosted within epithermal veins with potential for porphyry copper at depth, including the newly identified La Rosa porphyry target. More than 46,700 metres of drilling has been completed at the site, and a partial feasibility study was previously conducted by Golder Associates. Asara is actively evaluating strategic options to realize value from this asset.
Leadership Team
Matthew Sharples – Chief Executive Officer
Formerly with Robex, Matthew Sharples was instrumental in growing Kiniero into a multi-million-ounce project. He brings deep expertise in capital markets, stakeholder engagement, and West African permitting.
Tim Strong – Executive Director
Tim Strong is a seasoned exploration geologist and JORC Competent Person with significant experience across West Africa. Strong leads Asara’s technical strategy and resource development.
Brett Montgomery – Non-executive Chairman
Brett Montgomery is a respected corporate leader with a history of guiding early-stage exploration companies through critical growth phases.
Dr. Doug Jones – Non-executive Director
A geologist with decades of African exploration experience, Dr. Doug Jones provides technical oversight and strategic direction.
Dan Tucker – Technical Advisor
A key architect behind the Kiniero development strategy, Dan Tucker contributes deeply to geological targeting and land consolidation strategy.
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Advancing the next West African gold camp from the heart of Guinea’s prolific Siguiri Basin
15 August
Editor's Picks: Gold Tariff Threat Ends, Price Reacts to Fresh Inflation Data
The gold price cooled off this week as tariff-related uncertainty reached a resolution.
The yellow metal was thrust into headlines late last week when US Customs and Border Protection told a Swiss refiner that 1 kilogram and 100 ounce gold bars would be subject to Trump administration tariffs that went into effect on August 7.
Gold is one of Switzerland's top exports to the US, and with the country facing a 39 percent levy, questions were rife about what the impact could be. Clarification came on Monday (August 11), when US President Donald Trump said on Truth Social that gold "will not be tariffed."
While the news calmed market participants, Keith Weiner of Monetary Metals believes the incident could have long-term impacts. He said the tariff confusion caused the spread between spot gold and gold futures to blow out, creating difficulties for entities using the market to hedge.
Here's how Weiner explained it:
"Once you've put the scare into everybody, you can't just say, 'Oh, sorry, just kidding.' You can't really do that. And so now we've done damage, and we'll see what happens to that spread over time. We'll see how users of the futures market adapt.
"There are other markets in the world that would be competing for this hedging business — maybe it moves to Singapore, maybe it moves to Dubai, maybe it moves to London, and the US loses not only a little more trust, but also a little bit of volume on what had been the biggest, or what is currently the biggest, futures market."
This week also brought the release of US consumer price index (CPI) and producer price index (PPI) data. On a seasonally adjusted basis, CPI for July was up 0.2 percent from the previous month and 2.7 percent from the year-ago period. Meanwhile, core CPI, which excludes the food and energy categories, was up 0.3 percent month-on-month and 3.1 percent from the same time last year.
While those numbers were largely in line with expectations, seasonally adjusted July PPI figures came in hotter than expected, rising 0.9 percent month-on-month compared to Dow Jones' forecast of 0.2 percent. Core PPI increased 0.9 percent from June compared to an estimated rise of just 0.3 percent.
Speaking about the implications of the data, Danielle DiMartino Booth of QI Research said it shows companies aren't yet passing tariff-related price increases on to consumers.
This is what she said about how these circumstances could develop:
"I do think that we will see where companies feel they can push through price increases — I think we'll see that. We saw quite a bit of food inflation in the PPI, and when you're talking about things like essentials, and especially with very, very low-margin types of sales, we could see what we call the substitution effect begin, where households end up buying other things. The classic is always that they trade down from steak to ground beef, or trade down from beef to chicken.
"We're going to see whether or not that plays out again."
While the PPI data has slightly dampened expectations that the US Federal Reserve will cut interest rates when it meets in September, CME Group's (NASDAQ:CME) FedWatch tool still shows a strong probability of a reduction at that time.
