Northern Star Resources (ASX:NST) explores and develops mineral resources in the highly prospective Kimberley region.

NST is an emerging gold producer and explorer with a market capitalisation of around $180 million.

Its main project is the Paulsens gold mine which it purchased for $40 million.

The miner expects to release a resource upgrade later this month and a new mine plan for Paulsens this year.

NST recently acquired the 668,000 ounce (oz) Ashburton Gold Project which is close to the Paulsens mine.

Precious metal speed hump

We saw gold and silver futures slide recently as investors reacted to hikes in margin requirements for the contracts.

The CME Group raised margin requirements for both initial and existing positions in gold, copper and silver.

Margins are money investors must put up to be able to trade and hold futures contracts.

Gold lost more than US$100/oz on the announcement, printing a low of around US$1533/oz.

However, gold prices have since recovered from that low and are currently hanging at around US$1665/oz.

The fact of the matter is, the underlying fundamentals behind the gold price rally over the past year are still intact and we are likely to see gold continue to rise.

Ashburton acquisition

NST agreed to purchase the Ashburton Gold Project from Sipa Resources which will be paid for via a royalty on future production.

The deal includes 668,000oz resource and the Mt Olympus Gold Mine, which has previously produced 340,000oz.

This puts NST in a prime position to increase production rates, project life and create shareholder wealth through exploration.

Ashburton is a strategic asset for Northern Star Resources as it provides an immediate resource boost to the miner’s resource base.

High grade drilling results from Ashburton announced last week show NST is on track to grow production to 200,000ozpa.

Results

NST recently posted FY11 profit before tax of $20 million. This profit came after deducting $22 million for the acquisition of Paulsens gold mine and $24 million in depreciation and amortisation expenditure.

The result was aided by record production at Paulsens of 87,069oz at $588/oz cash cost.

NST has $30 million in cash on hand as at 27 September 2011 and is on track to exceed calendar 2011 forecast of $40 million surplus cash, 75,000oz production.

A resource upgrade is set for early 2012 with increases in mine life, production and cashflow expected.

The miner repaid the $40 million acquisition of Paulsens in just seven months.

Being unhedged, NST has maximum exposure to the strong gold prices and as a result it was one of the hot stocks over the course of 2011.

With strong cashflow and a robust balance sheet, NST is in a good position to grow.

Outlook

Gold is set to recover after recently suffering a setback from the CME’s decision to raise margin requirements.

NST’s strong financial position leaves it well placed for further acquisitions in line with its objective of building a major mining house.

With the potential for further acquisitions and strong gold prices backing the unhedged miner, we feel NST will be one of the stocks to watch in coming months.

Recent weakness presents an excellent opportunity for fresh entries.

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Regis Resources Limited (ASX:RRL) is an emerging Australian gold production and exploration company.

Its management team has a successful track record of developing mid sized gold operations within Australia and Africa.

It has been one of the hot shares in the past year, having more than tripled in price since July 2010.

Today, RRL reported a maiden FY12 net profit of $36.3 million.  The result compares to a net loss of $18.3 million in FY11.

The group posted gold sales of $107.9 million as it successfully transitioned from explorer to producer.

RRL said the development of the Garden Well Gold Project will take its output to around 350,000 ounces in FY12/13.

Therefore it will be one of the shares to watch.

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Perseus Mining (ASX:PRU) is a gold explorer, focused on under-explored gold belts in West Africa.

The group’s Central Ashanti Gold Project has reserves of 3.3 million ounces (Moz) of gold, plus 1.5 Moz Measured and Indicated gold resources and 1.9 Moz Inferred gold resources.

A further 570,000 ounces of indicated gold resources and 1.21 Moz inferred gold resources are held on PRU’s West African projects, Grumesa and Tengrela.

The two projects (Central Ashanti Gold and Tengrela) aim to put out 670,000 oz per year once at full production, which would make PRU Australia’s second-largest listed miner by production after Newcrest Mining.

Further mineral resource and reserves upgrades are planned for later this year.

The miner recently completed its first gold pour during commissioning at the Central Ashanti Gold Project.

Though PRU is currently an explorer, the company is on track to become a producer.

PRU’s aim is to become a 400,000 ounce per annum gold producer from 2013, and the company is on target to achieve this following its consistent over-delivery on targets.

PRU is looking promising owing to its exposure to the under-explored gold belts in West Africa and on strength in gold prices.

Operational update

Following a recent updated economic analysis incorporating a revised life of mine plan (LOMP), PRU has planned throughput optimisation upgrades over the next 18 months.

Under the upgrade, average process throughput will increase from 5.5 Mtpa to 7.9 Mtpa.

Average annual gold production is set to increase by 38% to approximately 265,000oz.

Cash costs will drop to US$551/oz with a base case gold price of US$1,150/oz.

As a result, PRU’s EBITDA over the life of the project has increased by 127% to $1.56 billion.

The early start up of the Central Ashanti Gold Project could push the gold miner’s EBITDA up to US$300 million a year in 2013 and 2014.

Of course, the company will continue to lose money until it starts producing, although it has ample funding facilities to pursue its exploration activities and mine development plans.

