Australian gold miners are minting cash thanks to Brexit

Australian dollar gold price punches through A$1,800 an ounce mark thanks to Britain

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published June 24, 2016 2:42 pm AEST

The spot gold price has surged 5% higher today after Britain voted to exit the European Union.

According to Bloomberg, spot gold is currently fetching US$1,326.20 an ounce and with the Australian dollar falling 2.6% to US 73.44 cents, the Australian dollar value of gold is $1,805 an ounce.

With all-in sustaining costs of between $1,000 and $1,100 an ounce (and below in some cases), Australia's gold miners have virtually been given a licence to print money.

No wonder that their share prices have soared today.

Evolution FPO (ASX: EVN) up 15.5% at $2.53
OceanaGold Corporation (ASX: OGC) up 15.3% at $5.36
Resolute Mining Limited (ASX: RSG) up 13.6% to $1.375
Regis Resources Limited (ASX: RRL) up 12.7% at $3.675
Troy Resources Ltd (ASX: TRY) up 11.7% at 57.5 cents
Perseus Mining Limited (ASX: PRU) up 11% at 54.5 cents
Silver Lake Resources Limited (ASX: SLR) up 11% to 50.5 cents
Beadell Resources Ltd (ASX: BDR) up 11.5% at 34 cents
Northern Star Resources Ltd (ASX: NST) up 9.9% at $5.02
Newcrest Mining Limited (ASX: NCM) up 7.6% at $23.28

That's not all of course, with virtually the whole sector up strongly.

The only problem for investors is whether they will see any benefits flow through to them with gold companies scrooges when it comes to paying dividends.

Foolish takeaway

Gold miners should be able to pay some substantial dividends when they report their 2016 financial year results. Investors might want to switch companies if their board elect to reinvest most of their profits rather than reward shareholders.

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