A roller-coaster 2019 for ASX200 mining stocks has continued this morning with several major players releasing their December 2018 quarterly activities reports.
The Northern Star Resources Ltd (ASX: NST) share price has plunged 8.70% this morning to $8.40 per share at the time of writing in a mixed opening for gold and precious metals producers.
The ASX200 gold miner released its December 2018 quarterly activities report this morning, announcing sales of 153,027oz at an all-in sustaining cost (AISC) of $1,365/oz despite citing "weather events" as a key cause for the lower-than-expected numbers. The company remains on track to achieve its FY2019 guidance of 850,000-900,000oz despite the December 2018 quarterly result.
Operating cash flow for the group was up 73% quarter-on-quarter to $110 million, whilst the company invested $52 million into exploration and expansionary capital for future production areas.
The mining sector has been on a wild ride so far in 2019 and this trend shows no signs of slowing down as structural headwinds are offset by short-term commodities prices.
Fellow ASX200 miner Regis Resources Limited (ASX: RRL) is up 2.94% in early trade to $4.91 per share at the time of writing following a strong quarterly activities report of its own, posting quarterly gold production numbers of 90,487oz at an average price of $1,718/oz during the quarter.
One of my personal favourites, Syrah Resources Ltd (ASX: SYR) has also been hit hard in early trade, down 2.70% to $1.99 per share at the time of writing. Whilst Syrah hasn't made any significant releases, I believe it is reflective of market sentiment towards commodities-based stocks in the face of Brexit and US-China trade war tensions in the current environment.
Foolish Takeaway
Whilst I believe these stocks can perform well in the medium-term, I'd be putting my money in the non-cyclical Consumer Staples stocks such as Woolworths Group Ltd (ASX: WOW) for capital preservation and a yield-focus in current conditions.