Bullet briefing — CATL closes mine, Mitsubishi invests in copper
CATL temporarily closes lithium mine
Contemporary Amperex Technology (HKEX:3750,SZSE:300750), better known as CATL, said on Sunday (August 10) that it will halt production at a lithium mine in China for at least three months.
Sources familiar with the matter told Bloomberg that CATL, which is the world's largest electric vehicle battery maker, failed to extend a key mining permit. The company is reportedly in talks about a renewal, but is prepared for a months-long shutdown.
Share prices of lithium miners rose on the news, buoyed by expectations that the CATL mine closure will help reduce oversupply. Excess output has caused Chinese lithium prices to drop 80 percent since the end of 2022, and investors are keen to see a turnaround for the beleaguered battery metal.
Hudbay, Mitsubishi team up on copper
Mitsubishi (TSE:8058) is set to acquire a 30 percent stake in Hudbay Minerals' (TSX:HBM,NYSE:HBM) Arizona-based Copper World subsidiary for US$600 million.
Hudbay called Mitsubishi its "strategic partner of choice," while Mitsubishi said the investment will help advance its copper growth plans. A feasibility study is in the works for Copper World, and a definitive feasibility study is expected in mid-2026.
Hudbay shareholders reacted positively to the news, which comes on the back of a strong focus on copper supply after last month's announcement of a 50 percent tariff on US imports of semi-finished copper products and intensive copper derivative products. The company projects that Copper World will result in a direct $1.5 billion investment into the US critical minerals supply chain.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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15 August
Brien Lundin: Gold at New US$3,000 Floor, Silver Supply Crunch Coming
Brien Lundin, editor of Gold Newsletter, shares his thoughts on gold and silver prices, as well as what types of stocks he's focusing on in these sectors.
In his view, the precious metals are set up for a new era.
Click here to sign up for the New Orleans Investment Conference, hosted by Lundin.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
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15 August
OPINION — Goldenomics 103: Gold Protects and Performs
This opinion piece was submitted to the Investing News Network (INN) by Darren Brady Nelson, who is an external contributor. INN believes it may be of interest to readers and has copy edited the material to ensure adherence to the company’s style guide; however, INN does not guarantee the accuracy or thoroughness of the information reported by external contributors. The opinions expressed by external contributors do not reflect the opinions of INN and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
By Darren Brady Nelson
US President Donald Trump’s “Liberation Day” tariffs certainly caused quite the stir in the markets on April 2.
Gold dropped about 6 percent, and silver 12 percent. A week later, a pause was announced, which ended on August 1. Gold and silver have since risen approximately 11 percent and 24 percent, respectively.
Six month gold and silver price performance.
Source: Trading Economics (gold) and (silver).
Unless you are a professional, or even amateur, trader, it is best to look at gold and silver investment with a perspective of years or decades, rather than just days, weeks or even months. Since the start of the COVID-19 panic in March 2020, gold and silver have exploded 123 percent and 192 percent.
10 year gold and silver price performance.
Source: Trading Economics (gold) and (silver).
In the shorter term, the gold price is driven by what economist John Maynard Keynes called “animal spirits.” In the longer term, it is driven by “monetary spirits.” And not just as protection, but also for performance. The Presidential Gold Guide highlights both in chapters four and five.
Source: Fisher Liberty Gold.
Gold unsurprisingly protects
Economist and investor Mark Skousen has wisely noted that: “Since we left the gold standard in 1971, both gold and silver have become superior inflation hedges.” Gold has more than countered the results of inflation, as measured by CPI, and the drivers of inflation, as measured by M3.
And the numbers back that up. The Gold Protects chart below compares the gold price, CPI and M3 in terms of cumulative growth of each from 1971 to 2025. That is throughout the whole era of gold as an investment, which officially started in 1974 once private ownership was restored.
