What does Troy Resources do?

Troy Resources is a small- to mid-size gold producer with a history of developing and operating mines in Australia and South America.

Troy has been operating in South America since 2002. In July 2013, the company acquired Azimuth Resources which had discovered and delineated the Karouni Project in Guyana. Troy Resources fast tracked development of Karouni, with first gold production occurring in November 2015.

Exploration update

This morning, Troy Resources provided the ASX with reports indicating strong gold finds at its Karouni project in Guyana. This comes after new tailwinds have been pushing gold prices closer to record highs.

Troy recently commenced an 8 hole diamond drilling campaign at Smarts Underground (one of its mines in Guyana) targeting mineralisation beneath the Smarts Pits. The first 4 drill holes demonstrated strong finds and this 5th hole demonstrates more of the same.

Some of the highlights from the results are:

• 2 metres @ 31.38 grams per tonne (g/t Au) from 175 metres
• 6 metres @ 8.12 g/t Au from 196 metres
• 2 metres @ 26.38 g/t Au from 211 metres
• 2 metres @ 15.68 g/t Au from 291 metres
• 26 metres @ 3.58 g/t Au from 305 metres
• 10 metres @ 10.69 g/t Au from 384 metres

The second stage of the drilling campaign, featuring an additional 3 holes (though this number may be increased), will commence shortly, with completion anticipated in September.

What now for the Troy Resources share price

As mentioned above, gold prices have been soaring recently, smashing through the US$2,000 an ounce target. With some reports suggesting that gold could continue its run, now is a good time to be a gold miner.

However, some experts have been arguing that gold may be just as likely to witness a painful correction, which wouldn't bode well for the Troy Resources share price.

At the time of writing, the Troy Resources share price is up 8.33% on this time last year, and 44.44% year to date.

The post Why has the Troy Resources share price blasted 23% higher today? appeared first on The Motley Fool Australia.

The spot gold price rose 0.8% to US$1,255 an ounce as the US dollar continues to sink. The rise made it the biggest weekly gain in two months according to one news report.

Here's a look at some of the ASX-listed gold miners.

Source: S&P Global Markets Intelligence, Google Finance

However, some analysts expect the gleaming metal to range trade at around this price, with the US Federal Reserve expected to raise interest rates.

If the US Central Bank does raise rates, investors are likely to switch from gold to bonds because they will be returning higher yields. The bank meets later this week and could raise interest rates then.

Foolish takeaway

Some investors view gold and gold stocks as insurance against a market crash, or interest rates falling. However, investors should realise that they are also taking on other risks if they buy shares in gold stocks rather than the commodity directly.

The post Gold stocks have jumped appeared first on The Motley Fool Australia.

The spot gold price fell 0.2% to US$1,217.92 an ounce, which is not a huge move, but enough to see investors and traders sell out of the miners.

Here's a sample of some of the ASX stocks' performance so far.

Source: S&P Global Markets Intelligence, Google Finance

But it's the future view of where the gold price is going that will be the major determinant of where the gold miners' share prices go. The current trend appears to be down as the chart below shows.

[insert chart].

As I wrote in my article on Northern Star Resources this morning, I won't be investing in gold miners, given the volatility of the underlying commodity.

The post Gold stocks sink as gleaming metal slips appeared first on The Motley Fool Australia.

In morning trade the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) surged 3% higher thanks largely to a jump in the gold price overnight.

Key movers in the industry include:

• The Alacer Gold Corp – CDI (ASX: AQG) share price is up 4.5% to $2.84.
• The Newcrest Mining Limited (ASX: NCM) share price is up 3% to $22.80.
• The Northern Star Resources Ltd (ASX: NST) share price 3% to $4.24.
• The Perseus Mining Limited (ASX: PRU) share price is up 4.5% to 34.5 cents.
• The Resolute Mining Limited (ASX: RSG) share price is up 3% to $1.45.
• The St Barbara Ltd (ASX: SBM) share price is up 3% to $2.64.
• The Troy Resources Ltd (ASX: TRY) share price is up 4.5% to 15.7 cents.
• The West African Resources Ltd (ASX: WAF) share price is up 5% to $2.37.

Why did the gold price jump?

At present the spot gold price is fetching US$1,245 an ounce, up almost 4% since this time last week. This is all the more remarkable considering that during this time the Federal Reserve has raised interest rates in the United States.

The main catalyst for this rise has been a weakening U.S. dollar. Although the Fed raised rates last week, in her post-hike speech Janet Yellen disappointed U.S. dollar bulls by failing to provide any reason for the market to believe there would be more than three rate hikes this year.

