Gold prices have soared since the start of 2024 and have set record prices in major global currencies. On August 1, the price for an ounce of gold in Australian dollars surged to AU$3,762.17, breaking the previous record of AU$3,638.01 set in April.
Recent gains have come on the back of the resumption of buying by Chinese banks, an improving US economic situation that is increasing odds of US interest rate cuts in September and ongoing geopolitical instability.
On a local level, Australia’s economy is improving as the annualized inflation rate fell to 3.5 percent in July. This marks the lowest level since March and beats June’s 3.8 percent increase. However, as inflation remains higher than the 2 to 3 percent target and July’s inflation data was slightly higher than anticipated, a rate cut from the Reserve Bank of Australia is not likely to occur in the next few months.
How have these factors affected gold stocks on the ASX? Read on to learn about the biggest gainers year-to-date.
Data for this article was retrieved on September 3, 2024, using TradingView’s stock screener, and only companies with market capitalizations greater than AU$50 million are included.
1. Larvotto Resources (ASX:LRV)
Year-to-date gain: 471.43 percent; market cap: AU$123.95 million; share price: AU$0.40
Larvotto Resources is a gold exploration and development company working to advance its flagship Hillgrove gold-antimony project in New South Wales, which it acquired in late 2023.
Hillgrove is currently in the pre-development stage, and Larvotto released the pre-feasibility study for the project on August 5. In the release, the company reported total resources of gold at 1.04 million ounces of gold from 7.26 million tonnes of ore with an average grade of 4.4 grams per tonne (g/t). In addition to gold, the company also reports 93,000 tonnes of antimony on site with an average grade of 1.3 percent.
The study also included a maiden ore reserve estimate, with 3.15 million tonnes of ore grading 3.2 g/t gold and 1.2 percent antimony for 320,000 ounces and 39,000 tonnes of contained metal respectively.
The company indicated a post-tax net present value of AU$157 million and an internal rate of return of 50 percent with a payback period of 2 years, contingent on prices of US$2,000 per ounce of gold and US$15,000 per tonne of antimony.
Shares in Larvotto saw significant gains following news in August that China had decided to ban antimony exports. China is the world’s largest exporter of antimony, which is used in the production of solar panels, military applications and electronics. The mineral is commonly found within gold-bearing quartz veins.
The most recent news from Hillgrove came on August 21 when the company reported that it had received the final drilling permits for the second drill program at the site and would commence 5,250 meters of drilling on August 26.
Shares in Larvotto reached a year-to-date high of AU$0.41 on August 26.
2. Australian Gold and Copper (ASX:AGC)
Year-to-date gain: 319.12 percent; market cap: AU$75.70 million; share price: AU$0.29
Australian Gold and Copper is an exploration company that has spent 2024 focused on advancing the Achilles gold-silver discovery at its South Cobar project in New South Wales, Australia.
The company has made several advancements at the project through its exploration programs this year, including the identification of new targets at Achilles, as reported on April 23.
A subsequent announcement on May 15 caused shares to soar when the company reported follow-up drill results from Achilles with a highlighted assay of 2.2 grams per tonne (g/t) gold over 43 metres, including 16.9 g/t gold over 5 metres.
The most recent news from Achilles came on August 5 when the company provided an exploration update on the project. In the announcement, Australian Gold and Copper reported that its recently commenced geophysical survey, which was designed to test for targets at Achilles, revealed the potential for a second zone west of Achilles that will be the target for future drilling programs.
The company also provided an update on RC drilling, saying of the 21 holes planned 14 had been completed and assays have been received for the first five, with gold, silver and base mineralization extending to the north and south and at depth. It said it would be commencing diamond core drilling in mid-August to help identify higher-grade zones at the project.
Shares of the firm reached a year-to-date high of AU$0.56 on May 22 alongside a rally in the gold price.
3. Catalyst Metals (ASX:CYL)
Year-to-date gain: 179.5 percent; market cap: AU$503.5 million; share price: AU$2.25
Catalyst Metals is a gold development and production company focused on its Plutonic mine in Western Australia and Henty mine in Tasmania.
The company acquired Plutonic as part of a takeover of Vango Mining in 2023. On March 28, the company announced it had repaid the first tranche of an AU$12.1 million convertible note that it inherited as part of the purchase.
Since the takeover, Catalyst has been working to increase production at the mine, and the company announced in its March quarterly report that performance had improved. Production for the quarter reached 21,252 ounces of gold, a slight increase over the previous quarter despite equipment breakdowns.
In the company’s fiscal year-end update released on July 10, the company said it continued to make improvements at Plutonic, with production at the mine year reaching 85,000 ounces under its ownership versus only 60,000 ounces in the previous year, which was prior to its acquisition.
As for its Henty mine, Catalyst said Henty achieved record quarterly production of 6,926 ounces in its fiscal Q4 and produced 24,982 during the year. According to the company, the mine is on its way to annual production of 30,000.
