Aussie gold price starts 2025 with new record

Early results indicate strong cash build by ASX producers

It’s been a happy start to the new year for Australian gold producers with the gold price hitting an all-time high.

While US dollar gold is trading below its October 2024 record, the Australian dollar fell below US62c this week – close to a five-year low – boosting the local price of gold.

Australian dollar spot gold last traded at above US$4315 an ounce.

That follows a 40% increase in the Australian dollar gold price in 2024, versus around a 30% increase in US dollar gold.

“The momentum in Australian dollar gold prices has continued, and we have upgraded our near-term forecasts by 4-6% to reflect the continued strength in spot prices,” analysts from Argonaut said this week.

“Our medium-term target that sees gold hitting US$3000/oz in late 2026 remains unchanged, with interest rate and inflation outlook uncertainty and the continued rise in US debt likely to underpin a positive environment for gold.”

Argonaut added another two stocks, Evolution Mining (ASX: EVN) and Pantoro (ASX: PNR), to its ASX gold coverage this week, taking the total number of companies to 30.

“The rise to record levels for the Australian dollar gold price has enhanced the value case for Australian producers,” Argonaut said.

“Westgold Resources (ASX/TSX: WGX), Genesis Minerals (ASX: GMD), Catalyst Metals (ASX: CYL) and Vault Minerals (ASX: VAU) all boast total shareholder returns around 80% while Australian-based developers and explorers offers TSRs in excess of 100%, with CYL, De Grey Mining (ASX: DEG), New Murchison Gold (ASX: NMG), Magnetic Resources (ASX: MAU) and Brightstar Resources (ASX: BTR) our key picks.”

Analysts noted that the discounts for offshore producers had widened due to changes to tax regimes in some West African countries and the recent tax claim against St Barbara (ASX: SBM) in Papua New Guinea.

Perseus Mining (ASX/TSX: PRU) is Argonaut’s preferred pick though it sees value in Wia Gold (ASX: WIA), Turaco Gold (ASX: TCG), West African Resources (ASX: WAF) and Santana Minerals (ASX: SMI).

Early results flow in

The first full week of January saw many of the ASX gold producers release preliminary December quarter operating results.

· Ramelius Resources (ASX: RMS) reported quarterly gold production of 85,311 ounces, 37% up quarter-on-quarter due to the addition of high-grade Cue ore. The company reported record underlying free cashflow of A$174.5 million.

· Gold Road Resources (ASX: GOR) reported record quarterly production of 91,631oz from the Gruyere mine in Western Australia, a 50:50 joint venture with Gold Fields (JSE: GFI). The mine produced 287,270oz in 2024, only just missing full-year guidance of 290,000-305,000oz.

· Bellevue Gold (ASX: BGL) had a tougher quarter at its namesake mine in WA, producing 26,230oz, around 30% below expectations. The company dropped its 2025 financial year guidance to 150,000-165,000oz from 165,000-180,000oz, weighted to the current half and said it remained on track to hit a 200,000oz per annum run-rate from the June quarter.

· Emerald Resources (ASX: EMR) announced record production of 31,888oz from its Okvau mine in Cambodia for the December quarter, beating guidance of 25,000-30,000oz. All-in sustaining costs are expected to be in line with guidance of US$810-880/oz.

· Capricorn Metals (ASX: CMM) said its Karlawinda mine in WA produced 54,261oz in the December half, putting it ahead of full-year guidance of 110,000-120,000oz. It is expecting AISC to be within the full-year guidance range of A$1370-1470/oz.

· West African Resources (ASX: WAF)’s Sanbrado mine in Burkina Faso produced 206,622oz of gold in 2024, at the upper end of guidance of 190,000-210,000oz. Full-year gold sales were 199,550oz at an average price of US$2391/oz.

· Regis Resources (ASX: RRL) reported a record quarterly build in cash and bullion of A$149 million to A$529 million. Group gold production for the December quarter was 101,300oz. The company is on track to achieve full-year guidance of 350,000-380,000oz.

· Catalyst Metals (ASX: CYL) achieved quarterly gold production of 28,400oz of gold from the Plutonic mine in WA and Henty mine in Tasmania. The company reported cash and bullion build of A$26 million, taking its year-end 31 balance to A$84 million after retiring its debt in December.

· Westgold Resources (ASX/TSX: WGX) produced 80,886oz of gold in the December quarter, taking half-year production to 158,255oz. The company expects production growth in the current half, driven by the Bluebird-South Junction and Beta Hunt mines and the start-up of the Great Fingall mine.

Full quarterly results and further commentary is due to be released by ASX producers before the end of this month.