GDX – Gold ETF

The below post is a copy of a publication on the 18th of October. Since making the post, gold stocks have performed well and we now look to trim the gains and rotate into oversold industrial & REIT names.

Vaneck Vectors Gold Miners  is under Algo Engine buy conditions following the entry condition earlier this year at $30. It is a current holding in our ALL ASX ETF model portfolio.

GDX ETF has corrected from $45 to $38 over the past 8 weeks. We feel buying support will now begin to increase.

Individual names are also now appearing on the radar, such as Newcrest Mining Northern Star Resources, Evolution Mining, OceanaGold and Gold Road Resources.


Evolution – June Quarter Results

Evolution Mining reported June quarter production in-line with market estimates and FY20 guidance remains flat at $725koz – $ 775koz.

The reversal in yesterday’s share price action can be attributed to flat production growth and higher operating expenses. FY20 all-in costs increase by 5% to A$890 – $915oz.

Production capex increases to support development at Cowal and Mt Calton.

We have EVN trading on 3% forward yield and continue to see opportunities for NST, EVN, OGC and GOR within the gold space.


Gold Miners ETF

Gold Miners ETF, GDX is now under Algo Engine buy conditions, following the higher low formation at $29.

Look for the short-term indicators to turn positive and buying support to increase within the $28.50 to $29.50 range.

Our preferred ASX listed gold miner is Evolution Mining




Evolution Minning – Approaching Support

Evolution Mining is under Algo Engine buy conditions and is currently forming a higher low near the $3.00 price range.

The company recently delivered a softer than expected result with lower production and higher operating costs.  These events combined with a softer gold price has seen the share price retrace from $4.00 to $3.20.

We anticipate a pickup in the next quarter which should see overall FY19 production in the upper band of the groups guidance range.

A new round of  “risk off” sentiment by equity investors will also be supportive of gold prices.

Add this one to your watchlist and look for an entry point between $3.00 & $3.20.

The below long term graph of the gold price shows the recent retest of the US$1325 range.