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

Ardent Leisure Group Ltd (ASX: ALG)

The Ardent Leisure share price is down a massive 64% to 51 cents. Today's decline is due to the entertainment company's shares trading ex-capital return this morning. Eligible shareholders can now look forward to receiving a total capital return of 95 cents per share next week. This comprises a return of capital of 46.0699 cents per share and an unfranked dividend of 48.9301 cents per share. This follows the sale of its Main Event business to Dave and Busters.

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is down 6% to 38.5 cents.  This is despite there being no news out of the betting technology company on Tuesday. However, it is worth noting that the company's shares have been strong performers recently. In fact, they are still up 10% since this time last week despite today's decline. This could mean some traders are taking a bit of profit off the table today.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down 1.5% to $10.85. This morning analysts at Morgan Stanley retained their underweight rating and $10.25 price target on this insurance giant's shares. Its analysts believe Suncorp's FY 2023 catastrophe budget is too low and the company could get caught short. Particularly given that the Bureau of Meteorology is predicting around a 50% chance of La Nina forming in late 2022.

Ten Sixty Four Ltd (ASX: X64)

The Ten Sixty Four share price is down 3% to 63 cents. This follows news that the gold miner, previously known as Medusa Mining, has kicked out its outgoing managing director Paul Welker. Mr Welker resigned last week and was serving a six-month notice period. However, the company has kicked Mr Welker out immediately after finding out that he had a financial interest in another company that entered into an important commercial contract with Ten Sixty Four.

The post Why Ardent Leisure, Betmakers, Suncorp, and Ten Sixty Four shares are dropping appeared first on The Motley Fool Australia.

At Friday's market close, the Australian-based gold producer's shares are swapping hands for 85 cents, up 3.03%.

Co-O Gold Mine Decline Project Approved

Investors are pushing the Medusa share price higher on the back of the company's latest positive developments.

According to its release, Medusa advised through its affiliate Philsaga Mining Corporation (PMC), it has signed a blasting contract with Mount Rock Powder Corporation (MRPC). The works carried out will be undertaken for the 'Tigerway' Decline Project at the Co-O Gold Mine.

MRPC is a leading Philippine underground mining and blast contractor, which has conducted services at the Co-O mine since 2008. Over the past decade, the group has completed more than 18,000 meters of underground mining, civil tunnel and decline projects.

Medusa noted that a comprehensive study was finalised in early 2020 to look at the long-term infrastructure of the site. It found that constructing a decline was the best option to attain the most efficient production when operating at deeper levels. While the project was formally approved in January 2020, the arrival of COVID-19 delayed selecting an Australian-based underground mining contractor. However, since the end of last year, the company moved to choosing a Philippines-based contractor, reducing the risk of operational restrictions and cost impacts.

Benefits of Co-O Gold Mine Decline

Building a decline at the Co-O mine is expected to provide a number of safety and operational benefits. This includes:

• More flexibility and capacity to extend underground mining infrastructure;
• Increased efficiency of installed shafts;
• Ability to increase mechanised mining techniques and increase productivity; and
• Better exploration flexibility from more optimal in-mine and near-mine exploration positions

Time and Cost of Project

Medusa stated that during the construction period, gold production will continue at the unaffected levels. The project plans to extend infrastructure below level 12 and onwards, remaining open at depth.

The total cost of the Decline project is estimated to be US$54 million. This comprises of US$43 million of box cut excavation and underground development, and US$11 million in mining infrastructure and equipment. The company will use its existing cash reserves and future operational cash flows to fund the project.

Medusa expects the construction period to be completed sometime within the next 3 years.

What did the managing director say?

Medusa managing director, Andrew Teo commented:

The Co-O Gold Mine has been in production for 13 years and has been a consistent producer which continues to replace reserves as the orebody extends at depth. While the hoisting and shaft infrastructure has served the mine well over its life to date, we believe this is an important investment in the future efficiency of the operation.

The decline will be constructed by a dedicated contract workforce and we do not expect this activity to have any impact on ongoing operations. Our strong financial position means the project will be funded from our existing cash balance and future cash flows while maintaining flexibility to consider future dividend payments, dependent on the performance of the operation and the prevailing gold price.

Medusa Mining share price snapshot

The Medusa Mining share price has jumped over 60% in the past year, before moving in circles since late September. The company's shares are sitting just below 20% from its multi-year high of $1.065 reached mid-August 2020.

