A wave of macroeconomic crosscurrents is lifting the gold price this month after traders had sold it down to 52-week lows.

Gold prices climbed more than 1% to hit a fresh one-month peak on Thursday. According to Reuters, this "was underpinned by a retreat in the dollar and U.S. Treasury yields, as investors kept a close tab on U.S.-China tensions".

With the relief rally in place, these three ASX gold miners have opened the session in the green on Friday.

OceanaGold Corp (ASX: OGC)

Shares of OceanaGold are up more than 8% higher on Friday and now trade at $2.61 apiece on no news.

After a period of heavy downside since April, the company's shares have bounced from three-month lows as trading volume surges to around three times the four-week average.

On 29 July, the company released its second-quarter financial report, showing a period of sales growth.

The company reported revenue for the six months ended 30 June 2022 increased by 55.4% over the comparative period last year. This was "due mainly to higher sales volumes and higher average gold and copper price," OceanaGold said.

"Net profit after tax [NPAT] for the six months ended 30 June 2022 was $98.0 million compared to $47.4 million for the same period in 2021," it added.

This year to date, the OceanaGold share price has clipped a 12% gain.

Bellevue Gold Ltd (ASX: BGL)

Shares in Bellevue Gold have pushed 5.42% higher today and now trade at 87.5 cents apiece. Certainly, the gold price looks to have helped Bellevue shares today.

The company released its second-quarter report in July where it said it had significantly de-risked its Bellevue Gold Project in WA by locking in 90% of pre-production capital under contract.

Moreover, with exploration and capital expenditure in the gold sector heating up, "[e]merging producers like Bellevue could be on the menu for the big producers," Livewire notes.

Despite the updates, the Bellevue share price has slipped more than 17% into the red over the past 12 months to date.

Ramelius Resources Ltd (ASX: RMS)

Shares of Ramelius are another gold play that has spiked more than 5% in today's session at the time of writing.

Investors have bid the Ramelius share price 5.5% higher on no news, with the gains looking to be correlated to sector strengths today.

After several months of downturn, the stock has caught a bid since 30 June. This is curious, as sentiment was poor following the release of the company's production update a week earlier.

The company reported its "gold production for FY22 will fall marginally short of the current guidance range".

Nevertheless, with the price of gold strengthening, and the broad sector strengthening since June/July, the stage is set for Ramelius to gain on the chart.

The post 3 ASX gold shares surging ahead on Friday appeared first on The Motley Fool Australia.

Gold shares rising today include Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST), OceanaGold Corp (ASX: OGC), Silver Lake Resources Limited (ASX: SLR) and
Mako Gold Ltd (ASX: MKG) .

So what is impacting ASX gold shares today?

Gold prices

At the time of writing, OceanaGold Corp shares are up 7.95%, while Evolution Mining is leaping 4.88%. Silver Lake is jumping 3.86%, while Northern Star is climbing 3.43%, and Mako Gold is up 2.47%.

Gold prices jumped in the United States overnight due to the US dollar weakening and lower treasury yields, CNBC reported.

US gold futures leapt 1% to $1,885.60 an ounce, while spot gold climbed 0.7% to $1,866.39 an ounce on Tuesday.

Commenting on the gold prices, City Index UK senior market analyst Matt Simpson said:

The weaker dollar has helped gold break back above its 200-day average… and we're not yet convinced the greenback has seen a low.

Gold futures have since pulled back to $1,862 at the time of writing, but this is still the highest level since 9 May.

Meanwhile, Mako Gold today reported "exceptional drilling results" at the Gogbala Prospect in Côte d'Ivoire, West Africa. The company intersected high-grade gold mineralisation at 40 of 49 holes at the project.

In other news, OceanaGold released a sustainability report yesterday. President and CEO Gerard Bond described 2021 as a "remarkable year" both operationally and due to improving sustainability performance. The company aims to cut carbon emissions by 30% per ounce of gold by 2030.

Share price snapshot

OceanaGold Corp shares have surged 39% in the year to date, while Evolution Mining shares have slipped nearly 5%.

Silver Lake shares have descended 9% year to date, while Northern Star Resources have dropped 19%, and Mako Gold shares have slipped nearly 25%.

For perspective, the ASX 200 Resources Index has jumped nearly 11% year to date.

The post Why are ASX gold shares leaping today? appeared first on The Motley Fool Australia.

The OceanaGold share price has spent the entire day in the green after opening sharply higher alongside the company's release of its quarterly update for the three months ending 31 March 2022.

The OceanaGold share price has climbed another 15% during the past month, continuing a three-month trend where shares thrust off a low of $2.07 in January.

