Gold stocks are among the most active capital raisers on the ASX. Gold exploration is a very capital-intensive activity, but the rewards are substantial if found.
Gold and silver focused resources companies form a substantial portion of Australia's mining landscape and has driven substantial capital market activity in 2020. These companies may range of early stage greenfield explorers, through to multi-continent gold producers.
For many smaller companies, they seek to apply funds to advance exploration across projects as a means to achieve shareholder returns. Activities include staking prospective ground and carrying out surveys to assess potential mineralisation. This may be conducted concurrently with preliminary field work such as surface sampling. These activities may ultimately be supported by drilling which will more definitively define potential gold and/or silver presence.
For larger companies with mature operations, investors can look towards strengthening gold pricing and asset optimisations for future returns. Many gold and precious metal producers have benefited strongly in 2020 due to strong gold pricing and global monetary easing. This has lead to strong earnings and potential for continued corporate activity as many seek to take advantage of this environment to optimise their business.
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