The Motley Fool

3 ASX shares to cash in on the record high gold price

The gold price hit a new high of over $2,700 an ounce yesterday as investors sought safe haven assets. Continued political tension between the United States and China have added to uncertainty, along with rising coronavirus cases. The gold price is now up more than 20% since the start of the year when it was trading around $2,200 an ounce. 

Gold has been used as a method of wealth preservation for decades. It can be used as a hedge against inflation and to provide diversification benefits thanks to its negative correlation with paper securities. One way to gain exposure to gold is through ASX shares in gold miners.

Here are 3 ASX gold miners that will help you get on the gold train. 

Newcrest Mining Limited (ASX: NCM)

Newcrest is one of the world’s largest gold mining companies, operating gold, silver, and copper mines in Australia, Canada, and Papua New Guinea. The Newcrest share price is up 21% for the year and 67% from its March low.

The gold miner reported a strong fourth quarter with gold production up 7% to 573,175 ounces. Over the full year, Newcrest produced 2,487,739 ounces of gold, in line with guidance. Silver production was 983,431 ounces in FY20, with 137,623 tonnes of copper produced. 

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources is a gold miner and explorer operating in Western Australia, the Northern Territory, and Alaska. The Northern Star share price is up 43% for the year and 76% from its March low.

The company reported record gold production in the quarter ending June 2020, with 267,261 ounces of gold recovered. Over the full year, Northern Star recovered 905,177 ounces of gold. At the end of the quarter, the company had cash, bullion, and investments, of $770 million with corporate debt of $700 million. The company also announced that $200 million in corporate debt was repaid in early July. 

Saracen Mineral Holdings Limited (ASX: SAR) 

Saracen is involved in the exploration and mining of gold and other minerals in the Kalgoorlie Region of Western Australia. The Saracen share price is up 95% for the year and 122% from its March low.

In the quarter ending June 2020, Saracen produced 145,830 ounces of gold with full year production of 520,414 ounces, ahead of guidance. Production guidance for FY21 is for upwards of 600,000 ounces. Saracen reported cash and bullion of $369 million at 30 June 2020 and debt of $321 million.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor Kate O'Brien 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.

Related Articles...

Kate O'Brien