Furthermore, according to a report by Bloomberg, traders that were betting on a Trump bump have now given up. Research from the Bank of America shows that U.S. dollar positions accumulated in the build-up and aftermath of the U.S. election have now been fully unwound.

Is it time to buy the gold miners?

Whilst the jump in the gold price is great news for Australia's gold miners, I wouldn't get overly excited just yet.

I still believe that there is a reasonable chance that the Federal Reserve will raise rates four times this year. Should that happen then I would expect to see the U.S. dollar strengthen, putting significant pressure on the gold price once again.

Because of this I can't help but feel that the gold miners are a risky investment this year and that investors would be better off focusing elsewhere in the market.

The post Here's why the gold miners are rocketing higher today appeared first on The Motley Fool Australia.

At the time of writing the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) has bolted around 4% higher, bringing its year-to-date return to just over 10%.

Key movers amongst the gold miners include:

• The Beadell Resources Ltd (ASX: BDR) share price is up 6% to 30.2 cents.
• The Newcrest Mining Limited (ASX: NCM) share price is up 3% to $22.31.
• The Northern Star Resources Ltd (ASX: NST) share price is up 5.5% to $4.13.
• The Resolute Mining Limited (ASX: RSG) share price is up 9% to $1.47.
• The Perseus Mining Limited (ASX: PRU) share price is up 11% to 37.2 cents.
• The St Barbara Ltd (ASX: SBM) share price is up 7% to $2.66.
• The Troy Resources Ltd (ASX: TRY) share price is up 7% to 15.5 cents.
• The West African Resources Ltd (ASX: WAF) share price is up 8% to 21 cents.

Why has the gold price rallied?

Overnight the spot gold price rose almost 2% to US$1,222 an ounce. Though it is worth noting that this rally is more to do with the weakening of the U.S. dollar than an increase in demand for the precious metal.

Although the Fed raised rates, it appears to have left the market feeling underwhelmed by signalling just two more rate rises this year. In the last couple of weeks the Fed had hinted that the pace of tightening could pick-up, but this doesn't appear to be the case any longer.

Are the gold miners a buy?

I see this as a temporary reprieve for the gold price, but expect to see it head down towards US$1,000 an ounce in 2018.

As I said yesterday, the gold price is highly sensitive to rising interest rates as it increases the opportunity cost of holding the non-yielding metal. At the same time rising rates also boost the U.S. dollar, which it is priced in.

Although Australia's gold miners may now enjoy higher prices for a little longer than previously anticipated, I wouldn't recommend an investment in them.

Just because the market expects just three rate rises this year, doesn't mean there won't actually be more. After all, up until a couple of weeks ago nobody believed there was a chance of a rate rise this week.

The post Here's why the gold miner shares are going berserk today appeared first on The Motley Fool Australia.

Judging by the financial markets today it would appear as though Hillary Clinton is once again favourite to win the race to the White House. Following news that the FBI has cleared Mrs Clinton of any wrongdoing over the email scandal, markets have turned bullish again.

As a result the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is storming higher and at the time of writing the benchmark index is up 0.8% to 5,221 points.

Unfortunately safe haven assets such as gold have not fared so well. The spot gold price dropped 1.3% to US$1,287 an ounce in early trade, before rebounding to US$1,293 an ounce.

As you might expect Australia's gold producers have been hit hard. It would appear as though traders that gambled on a Trump victory sending the gold price rocketing higher have quickly exited their positions today, driving the miners lower.

Here are the worst affected miners:

Considering how the Brexit surprised everybody, I wouldn't count on a Clinton victory being a foregone conclusion just yet. This could mean more volatility ahead for the gold price. For this reason, I would avoid the sector for the time being.

The post Gold miners crushed after Clinton is cleared by the FBI appeared first on The Motley Fool Australia.

Strong economic data out of the United States this week has bolstered the case for the Federal Reserve to raise interest rates before the end of the year.

This caused the spot gold price to drop to a four-month low of US$1,250 an ounce. Although it has since recovered slightly to US$1,258 an ounce, it is still almost US$100 an ounce lower than where it was just a month ago.

As you might expect the shares of Australian gold producers have dropped today in response to these declines. At the time of writing the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) is lower by almost 3%, with the following shares contributing strongly to these declines.

Unfortunately I expect the gold price could come under more pressure over the next couple of months as the Fed meetings draw closer.

This could potential drag the gold price and the miners down even lower. For this reason I feel that now might be a great time to take profits and look elsewhere in the market.

The post Here's why Australia's gold miners are getting smashed again appeared first on The Motley Fool Australia.

