ASX gold stocks are on a tear as the gold price turns a corner, up ~12.7% over the past two months to a peak of $US1898/oz.
That’s a four-month high, erasing almost all of 2021’s losses.
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USD Gold price over the past 2 years.
The share prices of local gold stocks, which had drifted lower along with the gold price, are now beginning to stir.
We asked two experts for their stock picks — established gold producers, plus and a few speculative low market cap plays.
GAVIN WENDT
Founding director & senior resources analyst, MineLife
WEST AFRICAN RESOURCES (ASX:WAF)
Market Cap: ~$940 million
MineLife initiated coverage of West African back in 2015 when it was trading around $0.08 per share.
The company has since successfully managed to commercialise its ‘Sanbrado’ gold project in Burkina Faso, which is now in production. It’s a great story.
“West African’s maiden guidance was recently set at 250,000 to 280,000 ounces of gold in 2021 at AISC US$720 to US$800 per ounce,” Wendt says.
“The company has the potential for further price upside as it looks to demonstrate steady-state gold production, combined with its attraction on a corporate level to a cashed-up suitor.
“West African represents a template for success for aspiring gold companies, particularly in a foreign jurisdiction.”
WAF Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
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