Gold Producers recorded another strong quarter of cash generation as both United States and Australian gold prices rose by around 5% and 3% respectively, and if the rally remains, producers could see a further 15% lift in cash flow next quarter, according to a Monday Euroz Hartleys note.

The research firm noted that gold hedging reduced total revenue by around AU$680 million in the quarter as Northern Star Resources (ASX:NST), for instance, lost AU$345 million from hedging, even though it made only AU$32 million in real free cash flow. Companies are now reducing hedge exposure to benefit from stronger spot prices.

Euroz Hartleys also noted that Ramelius Resources (ASX:RMS) made AU$92 million but had to pay AU$74 million to Spartan shareholders, while Perseus Mining (ASX:PRU) now holds over AU$1.2 billion in cash, and Regis Resources (ASX:RRL) earned AU$158 million and is focusing on acquisitions. Vault Minerals (ASX:VAU) generated AU$27 million but lost AU$77 million due to hedging.