Amongst the worst performers have been Resolute Mining Limited (ASX: RSG), Troy Resources Ltd (ASX: TRY), Saracen Mineral Holdings Limited (ASX: SAR), and EVOLUTION FPO (ASX: EVN). Each of these shares is down by at least 6% today, with Evolution Mining leading the way with an 11% decline.

Less impacted, but still declining more than the S&P/ASX 200 have been gold bug favourites Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM). Their shares are both down around 3% in afternoon trade.

So why has the gold price dropped? Gold has dropped to its lowest level in over a month as a result of a speech by US Federal Reserve chair Janet Yellen at the Jackson Hole summit late on Friday. As detailed here, comments from Yellen have the market believing that there's a strong chance of a US rate increase in 2016.

In fact, some economists believe there is the possibility of two rate rises before the end of the year. If this were to be the case then the most likely outcome in my opinion would be a much stronger US dollar and unfortunately a much weaker gold price.

Although the majority of Australia's leading gold producers would still be able to run profitable operations even if the gold price suffered from a correction, the bumper profits many have been making could come to an end.

With the shares of some gold producers such as Newcrest Mining changing hands at 22x estimated FY 2017 earnings, a slowdown in earnings growth could result in many investors closing positions in a hurry. This could arguably make it an opportune time to take profits and reinvest elsewhere in the market.

But it is worth remembering that US rate rises this year are far from a certainty. Janet Yellen's rhetoric may well be changing to a more hawkish tone, but we'll have to wait and see on September 22 whether she does in fact take action. Until then I suspect it might be a bumpy ride for shareholders of Newcrest Mining and the rest of the gold producers.

The post Here's why Newcrest Mining Limited and the gold miners got dumped today appeared first on The Motley Fool Australia.

Prices over the past month have dropped from above US$1,290 an ounce to around US$1,212 an ounce most recently, as the following chart shows.

The fever that pushed the gold price has clearly dissipated on rising expectations that the US Federal Reserve is getting ready to raise interest rates again as the US economy continues to improve. A rising interest rate makes bonds more attractive as an investment compared to gold (which pays nothing).

In after-lunch trading, this is what is happening to some of the major ASX-listed gold shares…

• Troy Resources Ltd (ASX: TRY) down 11.9% at 52 cents
• Perseus Mining Ltd (ASX: PRU) down 10.3% at 46.2 cents
• Resolute Mining Ltd (ASX: RSG) down 10% to 83.2 cents
• Silver Lake Resources Limited (ASX: SLR) down 8.3% at 42.2 cents
• St Barbara Ltd (ASX: SBM) down 5.6% to $2.51
• Northern Star Ltd (ASX: NST) down 5.3% to $4.225
• Newcrest Mining Ltd (ASX: NCM) down 2.4% at $18.66

The problem for shareholders is that the outlook for gold is not that great either. If the US does raise rates in the near-term, it's highly likely more interest rate rises will follow, putting even more pressure on the gold miners.

The one positive is that with the Australian dollar buying around 71.7 US cents, Australian gold miners are still making plenty of gross profit with all in sustaining costs of around A$1,000 to A$1,100 per ounce. That compares to spot prices of around A$1,689 an ounce.

The post Why these gold shares were smashed today appeared first on The Motley Fool Australia.

Indeed, the spot price of gold has skyrocketed since the beginning of the year, a time where it was trading near its lowest level in six years. From a low around US$1,050 an ounce, it has since rebounded to roughly US$1,236, making it one of the strongest starts to a calendar year in decades.

Although its momentum has slowed in recent weeks, a report from Bloomberg indicates that fund managers believe the gold price will continue to rise in the foreseeable future. Bloomberg quoted John Crumb, the chief strategy officer at investment firm GoldMoney as saying: "The upside is still greater than the downside."

These expectations are at least partially due to the reduced expectations of further interest rate hikes in the United States before the end of the year.

Of course, a higher gold price is great for the companies that mine the shiny metal. That could explain why the shares of businesses such as Beadell Resources Ltd (ASX: BDR) and Newcrest Mining Limited (ASX: NCM) have risen so strongly today.

While the broader market has fallen more than 0.5%, the pair have risen 3.9% and 2.4%, respectively today. Meanwhile, Regis Resources Limited (ASX: RRL), EVOLUTION FPO (ASX: EVN) and Troy Resources Ltd (ASX: TRY) have all risen between 0.8% and 5.8% as well.

The price of gold could very well be driven higher in the coming weeks or months, particularly given the level of uncertainty that is currently surrounding the global economy. Indeed, some even believe the price of gold could head over US$1,400 an ounce, which would represent a gain of more than 13% from today's level.

