Evolution – June Quarter Results

Posted on | by Leon Hinde

Evolution Mining reported June quarter production in-line with market estimates and FY20 guidance remains flat at $725koz – $ 775koz.

The reversal in yesterday’s share price action can be attributed to flat production growth and higher operating expenses. FY20 all-in costs increase by 5% to A$890 – $915oz.

Production capex increases to support development at Cowal and Mt Calton.

We have EVN trading on 3% forward yield and continue to see opportunities for NST, EVN, OGC and GOR within the gold space.

 

Gold Miners ETF

Posted on | by Leon Hinde

Gold Miners ETF, GDX is now under Algo Engine buy conditions, following the higher low formation at $29.

Look for the short-term indicators to turn positive and buying support to increase within the $28.50 to $29.50 range.

Our preferred ASX listed gold miner is Evolution Mining

 

 

 

Evolution Minning – Approaching Support

Posted on | by Leon Hinde

Evolution Mining is under Algo Engine buy conditions and is currently forming a higher low near the $3.00 price range.

The company recently delivered a softer than expected result with lower production and higher operating costs.  These events combined with a softer gold price has seen the share price retrace from $4.00 to $3.20.

We anticipate a pickup in the next quarter which should see overall FY19 production in the upper band of the groups guidance range.

A new round of  “risk off” sentiment by equity investors will also be supportive of gold prices.

Add this one to your watchlist and look for an entry point between $3.00 & $3.20.

The below long term graph of the gold price shows the recent retest of the US$1325 range.

Gold Stocks in Review

Posted on | by Leon Hinde

Gold has sold off in recent trading sessions, following the strength in the US dollar. The sell off has now created Algo Engine buy conditions in Evolution Mining, St Barbara, OceanaGold  & Northern Star Resources, all of which are current holdings in the ASX 100 model.

Newcrest Mining is still in the early  stages of forming a higher low and may take another few days before  we see an Algo Engine buy signal appear.

ALGO Update: Stay Long Evolution Mining

Posted on | by Todd

EVN has been under an ALGO buy signal since August 1st at $2.85 and is part of our ASX Top 100 Model portfolio.

EVN has a market capitalization of $5.2 billion and operates mines in QLD, NSW and WA.

Combined, these mines produce about 720,000 ounces of Gold per year at an all-in sustained cost of US650 per ounce.

EVN will hold their AGM in Sydney on Thursday. Good news from that meeting could see the share price trade back above the recent high of $3.45.

Evolution Mining

 

 

Look For Gold To Hold The $1190.00 Level

Posted on | by Todd

Daily price volatility in Gold has reached a 7-month high as investors weigh the impact of equity market uncertainty to higher interest rates in the USA.

Since trading as low as $1160.00 in mid-August, the yellow metal rallied close to 10% to post an intraday high of $1243.00 on October 26th.

From a technical perspective, we consider the wider intraday trading ranges as an opportunity for investors to profit from the increased activity in the local mining shares.

Both EVN and NST are currently in our ASX Top 100 model portfolio.

We will update specific entry levels in those names as Gold finds traction above support at $1190.00

Northern Star

Evolution Mining

 

 

EVN Is In The Buy Zone

Posted on | by Leon Hinde

With the USD starting November with a weaker tone, gold rallied almost 1.5% overnight to reach a high of $1239.00

EVN is our preferred ASX100 stock to gain exposure to an ongoing move higher in gold prices.

Our medium-term target is $3.65.

Evolution Mining

Buy And Hold Local Gold Shares

Posted on | by Todd

Last week’s extreme volatility in global equity markets has been a net positive for the local gold mining names.

After trading as low as $1060.00 in mid-August, Spot Gold reached a 2-month high at $1226.00 last Thursday.

As illustrated on the chart below, the yellow metal is still down more than 10% over the last 6-months.

However, with last week’s change in the overall risk dynamic of equities, investors may increase their holdings in Gold as a hedge against market uncertainty.

Combined with a weaker Aussie Dollar, we see stable gold prices lifting the shares of the local miners.

Our preferred names in the Gold sector are: NCM, SBM, SAR and EVN.

Spot Gold

Newcrest Mining

Santa Barbara

Saracen

Evolution Mining