OceanaGold shares soar

OGC

2.940

-0.09

-2.97%

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OceanaGold Corp cited record gold prices and an increase in resources at its Macraes project in answer to an ASX query on its soaring stock price this month.

The NZX-listed shares have jumped 79 percent to as much as $2.50 since the start of the month, the highest since May 2008. New Zealand's biggest goldminer has a market value of $902 million, based on today's price of $2.45, up 2 percent from Friday. The ASX-listed stock was last at A$1.93.

"The ongoing increase in the price of gold to record levels is likely to have had a favourable impact on investor sentiment in respect of gold producers," company secretary Matthew Salthouse said in a letter to the ASX released today.

A "material increase" in mineral resources at Macraes, the Otago gold project, also "may have had an impact on investor sentiment."

The price of gold soared to as high as US$1,192.60 an ounce in New York last week as a weakening U.S. dollar as signs of a revival in the global economy spurred investors to buy the precious metal as an alternative investment.

The price of gold extended its rally this month after India, the world's biggest consumer of the metal, said it bought bullion from the International Monetary Fund.

Earlier this month, the company raised its estimate of reserves at Macraes by 42 percent.

OceanaGold said it wasn't sitting on any other information that could have accounted for the share-price gain. 

-BUSINESSWIRE