OceanaGold bumps gold production

Key highlights for the quarter include:

• OceanaGold produced 134,035 ounces of gold, a 26% increase quarter-on-quarter
• Consolidated all-in sustaining costs (AISC) for the quarter of $1,084 per ounce on gold sales of 129,191ounces
• Record quarterly revenue of $286 million and record quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) of $158 million
• Net profit after tax (NPAT) of $79 million
• Earnings per share (EPS) of 11 cents after full dilution
• Generated $63 million in free cash flow for the period
• Net debt, inclusive of equipment leases, reduced by 29% quarter on quarter to $168 million
• Leverage ratio of 0.40x and period-end gearing of 9%.

What else happened last quarter for OceanaGold?

The company saw a 26% increase in gold production compared to the previous quarter. The gain also signifies a 61% increase when compared to Q1 FY21.

OceanaGold reported "record quarterly production" at the Haile Gold Mine in South Carolina and a "solid quarter of production" at Didipio Mine in the Philippines. This was partially offset by decreased production at the company's Waihi operation in the North Island of New Zealand.

Specifically, Waihi produced 6,752 ounces of gold, a 56% year on year gain, but a simultaneous 43% drop compared to last quarter.

In addition, the company's reported AISC was 18% lower than the last quarter and 14% lower when compared to Q1 FY21.

Sales of $285 million carried down to EBITDA of $158 million, representing 37% and 78% quarter on quarter gains respectively.

However, EBITDA was 155% higher year on year "related to resumption of operations at Didipio and increased gold prices".

Management commentary

Speaking on the results, OceanaGold CEO Gerard Bond said:

OceanaGold has started the year strongly with the first quarter safely delivering record quarterly revenue and EBITDA and significant free cash flow.

This quarter's performance was underpinned by record quarterly gold production at our Haile operation in the United States and a very strong first quarter of full production at our Didipio operations in the Philippines.

At Haile, we are continuing to see the benefits of operational and productivity improvements that began in mid2021. At Didipio, the operation achieved full underground mining rates at the end of the first quarter, ahead of schedule by nearly one quarter.

What's next?

The company was able to restate its full-year consolidated guidance of 445,000–495,000 ounces of gold and 11,000–13,000 tonnes of copper. It hopes to realise these sales at an AISC of $1,275–$1,375 and cash costs between $675–$775 per ounce sold.

Adding further comments, CEO Bond said the company remained "focused on safely and responsibly delivering on our production guidance for 2022, maximising free cash flow generation and progressing the attractive growth options in our portfolio".

OceanaGold share price snapshot

The OceanaGold share price has climbed 52% over the past 12 months and is up more than 47% for the year to date.

The post OceanaGold share price lifts 8% on gold production boost appeared first on The Motley Fool Australia.

Shares in OceanaGold are currently trading for $2.52 – 2.44% more than at market's close yesterday.

Let's take a look at today's news from the gold mining company.

The news driving the OceanaGold share price

Didipio Mine

The OceanaGold share price looks like it's in for a good day after the company announced the Philippine Government has renewed the Didipio Mine's Financial or Technical Assistance Agreement (FTAA) for another 25 years.

Didipio is a gold and copper mine. Work at the mine is currently halted as the company prepares to rehire and train its workforce.

Some of the FTAA's renewed terms include:

• OceanaGold must invest an additional 1.5% of the mine's revenue into community development.

• The company must list at least 10% of OceanaGold Philippines Inc's ordinary shares on the Philippine Stock Exchange within the next 3 years. OceanaGold Philippines is a subsidiary of the company.

• Additionally, OceanaGold Philippines must offer at least 25% of the gold it produces to the Philippine Central Bank for a fair market price.

The OceanaGold share price might be one to watch in the near term, as the company plans to announce more details on the Didipio Mine's production resumption in due time.  

It hopes to restart its milling operations soon, using the 19 million tonnes of ore it has stockpiled.

Once work at the mine begins, OceanaGold predicts it will reach full capacity within 12 months. The mine's expected to produce around 10,000 ounces of gold and 1,000 tonnes of copper each month at first quartile.

Commentary from management

OceanaGold's president and CEO Michael Holmes said of the news:

We are pleased to confirm the renewal of the Didipio Mine's FTAA and thank the Philippine Government for their endorsement… We look forward to commencing restart activities and continuing to work in partnership with our regulators, communities, employees, and all stakeholders to contribute to the Philippines' post-COVID-19 economic recovery.

Operational update

Also likely affecting the OceanaGold share price is news the company expects all its operational mines to reach their 2021 production guidance.

OceanaGold's US operation, Haile, is on track to hit its 2021 production guidance of 150,000 to 170,000 ounces of gold.

However, the mine's production costs have increased and it's yet to meet the company's expectations. As a result, OceanaGold is conducting a review of the operation.

News the company's New Zealand-based operations are tracking in line with their 2021 production guidance could also be boosting the OceanaGold share price.

The Waihi Gold Mine's production guidance was between 35,000 and 45,000 ounces of gold.

Macreas Gold Mine's guidance was 155,000 to 165,000 ounces of gold.

OceanaGold share price snapshot

It has been a rough year so far for the OceanaGold share price. It's currently 5.9% lower year to date. It has also fallen 23% since this time last year.