However, it's worth remembering that investors were extremely bullish on gold back in 2011 and 2012 as well, with many economists predicting a bull-run to more than US$5,000 an ounce at the time. Clearly, it never reached those heights, instead plummeting to its six-year low price late last year.

Likewise, gold is no certainty to continue climbing higher today, either, with some economists suggesting a fall to below US$1,000 an ounce is a more likely scenario. That would likely have a very negative effect on the gold miners themselves if such a situation did play out.

Of course, predicting the future movements of commodity prices is all but impossible to do, but it is a risk worth considering before you commit too heavily to investing in the space.

The post Here's why these 5 gold miner shares are sparkling today appeared first on The Motley Fool Australia.

The shiny metal shed another 1.3% during the latest session to trade at US$1,089 an ounce, a full 7.5% lower than its US$1,177 price tag on October 28.

One of the factors that caused the mineral's price to spike was the presumed delay from the US Federal Reserve in hiking interest rates. Many investors and economists begun to question whether the US economy was in fact strong enough to support a higher cash rate, generating more interest in the supposed 'safe haven' that is gold.

However, those hopes have faded somewhat. The Fed is now expected to hike interest rates for the first time in nearly a decade next month, which could mark the beginning of a gradual move back to more normal levels of monetary policy.

Indeed, gold does not grow, nor does it yield any interest or pay a dividend, so a rise in interest rates (and hence, the lure of higher returns) could attract investors away from the metal. An interest rate hike would also likely strengthen the US dollar, making it more expensive for international customers to acquire (as gold is priced in US dollars). This could hurt demand even further and would explain the sell-off over the last week or so.

This has certainly been reflected in the gold sector today, with a number of Australia's gold miners getting sold off heavily. Newcrest Mining Limited (ASX: NCM), for instance, fell 4.9%, while EVOLUTION FPO (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) were also down 6.9% and 5.8% respectively.

Meanwhile, Beadell Resources Ltd (ASX: BDR) dropped 5.2%, Silver Lake Resources Limited. (ASX: SLR) was down 5.9% and Troy Resources Ltd (ASX: TRY) fell 5.2%.

Regardless of when it happens, an interest rate hike for the US Federal Reserve appears inevitable and that could push the gold price lower, putting even more pressure on those miners mentioned above.

Personally, I believe there are currently better opportunities for investors to explore than those in the gold sector.

The post Gold falls below US$1,100 an ounce: Is it time to buy? appeared first on The Motley Fool Australia.

Ensogo Ltd (ASX: E88) ex-iBuy Group has dropped 9.3% to 19.5 cents. But investors may be taking advantage of the stock's 117% rise since the beginning of this year. Ensogo owns and operates online retail sites in South East Asia, but clearly disappointed investors with its quarterly report today. Ensogo reported a 23% rise in cash collections, and the company finished the quarter with $7.5 million in cash (although it had raised $48 million prior to the end of the period).

Gold miner Troy Resources Ltd (ASX: TRY) has been dumped down 10% to 40 cents, after resuming trading following a trading halt in which the company issued 87.5 million new shares at 40 cents to institutional investors. No wonder shareholders are getting out. A token Share Purchase Plan to raise $5 million at the same 40 cent price is on offer for existing shareholders.

Unilife Corporation (ASX: UNS) is down 6.7% at 70 cents. The company develops injectable drug systems today reported US$11.6 million in cash outflows for the March quarter. Unilife still has US$39 million in cash at the end of March 2015, although the company did raise US$38.8 million from a share issue in late January.

MaxiTRANS Industries Limited (ASX: MXI) has slipped 4.6% to 42 cents. The company manufactures and supplies truck trailers and related transport supplies and equipment, but has seen its share price hammered over the past 2 years, due mainly to its exposure to the resources industry, and cost pressures from the falling Australian dollar. After reporting a profit of $5.1 million for the first six months of 2015 financial year, MaxiTRANS expects full year net profit to be between $5.9 million to $6.9 million. That suggests the second half is going to be awful financially.

Drilling equipment and services company Ausdrill Limited (ASX: ASL) has sunk to 42.5 cents, losing 4.5% so far today. The company's shares are still up 48% in the past month, thanks to a major contract win with gold miner Perseus Mining Limited (ASX: PRU). The contract is estimated to be worth US$223 million over 5 years, more than double Ausdrill's current market capital.

The post 5 ASX stocks on the nose today appeared first on The Motley Fool Australia.