Catalyst also said it had reduced debt from AU$36 million to AU$8 million.
The most recent announcement from Catalyst came on August 29, when it released its in-depth year-end results. During the period, the company achieved its first profit, with a net after-tax profit of AU$23.56 million versus an after-tax loss of AU$15.63 million in the previous year.
Shares in Catalyst reached a year-to-date high of AU$2.28 on August 29.
4. WIA Gold (ASX:WIA)
Year-to-date gain: 173.81 percent; market cap: AU$125.50 million; share price: AU$0.12
WIA Gold is an exploration company focused on developing projects in Africa. The company’s primary goal is to advance the Kokoseb deposit at its Damaran gold project.
Kokoseb is located on WIA’s Okombahe exploration licence, which consists of 12 tenements across a 2,700 square kilometre area within the Damaran Belt in Northwest Namibia. WIA Gold holds an 80 percent stake in the exploration licence, with the remaining 20 percent being held by Namibian state-owned mining company Epangelo.
On April 16, the company released an updated resource estimate for Kokoseb, reporting 2.12 million ounces of gold from 66 million tonnes at 1 g/t gold with a cut off of 0.5 g/t gold.
The company reported drill results from the project on August 20 that identified high-grade mineralization below the current resource as well as new mineralization in the Eastern zone. WIA reported a highlighted intercept from the new area grading 4.95 g/t gold over 4 metres.
WIA Gold also owns the early stage Bouafle project, which is located in Côte d’Ivoire and has been granted two exploration permits, with a third under application. On May 27, WIA reported that it had commenced reverse-circulation drilling at the site with the intention to test 10 previously identified trends.
In a recent update on September 2, the company reported results from the first phase of reconnaissance drilling at Bouafle. Highlighted assays from the 5,682 metre drill campaign included 4.54 g/t over 10 meters and 87.43 g/t over 4 meters. The company plans to follow it with a second phase of 2,000 metres in October.
Shares in WIA Gold reached a year-to-date high of AU$0.125 on May 21 alongside a surging gold price.
5. Spartan Resources (ASX:SPR)
Year-to-date gain: 165.15 percent; market cap: AU$1.58 billion; share price: AU$1.37
Spartan Resources is a gold exploration and development company whose core assets are located in Western Australia. Its flagship operation, the Dalgaranga gold mine, produced 71,153 ounces of the metal in 2022 before being placed on care and maintenance as low grades reduced the asset’s viability.
Spartan has since turned its focus to increasing grades and expanding Dalgaranga’s resource estimate. It has largely focused on the Never Never deposit, which it discovered in 2022.
Exploration at the site has continued in 2024, and on April 18 Spartan reported the discovery of a new lode, dubbed the Pepper prospect, situated 90 metres south of the main Never Never deposit. The company said Pepper has similar mineralization and grades to Never Never, with one assay showing 15.86 g/t gold over 17.52 metres, including 27.89 g/t gold over 9.22 metres.
Using data from exploration efforts at Pepper, Spartan released an updated mineral resource estimate for Dalgaranga on July 23 showing a contained resource of 2.48 million ounces of gold from 16.1 million tonnes of ore with an average grade of 4.79 g/t gold.
It was up significantly from Spartan’s December 2023 resource estimate, which came in at 1.7 million ounces, including 952,000 ounces at Never Never. The increase is attributable to the additional 438,100 ounces of gold from Pepper and an increase at Never Never to 1.49 million ounces.
In an exploration update on August 28, Spartan reported that a drill hole at Pepper contained the highest-grade interval to date at Dalgaranga. Drilling intercepted 39.15 g/t gold over 27.01 metres, including an intersection of 121.35 g/t over 5.11 metres.
Shares of Spartan reached a year-to-date high of AU$1.455 on August 29.
FAQs for ASX gold stocks
How to invest in gold on the ASX?
As Australia is a top gold-mining jurisdiction and the country’s government is supportive of mining, there are plenty of options for investing in gold on the ASX. Between gold miners operating major projects and gold explorers hunting for the next significant gold discovery, investors can choose what kind of company matches their risk appetite and portfolio.
When looking for a gold company to invest in, be sure to do your due diligence and learn about the company’s key characteristics, including its leadership team, its finances and the geology of its projects.
How to buy gold on the ASX?
Once you’ve selected a company or multiple companies to invest in, you can buy gold stocks using trading apps with access to ASX stocks, or you can get the help of a stock broker.
How to buy gold ETFs on the ASX?
For investors who prefer broader exposure to a sector, exchange-traded funds (ETFs) are a good option, and the ASX is home to multiple gold-focused ETFs. Because they are traded on exchanges like stocks, you can buy ETFs using the same methods described above. ASX-listed gold ETFs to consider include:
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