The company has a market capitalisation of around $1.7 billion, with approximately 704 million shares outstanding.

The post Here's why the OceanaGold (ASX:OGC) share price is gaining today appeared first on The Motley Fool Australia.

Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:

Bubs Australia Ltd (ASX: BUB)

According to a note out of Citi, its analysts have retained their sell rating and 35 cents price target on this infant formula company's shares. While the broker felt there were a few improvements in its third quarter update, it isn't enough to become more positive. Not until there is clear evidence that its Daigou 2.0 strategy is delivering results. Outside this, the broker still has concerns over growing competition by domestic players in the key China market and its ability to compete with bigger players. The Bubs share price was trading at a multi-year low of 37.5 cents at the end of the week.

OceanaGold Corp (ASX: OGC)

Analysts at Macquarie have downgraded this gold miner's shares to an underperform rating and reduced the price target on them to $2.00. This follows the release of a mixed first quarter update which revealed solid production but higher costs. Combined with a valuation that Macquarie appears to believe is looking stretched and ongoing disruption at Didipio, the broker feels investors would be better off investing elsewhere in the sector. The OceanaGold share price was trading at $2.28 at Friday's close.

Scentre Group (ASX: SCG)

A note out of UBS reveals that its analysts have retained their sell rating and $2.65 price target on this shopping centre operator's shares. While the broker felt that the company's quarterly update was decent given the tough trading conditions it is facing, it was still disappointed with its cash collections. Particularly given that it suspects Scentre is collecting rent that was already recognised in 2020. In light of this, it feels its gross rental collections are actually running 8% below its forecasts. The Scentre share price ended the week at $2.74.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Why is the OceanaGold share price on watch?

The Aussie gold miner this morning provided its latest quarterly results for the period ended 31 March 2021 (Q3 2021).

OceanGold produced 83,191 ounces of gold on a consolidated basis at an all-in sustaining cost (AISC) of $1,229 per ounce. Production was up 3% on the prior corresponding period (pcp) but down 16% from the December quarter.

The group's AISC was marginally higher than the $1,218 per ounce recorded in the previous quarter. OceanaGold increasing consolidated cash costs of $800 per ounce and higher AISC reflected lower production and higher capitalised pre-stripping. 

The OceanaGold share price is one to watch today after the mixed result as the company maintained its full-year guidance numbers.

OceanaGold sold 82,847 ounces of gold during the quarter for revenue of $148.9 million. That was an increase on pcp but down 11.5% from $168.2 million in the December quarter. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $66.5 million for the quarter, down 6% from the December quarter.

Cost increases at the group's Haile plant reflected lower throughput during the quarter and one-off costs. OceanaGold expects Haile to produce 150,000 to 170,000 ounces at an AISC of $950 to $1,100 per ounce sold for FY2021.

The OceanaGold share price is worth watching today as it remains on-track to achieve full year 2021 guidance. That's despite challenges at its Phillippines-based Didipio site. Didipio remains "in a state of operational standby" as an ongoing blockade of the access road continues.

The Aussie gold miner said it is unable to provide a specific timeline to complete the Financial or Technical Assistance Agreement (FTAA) renewal. COVID-19 factors mean it may take "up to 12 months" for normal operations to resume.

Foolish takeaway

The OceanaGold share price is one to watch in early trade after the comprehensive quarterly update form the Aussie gold miner.

The post Why the OceanaGold (ASX:OGC) share price is on watch appeared first on The Motley Fool Australia.

What's impacting the OceanaGold share price?

Earlier today, the OceanaGold share price fell by more than 11% after the company released its full-year financial report for the year ended 31 December 2020.

For the year, OceanaGold reported a loss of US$150.4 million compared to a US$14.5 million profit achieved in the year prior. A 23.2% fall in revenue of US$500.1 million for the year contributed to the loss.

OceanaGold attributed the fall in revenue to limited sales and lower annual production. Overall, the company fell to a loss after revenue was unable to offset the cost of sales and higher depreciation costs.

For the full year, OceanaGold reported consolidated production of 301,675 ounces of gold. The company managed to sell 310,531 ounces at an all-in sustaining cost (ASIC) of US$1,278 an ounce.

Despite the dour full-year performance, OceanaGold highlighted a strong performance in the fourth quarter. The company reported a 57% increase in production for the fourth quarter of 99,155 gold ounces.

Outlook

OceanaGold is a multinational gold producer. Its portfolio of operating assets include the Didipio mine in the Philipines, Macreas and Waihi operations in New Zealand and the Haile gold mine in the United States.

On the back of a strong fourth quarter, OceanaGold touted an optimistic outlook for 2021, upgrading its full-year gold production guidance. It advised expected production for 2021 is in the range of 340,000 to 380,000 ounces at an ASIC of between US$1,050 to US$1,200 an ounce.