Looking ahead

Perseus Mining is turning market heads over its consistent over-delivery on targets. The group is also in good financial stead, with approximately US$100 million cash.

Though PRU’s recent financial results are nothing to write home about, this is typical of a company in its emerging stages.

PRU is looking promising owing to its exposure to the under-explored gold belts in West Africa and on strength in gold prices.

The group will continue to expand its gold resources through rapid exploration of existing tenements and the acquisition of prospective new projects, while developing the Central Ashanti Gold Project.

Gold has gained significant ground this year, consistently reaching fresh record highs.

However, the precious metal saw a pullback late last week but is still in a good position to register further gains.

The metal printed highs of around US$1900 early last week and continues to hold its ground well above US$1800.

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Troy Resources NL (ASX:TRY) is a junior gold producer with operations at Sandstone in Western Australia and the Andorinhas Gold mine in Para State, Brazil.

The company, which is dual-listed on the Australian and Toronto Stock Exchanges, also boasts the Casposo gold-silver project being developed in Argentina.

TRY has forged a proven record of fast-track mine development., low cost operations, strategic acquisitions and exploration discoveries.

The Casposo mine and processing plant development recently recorded its first gold pour.

TRY has stepped into gold production at the right time, with gold prices repeatedly hitting record highs and driving up prospective gold miners such as TRY.

Operations booming

TRY is involved in gold production through its operations at Sandstone and Andorinhas, with the latter a focus of TRY’s attention over the last year.

Last year TRY acquired the Casposo gold/silver deposit in Argentina, and on 29 September confirmed the commencement of ore processing at the project.

The project has already poured its first gold.

Casposo will support the doubling of TRY’s production and rejoining the plus 100,000oz per annum producer club.

Troy Resources has an aggressive exploration program aimed at increasing Reserves and Resources and nearly all of this exploration expenditure is expensed.

The miner recently announced a high grade drill intercept outside the current Reserves and Resources in the Kamila South East Extension.

TRY is confident it will add to the existing Reserves and extend the mine life past the current planned 6 years.

Quarterly update

For the June quarter, TRY saw a 68% increase in group gold production to 26,382oz at a cash cost of US$496/oz.

For the year, gold production was up 17% to 71,614oz at a cash cost of US$554/oz.

The miner enjoyed record quarterly and annual production at Andorinhas. TRY has its exploration budget at Caposo to $15 million.

Strong cashflow generation saw net debt decrease to just $5.5 million at the end of the quarter.

Looking ahead

With inflation concerns and a weaker US dollar continuing to propel gold prices higher, we feel TRY has plenty of upside potential.

Bullion prices have rocketed this year, and the domestic gold miners have been some of the hot stocks in recent months.

Gold price has repeatedly hit record highs of US$1815.5 per oz last week with forecasts it will keep rising.

Fears over rising debt levels across the US and Europe provide strong support for gold prices.

TRY is committed to pursuing growth through exploration, acquisition of new projects and/or corporate merger activity.

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Newcrest Mining (ASX:NCM) is the biggest Australian gold producer on the share market, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US.

Gold remains in high demand due to a volatile US dollar and economic uncertainty, and as a result NCM has been one of the best stocks in the past few months.

Today, NCM reported a 63% surge in FY11 net profit to $908 million, driven mainly by surging gold prices and the production jump from its Lihir acquisition.

A final unfranked dividend of 20 cents was declared, in addition to a special unfranked dividend of 20 cents.

Underlying profit was up 36% on-year to $1.06 billion, coming in slightly ahead of analyst estimates.

NCM grew its FY11 output 43% to 2.5 million ounces of gold, and forecast FY12 production of 2.775 million – 2.925 million ounces.

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Resolute Mining (ASX:RSG) is a gold mining and exploration company, operating primarily in Africa and Australia.

It is the second largest gold producer by volume listed on the Australian stock exchange.

The group has a portfolio of three operating mines in Africa and Australia.

Its three operating mines are: Golden Pride in Tanzania, Ravenswood in Queensland, and the newly re-developed Syama in Mali, which was once a BHP Billiton operation.

RSG’s operations are well-placed, and exploration is likely to lead to further resource discoveries, underground, and in nearby pits.

Being unhedged, RSG continues to benefit from a boom in gold prices.

Doubling exploration budget

RSG today announced an annual group exploration budget increase to $20 million in FY12, from $10 million in FY11.

The news comes after RSG identified some high priority exploration targets at Syama in Mali and Ravenswood in Queensland.

RSG has a strengthening balance sheet on the back of operating improvements at Syama.

Results from current exploration at both projects will be provided in the miner’s June Quarter Report.

It is targeting an increase in production from its flagship Syama project to 250,000oz of gold a year after an extended ramp-up and commissioning period

Golden update

Last month, RSG provided its Group gold production and cash cost guidance for FY12.

Gold production in the coming year is forecast to increase to 410,000 ounces at a cash cost of $730 per ounce.

This cements RSG’s position as the second largest primary listed gold producer on the ASX.

It also represents a substantial increase in production and reduction in cash costs.

RSG’s continued improvement in outlook is underpinned by ongoing progress being achieved at the Syama operation in Mali.

