With the spot gold price remaining above US$1,300 an ounce, Australian gold miners with relatively low production costs should be able to make decent profits, and could benefit further if the Australian dollar falls.
At the current exchange rate of US 93.7 cents, Australian miners should be receiving around A$1,387 an ounce, so those with all-in sustaining cash costs of $1,000 or under are making a pretty penny. As fellow Fool Tim McArthur pointed out earlier today, moving into gold stocks now could be healthy for your wealth.
Here are four gold stocks to consider adding to your portfolio…
- Northern Star Resources Ltd (ASX: NST) could be one of the most promising ASX-listed gold miners having picked up several mines on the cheap, at what appears to be the bottom of the cycle. As a result, Northern Star has moved from minnow to become Australia's second largest gold play.
- Beadell Resources Ltd (ASX: BDR) recently reported all-in sustaining costs of around $937 an ounce, which could improve even further with additional high grade drilling results from its Tucano mine in Brazil.
- Silver Lake Resources Ltd (ASX: SLR) recently reported gold sales of 172,838 ounces for the year ended 30 June 2014 from Mount Monger operations which was above guidance. The company also says it has received a number of unsolicited expressions of interest in its Lakewood Mill, which could deliver one off or ongoing benefits.
- Kingsrose Mining Limited (ASX: KRM) reports all-in sustaining cash costs of US$650 an ounce, and production is expected to hit 40,000 ounces in the 2015 financial year, up from just 3,000 ounces this year. The company has two mines, Way Linggo and Talang Santo, both located in southern Sumatra.
- As a bonus, investors may also want to consider one of Australia's newest gold miners, Doray Minerals Limited (ASX: DRM), which own Australia's highest grade gold mine, Andy Well, with forecast costs of around $1,000 an ounce in the 2014 financial year.
Resource stocks can run into a multitude of problems beyond the control of management from the gold price, weather, and sovereign action over royalties or exports to name but a few. Having a diversified portfolio of gold stocks in different regions, with multiple mines can help fray those risks.
