The latest billion dollar business on the ASX
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The ASX has a new billion dollar company.
Gold Road Resources (ASX:GOR) joined the exclusive billion dollar club, when its shares reached $1.14 on Friday 5 July.
The rise in share price and its market cap milestone, came on the back of joint venture partner, South Africa’s Gold Road, pouring its first gold bars at the Gruyere (yes, named after the cheese) Gold Project in Western Australia.
Gruyere’s first gold pour comprised three bars containing an estimated 1,139 ounces — worth about $2.2 million at today's gold price.
Gold Road Resources is developing Australia’s newest goldfield, the Yamarna Belt, 200 kilometres east of Laverton in Western Australia and holds interests in tenements covering approximately 6,000 km2 in the region.
The Yamarna Belt is historically underexplored and highly prospective for gold mineralization, which is what attracted Gold Road to the region. In November 2016, the company entered a 50:50 partnership with Gold Fields for the Gruyere Joint Venture covering 144 km2.
Gold Road’s ascendancy comes at an interesting time.
There is a modern day gold rush occurring and it is reflected in the price of gold which is sitting above $1400. The Australian dollar gold price hit a record $2,044 an ounce in June, up from a 12-month low of $1,615 per ounce.
The outlook is certainly bullish as DJ Carmichael’s Davide Bosio points out in this Finfeed podcast.
Further to this, the Department of Industry, Innovation and Science has forecast Australia’s gold exports to peak at more than $22 billion in the 2020-21 financial year, yet it comes at a time when analysts predict a fall in gold production.
The ABC reports, “there are concerns the industry will struggle to sustain current levels of production with mining leaders and analysts pointing to a lack of major new discoveries”.
The ABC goes onto report, “Behind only China, Australia's gold mines will produce an estimated 10.7 million ounces this year — the equivalent of about $19.2 billion worth of the precious metal.
But analysts predict Canada and Russia will overtake Australia, with production to fall more than 40 per cent to 6.3 million ounces over the next five years.”
Suffice to say any Australian company with a producing mine would be in a strong position to further improve its share price.
Gruyere has a 12 year mine life and is expected to create 350 full time jobs, making Gold Road one of the premier gold producers.
There are other Australian listed gold explorers enjoying the current climate.
Shares in Shree Minerals (ASX:SHH) lifted 14% on the back of promising auger soil assays at its Golden Chimney project.
Following the release of the latest results, Executive Director Sanjay Loyalka said, “We have entered an exciting period as the early indications from Golden Chimney highlight the fact that this project is mineralised and we move towards drilling these targets.
"Our gold and iron ore assets now represent two sectors that have been very strong in Australia and we look forward to updating shareholders as we add value to each of our key projects in the near term.”
Mako Gold (ASX:MKG) also experienced a slight rise this week following news that its entire Board acquired additional shares in the company, highlighting its confidence in its Napie Gold Project in Cote d’Ivoire.
These companies have a long way to go before they reach the heights of Gold Road, but they are representative of the generally positive sentiment surrounding the gold industry.
A new billion dollar capped, ASX listed gold company is certainly a noteworthy, newsworthy moment that could have broader industry ramifications.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.