The market may be charging higher today but the same cannot be said for ASX gold miners.
The likes of Evolution Mining Ltd (ASX: EVN), Newmont Corporation (ASX: NEM), Northern Star Resources Ltd (ASX: NST), and Regis Resources Ltd (ASX: RRL) are in the red today after the gold price dipped overnight.
This was driven by comments out of the US Federal Reserve, which, despite holding rates steady, suggested that the rate hike cycle might not be over.
At the time of writing, the spot gold price is back below the US$2,000 per ounce level at US$1,993.5 per ounce.
Where is the gold price heading from here?
According to a recent note out of Goldman Sachs, its analysts are expecting the gold price to remain in or around current levels for the foreseeable future.
Goldman is forecasting an average spot gold price (per ounce) of the following:
- US$1,970 in 2023
- US$1,972 in 2024
- US$1,971 in 2025
- US$1,971 in 2026
This is likely to be good news for many ASX gold miners, which are printing money with the precious metal at current levels.
For example, Evolution Mining's guidance for FY 2024 is 770,000 ounces of gold at an all-in sustaining cost (AISC) of A$1,370 per ounce. This would give it a margin of approximately A$1,700 per ounce based on the above and current exchange rates.
Over at Northern Star, it recently stated its belief that it is well positioned to deliver 1,600,000 ounces to 1,750,000 ounces gold sold at an AISC of A$1,730 to A$1,790 per ounce in FY 2024. This would give it margin in the region of A$1,300 per ounce.
But of course, it is worth remembering that predicting commodity prices is notoriously difficult and a lot can change (for better or worse) in the space of 12 months.