On valuation grounds, Medusa commands a market capitalisation of roughly $178.7 million.

The post Medusa Mining (ASX:MML) share price climbs on Co-O Mine progress appeared first on The Motley Fool Australia.

Leadership change

The Medusa Mining share price is in negative territory as investors weigh up the company's latest update.

In today's release, Medusa Mining advised that interim CEO Andrew Teo will be appointed managing director, effective immediately. This follows after an extensive search by the company to find a replacement for the former resigned CEO.

However, with COVID-19 causing international travel restrictions, management agreed that Mr Teo was best suited to fill the position.

Mr Teo, who has already served 8 months as head of the company from mid-2020, has also held the position of chair since 2013. Medusa Mining noted that Mr Teo has developed a deep understanding of the business and forged strong relationships.

The company said his background comprised more than 40 years' experience in the accounting, treasury, corporate, legal and business administration fields. Most notably, Mr Teo was an executive of BGC (Australia) for more than 35 years and served as BGC's chief financial officer/executive director until March 2018.

The company also announced it had appointed Jeffery McGlinn as non-executive chair.

Mr McGlinn will assume the role from today following his assignment as non-executive director last month.

With a wealth of international experience, Mr McGlinn was a founder of ASX-listed mining services company NRW Holdings Ltd (ASX: NWH). He was heavily engaged across the business, supporting its growth.

As Medusa Mining outgoing chair, Mr Teo said Mr McGlinn would be "an excellent contributor" in the role of chair.

About the Medusa Mining share price

The Medusa Mining share price has jumped more than 100% over the past 12 months and is up 7% year-to-date. The company's shares reached a multi-year high of $1.065 last August before trending lower.

Based on the current share price, Medusa Mining has a market capitalisation of around $172.5 million.

The post Medusa Mining (ASX:MML) share price drags lower on leadership change appeared first on The Motley Fool Australia.

What happened?

In yesterday's release, Medusa advised that it received notice of a fatal accident through its Philippines operating company, Philsaga Mining Corporation.

Two workers were fatally injured while carrying out maintenance tasks at an underground pumping station on the third level of the mine.

Medusa said that the incident took place on 12 January and the Philippine Mines and Geosciences Bureau was immediately notified. Authorities have launched a full investigation into the cause of the tragedy.

The affected families of the workers are receiving support as Philsaga Mining Corporation works with the contracting company involved.

In its announcement, Medusa commented that the accident occurred "despite the additional daily focus on safe work practices, additional training and improved procedures."

The company advised it has immediately reinforced its safety procedures in relation to the circumstances of the accident, and is reviewing all safety components.

Lastly, Medusa noted that following safety inspections, all other areas of the mine continue to operate as normal.

Medusa share price snapshot

Medusa operates two projects, the Co-O mine and the Royal Crowne Vein Prospect, both located in the Philippines.

The Medusa share price has been a weak performer over the past 12 months, down 10% since this time last year.

Based on the current share price of 76 cents per share, Medusa commands a market capitalisation of $159 million.

The post Medusa Mining (ASX:MML) reports fatal underground accident appeared first on The Motley Fool Australia.

Let's take a closer look at Medusa and see what is said today.

What does Medusa do?

Medusa is an Australian-based gold producer, focusing on growth opportunities in the Asia Pacific region. The company operates two projects, the Co-O mine and the Royal Crowne Vein Prospect.

What's impacting the Medusa share price?

The Medusa share price edged lower in morning trade despite the company advising that its Philippines jointly operated Co-O gold mine resumed operations from 3 November.

The announcement follows the voluntary suspension of operations due to a number of COVID-19 cases detected within the workforce in October. Medusa Mining decided to halt operations and place the site on 'care and maintenance' only for a period of seven days.

In response to the outbreak, Medusa undertook a program of disinfection of communal sites and tested all members for COVID-19. Only after showing negative results, were workers then allowed to return to work.

As operations recommenced, Medusa revealed that it does not see an impact in gold production as a result. The company reaffirmed its FY21 production guidance of between 90,000 to 95,000 ounces of gold. Furthermore, the company's all-in sustaining cost is forecast to be between US$1200 to US$1250 per ounce. This is in line with previous projections indicated mid-last month.

To minimise the risk of infections at the Co-O site, Medusa has increased hygiene protocols and safety standards. This includes operating on a reduced workforce and conducting weekly regular testing of employees and contractors.

