Evolution
Evolution Mining is on our radar as we soon expect the stock to switch from sell to buy conditions.
Sub $5.00 EVN looks interesting relative to other gold play alternatives.
Evolution Mining – Accumulate
Evolution Mining has completed the Red Lake acquisition and we expect the turnaround to evolve over time, adding over 130oz of production.
Accumulate EVN at the current price.
GDX – Gold ETF
The below post is a copy of a publication on the 18th of October. Since making the post, gold stocks have performed well and we now look to trim the gains and rotate into oversold industrial & REIT names.
Vaneck Vectors Gold Miners is under Algo Engine buy conditions following the entry condition earlier this year at $30. It is a current holding in our ALL ASX ETF model portfolio.
GDX ETF has corrected from $45 to $38 over the past 8 weeks. We feel buying support will now begin to increase.
Individual names are also now appearing on the radar, such as Newcrest Mining Northern Star Resources, Evolution Mining, OceanaGold and Gold Road Resources.
Evolution Mining – Buy
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The backdrop should now support a rally in gold prices and EVN offers upside from the current $3.80 level.
Gold Finds Buying Support
As the gold price finds buying support our basket of preferred names, Northern Star Resources, Evolution Mining, Newcrest Mining and Vaneck Vectors Gold Miners are among the best percentage performers today.
We continue to like Northern Star Resources as our main gold play.
Evolution Mining – Opportunity Approaches
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see a buy-side opportunity approaching following recent price retracement. Look for the short-term indicators to turn positive within the support range indicated on the chart below.
Evolution Mining – Algo Buy Signal
Evolution Mining is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
A review of the valuation metrics show FY20 revenue is forecast to be $1.6bn, EBITDA jumps to $940mn on net income of $390mn.
This places EVN on 16x forward earnings and a 3.5% dividend yield.
Buy EVN $4.70
Gold Price Chart
Evolution Mining – Gold Stocks Find Support
Evolution Mining is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.
We see price support developing near the $4.55 level.
Evolution – June Quarter Results
Evolution Mining reported June quarter production in-line with market estimates and FY20 guidance remains flat at $725koz – $ 775koz.
The reversal in yesterday’s share price action can be attributed to flat production growth and higher operating expenses. FY20 all-in costs increase by 5% to A$890 – $915oz.
Production capex increases to support development at Cowal and Mt Calton.
We have EVN trading on 3% forward yield and continue to see opportunities for NST, EVN, OGC and GOR within the gold space.
Gold Miners ETF
Gold Miners ETF, GDX is now under Algo Engine buy conditions, following the higher low formation at $29.
Look for the short-term indicators to turn positive and buying support to increase within the $28.50 to $29.50 range.
Our preferred ASX listed gold miner is Evolution Mining
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
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