The S&P/ASX 300 Index (ASX: XKO) is down 0.8% in late morning trade, and it's not getting any help from these two sinking ASX 300 gold shares.
The ASX gold miners in question are Perseus Mining Ltd (ASX: PRU) and Chalice Mining Ltd (ASX: CHN), both of which are trailing the benchmark at the time of writing.
This comes as investors digest the companies' quarterly updates, released this morning.
Here's what's happening.
Perseus Mining share price slides as costs rise
The Perseus mining share price is down 5.0%, trading for $2.45 a share. Don't feel too bad for longer-term shareholders, however, with the stock still up 41% over 12 months, not including dividends.
As for today, the ASX 300 gold share is facing headwinds after reporting it recovered 120,929 ounces of gold for the June quarter, down from 127,471 ounces in the March quarter.
And all-in sustaining costs (AISC) were up 7.5% quarter on quarter to US$1,173 an ounce.
On the plus side, gold sales increased 22.7% to 141,930 ounces. And the average sales price of US$2,117 per ounce was up 4.4% quarter on quarter.
Notional cash flow for the quarter came in at $117 million.
The ASX 300 gold share produced 248,000 ounces of gold in H2 FY 2024 and 509,977 ounces for the full year. That compares to guidance of 226,000 to 254,000 ounces for the half year and 491,000 to 517,000 ounces for the full year.
At the end of the quarter, Perseus' hedged position was 332,200 ounces at a weighted average sales price of US$2,199 per ounce.
The company reported cash and bullion of US$587 million after acquiring the large scale Nyanzaga Gold Project in Tanzania.
The miner will report its full FY 2024 results on 28 August.
ASX 300 gold share in the red amid ongoing cash outflows
Chalice Mining is also underperforming today after releasing its quarterly update, with shares down 1.9% at $1.05 apiece. That sees the Chalice Mining share price down a precipitous 82% over 12 months.
The ASX 300 gold share is under renewed pressure today after reporting operating cash outflows of $8.1 million for the quarter. That brings the full FY 2024 cash outflows to around $44.1 million.
Chalice said it continued with expenditure reductions during the quarter and deferred non-core study/permitting activities where possible, "considering the current macro environment."
The company said its Gonneville critical minerals project continues to progress with the necessary studies and regulatory approvals. Management is aiming for it to be final investment decision (FID) ready in late calendar year 2026.
They noted that, "Only activities which are critical to scope and optimise the project are being pursued and other expenditures have been reduced considerably."
As at 30 June, Chalice had a cash balance of around $89 million, $22 million in listed investments and no debt.
The ASX 300 gold share indicated there was no need for it to raise capital in the foreseeable future.