Workers who return with positive test results remain away from the site and enter into quarantine facilities or isolate at home.

What did management say?

Medusa chair and interim CEO, Mr Andrew Teo, commented on the resumption of operations. He said:

Temporarily suspending operations was the correct decision and we believe the risk of the further spread of infection at site (from the cases identified) has now been minimised. Our workforce has performed admirably in the circumstances, with operations running in line as planned upon resumption.

More on the Medusa share price

The Medusa share price has been on a bumpy road this year, falling to as low as 40 cents in March. Whilst now nearly double that at its current level, the Medusa share price is still a way off its multi-year high of $1.06 reached in August.

The company has a market capitalisation of $165.2 million and a price-to-earnings (P/E) ratio of 4.7. This could be considered quite low by mining standards, as most gold miners average a P/E ratio of around 13.

The post Why the Medusa (ASX:MML) share price is edging lower today appeared first on The Motley Fool Australia.

At the time of writing, the mining outfit's shares are up 1.85% to 82 cents. In contrast, the All Ordinaries Index (ASX: XAO) is up 0.6% to 6,424 points.

Medusa is an Australian-based gold producer focused on growth in the Asia Pacific region. The company is currently operating in the Philippines, with its flagship project at the Co-O underground mine.

How did Medusa perform?

For the period ending September 30, Medusa reported a strong performance, eclipsing previous quarterly results.

Gold production increased 29% to 28,363 ounces at an average head grade of 7.56 grams per tonne (g/t). In the prior quarter, gold production stood at 21,947 ounces mined with an average head grade of 6.59 g/t of gold.

Medusa sold gold at an average realised price of US$1,927 per ounce, a slight jump of 10% due to the rising spot price of gold.

Operating cash costs reduced 12% to US$615 per ounce. All-in sustaining costs (royalties and local business taxes) came in at US$1,079 per ounce.

Total underground development of 8,887 meters was reached for the quarter, a 10% increase on the June period.

Underground resource drilling expanded to 10,986 meters, with reserve drilling at levels 4, 9 and 10 totalling 5,762 meters from 10 holes. High-grade results returned from multiple strikes including 24.8 g/t of gold with a 2.3-meter intercept.

Total cash and cash equivalents on metal account at the quarter end increased by 37% to US$64.7 million, with no long-term debt.

Medusa's annual general meeting is scheduled for 29 October. Executive director Raul Villanueva has advised he will be not standing for re-election to the board.

FY21 guidance

For the current financial year, Medusa expects to have a production guidance between 90,000 ounces and 95,000 ounces of gold. All-in sustaining costs are anticipated to average around US$1,200 to US$1,250 per ounce of gold produced.

The company said that the strong September quarter result had put it marginally ahead of plan in production and costs.

Is the Medusa share price a buy?

The Medusa share price has taken shareholders on a rollercoaster ride over the last five years. The miner's shares have reached lows of 28 cents and recent multi-year highs of $1.06, representing a cyclical trend.

As the company is reliant on the rising spot price of gold to become profitable, I think investors may prefer to look to more established businesses for gold exposure. 

The post Medusa (ASX:MML) share price edges higher on quarter update appeared first on The Motley Fool Australia.

By comparison, the All Ordinaries Index (ASX: XAO) has gained 3.6% in August and 2.6% over the last full month.

Year-to-date Medusa's share price is up 29%. And that's after plunging more than 42% from 24 February to 19 March during the COVID-19 market panic.

Investors who bought at the March low and held onto their shares won't have anything to complain about today. Since that low, Medusa's share price has gained a whopping 164%.

The company has a current market cap of $217 million.

What does Medusa Mining do?

Medusa is an Australian-based gold producer, focused on growth in the Asia Pacific Region. Its current projects are the Royal Crowne Vein Prospect and the Co-O underground mine, both located in the Philippines

Medusa listed on the ASX in December 2003.

Why is Medusa's share price up 48% in the last month?

While there have been no new announcements today to readily explain Medusa's 13% intraday share price rise, its monthly gains can be attributed to several factors.

First, as a gold producer, Medusa's share price obviously stands to benefit from any increase in the price of gold. And over the last month, the yellow metal has gained 10%, currently trading for US$1,991 (AU$2,765) per ounce. Year-to-date gold is up 31% in US dollars.