The company attributed the increased guidance to production resuming at the Waihi operation and higher gold sales from the Haile gold mine. OceanaGold's Martha underground project at Waihi recently entered production, whilst its Golden Point project at the Macraes operation and the Haile gold mine are expected to commence production later this year.

OceanaGold President and CEO Michael Holmes attested to the revised guidance. He stated, "These three projects alone are expected to deliver more than a 75 per cent increase in production relative to 2020 at decreasing costs and increasing margins.".

Based on the current OceanaGold share price of $2.01, the company commands a market capitalisation of around $155 million.

The post Why the OceanaGold (ASX:OGC) share price is slumping 9% appeared first on The Motley Fool Australia.

Four ASX shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

CSL Limited (ASX: CSL)

The CSL share price is down over 2.5% to $281.65. This appears to be due to a mixed response to its half year results yesterday. While analysts at Goldman Sachs were impressed with its stellar profit growth in the first half, they were surprised that this didn't lead to an upgrade to its full year guidance. This has the broker concerned and led to it downgrading CSL's shares to a neutral rating with a $305.00 price target.

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price has fallen a further 5% to 25.7 cents. Investors have been selling this software company's shares since it released further details of a record new contract win. The market appears to have been left underwhelmed that that the "record multi-million dollar deal" was worth $3 million over three years. And while it could increase in value over time, there's no guarantee that this will be the case.

OceanaGold Corp (ASX: OGC)

The OceanaGold share price has crashed 8.5% lower to $2.01. This follows the release of its full year results after the market close on Thursday. Production issues led to the gold miner reporting a 23.2% decline in revenue to US$500.1 million and a 40% reduction in EBITDA to US$129.6 million. And due to higher depreciation and amortisation, OceanaGold posted a loss after tax of US$74.3 million.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down 4% to $24.35 despite announcing a sale and purchase agreement with RWE Supply & Trading. The agreement is for the supply of LNG from Woodside's global portfolio for a term of seven years commencing in 2025. In other news, this morning UBS held firm with its neutral rating and cut the price target on its shares slightly to $26.05. This follows its full year results release this week.

The post Why CSL, LiveTiles, OceanaGold, & Woodside shares are tumbling lower appeared first on The Motley Fool Australia.

That's the view of Goldman Sachs who believe these stocks have been oversold despite today's bounce.

While many ASX gold miners are outpacing the 1.1% jump in the S&P/ASX 200 Index (Index:^AXJO) this afternoon, most are still scrapping the bottom of their six-month trading range.

Why ASX gold stocks have lost their lustre

The bounce back in global economic growth and the start of mass COVID-19 vaccinations in countries like the UK and US have prompted investors to dump safe haven assets for cyclical stocks

This explains why the gold price has been falling over the past few months after hitting a record high of over US2,000 an ounce.

But Goldman Sachs doesn't think the dip will last. If anything, the broker expects the gold price to shoot towards US$2,300 an ounce as early as this quarter!

New record gold prices for 2021

This is where the gold price is forecast to average for the entire 2021 calendar year. The gold price is currently trading around US$1,825 an ounce, suggesting there is significant upside if Goldman is right.

However, the broker believes the best bang for your investment dollar won't be with the gold sector leaders. These heavyweights include the Newcrest Mining Ltd (ASX: NCM) share price and Evolution Mining Ltd (ASX: EVN) share price.

"Looking out to 2021, we think companies that can demonstrate production growth and advancing project pipelines in a supportive pricing environment will benefit," said Goldman.

"We continue to view brownfields production and reserve growth as the clearest opportunity for value creation particularly in the mid-cap space."

The best ASX gold stock to buy now

The ASX mid-cap gold stock that stands out is the St Barbara Ltd (ASX: SBM) share price. The stock is on Goldman's "conviction buy" list as it's trading at a wide discount. The SBM share price stands at around 0.52 times net asset value, or a 39% discount to the sector.

What's more, the broker believes St Barbara will increase gold production by 36% by FY25 thanks to its brownfield projects.

Other ASX gold shares to buy

Another mid-tier gold producer on Goldman's list of ASX stocks to buy is the Resolute Mining Limited (ASX: RSG) share price.

Resolute has the best free cashflow (FCF) generation potential among all the gold stocks under Goldman's coverage. It's expected FCF yield is 39% for this calendar year and there's cost and production upside from its various projects.

The third emerging ASX gold stock to watch is the OceanaGold Corp (ASX: OGC) share price. Goldman is urging investors to buy the OGC share price as it's trading at around a 33% discount to the sector.

The stock is also trading on a decent FCF yield of 11% in 2021 despite having to invest in Waihi and Haile underground projects.

The post Top broker says you should buy these oversold ASX gold stocks now appeared first on The Motley Fool Australia.

What did OceanaGold announce?

According to the release, the company expects to report fourth quarter consolidated gold production of 99,155 ounces for the three months ended 31 December.

