But if you're looking for real upside, the key is to identify an up-and-coming developer who has a project that is moving successfully from the exploration phase, through project development and into production.

Such companies can be targets for acquisition – an area that's certainly been running hot in the gold sector – or can hopefully bring their projects into production in time to capitalise on the surging price of gold.

Mine Life director Gavin Wendt thinks Astral Resources Ltd (ASX: AAR) is one such company, and he's not the only market watcher to think so.

What's so good about this gold developer?

So why is he keen on this company in particular? Firstly, there's management.

In a report released on the company this week, Mr Wendt points out that Astral is headed up by managing director Mark Ducler, who led the former company Egan Street Resources, which was taken over back in 2019.

As Mr Wendt writes:

Astral aims to replicate the same acquisition model, with its Mandilla Project likely of strong interest to potential suitors, as it's one of the largest undeveloped free-milling, open-pit gold projects within the Kalgoorlie region.

And there's also an interesting deal Astral inked just this week, under which it has teamed up with a private company, Mineral Mining Services (MMS), to develop the Think Big gold deposit, which is part of its broader Feysville project in Western Australia.

Under that deal, MMS will fund the development of Think Big, with the two companies sharing the profits once it comes into production.

As Astral said this week:

The standalone development of the Think Big project provides an opportunity to deliver early gold production and cash flow from Astral's asset portfolio, providing funding to support the development of the company's flagship Mandilla Gold Project, potentially reducing the debt and equity funding requirement and minimising shareholder dilution.

Strong cash flow to come

Astral's prefeasibility study, released earlier this year, estimated the pre-production capital at Mandilla to be $227 million, with the mine to generate more than $2.8 billion in free cash flow over its 19-year mine life, with a rapid payback period of less than one year.

These numbers were also modelled at the conservative gold price of $4250 per ounce of gold, compared with the current price in Australian dollars of $6376.44.

Mr Wendt says partnering with MMS significantly derisks the development and funding process for Think Big, while freeing up Astral to focus on Mandilla.

He goes on to say:

Astral holds strong cash reserves, meaning it is well funded to maintain accelerated exploration and evaluation activities at both its Mandilla and Feysville Gold Projects, at a time of record Australian dollar gold prices and growing consolidation within the sector.  

So what of the share price? The company has more than doubled in value from as low as 12 cents to 25 cents currently over the past year.

But Mr Wendt says Euroz Hartleys has a buy recommendation on the stock and a price target of 34 cents, while Canaccord Genuity has a buy recommendation and a price target of 64 cents.

Should it reach those levels, that would be a 156% gain from where the stock closed on Tuesday afternoon.

The post It's doubled this year, but brokers say this gold developer could more than double again appeared first on The Motley Fool Australia.

Four ASX shares that have not let that hold them back are listed below. Here's why they are rising:

Astral Resources NL (ASX: AAR)

The Astral Resources share price is up 6% to 17.5 cents. This follows the release of a mineral resource estimate update from the gold explorer. According to the release, Astral's mineral resource at the 100%-owned Mandilla Gold Project 70km south of Kalgoorlie in Western Australia has increased 49%. Management notes that this will underpin the pre-feasibility study, which is due to be finalised in the June 2025 quarter. Managing Director Marc Ducler said: "Our strategy has been highly successful, with this updated 2025 MRE recording an increase in the Mandilla Indicated Mineral Resource of 49% to 1.03Moz. These ounces will form the backbone of our ongoing PFS, with additional contribution from the Kamperman and Think Big deposits at Feysville."

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is up 2.5% to $78.07. Investors have been buying gold miners today after the price of the precious metal neared a record high following the announcement of tariffs from US President Donald Trump. The S&P/ASX All Ords Gold index is up 1.2% at the time of writing.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is up 4.5% to $2.40. This has been driven by the release of a quarterly update from the gold miner this morning. Although Ramelius revealed a small quarter on quarter decline in gold production, it still delivered record underlying free cash flow of $223 million for the three months. Managing Director, Mark Zeptner, said: "The March 2025 Quarter has delivered our second consecutive record underlying free cash flow, finishing the Quarter with over $657 million in cash and bullion. The operations team continues to maximise cash flows from our existing operations in this elevated gold price environment."

Synlait Milk Ltd (ASX: SM1)

The Synlait share price is up 3% to 68.5 cents. This morning, this dairy processor announced that its strategic workstream to secure its future milk supply has passed a major milestone. Synlait advised that the significant majority of the cease notices issued to the company have now been withdrawn. Acting CEO, Tim Carter, commented: "In the days after we presented our half year result, there was a positive uplift in cease withdrawal numbers. Our farmers are the backbone of Synlait, their support provides us with valuable certainty and reflects growing confidence in the company on the back of our return to profitability."

The post Why Astral, Newmont, Ramelius, and Synlait shares are defying the market selloff and rising appeared first on The Motley Fool Australia.

Anglo is an exploration company with interests in projects targeting gold and base metals, primarily copper and zinc. The company portfolio includes advanced and grass roots projects in Western Australia's Eastern Goldfields, Kimberly and the Northern Territory.

Capital raising

Anglo's share price fell today after the company said it had secured firm commitments to raise $11 million via a single tranche share placement. The placement comprises approximately 64.7 million shares issued at 17 cents per share to sophisticated and professional investors.

In addition, Anglo is undertaking a SPP to raise up to $3 million. The SPP will be open to all eligible shareholders at the same issue price as the placement.

The company will use existing cash reserves and proceeds of the capital raising to advance exploration, drilling and feasibility studies at the company's Mandilla Gold Project. Mandilla is located 60km south of Kalgoorlie, Western Australia.

Anglo managing director Marc Ducler said:

The proceeds of this placement and SPP will provide an outstanding platform for Anglo to unlock the full value of the Mandilla Gold Project through an extensive exploration and resource definition drilling program, which will underpin the delivery of a maiden Mineral Resource Estimate during the December 2020 quarter as well as the commencement of technical and feasibility studies.

What now for the Anglo share price?

Funds used to complete the current drilling program at Mandilla as well as exploration, drilling and feasibility studies should realise positive gold finds for shareholders, according to the company.

The Anglo share price has had a positive year buoyed by the record rise in the price of gold. Since the start of the year the Anglo share price is up 95%.

The post Anglo (ASX:AAR) share price sinks on capital raising appeared first on The Motley Fool Australia.