Another likely driver for Medusa's fast rising share price is that unlike some of its rivals, including Regis Resources Limited (ASX: RRL) and Evolution Mining Ltd (ASX: EVN), the company did not hedge its gold. This means it didn't opt to sell the gold it's producing today several months ago at lower prices. While that may have seemed like a good idea at the time for some gold miners, they're certainly regretting that with today's near record gold prices.

Medusa's share price also received a boost with the release of its quarterly report on July 27. The report noted the company's operations had been impacted by the pandemic, but total cash and cash equivalent on metal account at quarter end still increased roughly 45% to US$47.1 million.

The company also reported its had achieved production guidance for FY2020, with 95,057 ounces of gold produced for the year at an AISC of US$1,132 per ounce. This came in slightly higher than the top end of guidance.

Medusa's share price could see more big moves – up or down – when the company releases its production and cost guidance for the 2021 financial year at the end of August.

The post Why is Aussie gold producer Medusa' Mining's share price skyrocketing? appeared first on The Motley Fool Australia.

Three small cap shares making notably strong gains today are listed below. Here's why they are on the rise:

The Avita Medical Ltd (ASX: AVH) share price rocketed 25% to 12.5 cents. Avita Medical's shares have been on fire since the regenerative medicine company announced that the U.S. Food and Drug Administration approved its Premarket Approval application to market the RECELL Autologous Cell Harvesting Device to treat severe thermal burns in patients 18 years and older. The company expects to launch the RECELL System in the U.S. in the fourth quarter of 2018. Management estimates that the product has an addressable market worth approximately US$200 million.

The Gazal Corporation Limited (ASX: GZL) share price has zoomed 10.5% higher to $4.65 after the retail company confirmed that it is in preliminary discussions with PVH Corp around the potential for a proposal to privatise Gazal. Management has warned that the discussions are at the very earliest stages, may not continue, and might not result in a proposal. Furthermore, if a proposal is made, there is no guarantee that it will result in a transaction.

The Medusa Mining Limited (ASX: MML) share price has surged 19% higher to 41 cents after the junior gold miner provided the market with its guidance for FY 2019. According to the release, management expects FY 2019 production to be within a range of 90,000 ounces and 100,000 ounces with its all-in sustaining costs in the range of US$1,050 an ounce to US$1,150 an ounce. While this is largely flat on FY 2018's 95,705 ounces of gold at an all-in sustaining cost of US$1,083 an ounce, I suspect investors had been expecting far worse this year. Prior to today Medusa Mining's shares were trading close to their 52-week low.

The post These 3 small cap ASX shares are jumping higher on Tuesday appeared first on The Motley Fool Australia.

The impressive news comes after a disappointing financial year for the mid-tier gold producer. The company reported a net consolidated loss of $79 million for the 2017 financial year, a stark contrast to the previous financial year's $56 million profit.

Medusa has recently had mine development plan issues with its flagship mine Co-O in the Philippines, with production falling 26% over the 2017 financial year.  

The company expects to maintain production at lower levels this year while it completes development of the new E15 service shaft, which will likely see swift improvements in performance come March 2018.  

The post Why Medusa Mining Limited shares skyrocketed 33% this week appeared first on The Motley Fool Australia.

Three shares in particular caught my eye. Is now the time to snap them up?

The Greencross Limited (ASX: GXL) share price tumbled to a 52-week low of $5.36 today. This means the shares of the integrated pet care company have fallen approximately 22% year-to-date. Whilst I am a big fan of its veterinary clinics, I am a little concerned about how the weak retail environment will impact its Petbarn stores. But at less than 14x trailing earnings, I think these concerns are largely priced in now. This could make it a good time to make a buy and hold investment in Greencross.

The Medusa Mining Limited (ASX: MML) share price is down 43% year-to-date and has just hit a 52-week low of 28 cents. This decline is due to an unexpected increase in costs and two revisions to its production guidance. Management revised its full-year production guidance to between 77,000 and 80,000 ounces of gold with all-in sustaining costs of between US$1,250 and US$1,350. Unfortunately for Medusa, the current spot gold price is only US$1,252 an ounce. I would avoid this gold miner, especially as I feel the gold price is likely to go lower from here.

The Retail Food Group Limited (ASX: RFG) share price has fallen sharply this week to a 52-week low of $4.47. Whilst I do like the company's coffee businesses and think it provides a very generous dividend, there are certain parts of the business that I feel are negatively impacting its overall performance. I'm not convinced its shares have found a bottom yet, so investors may want to hold off an investment for the time being.

