5 best small cap ASX gold stocks to watch
Gold has been on a bull run for much of 2024. Here’s five of the best small cap ASX gold stocks to consider.
Why invest in gold stocks
Gold has historically enjoyed a reputation as one of the best real asset inflationary hedges in times of economic stress. It becomes particularly desirable in high inflation environments — hence the 17.6% rise in its value to around USD$2,327 an ounce over the past year.
And gold could continue to rise even as inflation falls back to more reasonable levels, because of its inverse relationship to the US dollar and strong hints that the stateside monetary tightening cycle is close to its conclusion.
Accordingly, the best small cap ASX-listed gold stocks can be attractive to investors with a reasonable risk appetite. Australia is one of the world’s top gold producers, and the country is regarded by Fraser Institute as one of the best places to mine in the world from a regulatory standpoint.
The top five ASX-listed small-cap gold stocks to watch
Here is a list of five of the top ASX-listed small-cap gold stocks to watch for those investors who seek exposure to the precious metal via small-cap equities.
Wildcat Resources (ASX: WC8)
Wildcat has three main projects in its gold portfolio — the Mount Adrah gold project in New South Wales, alongside the Bolt Cutter gold-lithium project, and the Tabba Tabba lithium-tantalum project in Western Australia's Pilbara region.
Last year, Wildcat recently completed a drilling program at Mount Adrah, encompassing 16 holes over two phases, and conducted a 30 square kilometre drone aeromagnetic survey at the project which saw significant investor interest. Ongoing activity suggests strong gold potential.
And then there’s the Tabba Tabba project — very close to Pilgangoora and Port Hedland — which has had another positive impact on Wildcat's share price. Fieldwork commenced recently, and Mineral Resources even took a stake in the company last year.
The miner's share price went on a mad tear in 2023, rising by 2,150% in the 12-month period ending in February 2024. It's since hit a roadblock, declining more than 50% year-to-date due to investor disappointment with its latest update on the Tabba Tabba project.
Besra Gold (ASX: BEZ)
Besra Gold's landholdings cover a vast area within the historically significant Bau goldfield in East Malaysia, which has a rich mining history dating back to the 1800s. Within the Bau project, Besra is currently concentrating on two deposits — Bekajang and Jugan.
The company published drill results from the Bekajang program in March 2023, which confirmed extensive gold mineralisation, and it plans to follow up with further drilling through H2. Besra's ambitious plans for the Jugan deposit, to construct a pilot plant processing facility and mine pit, are now a step closer, with land access approval finally granted in May 2024.
Importantly, the ASX gold company secured a US$300 million gold purchase agreement with shareholder Quantum Metal Recovery in May 2023, which will be paid back over 30 months and help fund its plans.
Besra Gold shares have taken a beating in 2024, dropping 29% year-to-date to just under 10 cents.
Spartan Resources (ASX:SPR)
Spartan Resources is primarily focused on the Dalgaranga gold project in Western Australia, and has made significant strides in gold exploration and development at the project.
The Dalgaranga project produced over 70,000 ounces of gold during the 2022 fiscal year before being placed into care and maintenance in November 2022. But last year, the company published drill results that confirmed a new discovery at the site, known as the Never Never deposit.
Since then, they have released further drill results showcasing several high-grade intercepts. These results were integrated into a mineral resource estimate upgrade for Dalgaranga, some 721,200oz (3.83Mt @ 5.85g/t Au) and still open.
Spartan Resources shares have risen by 422% over the past year to AU$0.83, with a market cap of AU$911.4 million.
Nova Minerals (ASX: NVA)
Nova Minerals is an ASX gold small cap with a strong presence in Alaska, where it operates its flagship Estelle project. Boasting a JORC 2012 gold resource of 9.9 million oz, Nova has an 85% interest in Estelle.
An initial Scoping Study conducted in February 2022, focusing on the Korbel deposit, yielded promising results — including an NPV of US$381 million on a 5% discount rate, and all-in-sustaining-costs (AISC) estimated at US$1,120 an ounce. Nova then proceeded with a Stage 2 Scoping Study, encompassing both the Korbel and RPM deposits, and published very well-received findings in May 2023.
The Phase 2 study increased the Estelle NPV to US$654 million while lowering the pre-production capex to US$385 million. The AISC in this case was $1,149 an ounce, and the project showcased a 11- payback time of less than a year.
It also holds 38% ownership of Snow Lake Resources, which is developing the Snow Lake Lithium Project in Northern Manitoba. Nova shares may be trading at a discount against other gold miners on ASX given recent share price falls, and it just raised $18 million in its US listing.
Nova Minerals shares have fallen over 40% year-to-date, to AUD$0.21
Brightstar (ASX: BTR)
Brightstar is another popular ASX small cap gold stock, operating multiple projects in the Western Australia goldfields, including at Laverton, Cork Tree Well, and Menzies.
The company boasts an impressive JORC Resource — for a small cap — amounting to 20.5 million tonnes at 1.5g/t for 965,000 ounces. Brightstar has all the advantages of WA infrastructure, including processing facilities, an airstrip, and an accommodation camp, all of which are ready to go. Brightstar has continuted to expand its gold inventory, recording a maiden resource of 70,000 oz at Aspacia in Western Australia in April last year.
Further, the company recently completed its scrip acquisition of Linden Gold Alliance, with the now merged company boasting an impressive array of assets.
Despite these promising developments, Brightstar's share price has fallen 30% year-to-date to AUD$0.014.
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This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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