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Evolution Mining and 1 other ASX gold share in the buy zone

digital asx share price graph against backdrop of gold nuggets
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The Evolution Mining Ltd (ASX: EVN) share price surged 6.5% higher on Friday after a strong earnings result. With gold prices climbing higher, I think there are a couple of ASX gold shares worth a look right now.

Why I like Evolution 

I think the Evolution share price could still have further to climb after a solid full-year result.

Evolution posted a record underlying net profit after tax result of $405.4 million.

FY20 production totalled 746,463 ounces, down from 753,001 ounces in FY19. The group’s all-in sustaining cost  of A$1,043 per ounce was also among the lowest-cost producers in the world.

The ASX gold share rocketed higher on Friday and is now up 62.4% in 2020. That could put off some investors but I think there’s more potential upside for gold prices.

Given a solid growth outlook for both costs and production levels, I think the Evolution share price has further gains ahead in 2021.

And one other ASX gold share

It’s not just Evolution that I’ve got my eye on in 2020. The Saracen Mineral Holdings Limited (ASX: SAR) share price is another that could climb higher.

Saracen shares are already up 69.0% this year with a market capitalisation of $6.2 billion.

I’ve got my eye on the Saracen share price ahead of its August full-year results announcement. There’s no official date for the annual report release but I think Evolution’s result bodes well for profitability.

The ASX gold share could be on the move even higher if we see a strong bottom line. I’d expect the group’s Kalgoorlie Super Pit Mine purchase to flow through to earnings in FY21.

That means this year’s results will largely reflect existing operations. However, I’d expect that to still deliver a decent profit and maybe a new record high for the ASX gold share.

Foolish takeaway

These are just a couple of the ASX gold shares that I like at the moment. Large-cap miners could be set to outperform even further after the dust settles on the August earnings season.

These 3 stocks could be the next big movers in 2020

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Motley Fool contributor Ken 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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