The post These 3 ASX shares just hit 52 week lows: Time to invest? appeared first on The Motley Fool Australia.

Today's gain means the gold index has risen a remarkable 9% in the last 30 days and comes courtesy of strong gains from the following shares:

The Evolution Mining Ltd (ASX: EVN) share price, the Northern Star Resources Ltd (ASX: NST) share price, and the Medusa Mining Limited (ASX: MML) share price have all climbed at least 3% today.

Elsewhere, there have been notable gains from OceanaGold Corporation (ASX: OGC), Resolute Mining Limited (ASX: RSG), St Barbara Ltd (ASX: SBM), and Perseus Mining Limited (ASX: PRU).

What happened?

With the banks and BHP Billiton Limited (ASX: BHP) being sold-off, investors appear to be in a risk-off mood today. This has led to gains for the gold miners and defensive shares like Transurban Group (ASX: TCL).

The gold miners also received an additional boost from a rise in the gold price. The spot gold price rose sharply on Friday after the U.S. dollar tumbled following a weak jobs report.

At the time of writing the spot gold price is US$1,279 an ounce, up around 1.5% from its low on Friday.

Should you invest in the gold miners?

Whilst I agree with the view that a little exposure to gold can be a good thing for a portfolio, I still feel as though now is not the time to initiate a position.

Next week the U.S. Federal Reserve is widely expected to raise rates once again. As rates rise I expect the gold price will gradually slide lower, dragging down the gold miners as well.

For this reason I think investors should hold off investing the gold miners and look at opportunities elsewhere in the market.

The post Why the gold miners have stormed higher today appeared first on The Motley Fool Australia.

But not all shares have been climbing higher today. Four shares in particular have stood out with notable declines. Here's why they've dropped lower:

Bellamy's Australia Ltd (ASX: BAL) shares have continued their sharp decline with a 15.5% drop to $4.52. The infant formula manufacturer has now fallen by over 30% since it came out of its suspension earlier-than-expected on Wednesday. With profits likely to be down by 60% in FY 2017, this sell-off is unsurprising.

Bubs Australia Ltd (ASX: BUB) is another infant formula manufacturer that has been sold off today. Its shares have dropped 13% to 20.5 cents as profit taking continues to weigh on its shares following its meteoric rise last week. Two notable profit takers have been majority shareholders Ellerston Capital and WF Investment. Ellerston reduced its stake from 13.7% to 5.3% and WF Investment has reduced its stake to 5.8% from 8.3%.

Collins Foods Ltd (ASX: CKF) shares have fallen 3.5% to $6.07 despite no news out of the company. Prior to today its shares were up almost 40% in the last three months, so today's decline could also be down to profit taking. I think the operator of KFC restaurants in Australia has a bright future, especially with its expansion into Germany.

Medusa Mining Limited (ASX: MML) shares have plunged 12% to 46.5 cents after revising its full year production guidance. Previously management anticipated production of 105,000 to 115,000 ounces of gold with an all-in sustaining cost of US$1,000 to US$1,100 per ounce. This has been revised to 85,000 to 95,000 ounces of gold with all-in sustaining costs of between US$1,250 to US$1,350 per ounce. Disappointingly these costs are now above the spot price of gold which stands at US$1,191 an ounce.

The post Why these 4 ASX shares have been THUMPED today appeared first on The Motley Fool Australia.

The reason behind today's decline is a production revision released after the market closed yesterday. As you might have guessed, that revision was not a positive one.

Previously management had targeted production of between 105,000 to 115,000 ounces of gold with an all-in sustaining cost of US$1,000 to US$1,100 per ounce.

With the spot gold price fetching US$1,191 an ounce currently, margins were already extremely tight for Medusa.

But due to issues at its mine and subsequent higher mine-shaft maintenance requirements, production will now be lower and costs higher.

Management has revised full year production to between 85,000 to 95,000 ounces of gold with all-in sustaining costs of between US$1,250 to US$1,350 per ounce. It now costs Medusa more to pull gold out of the ground, than it can sell that gold for on the spot market.

This is nothing short of a disaster for the company and I can't say I'm surprised to see investors head to the exits in their droves this morning.