This will bring its full year gold production to a total of 301,675 ounces, which is down 36% on the FY 2019 due to the shutdown of its Didipio operation in the Philippines following protests.

OceanaGold achieved this with an all-in sustaining cost (AISC) of US$1,075 per ounce for the quarter and US$1,276 per ounce for the full year. The latter was up from US$980 per ounce in FY 2019.

However, the company benefited from the appreciation in the gold price in 2020. Its average gold sold price came in at US1,648 per ounce for the quarter and US$1,573 per ounce for the year. This compares to FY 2019's average gold sold price of US$1,360 per ounce.

At the end of the period, the company had liquidity of US$229 million. This includes US$179 million of cash on hand and $50 million in undrawn credit facilities.

OceanaGold's President and CEO, Michael Holmes, commented: "We delivered a strong fourth quarter of production, consistent with our core value to deliver on our commitments. Despite the ongoing risks associated with the COVID-19 global pandemic in the United States, Haile achieved its full year production guidance with 137,413 gold ounces produced including 48,988 ounces in the fourth quarter."

"The risks associated with the management of COVID-19 remain, and we are focussed on keeping our workforce safe while delivering on our commitments. We expect the continued mining of high-grade zones at Haile through the first half of 2021," he added.

Didipio update.

OceanaGold appears optimistic that its troubled Didipio operation could be back up and running as normal in the near future.

It advised that it has had multiple meetings with national government officials in December to finalise the terms of the FTAA renewal. This renewal is expected to be endorsed to the Office of the President for approval.

It added that it will continue to engage with government officials and work with stakeholders for a safe restart of operations at Didipio. However, it warned that the timeline for the renewal remains uncertain and achieving steady state production will be dependent on the timing of the renewal and workforce recruitment efforts.

The post Why the OceanaGold (ASX:OGC) share price will be on watch on Tuesday appeared first on The Motley Fool Australia.

Moves in consumer ASX shares

Late last month, Mr Michael Butler retired from his role as chair of Adairs Ltd (ASX: ADH). Mr Butler is a veteran of many boards. In 2010 he was the chair of AMP Superannuation, a subsidiary of AMP Limited (ASX: AMP). Since then, he has enjoyed appointments as director of Metcash Limited (ASX: MTS) and Total Tools before taking the helm at Adairs. Whilst there, Mr Butler oversaw Adairs' ASX listing, a transition of CEOs, the acquisition of Mocka, and navigation of the transformational COVID-19 pandemic.

Among other news in ASX retail shares, was the resignation of Myer Holdings Ltd (ASX: MYR) chair, Mr Garry Hounsell. In a particularly rancorous affair, Mr Hounsell resigned mere hours before the company's annual general meeting (AGM). Mr Hounsell had been fighting a rearguard action against the chair of Premier Investments Limited (ASX: PMV), Solomon Lew.

With 10.8% ownership of Myer shares, Premier Investments, and in particular Mr Lew, became vocal after the annual report when the company posted a loss of $172.4 million. However, once Geoff Wilson, of Wilson Asset Management, declared his opposition to the chair's re-election, Mr Hounsell resigned. Wilson Asset Management owns 7.8% of the company. 

JoAnne Stephenson has been appointed acting chair whilst a global search is underway.

Mining changes

Rio Tinto Limited (ASX: RIO) non-executive director, David Constable, will be stepping down from the company, effective 31 December. Consequently, he will be moving to take up a role as chief executive of engineering giant Fluor Corp (NYSE: FLR). Mr Constable has held various roles with Fluor from 1982 to 2011, including group president, operations and group president of the power business.

Meanwhile, Sandra Dodds has joined the board of ASX share OceanaGold Corp (ASX: OGC) as a non-executive director, effective immediately. Sandra Dodds is a very experienced non-executive director with a career spanning over 25 years thus far. As well as OceanaGold, Sandra is a non-executive director for Snowy Hydro Limited, and Maca Ltd (ASX: MLD).

In other mining news, director Darren Yeates has resigned from the board of ASX share Emeco Holdings Limited (ASX: EHL) after accepting an executive role at Peabody Energy Corporation (NYSE: BTU). The Emeco board will seek to appoint a new director. Yeates is the new executive vice president and chief operating officer at Peabody Energy, effective 1 November. He has been on the Peabody board since February 2020 and will remain as a non-independent director.

The post Follow the money: Executive moves in ASX shares appeared first on The Motley Fool Australia.

The gold miner's shares crashed as much as 10% lower to $2.12 at one stage today before ending the day down 9% at $2.15.

Why did the OceanaGold share price sink lower?

Investors have been selling OceanaGold's shares after it announced a C$150 million (A$157.1 million) equity raising.

According to the release, the company has entered into an agreement with a syndicate of underwriters, led by Scotiabank and BMO Capital Markets. They have agreed to purchase, on a bought deal basis, 73 million shares at a price of C$2.06 per new share.

This represents a discount of almost 9% to the last close price of its Canada-listed shares.

