Stagflation Coming in AU? See 3 Top Gold ASX Stocks Today!

1. Stagflation is Happening in Australia?

The recent news said that the war in Ukraine, soaring petrol prices, $11 lettuces and stagnant wages have combined to inflict economic pain on ordinary Australians.

Source from theguardian.com, As prices rise and incomes fail to keep up, many people are likely to have to look at what they spend their money on and make some cutbacks. Here’s what you need to know about the meaning of stagflation.

2. What is Stagflation?

It’s an ugly word to describe an ugly situation: when the economy is stagnant, either barely growing or even shrinking, while inflation is rampant.

The 1970s was the last time the world as a whole experienced stagflation that went on for years. and One of the triggers in the 1970s was a commodity price shock, particularly oil prices.

Both inflation and unemployment – together, the so-called “misery index” – rose over the next few years.

Tiger Brokers AU Strategist Bret Talor mentioned Stagflation equals to decelarating growth and Inflation above 10 year average. 

Recently, the global inflation, the sharp rise of international oil prices, the continuous increase of interest rates of central banks, the tension of deflation, at the same time, the inflation rate is difficult to reach the target in the short term, and the market in the United States and Australia has highlighted their concerns about stagflation.

So as investor, we need to learn about that we may be able to protect ourselves from risk by saving physical gold, gold stocks, or energy and other commodities assets.

3. Gold Companies Performed Best During Stagflation

The statistics from Schroders shows that gold usually wins in stagflation situations.

Under the stagflation environment, the average yield of gold assets can reach 22.%, Higher than the gains of US equities (-1.5%), US Treasuries (0.6%), Commodities (15%) and REITs (6.5%) under the stagflation environment.

Source From Schroders

Compared the recent the U.S. Stock Market $S&P 500(.SPX)$ and AU stock Market $S&P/ASX 200(XJO.AU)$  market with Gold futures $Gold - main 2206(GCmain)$ , we can see the gold show a clear decent moves, even in recent weeks. 

Some are facts may relates to the weaker US dollar, coupled with falling US bond yields, pushed the prices of yellow metal higher on economic growth worries.

So in this article we would like to bring you some ASX gold stocks to you for references. 

4. TOP ASX Gold Stocks To Watch

There are 188 companies in the Gold sub-industry listed on theAustralian Stock Exchange (ASX), 

Souce:https://www.listcorp.com/asx/sectors/materials/materials/metals-mining/gold

The TOP 10 ASX gold stocks by market capitalization are $NEWCREST MINING LIMITED(NCM.AU)$ ,$Northern Star Resources(NST.AU)$ ,$Evolution Mining(EVN.AU)$ ,$PERSEUS MINING LTD(PRU.AU)$ ,$Silver Lake Resources(SLR.AU)$ ,$Regis Resources Ltd(RRL.AU)$ ,$De Grey Mining(DEG.AU)$ ,$Capricorn Metals(CMM.AU)$ ,$West African Resources Ltd(WAF.AU)$ ,$Gold Road Resources Ltd(GOR.AU)$ .

Given this backdrop, let's look at three ASX-listed gold miners with a market cap of over AU$6 billion and their performance in 2022.

$NEWCREST MINING LIMITED(NCM.AU)$

Towards the end of May 2022, Antipa Minerals Limited (ASX:AZY) announced a total of 43 drill holes (7,422m) testing twelve greenfield and two brownfield targets. Additionally, fixed-loop ground electromagnetic (FLEM) surveys were completed at six targets in the Wilki Farm-in Project.

The exploration activities at the project are fully funded by Newcrest Operations Pty Ltd, which is a subsidiary of Newcrest Mining Limited (ASX:NCM).

The Wilki Farm-in Project 2022 exploration program includes air core and diamond drilling, soil sampling, and an aeromagnetic survey.

Note: Australia-based gold producer, Newcrest Mining Limited (ASX:NCM) has entered into an agreement to acquire all outstanding common shares of Canadian miner – Pretium Resources, which are not owned by NCM, under an AU$2.8 billion deal.