Whilst I wouldn't be in a rush to invest in any of the gold miners at this point in time, investors that do want exposure to gold might be served well with investments in Resolute Mining Limited (ASX: RSG), Newcrest Mining Limited (ASX: NCM), or St Barbara Ltd (ASX: SBM).

These three low-cost gold miners have all-in sustaining costs of close to US$800 an ounce, meaning they remain highly profitable following the sharp drop in the gold price since November.

The post Why Medusa Mining Limited shares have been CRUSHED today appeared first on The Motley Fool Australia.

The shares of Medusa Mining Limited (ASX: MML), OceanaGold Corporation (ASX: OGC), Perseus Mining Limited (ASX: PRU) and Resolute Mining Limited (ASX: RSG) have been the standouts today. All are up around 3% at lunch following a small rise in the gold price.

At the time of writing the spot gold price is fetching US$1,194 an ounce, approximately 2% higher than last week's low.

The reason for gold's resurgence has been put down to concerns over Sunday's referendum in Italy according to Bloomberg.

Prime Minister Matteo Renzi has previously pledged to resign if voters reject his constitutional reforms. Bloomberg believes that if Mr Renzi does quit, the political and economic instability that it causes will put up to eight Italian banks at risk of failing.

There are fears that a failure of this kind could quickly spread across Europe and then the rest of the world in a similar way to the Global Financial Crisis.

Unfortunately for Mr Renzi, it looks as though he'll have a big decision to make on Sunday. Following in the footsteps of the Brexit and the election of Donald Trump, voters in Italy look set to vote against the constitutional reforms according to recent polls.

This could potentially drive the gold price higher in the next few days, much to the delight of St Barbara Ltd (ASX: SBM), Regis Resources Limited (ASX: RRL), and Newcrest Mining Limited (ASX: NCM) investors.

Whilst I will happily admit that a mass bank failure in Italy would be terrible for the European economy and could send the gold price soaring, I think it is still far too early to speculate on such an eventuality.

So for now I would suggest investors continue to stay clear of the gold miners and focus on other areas of the market.

The post Gold miners are soaring as Italian banks face collapse appeared first on The Motley Fool Australia.

According to The Wall Street Journal the U.S. dollar has fallen on the back of U.S. election uncertainty. Since the Clinton email scandal reared its ugly head once again, Donald Trump has gained substantial ground in the polls just one week out from the election.

Market uncertainty is great news for Australia's gold miners as the precious metal is seen as a safe haven during periods of turmoil, driving its price higher.

It will come as no surprise to learn then that despite the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) dropping sharply today, the gold miners are jumping higher as the table below shows.

But with the Federal Reserve expected to raise interest rates in December, I'm not entirely sure the gold price will be able to remain at these current levels for much longer.

If the gold price does plummet once rates rise, then the gold miners are likely to follow. For this reason I would suggest investors avoid the gold miners no matter how tempting the appeal.

The post ASX gold miners rocket on potential Trump US election win appeared first on The Motley Fool Australia.

Investors around the world have watched equity markets fall heavily since the beginning of the year with many, including Australia's own S&P/ASX 200 (Index: ^AXJO), falling into official bear territory (down 20% or more from their peaks).

During times of distress and uncertainty, investors around the world often turn to the lure of gold which is widely considered to be a 'safe-haven'. While they have sought shelter from the volatility of share markets, investors have helped the shiny metal to its strongest start to a year since 1980, according to The Telegraph.

One ounce of gold is now worth US$1,251 after rising 4.5% overnight, while it has risen 18% since the beginning of the year. What's more, it is also trading at its highest level in more than 12 months after sinking to its lowest level in six years in October.

While gold miners around the world are benefiting from the higher price environment, those based in Australia also have the added tailwind of the weak Australian dollar, which is currently fetching roughly US71 cents. As gold is quoted in terms of US dollars, a weaker Australian dollar is good for our gold producers.

Indeed, while the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) itself has fallen 0.4% today, the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) index, which tracks the gold miners' shares, has risen 3.4%. Here are some of the gains from the individual miners themselves:

• Newcrest Mining Limited (ASX: NCM) shares up 2.4%
• Northern Star Resources Ltd (ASX: NST) up 6.7%
• EVOLUTION FPO (ASX: EVN) up 7.7%
• Beadell Resources Ltd (ASX: BDR) up 11.8%
• Medusa Mining Limited (ASX: MML) up 11.1%
• Perseus Mining Limited (ASX: PRU) up 9.4%

As can be seen in the chart below, these companies have performed very well so far in 2016, despite the bruising start to the year for the broader market.