In addition to this, OceanaGold has granted the underwriters the option to purchase up to an additional 10.95 million shares at the offer price. These options are exercisable in whole or in part until and including 30 days following the closing date of 30 October.

Why is OceanaGold raising funds?

The company advised that the net proceeds from the equity raising will be used to fund organic growth projects.

This includes the Haile underground development in the United States and ongoing exploration and development of its mineral properties in New Zealand.

In addition to this, some of the proceeds will be used for working capital and general corporate purposes.

What about Australian retail investors?

Unfortunately for local retail investors, the company doesn't have plans to offer them the chance to pick up shares at the same price through a share purchase plan.

Though, given the weakness in its share price on Thursday, investors would have been buying in at roughly the same level as these institutional investors if they picked up shares earlier today.

The post Why the OceanaGold (ASX:OGC) share price sank 10% lower today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

The Electro Optic Systems Hldg Ltd (ASX: EOS) share price is down 1.5% to $5.38. On Wednesday the defence and aerospace company announced the conclusion of contract negotiations with the government. These negotiations have resulted in the government purchasing 251 Remote Weapon Stations and related materiel for a total of $94 million. Some investors may have been expecting better terms.

The Jumbo Interactive Ltd (ASX: JIN) share price has tumbled 4.5% lower to $11.94. Investors have been selling the lottery ticket seller's shares despite it being the subject of two positive broker notes. One of those was out of Citi. This morning its analysts reiterated their overweight rating and $14.30 price target on Jumbo's shares. This follows news that the company has signed a deal with Lotterywest.

The Nearmap Ltd (ASX: NEA) share price is down 1% to $2.34. This is despite there being no news out of the aerial imagery technology and location data company on Thursday. However, it is worth noting that a number of tech shares are underperforming the rest of the market today.

The OceanaGold Corp (ASX: OGC) share price has crashed 9% lower to $2.15. The catalyst for this was the announcement of a C$150 million equity raising this morning. OceanaGold has entered into an agreement with a syndicate of underwriters who have agreed to purchase 73 million shares at a price of C$2.06 per new share. OceanaGold intends to use the net proceeds to fund organic growth projects. This includes the Haile underground development.

The post Why EOS, Jumbo, Nearmap, & OceanaGold shares are dropping lower today appeared first on The Motley Fool Australia.

But the analysts at Macquarie Group Ltd (ASX:MQG) is warning that gold is running ahead of fundamentals, and the higher it runs, the harder it will fall.

This could see the strong price gains made by S&P/ASX 200 Index (Index:^AXJO) gold miners come undone.

The Evolution Mining Ltd (ASX: EVN) share price surged 61% since the start of the year, while the St Barbara Ltd (ASX: SBM) share price and Newcrest Mining Limited (ASX: NCM) share price have jumped 33% and 22%, respectively.

It's deflation, not inflation lifting gold

"Gold has finally pushed through the $2k psychological target, at a high of [US]$2,030/oz at time of writing," said Macquarie.

"The move continues to benefit from USD weakness and the ongoing slide in US real rates through -1%."

I noted some media commentary about how low inflation is a negative for the gold price. But I believe this misses the point. Gold isn't running to record highs due to expectations of runaway inflation.

If anything, no one is expecting much inflation over the next few years, and this was evident even before the COVID-19 pandemic.

Gold bulls are drawing their latest breath from expectations of deflation or dis-inflation, as highlighted by Macquarie's comment on "real rates".

Gold overshot on the upside?

Don't get me wrong, history shows how effective gold is as an inflation hedge. But the 3,000-year-old store of value is also a relatively good way to protect against falling real asset prices.

"Even with these supportive factors, however, gold continues to look rich on a cross-asset basis, trading [US]$150-$200 above our 'fair value' estimates," explained Macquarie.

"We believe this is the overshoot move that we have been looking for and, while momentum could carry prices further, it raises the risk of a sharp correction."

Is it time to sell ASX gold miners?

I don't share this bearish view, but I do believe what goes up will come down when it comes to commodity prices. And the faster something rises, the harder it is likely to fall when the day of reckoning comes. I just don't think this will happen in the next year or two.

But if you want a foot in both camps, Macquarie suggested investors dump the large cap gold producers and buy their smaller counterparts.

Some of the gold miners that the broker has an "outperform" (or buy) rating on include the Resolute Mining Limited (ASX: RSG) share price, Silver Lake Resources Limited. (ASX: SLR) share price and OceanaGold Corp (ASX: OGC) share price.

The post Expert warns that record-breaking gold price is facing painful correction appeared first on The Motley Fool Australia.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating and $6.85 price target on this auto parts company's shares. The broker has been looking into the retail sector and the potential impacts of the removal of the JobKeeper program. It believes this will have a limited impact on Bapcor and remains positive on its outlook. Especially given its belief that it will benefit from increasing personal transport use. The broker also sees opportunities for Bapcor to grow in the Thai market. I think Citi makes some good points and Bapcor could be worth considering.