The miner’s shares surged 7.6% on the day of the announcement.

Looking ahead

RSG could be debt free by the end of December should existing share options and convertible note debt be converted to equity.

The miner has a highly prospective tenement package with the potential to add significant value for shareholders.

Gold has gained significantly this year, reaching fresh record highs this week as global economic uncertainty pushes investors towards the safety of the shiny metal.

The metal printed highs of around US$1610 this week and continues to hold its ground well above US$1500.

Following the recent production and reserves updates, RSG seems well placed to benefit from the surging gold prices so it will be one of the stocks to watch in coming months.

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Integra (ASX:IGR) is an Australian gold explorer looking at becoming a significant new mid-tier Australian gold production house.

IGR has built up its portfolio through a series of acquisitions, joint ventures and strategic alliances – predominantly in the Eastern Goldfields region of Western Australia.

It is looking to commission its flagship, the Randalls Gold Project. In January, IGR announced a 40% increase in resources.

The miner has an attractive asset portfolio with low cost gold production, approximately $500 per ounce cash cost.

It has enjoyed a successful transition to a gold producer aiming to produce 140,000 ounces (oz).

IGR has a good track record of discovery and development with significant exploration potential.

The miner recently reported shallow high grade gold results at the Lucky Bay prospect.

Business investment

Integra is looking to spend $12 million upgrading its processing facility. It will also be looking to repay $20 million worth of debt.

By the end of FY12, the company will be nearly debt free.

The Randalls Gold project will be producing 90,000oz per year at $500 per ounce.

The process plant expansion is expected to be completed by August. The target production is 100,000oz per annum.

There are also plans to increase production to 120,000-140,000oz per year underpinned by underground production potential.

Looking ahead

IGR has a very strong business primed for long term growth. The recent positive results at Lucky Bay are testament to IGR’s strength and potential.

Gold has gained significantly this year, reaching fresh record highs as global economic uncertainty, natural disasters and tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal tacked on 4% last week and continues to hold its ground well above US$1500.

With plenty in the reserve growth pipeline and rising gold prices, we feel IGR will be one of the stocks to watch in coming months.

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Ramelius Resources (ASX:RMS) is a Western Australian-focused unhedged gold producer with mining operations at Wattle Dam near Kambalda and milling facilities at Burbanks near Coolgardie.

Wattle Dam is the group’s cash cow, producing solid amounts of high grade gold at a low cost.

With Wattle’s mine life potentially coming to an end, RMS also has its lucrative Mt Magnet project, which will come into production this year.

RMS is benefitting from its strong operations and boom times for gold. The group is a low-cost operator with no debt and in a strong financial position with $90 million in cash on hand.

Golden production

RMS produced just over 100,000 ounces (oz) of gold from its Wattle Dam gold mine for the full year.

On the back of a solid June quarter, total gold production for the mine was over 200,000 oz, including production from the former open pit of 51,000 oz.

The Mt Magnet project north east of Perth is proceeding with the planned schedule for gold production to begin in January 2012.

RMS currently has $100 million in cash and gold on hand.

The stock will also benefit from a surging gold price.

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Newcrest Mining (ASX:NCM) is Australia’s largest gold producer, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US. The miner also has a smaller exposure to copper, mostly as a by-product of its gold production.

Importantly, NCM is working on bringing a few massive projects on stream. It already has six operating mines and five significant development projects.

NCM achieved its first gold production at its Hidden Valley gold mine in PNG, and delivered initial production ore at Ridgeway Deeps, a resource below its Ridgeway mine in central New South Wales.

In contrast to most miners, NCM mostly focuses on exploration-led production increases rather than acquisitions.

However, NCM reversed this trend when it decided to takeover Lihir Gold (LGL).

Newcrest Mining this week downgraded its production guidance for FY11 as a result of a production interruption at its Lihir mine and minor production delays at other sites.

Australia’s biggest gold miner is now expecting to produce 2.7 million ounces of gold this year, down approximately 3.5% from its previous guidance of 2.75 – 2.85 million ounces.

NCM should continue to receive support from surging gold prices.

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Newcrest Mining (ASX:NCM) is Australia’s largest gold producer, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US. The miner also has a smaller exposure to copper, mostly as a by-product of its gold production.

The company is also considered among the market’s blue chip stocks by virtue of its size and performance.  Furthermore, due to its leverage to rising gold prices, NCM has been one of the hot stocks over the past month.

NCM reported its latest quarterly production numbers yesterday.  The results showed a 16% decline in gold output from the previous quarter.

Gold output was hit by wet weather events in eastern Australia, low rainfall which hurt production at Lihir, and civil unrest in the Ivory Coast leading to the suspension of operations at Bonriko.

As a result, NCM said cash costs for the quarter rose from $440 to $497 per ounce.  Newcrest Mining also downgraded full year gold production guidance to 2.82 million ounces (plus or minus 35,000 ounces).

This compares to previous guidance of between 2.85 million and 2.95 million ounces.

Copper production guidance was left unchanged at 75,000 – 80,000 tonnes, with cash cost guidance also remaining the same.

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