Indeed, shares of these businesses could continue to rise if the upwards trend in the gold price continues (and if the Australian dollar continues to fall). The problem is, a sudden fall in the gold price could also spell significant losses for shareholders in the sector, and this could happen when volatility in the markets eventually subsides.

There are headwinds facing the global economy right now, but many analysts have expressed that they believe the fears have become overblown. Whatever the case, predicting the future direction of gold prices is impossible to do with any accuracy, and investors should keep that in mind before making a move into the sector.

The post Here's why shares of these 6 ASX gold miners are jumping today appeared first on The Motley Fool Australia.

By the close of the trading session, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had fallen 0.9%, meanwhile the S&P/ASX All Ordinaries Gold (Sub Industry) index rallied a massive 3.1% on the back of a near 1% rise in the gold price. Gold is currently trading at a three-month high.

So What: The rally in the gold price sent many gold stocks soaring during Monday's session. These were some of the stand-out performers:

• Silver Lake Resources Limited. (ASX: SLR) soared 19.4%
• Medusa Mining Limited (ASX: MML) rallied 15.9%
• EVOLUTION FPO (ASX: EVN) lifted 11.5%
• Perseus Mining Limited (ASX: PRU) added 10.7%
• Beadell Resources Ltd (ASX: BDR) gained 9.7%
• Regis Resources Limited (ASX: RRL) jumped 8.1%
• Troy Resources Ltd (ASX: TRY) climbed 5.5%

Now What: Overnight the gold price continued to climb higher, adding a further 0.7% to around US$1,164 an ounce. With the ASX futures pointing towards a soft opening there will be further impetus for gold stocks to head even higher today.

Indeed with the gold price (when expressed in US dollars) still down over the past year, gold bulls might suspect there is plenty more room to run. For Australian gold miners and investors however, of equal importance is the direction of the Australian dollar as this has the potential to improve (or reduce) returns even if the US gold price tracks sideways.

The post Here's why gold stocks are soaring appeared first on The Motley Fool Australia.

The S&P/ASX All Ords Gold (INDEXASX:XGD) (ASX: XGD) dropped around 13%, mostly thanks to falling gold prices.

As the chart below shows, the spot gold price fell from above US$1,160 an ounce to below US$1,100 an ounce. It's currently trading just above that at US$1,110 an ounce.

As usual, Australian gold producers plunged even further as the list and chart below shows.

• Gold Road Resources Ltd (ASX: GOR) fell 19% from 42 cents to 34 cents
• Resolute Mining Limited (ASX: RSG) crashed 20% from 30 cents to 24 cents
• Alkane Resources Limited (ASX: ALK) dropped 22% from 30 cents to 23 cents
• Perseus Mining Limited (ASX: PRU) tumbled 24% from 42 cents to 32 cents
• Medusa Mining Limited (ASX: MML) plunged 35% from 84 cents to 55 cents
• Beadell Resources Ltd (ASX: BDR) also lost 35%, falling from 19 cents to 12 cents

Source: Google Finance (note that Google calculations are out slightly compared to data above)

Gold mining companies will generally see their share prices overreact, depending on which direction the spot gold price is heading for one major reason. Investors are extrapolating the current short-term trend out into the future. In this case, many investors are expecting gold prices to continue falling, with at least one prediction of prices below US$1,000 an ounce. If the US Federal Reserve raises interest rates, that seems a highly likely outcome.

Foolish takeaway

Thanks to the Australian dollar falling to around US 73 cents, the current spot price equates to around A$1,571 an ounce. At these prices, most gold miners should be making a killing, but we'll have to wait and see their next financial reports for the proof. Call me a cynic, but my money's on expenses rising and eliminating much of the profit.

The post These 6 gold stocks were hammered down 19% and more in July appeared first on The Motley Fool Australia.

These six stocks all managed gains of 7% or more, putting the rest of the market to shame. Here's our quick view…

Medusa Mining Limited (ASX: MML) gained 10.2% to close at 86.5 cents. Today the gold miner announced that it had located a major gold find of around 5 km long at its Guinhalinan prospect, Philippines. Medusa already operates the Co-O mine in the country, which produced nearly 60,000 ounces of gold in 2014.

