2 ASX gold shares going gangbusters (and one crashing 11%!)

There's a lot going on in the gold sector today.

| More on:
Gold bars with a share price chart in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The gold sector is booming on Thursday with strong gains largely across the board.

For example, Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) shares are both up over 3% at the time of writing. This has helped drive the S&P/ASX All Ordinaries Gold index 2% higher during morning trade.

Why are these ASX gold share racing higher?

Investors have been buying gold miners today after the spot gold price raced higher overnight.

According to CNBC, the gold price rose 1.3% to US$2,364.2 an ounce in response to softer than expected economic data out of the United States.

This has boosted hopes of interest rate cuts in the United States in the near future, which would increase the appeal of gold with investors.

Not all gold stocks are rising

One ASX gold share that is crashing today despite this good news is West African Resources Ltd (ASX: WAF). Its shares are down 13% to $1.38 at the time of writing.

This is because this morning, the Africa-focused gold miner announced that it has received firm commitments from institutional and sophisticated investors for a placement.

West African Resources is raising approximately $150 million through the issue of 109.5 million new shares at a discount of $1.37 per new share.

Management notes that there was strong support from both domestic and offshore institutions for the placement, which will support development activities at the Kiaka Gold Project.

The Kiaka Gold Project is expected to be a long-life, low-cost project averaging 234,000 ounces per annum for 20 years with an all-in sustaining cost of US$1,196 per ounce.

With an estimated pre-production capital cost of US$447 million, combined with existing cash at bank and unsold bullion, West African Resources believes that it now has sufficient financial flexibility to fund project construction and ramp-up, supporting the pathway to commencement of gold production. This is expected in third quarter of 2025.

The ASX gold share's executive chairman and CEO, Richard Hyde, commented:

West African continues to make significant progress towards development of the Kiaka Gold Project with development 50% complete and 75% of capital costs fixed. Proceeds from the placement are expected to provide West African with proforma cash at bank and unsold bullion proceeds of A$604m, 5 positioning West African to continue to rapidly progress the development of the Kiaka Gold Project. West African is currently on schedule to be a +420,000 ozpa gold producer from 2025.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Rising gold share price represented by a green arrow on piles of gold block.
Gold

3 reasons to buy this surging ASX All Ords gold stock today

The ASX All Ords gold stock has doubled investors’ money in 12 months, and this leading expert forecasts more outperformance…

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

Why is this ASX gold stock jumping 7% today?

This gold miner is catching the eye on Thursday. What's getting investors excited? Let's find out.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

2 ASX gold stocks racing higher in Monday's sinking market

Investors are sending these ASX gold stocks flying higher on Monday. But why?

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Gold Road shares surge 10% on $3.7 billion takeover offer

The ASX 200 gold stock is soaring after finding itself in the acquisition crosshairs.

Read more »

Gold bars and Australian dollar notes.
Dividend Investing

How these soaring ASX 200 stocks are shaping up to be the dividend gems of 2026

With revenue surging, these ASX 200 stocks may be supersizing their dividends in 2026.

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Given the record gold price, what price target does Macquarie have on Newmont shares?

Up 36% in 2025, what can ASX investors expect next for the Newmont share price?

Read more »

Miner looking at a tablet.
Gold

ASX 200 gold stock slides on $819 million Africa news

Investors are bidding down this outperforming ASX 200 gold stock today. But why?

Read more »

Gold spelt out on block cubes with an up and down arrow.
Gold

How much upside does Macquarie tip for Northern Star shares following its acquisition of De Grey Mining?

Is the broker tipping this gold miner's shares to keep rising? Let's find out.

Read more »