In the six months to 31 December 2014, Troy's revenue jumped 22% to $92.2 million. However a $28 million non-cash impairment of the Casposo gold and silver project led the group to a reportable loss of $26.7 million, compared to a loss of $6.9 million in the prior corresponding period.

With a gold grade of 4.09 grams per tonne, cash costs were $US706 per ounce. Total gold produced for the period was 31,682 ounces, whilst a higher silver content from the Casposo mine saw production rise to 1,429,647 ounces, compared to 937,013 ounces a year earlier.

As a result of Casposo's higher silver content – proportionate revenues from silver rose from 20% to 50% – coupled with an unfavourable outlook and lower silver prices, Troy's board took a conservative view on the carrying value of Casposo, which resulted in the write-down.

Looking ahead, things appear likely to get a little brighter with management declaring the Karouni project is on track for first production in the June quarter 2015, with plant construction well advanced.

The post Here's why Troy Resources Ltd shares have fallen today appeared first on The Motley Fool Australia.

The potential for a jump in the gold spot prices would've came from the 'Save Our Swiss Gold' referendum yesterday. The vote on increasing gold reserves at its central bank to 20%, from approximately 7% currently, would mean the Swiss National Bank (SNB) would hold $540 billion of gold on its balance sheet.

However the initiative was shot down in dramatic fashion, with 77% of voters against the idea.

Looking forward, some analysts believe the gold price could again test its recent four-year low of $US1,132 per ounce as prospects for rapidly increasing inflation subside.

What this means to Aussie miners

Although the 'no' vote will have a more pronounced effect on gold miners, the spot price – down 1.3% to $US1,152 per ounce today – isn't likely to come under immediate selling pressure.

However the results of the Swiss vote are yet another faded hope for Australian gold mining investors.

Indeed shares of Australia's two largest gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are down 5.22% and 11.9%, respectively, in early morning trade.

Smaller miners OceanaGold Corporation (ASX: OGC), Troy Resources Ltd (ASX: TRY) and Medusa Mining Limited (ASX: MML) are down 13.8%, 9% and 8.5%, respectively, at the time of writing.

Are mining stocks cheap?

A reasonable estimation of the intrinsic value of gold mining stocks requires analysts to make four difficult guesstimates:

1. Future gold prices (which includes an understanding of global markets, inflation etc.)
2. Costs of production across the life of a mine
3. Value of reserves and resources
4. Success in exploration activity

Then there's the usual risks and uncertainties inherent to investing in public companies such as competent management and financial health (including capital management).

When all of these assumptions combine, individuals could earn a living from investing in gold. However, it's important for average investors to remain within their circle of competence as often as possible, if not always. And with some analysts saying gold could reach $US1,000 per ounce, investors would be wise to tread carefully.

The post Could gold fall to $1,000 per ounce? appeared first on The Motley Fool Australia.

But that's nothing compared to these five stocks. Here's our view…

Lonestar Resources Ltd (ASX: LNR) has seen its share price hammered down 14.5% to 26.5 cents. The US oil and gas producer has lost 50% of its share price over the past three months, more than the rapid fall in global oil prices. In its most recently quarterly report, Lonestar says production increased 56% to 4,669 barrels of oil equivalent per day, and October production was up another 20%.

Admedus Ltd (ASX: AHZ) has dropped 8% to 11.5 cents, and is down around 32% since the beginning of the year. That's despite the company reporting earlier this week that it had gained special access in Singapore, with 4 surgeons approved to use CardioCel. Admedus has already received US FDA approval and CE mark approval in Europe.

Kibaran Resources Ltd (ASX: KNL) has dropped 12% to 22 cents. The graphite miner's shares are up 50% since January this year, including today's drop as demand for graphite is expected to soar. Graphite is used in many renewable energy applications as well as batteries and magnets. It appears investors weren't happy with the technical update the company provided today, despite it resulting in key positive findings.

Donaco International Ltd (ASX: DNA) has seen its shares slammed down 8.4% to 82 cents. The company owns and operates a casino in Vietnam near the border with China and recently announced a potential acquisition of a gaming and hospitality business in nearby Cambodia. 81 cents is a far cry from the company's 52-week high of $1.61, suggesting investor enthusiasm may have got ahead of itself.

Troy Resources Ltd (ASX: TRY) has lost 11.5% to 50 cents. The gold and silver miner has been smashed over the past few months, along with many other gold producers, as the commodity price sank. At the current gold price of US$1,165 an ounce, Troy is barely breaking even, with all-in sustaining costs of SU$1,160 an ounce in the last quarter.

The post 5 ASX stocks hammered today appeared first on The Motley Fool Australia.