OceanaGold Corp (ASX: OGC)

Analysts at Credit Suisse have upgraded this gold miner's shares to an outperform rating with an improved price target of $4.10. It made the move after the release of its second quarter production update late last week. Although it notes that its production guidance has been downgraded, this was for reasons outside the company's control. Overall, the broker appears very positive on its long term growth potential and believes its shares are great value at the current level. I would agree that it could be worth taking a closer look at.

Super Retail Group Ltd (ASX: SUL)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $10.30 price target on this retailer's shares. The broker was pleased with Super Retail's recent update and believes it was supportive of its investment thesis. Goldman is positive on the company due to its belief that it will benefit from more domestic travel, increased usage of private transport, and home fitness equipment demand as a result of the pandemic. The broker also notes that its shares are currently trading at ~12.4x earnings, which is a 25% discount to its historical average. I think Goldman Sachs is spot on and Super Retail could be a good retail option.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

What was in the announcement?

OceanaGold reported production of 139,385 ounces of gold in the first half of 2020. This was a 45% drop in production compared to the same period in 2019. The company reported that this was mainly due to a temporary suspension of operations at its Didipio mine. During the first half of 2020, OceanaGold had an all in sustaining cost of $1,237 on 153,343 ounces of gold sold. 

During the quarter ending June 2020, the company produced 58,678 ounces of gold. It sold 61,955 ounces of gold at an all in sustaining cost of $1,265 per ounce.

The company had revenue in the first half of 2020 of $234 million with earnings before interest, tax, depreciation and amortisation of $54.8 million.

OceanaGold reported that production guidance for 2020 would be lowered from 360,000–380,000 ounces of gold down to 340,000–360,000 ounces of gold. It attributed this to the 5-week coronavirus lockdown in New Zealand, which affected the company's Macraes site. The lockdown was lifted on 27 April.

The company reported that guidance for all in sustaining costs on a gold sold basis for 2020 would be reduced from $1,075–$1,125 down to $1,050–$1,100 per ounce of gold.  

President and CEO of OceanaGold Michael Holmes commented on the result and the company's plans for the rest of 2020, stating:

We look forward to the second half where we continue to expect a material increase in production at both Haile and Macraes at lower AISC plus continued advancement of our key organic growth projects including those recently outlined in the Waihi District Study.

The second quarter was expected to be our weakest in terms of production, but the results also demonstrate the impact the global COVID-19 pandemic has had on our business. We have worked hard to safeguard the health and safety of our employees through the implementation of rigorous protocols including health screening, physical distancing and disinfecting throughout our operations.

About the OceanaGold share price

OceanaGold in a multinational gold explorer and producer. The company has operations in the United States, New Zealand, and the Phillipines.

In July, the company revealed that it had completed a study for its Waihi district site. OceanaGold announced that the site had a net present value of US$931 million with a life of mine estimated to last until 2036 and beyond.

The OceanaGold share price is up 145.89% since its 52-week low of $1.46. It has returned 29.14% since the beginning of the year. The OceanaGold share price is down 13.29% since this time last year.

The post OceanaGold share price slides 6% after release of quarterly result appeared first on The Motley Fool Australia.

The spot gold price strengthened by 1.6% to US$1,973 an ounce this morning as gold stocks outperform the S&P/ASX 200 Index (Index:^AXJO).

There's good news for ASX investors who worry that they might have missed the opportunity to buy gold mining shares – UBS thinks it isn't too late.

Gold price upgrade

The broker upgraded its forecast for the safe haven commodity. It is now expecting gold to average US$1,850 an ounce this financial year, or US$200 ahead of its previous prediction.

UBS' expectations for FY22 is for the yellow metal to fetch US$1,750 an ounce compared to its last forecast of US$1,650 an ounce.

"The upgrade to our gold price forecasts drives a substantial ~30-60% uplift in our 2021e NPAT forecasts," said UBS.

"All our coverage is investing in growth initiatives, but the strong gold price means they have positive FCF [free cash flow] yields."

Upside might even be higher

But even then, the broker's estimates may still prove to be too conservative. I believe the gold price could be averaging around US$2,000 an ounce over the next year for a few reasons outlined here. The gold bull run may be closer to the beginning than the end.

If you are wondering which stocks are best leveraged to the big rise in the shiny metal, UBS has picked the best placed ASX miners to outperform.

Best ASX gold stocks to buy

The Newcrest Mining Limited (ASX: NCM) share price is its top "buy" idea for the sector.

"We recently changed our thesis on Newcrest based on our in-depth work on Red Chris and Havieron," explained the broker.

"The inclusion of these projects challenges market perceptions that production is peaking in 2020-21. We recently upgraded NCM to Buy, the first time since Aug 2012."

The next 3 top buy ideas

The next three best ideas are the Regis Resources Limited (ASX: RRL) share price, OceanaGold Corp (ASX: OGC) share price and Saracen Mineral Holdings Limited (ASX: SAR) share price, in that order.