Newcrest Mining Limited (ASX:NCM) has increased 4 DAYS from the recent low of AU$22.34 to AU$24.39, The YTD of $(NST.AU)$ is -1.67%. Current Market cap is AU$21.35b.

$Northern Star Resources(NST.AU)$

Australia-based gold producing company $Northern Star Resources(NST.AU)$ successfully completed the sale of two wholly-owned assets located in Western Australia to $Black Cat Syndicate(BC8.AU)$ for total cash, scrip, and contingent cash payment consideration of AU$44.5 million.

Additionally, the miner sold 380,075oz of gold in the March-ending quarter at an AISC of AU$1,656/oz. The Company is well-positioned to achieve its FY22 production guidance of 1.55-1.65Moz with a Group FY22 AISC guidance of AU$1,600-1,640/oz.

Also, the company reported a massive increase of 300% in its net profit after tax to AU$1.032 billion for the period.

$Northern Star Resources(NST.AU)$ has increased 4 DAYS from the recent low of AU$7.69 to AU$8.6, The YTD of $(NST.AU)$ is -7.7%. Current Market cap is AU$6.42 bln.

$Evolution Mining(EVN.AU)$

ASX-listed gold explorer $Evolution Mining(EVN.AU)$ JV partner $Vanguard Mega Cap Value Index Fund ETF Shares(MGV)$ in April 2022 reported robust assay results from diamond and air-core drilling programs on the Cue Joint Venture.

During the March quarter, EVN increased gold production by 67% at its Red Lake asset. EVN's ore mined increased by 25% to 243,000 tonnes, including a record month in March of 106,000 tonnes.

$Evolution Mining(EVN.AU)$ has increased 4 DAYS from the recent low of AU$3.23 to AU$3.69, The YTD of $(EVN.AU)$ is -8.64%. Current Market cap is AU$9.3 bln.

Agian, the return in yellow metal is usually considered to be a hedge against inflation and stagflation. 

We wish you good investing. 

If you have more great Gold ASX Stock to share, please comment under this post. 

# ASX Stocks Opportunities

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
  • invinsor
    ·2022-06-20
    Happy Fathers day. May u all profit .
    Reply
    Report
    Fold Replies
    • tig2021
      ok
      2022-06-20
      Reply
      Report
  • Mr Charles
    ·2022-06-20
    Monday blue
    Reply
    Report
  • Alubin
    ·2022-06-20
    Great share thanks
    Reply
    Report
  • PatekP
    ·2022-06-20
    历史重演!好戏要来了!👍🏻👍🏻
    Reply
    Report
    Fold Replies
    • Pluto891
      hmm.. can explain a bit more?
      2022-06-21
      Reply
      Report
  • SYCher
    ·2022-06-20
    Good article to share
    Reply
    Report
  • bromine123
    ·2022-06-20
    stagflation everywhere
    Reply
    Report
  • 不死鸟.
    ·2022-06-20
    谢谢
    Reply
    Report
  • 土豆灰灰
    ·2022-06-22
    Reply
    Report
  • Darren77
    ·2022-06-20
    Thanks for shar!ing
    Reply
    Report
  • jgaldon
    ·2022-06-26
    yes! go go go
    Reply
    Report
  • Masamune891
    ·2022-06-22
    thx for sharing
    Reply
    Report
  • traderray
    ·2022-06-21
    seems scary
    Reply
    Report
  • poonhoekit
    ·2022-06-20
    thanks for sharing
    Reply
    Report
  • cowmoos
    ·2022-06-20
    not sure
    Reply
    Report
  • xuero
    ·2022-06-20
    [Surprised] [Facepalm] [sigh]
    Reply
    Report
  • Redsuntan
    ·2022-06-20
    nice bro
    Reply
    Report
  • bluesea520
    ·2022-06-20
    thanks for sharing
    Reply
    Report
  • GeraldLee
    ·2022-06-20
    공유 해 주셔서 감사합니다!
    Reply
    Report
  • jethro
    ·2022-06-20
    thanks for the share
    Reply
    Report
  • Anzygart
    ·2022-06-20
    Probably the case for many countries as well
    Reply
    Report