Gold stocks are soaring

Australia’s gold miners and explorers are soaring on the ASX today, as the gleaming metal jumped overnight.

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) was up 0.8%, but several miners are up more than 5% in early trading.

Company Last Price Market Cap ($m) Gain
Kingsrose Mining Limited (ASX: KRM) $0.13 $51.6 13.6%
Saracen Mineral Holdings Limited (ASX: SAR) $1.53 $1,235.1 12.7%
Resolute Mining Limited (ASX: RSG) $2.32 $1,528.7 8.9%
West African Resources Ltd (ASX: WAF) $0.32 $3,860.0 8.5%
Cardinal Resources Ltd (ASX: CDV) $0.65 $197.0 8.3%
Birimian Ltd (ASX: BGS) $0.47 $82.9 8.1%
Perseus Mining Limited (ASX: PRU) $0.53 $544.9 7.5%
Newcrest Mining Limited (ASX: NCM) $22.84 $17,507.1 6.8%
EVOLUTION FPO (ASX: EVN) $2.56 $4,161.0 6.7%
Northern Star Resources Ltd (ASX: NST) $4.53 $237.0 6.6%
Ramelius Resources Limited (ASX: RMS) $0.45 $237.4 6.4%
Regis Resources Limited (ASX: RRL) $4.05 $2,029.0 6.0%
Beadell Resources Ltd (ASX: BDR) $0.45 $475.9 5.9%

Source: Google Finance

The reason for the gains is that the gold price rose around 2% higher to US$1,332 an ounce. In Australian dollar terms, that’s A$1,763 an ounce, meaning those healthy gross profit margins for Australian miners are continuing.

Gold miners have been using their overflowing bank accounts to pay dividends, pay down debt, increase production where they can and optimise their operations. There’s also the potential for one of Australia’s largest gold miners to buy Barrick Gold’s 50% share of the Kalgoorlie Super Pit gold mine. The other half is owned by Newmont Mining.

The mine is expected to produce more than 700,000 ounces of gold this year at an all-in sustaining price of less than US$700 an ounce.

How 1 Man Turned $10,600 Into Over $8 Million

Discover how one man turned a modest $10,600 investment into an $8,016,867 fortune. Learn more about this man and how you can start down the path toward financial independence. Simply click here to learn more. No credit card required.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.