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These 2 ASX gold miners are striking it rich – upping production guidance today

Gold prices took a dip last week after US President Donald Trump made an agreement with North Korean leader Kim Jong Un in Singapore, but indexes largely held their ground as the geopolitical tension simmered.

It was a mere blip on the radar for most ASX gold producers, with these two players in an especially good place right now as their production figures zoom.

Shares in gold production and exploration company Northern Star Resources Ltd (ASX: NST) were up 1.1% in early morning trade to $6.45 after an announcement the company will exceed top end FY18 production guidelines after hitting its June quarter production target.

Northern Star has reported it is on track to exceed FY18 guidance of between 540,000 ounces and 560,000 ounces.

Similarly, OceanaGold Corp (ASX: OGC) shares were up 3.6% to $3.68 after announcing an increase in its production guidance off the back of strong operating performance.

Northern Star Chairman Bill Beament said the recent acquisition of the 1.2Mtpa South Kalgoorlie mill and ongoing exploration success will underpin continued production growth with additional milling capacity, increasing flexibility.

Northern Star has just declared commercial production at the Millennium Mine with its Jundee operation running at the rate of 2Mtpa on fresh underground ore.

Investors will have their eyes peeled for a production update in early August, including a cost guidance for FY19, and the specifics of a broader strategic update.

Meanwhile, OceanaGold CEO Mick Wilkes said strong performance and improvements to the mine plan at its Didipio Operation has caused FY18 production guidance to be revised upwards to between 500,000 ounces and 540,000 ounces.

Wilkes said “better than expected results” came from improvements to the Didipio mine plan with operations at Haile strong and mining activities in New Zealand gradually improving, with Waihi back on track after a “slow start” and Macraes “slightly exceeding expectations”.

Gold mining peer Newcrest Mining Limited (ASX: NCM) shares were up slightly to $21.17 at the time of writing, but Evolution Mining Ltd (ASX: EVN) shares were in the red at the time of writing, down 1.7% to $3.44.

Shares in mineral exploration and development company with a focus on gold, Saracen Mineral Holdings Limited (ASX: SAR) were also down 1.5% to $2.19 at the time of writing after a solid 12 months of share price rises.

Gold producing small cap Silver Lakes Resources Limited (ASX: SLR) recently announced growth potential out of its Mount Belches project, but its shares took a tumble today, down 2.1% to 58c per share at the time of writing after a successful few months of share price rises from a December 2017 low of 32c per share.

Many investors run to the "safe haven" of gold stocks in an economic downturn, but that doesn't mean every gold producer is a good bet.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. 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 Scott Phillips.

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