Roller-coaster continues for ASX mining shares amid quarterly reporting season

A roller-coaster 2019 for ASX200 mining stocks has continued this morning with several major players releasing their December 2018 quarterly activities reports.

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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.

Motley Fool contributor Lachlan Hall 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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