Big Miners Recover with Gold, Saracen and Northern Star Share Prices up
Some of Australia’s largest gold miners have begun their share price recovery over the past couple of days after nosediving on news of the long awaited COVID-19 vaccine.
It hasn’t taken long for the euphoria to wear off as the difficulties of administering the vaccine sink in and cases continue to surge across the US and Europe.
Unsurprisingly, the gold price has climbed steadily on the back of renewed uncertainty, rising 0.9% overnight.
Source: Tradingview, SAR (white), NST (red), EVN (teal)
At time of writing, three of Australia’s most prominent gold miners are showing nice recovery, Saracen Mineral Holdings Ltd [ASX:SAR] is up 5.53% to trade at $5.53, Northern Star Resources Ltd [ASX:NST] tacked on 5.60% to trade at $14.89, and Evolution Mining Ltd [ASX:EVN] is 4.26% higher at $5.87.
Gold price isn’t going anywhere
On Tuesday, we ran an updated outlook on the price of gold in the face of a coronavirus vaccine and we all return to how life was 12 months ago.
Needless to say, it doesn’t change the outlook too much.
There are plenty of other macroeconomic forces that will continue to influence the gold price long after the virus is committed only to memory.
However, to be fair, the gold price has gradually slipped since hitting its historic high back in early August — this could be just a price correction.
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This hasn’t seemed to have too much impact on the share prices of our three miners here though.
In its quarterly update, SAR said it produced 154,388oz with an all-in-sustaining-cost (AISC) of AU$1,169/oz.
Not bad at a time when the gold price in AUD terms was floating around the $2,700 mark.
NST was a similar story, producing 176,526oz at an AISC of AU$1,544/oz.
EVN’s production in the same quarter was 170,021oz at an AISC of AU$1,198oz.
What will next year bring for Aussie gold miners?
Like I mentioned in the gold price update on Tuesday, the market still has the uncertainty of a yet to be settled US election to contend with, coupled with massive currency devaluation.
In my opinion, the market has probably priced in a vaccine being delivered globally.
In AUD terms, that was a 5.30% price correction seen in just one day.
But we’re through the looking glass now, and the gold price is ~23% higher in USD terms than it was at the beginning of the year.
If you want to learn more about the future of gold, then check out this exclusive interview from The Daily Reckoning Australia: ‘The New Case for Gold: An Interview with Bestselling Author and Wall Street Insider, Jim Rickards’. Click here to learn more.
For The Daily Reckoning Australia