"Regis and Oceana are trading at a significant discount to peers on earnings multiples, and offer an alternative to some of the larger names for gold exposure," said UBS.

"We believe Saracen offers a superior growth profile, with a 5-year production CAGR of ~5% ahead of peers (0-5%) and trading on a similar EBITDA multiple of 9x to large peers on 9-10x."

UBS upgraded Newcrest's price target by 6% to $40.60, Regis by 8% to $6.50, OceanaGold by 9% to $4.70 and Saracen by 10% to $6.90 a share.

The post UBS picks the best ASX gold miners to buy today appeared first on The Motley Fool Australia.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Helloworld Travel Ltd (ASX: HLO)

According to a note out of Morgans, its analysts have upgraded this travel agent's shares to an add rating with an improved price target of $2.46. This follows its equity raising, which has been undertaken to strengthen its balance sheet during these difficult trading conditions. Although the broker doesn't believe its earnings will return to previous levels until FY 2023, unless a vaccine is developed, it believes Helloworld's shares are cheap at the current level and has upgraded them. While I agree that its shares look cheap, I would wait for travel markets to recover before considering an investment.

OceanaGold Corp (ASX: OGC)

A note out of the Macquarie desk reveals that its analysts have upgraded this gold miner's shares to an outperform rating with an improved price target of $3.70. The broker made the move in response to the release of its economic assessment of the Waihi District in New Zealand. It notes that the company's estimate of 2.2 million ounces and an all-in sustaining cost of US$627 per ounce was far better than it was expecting. I think OceanaGold could be a good option for investors looking for exposure to gold.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating but lowered their price target on this banking giant's shares to $23.50. The broker has been busy looking through the banking sector and working out what the future holds for the banks following the pandemic. While it sees further loan deferrals, slower dividend recoveries, and higher capital buffers, it also sees value in some bank shares. Westpac is the broker's preferred pick, followed by Australia and New Zealand Banking GrpLtd (ASX: ANZ). I agree with Citi that the Westpac share price is in the buy zone right now.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:

The Domain Holdings Australia Ltd (ASX: DHG) share price has continued its slide and is down almost 4% to $3.03. Investors continue to sell the property listings company's shares amid concerns its performance could be negatively impacted by the spike in coronavirus cases in Victoria. Domain is understood to have a strong presence in the Melbourne market.

The OceanaGold Corp (ASX: OGC) share price has crashed 7% lower to $3.25. The catalyst for this was an announcement by the gold miner which reveals that the Philippines Court of Appeals has denied its application for an injunction for its Didipio operation. OceanaGold was hoping for an injunction to allow its operations to continue while it challenges an order to restrain activities at the site.

The Praemium Ltd (ASX: PPS) share price is down 6% to 44.5 cents following the release of its fourth quarter update. According to the release, global platform funds under administration reached $8.9 billion at the end of the quarter. This was an increase of 8% and driven by net inflows of $459 million and positive market movements of $400 million.

The TechnologyOne Ltd (ASX: TNE) share price has dropped 5% to $8.31. Investors have been selling the enterprise software company's shares after Hong Kong research firm GMT Research alleged that it is using accounting tricks to pull forward revenue and profits. TechnologyOne has responded by advising that the claims GMT Research has made are false and misleading. It intends to refer the matter to ASIC.

The post Why Domain, OceanaGold, Praemium, & TechnologyOne are tumbling lower appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:

The GrainCorp Ltd (ASX: GNC) share price has crashed 52% lower to $3.33. This heavy decline has been driven by the successful demerger of its malt business. The spun of business, United Malt Group Limited (ASX: UMG), is due to hit the ASX boards this afternoon.

The Nick Scali Limited (ASX: NCK) share price has sunk over 16.5% lower to $2.92. This follows the release of an update on current trading and its upcoming dividend payment. Nick Scali revealed that over the last 10 days it has witnessed a significant decline in both store traffic and sales orders. In light of this and to position itself favourably in the event of any prolonged downturn, the company has deferred the payment of its interim dividend until October. It was due to pay this dividend on Friday.

The OceanaGold Corp (ASX: OGC) share price is down 5.5% to $1.48. Despite the rest of the gold miners rocketing higher after a spike in the gold price, OceanaGold's shares have tumbled lower after the closure of its New Zealand-based operation. The Waihi Operation will go into care and maintenance mode for a period of four weeks in response to COVID-19 measures being put in place by the New Zealand Government.

The Virgin Money UK (ASX: VUK) share price has sunk almost 16% lower to $1.07. Investors have been selling shares with exposure to the United Kingdom after prime minister Boris Johnson ordered citizens to stay at home in an effort to stop the spread of the coronavirus.

The post Why GrainCorp, Nick Scali, OceanaGold, & Virgin Money are tumbling lower appeared first on The Motley Fool Australia.