Sundance Resources Limited (ASX: SDL) saw its shares jump 12.5% to 2.7 cents, despite iron ore prices falling slightly overnight. Sundance shares have lost 71% of their value in the past twelve months, as the commodity price more than halved. Still the miner is developing the massive Mbalam-Nabeba iron ore project in central Africa, which could be worth a pretty penny.

SmartTrans Holdings Limited (ASX: SMA) jumped 15% to 1.15 cents. The company is developing a mobile payments platform for the China market as one of its skills, as well as software to allow businesses to manage mobile workforces in Australia. Today, SmartTrans announced revenue for the first half of 2015 was at $2.0 million, up 100% over last year and strong growth in monthly revenues in China. SmartTrans may be worthwhile adding to your watchlist.

BC Iron Limited (ASX: BCI) saw its shares gain 8.1% to 46.5 cents, perhaps driven by contrarian bargain hunters in the iron ore space. But as I wrote yesterday, that is fraught with danger, and many professional fund managers are avoiding the sector too. BC Iron may look cheap, but it's cheap for a reason.

Crown Resorts Ltd (ASX: CWN) soared 7.5% to $13.70. James Packer's major investment, Crown has benefitted from positive numbers coming out of Macau. Gross gaming revenue gained 6% in the last week according to Bank of America and Crown has a joint venture casino in Macau. The company has been hit hard by a crackdown on corruption by China, which saw casino revenues smashed.

Paragon Care Ltd (ASX: PGC) gained 7.0% to 46 cents, after reporting strong cash flows for the December quarter. The company says it had surplus cash flow of $1.37 million, compared to a $280,000 deficit in the prior period and a strong first half performance. Paragon says it is on track to report $3.5 to $4 million in earnings before interest, tax, depreciation and amortisation (EBITDA) this financial year. Paragon provides consumables and medical equipment to hospitals, medical centres and aged care facilities, and might be another stock to add to your watchlist.

The post 6 stocks soaring on the ASX today appeared first on The Motley Fool Australia.

Even the safe and "diversified" giants BHP Billiton Limited and Rio Tinto Limited crash landed as commodity prices plummeted.

Whilst it's fair to say it's been a disappointing year for the sector, the same cannot be said for gold producers.

Indeed whilst falling oil, iron ore and coal prices have wreaked havoc on the broader S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO), Australian producers of the shiny metal – benchmarked by the S&P/ASX All Ords Gold (ASX: XGD) (INDEX: ^AXGD) index – have enjoyed a return of nearly 20% over the past 12 months.

That's despite the price of gold (in US dollars) climbing around just 1% year over year, to $US1,226 per ounce.

On the market today, miners Beadell Resources Ltd (ASX: BDR) and Resolute Mining Limited (ASX: RSG) have seen their share prices jump up 15% and 9%, respectively. Whilst Medusa Mining Limited (ASX: MML) and Northern Star Resources Ltd (ASX: NST) are also up strongly.

Whilst there's little in the way of company specific news to explain the sudden price jump, a number of catalysts are shaping up which could lead to potentially higher share prices and gold spot prices throughout the coming year.

Firstly local producers have welcomed a falling Australian dollar, which has boosted the gold price higher to nearly $1,500 per ounce. Given their costs are denominated in the local currency, a number of gold miners will experience significantly wider profit margins, especially after years of cost cutting and efficiency improvements.

Then there's the improving likelihood of an increased gold spot price in the next year, which is exciting investors.

With gold being a hedge against inflation and uncertainty (meaning investors buy gold when the economic outlook appears bleak), the prospect of rising US interest rates has some investors concerned. According to a survey by Bullion Vault, 29% of respondents said monetary policy will be the catalyst for higher gold and silver prices in the next year. However that wasn't confined to the US alone.

Indeed the Eurozone is expected to fire up its own version of quantitative easing with concerns over deflation looming. Couple that with the Greek election later this month and once again the world could become fixated on the risks facing the European block, therefore driving up gold prices.

Foolish takeaway

Whilst it appears likely 2015 will be characterised by heightened volatility, investing in gold stocks is not for the feint hearted. Whilst prices could meet analysts' expectations, there is really no way of knowing where the price will end up. However if you are looking to make a speculative bet, now could be the right time. Personally, I'd rather stick to finding great dividend stocks trading at a discount…

The post Will gold stocks continue to smash the market in 2015? appeared first on The Motley Fool Australia.