During this era, gold grew by 541 percent, CPI by 214 percent and M3 by 384 percent. Annual average growth for gold was 10 percent, CPI at 4 percent and M3 at 7 percent. Maximums were 92 percent, 14 percent and 29 percent, respectively. CPI only failed to grow twice, ie. 0 percent in 2009 and 2015. M3 decreased twice, by -4 percent in 2023 and -6 percent in 2024.
Gold surprisingly performs
The highly respected In Gold We Trust (IGWT) report states: “When dealing with the specific level of gold allocation, it is advisable to differentiate between safe-haven gold and performance gold. The Big Long strategy emphasizes the potential of performance gold in the coming years.”
IGWT thus recommends an investment portfolio "rule of thumb" that includes 15 percent in “safe-haven gold” and 10 percent in “performance gold.” The Gold Performs chart below compares gold price, S&P 500 and nominal GDP in terms of cumulative growth of each from 1971 to 2025.
Gold grew by 541 percent, the S&P 500 by 484 percent and GDP by 339 percent. Annual average growth for gold was 10 percent, with the S&P 500 at 9 percent and GDP at 6 percent. Maximums were 92 percent, 45 percent and 14 percent, respectively. Gold did have a higher standard deviation of 27 percent, compared to 17 percent for the S&P 500 and 3 percent for GDP.
Animal and monetary spirits
Gold protects as a hedge or safe haven, not just from inflation, but from the flip side of that same coin of the boom-bust cycle. Both are driven, in the longer term, not by “animal spirits,” but by “monetary spirits.”
Inflation is when money inflation has a widespread impact as price inflation. A bubble is when money increases have a more concentrated impact such as in certain asset values. The bubble eventually bursts when “monetary spirits” are finally reined in by monetary realities.
I say “monetary spirits” because of the role of fiat money, as indicated by, say, M3. When money supply outstrips money demand in a localized way, then that is a bubble, and when in a general way, that is inflation.
The former shows up in certain asset, wholesale and/or producer prices, whilst the latter shows up in CPI. Asset prices include the S&P 500. But nominal GDP is also "ginned up" as it is ultimately a price times quantity measure as well. Price is expressed in money terms.
Conclusion
Gold can have ups and downs, as standard deviation indicates, due to the “animal spirits” of fear and uncertainty, that tend to be daily, weekly or monthly. Yet gold both protects and performs due to the “monetary spirits” of inflation and boom-bust, which tend to be decennially.
In particular, gold performs when the S&P 500 does not, like in the aftermaths of the 2001/2002 dot-com collapse, the 2008/2009 global financial crisis and 2020/2021 COVID-19 lockdowns.
Therefore, when it comes to gold, “follow the money” of central bank “money printing” and fractional reserve bank “fountain pen money,” for both superior inflation protection and boom-bust performance.
And besides, Skousen rightly "begged the question" as follows: “Gold and Silver have always had value, never gone to zero. Can you say the same for stocks and bonds?”
About Darren Brady Nelson
Darren Brady Nelson is chief economist with Fisher Liberty Gold and policy advisor to The Heartland Institute. He previously was economic advisor to Australian Senator Malcolm Roberts. He authored the Ten Principles of Regulation and Reform, and the CPI-X approach to budget cuts.
Click here to read Goldenomics 101: Follow the Money, and here to read Goldenomics 102: The Shadow Price of Gold.
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15 August
Horn Island Mining Lease Application Registered
14 August
Gold Majors Ride Price Surge to Strong Q2 Earnings
The world’s top gold producers delivered a string of robust second-quarter results, buoyed by record prices and resilient operations as investors continue to seek refuge in the yellow metal amid growing economic uncertainty.
With spot gold trading above US$3,400 per troy ounce, just shy of its April all-time high of US$3,448.50, the world’s largest gold producers posted higher earnings and stronger cash flow in their recent Q2 results.
Below is a breakdown of how a few major players fared in Q2.
