Reuters
Miramar Mining shares jump with gold prices
Tuesday May 4, 3:11 pm ET
TORONTO, May 4 (Reuters) - Miramar Mining Corp. (Toronto:MAE.TO - News) shares leaped more than 17 percent on Tuesday, as the small Canadian gold miner benefited from a rebounding gold price.
Shares of the North Vancouver, British Columbia-based company rose 31 Canadian cents, or 17 percent, to C$2.13. Volume was 1.38 million shares, triple the 90 average of 460,000.
"In this whole wave of retrenchment that we've had in the gold sector, it would seem that the smaller cap, or the more risky stage development stories, were harder hit than people like Barrick or Placer," said Barry Allan, an analyst with Research Capital, Corp.
Allan said there had been more of a wholesale rebound on Tuesday for these types of companies, which were previously oversold.
Bullion prices were up $4.30 at $391.80.
"It's also going into its exploration phase ... so, in a month or so, they'll get active up in the Arctic, spending a lot of money on exploration, on drilling," said Michael Curran, an analyst at CIBC World Markets Inc.
"So it's a normal time for the market to get a little more interested in the stock -- speculating and hoping that they have some good news, good drill results, in the next three to four months."
The company may also release drilling results next week, according to Miramar spokeswoman Nicole Copley.
The miner is considered an emerging producer, a part of the advanced exploration tier of miners. Their current projects include gold exploration on the Arctic coast of Nunavut territory in Northern Canada.
($1=$1.37 Canadian)
My comment? A shame that story not linked to MNG. Suggest including MAE.to in your Yahoo portfolio list to assure you see this sort of stuff.
Also I doubt the stock is up for the reasons Allan gives. Sure some of the move is due to the pog but Miramar will produce little gold until 2006 and a rise in the price now only hurts because of the existing hedges. Yes gold companies are valued on the basis of their assets but we should all remember that it's the drilling. Without the drilling assets won't increase. |