Barrick nearly doubles profit margins
Barrick Mining (TSX:ABX,NYSE:B) formerly Barrick Gold, reported a 97 percent year-on-year jump in net income to US$1.25 billion for the quarter, compared to US$634 million a year earlier.
Earnings per share rose to US$0.47 while operating cash flow in the first half reached US$2.5 billion, up 32 percent from 2024. Free cash flow more than doubled to US$770 million, supported by higher commodity prices.
Gold production climbed 5 percent from the first quarter, while copper output surged 34 percent, led by strong performance at Zambia’s Lumwana mine. Nevada Gold Mines boosted output by 11 percent, while Pueblo Viejo in the Dominican Republic posted a 28 percent increase as expansion work in the site advanced.
“From the ramp-up at Goldrush to the progress at Pueblo Viejo, Lumwana and Reko Diq, not to mention the transformational potential of Fourmile, we’re demonstrating the strength and depth of our portfolio,” president and chief executive Mark Bristow said in the recent Q2 report.
The company also recently agreed to sell its Alturas Project in Chile to a Boroo subsidiary for US$50 million upfront plus a royalty, with proceeds earmarked for funding future ventures
Kinross outpaces gold price gains
Kinross Gold Corporation (TSX:K,NYSE:KGC) posted record attributable free cash flow of US$646.6 million in the second quarter, alongside operating cash flow of US$992.4 million. Adjusted net earnings jumped to US$541 million from US$174.7 million a year earlier.
Further, the company achieved a 21 percent margin increase from the first quarter, outpacing the 15 percent rise in gold prices over the same period.
“Our portfolio of mines continued to perform well during the quarter contributing to a strong first half of the year and positioning us well to achieve our full-year guidance,” CEO J. Paul Rollinson said.
Kinross said that it expects to produce 2 million gold-equivalent ounces in 2025 at an average production cost of US$1,120 per ounce.
Paracatu in Brazil was the company’s top-producing asset, while Tasiast in Mauritania began mining the Fennec satellite deposit. US-based Bald Mountain also reported higher output at lower costs.
The company also advanced key projects, including its Great Bear exploration program in Ontario, engineering work at Round Mountain Phase X in Nevada, and drilling at the Curlew Basin project in Washington.
Agnico Eagle delivers, shares gain
Agnico Eagle's (TSX:AEM,NYSE:AEM) operational consistency and cost control helped drive a six-day share price rally, culminating in a 10.06 percent gain over the past week.
In the second quarter, the company produced 866,029 ounces of gold, maintaining full-year guidance of 3.3 to 3.5 million ounces. Adjusted earnings per share came in at US$1.94, prompting analysts to raise 2025 profit forecasts by US$0.70 to US$6.94.
Analysts cited the company’s steady performance despite rising unit costs, noting its appeal as a defensive play in the sector. Bank of America raised its price target to US$173 due to rising optimism about the firm’s growth prospects.
Newmont rides sector momentum
Newmont (TSX:NGT,NYSE:NEM) posted higher sales and net income for the quarter while authorizing a new share repurchase program and declaring a quarterly dividend.
The miner also renewed a key lease in Ghana. Shares rose 36 percent over the last quarter, outpacing the US Metals and Mining industry’s 24.1 percent return.
The performance came despite a drop in the company’s gold production. Rather, Newmont underscored the role of shareholder returns and strategic asset moves in supporting investor sentiment. Over the past three years, Newmont has delivered a total shareholder return of 63.75 percent.
Gold outlook: Gold shines during volatility
The sector’s strong quarter unfolded against a favorable macro backdrop.
Gold, which has gained about 30 percent year-to-date, has been buoyed by safe-haven flows. The metal’s latest rally began after spot prices dipped to US$3,311.80 in early August, then climbed back above US$3,418 by the first week of August..
The Federal Reserve cut rates by a full percentage point in late 2024 but has held steady this year, citing the need for more data on how tariffs affect inflation. Lower rates generally enhance gold’s appeal by reducing the opportunity cost of holding non-yielding assets..
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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